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Capri Holdings (CPRI) Reliance on International Sales: What Investors Need to Know
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Have you looked into how Capri Holdings (CPRI - Free Report) performed internationally during the quarter ending March 2025? Considering the widespread global presence of this luxury retailer, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While analyzing CPRI's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $1.04 billion, showing decrease of 15.4%. We will now explore the breakdown of CPRI's overseas revenue to assess the impact of its international operations.
Exploring CPRI's International Revenue Patterns
EMEA accounted for 29.18% of the company's total revenue during the quarter, translating to $302 million. Revenues from this region represented a surprise of +3.31%, with Wall Street analysts collectively expecting $292.33 million. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $341 million (27.04%) and $352 million (28.78%) to the total revenue, respectively.
Of the total revenue, $172 million came from Asia during the last fiscal quarter, accounting for 16.62%. This represented a surprise of +2.22% as analysts had expected the region to contribute $168.26 million to the total revenue. In comparison, the region contributed $166 million, or 13.16%, and $224 million, or 18.32%, to total revenue in the previous and year-ago quarters, respectively.
Projected Revenues in Foreign Markets
Wall Street analysts expect Capri Holdings to report $772.33 million in total revenue for the current fiscal quarter, indicating a decline of 27.6% from the year-ago quarter. EMEA and Asia are expected to contribute 33.6% ($259.35 million) and 18.8% ($145.13 million) to the total revenue, respectively.
For the entire year, the company's total revenue is forecasted to be $3.34 billion, which is a reduction of 24.7% from the previous year. The revenue contributions from different regions are expected as follows: EMEA will contribute 35.3% ($1.18 billion) and Asia 17.4% ($581.41 million) to the total revenue.
The Bottom Line
Relying on international markets for revenues, Capri Holdings faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
The stock has increased by 16.5% over the past month compared to the 6.1% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Retail-Wholesale sector, which includes Capri Holdings, has increased 5.6% during this time frame. Over the past three months, the company's shares have experienced a loss of 13.2% relative to the S&P 500's 0.5% decline. Throughout this period, the sector overall has witnessed a 2.8% decrease.
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Capri Holdings (CPRI) Reliance on International Sales: What Investors Need to Know
Have you looked into how Capri Holdings (CPRI - Free Report) performed internationally during the quarter ending March 2025? Considering the widespread global presence of this luxury retailer, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While analyzing CPRI's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $1.04 billion, showing decrease of 15.4%. We will now explore the breakdown of CPRI's overseas revenue to assess the impact of its international operations.
Exploring CPRI's International Revenue Patterns
EMEA accounted for 29.18% of the company's total revenue during the quarter, translating to $302 million. Revenues from this region represented a surprise of +3.31%, with Wall Street analysts collectively expecting $292.33 million. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $341 million (27.04%) and $352 million (28.78%) to the total revenue, respectively.
Of the total revenue, $172 million came from Asia during the last fiscal quarter, accounting for 16.62%. This represented a surprise of +2.22% as analysts had expected the region to contribute $168.26 million to the total revenue. In comparison, the region contributed $166 million, or 13.16%, and $224 million, or 18.32%, to total revenue in the previous and year-ago quarters, respectively.
Projected Revenues in Foreign Markets
Wall Street analysts expect Capri Holdings to report $772.33 million in total revenue for the current fiscal quarter, indicating a decline of 27.6% from the year-ago quarter. EMEA and Asia are expected to contribute 33.6% ($259.35 million) and 18.8% ($145.13 million) to the total revenue, respectively.For the entire year, the company's total revenue is forecasted to be $3.34 billion, which is a reduction of 24.7% from the previous year. The revenue contributions from different regions are expected as follows: EMEA will contribute 35.3% ($1.18 billion) and Asia 17.4% ($581.41 million) to the total revenue.
The Bottom Line
Relying on international markets for revenues, Capri Holdings faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Capri Holdings currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Capri Holdings' Recent Stock Market Performance
The stock has increased by 16.5% over the past month compared to the 6.1% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Retail-Wholesale sector, which includes Capri Holdings, has increased 5.6% during this time frame. Over the past three months, the company's shares have experienced a loss of 13.2% relative to the S&P 500's 0.5% decline. Throughout this period, the sector overall has witnessed a 2.8% decrease.