Michael Kors owner Capri jumps 19% after raising its annual forecasts
Capri now expects fiscal 2027 revenue of $3.42 billion and says sales will return to growth in the fourth quarter, even though Michael Kors revenue fell 8.6%.
Shares in Capri Holdings, owner of Michael Kors and Jimmy Choo, jumped more than 19% on Friday after the group raised its annual revenue and profit forecasts, BoF and Reuters report. It was set to be the stock’s best day in 18 months.
The numbers
- Fiscal 2027 revenue is now expected at $3.42 billion, up from $3.40 billion and slightly above the analysts’ average of $3.41 billion (LSEG).
- Annual profit guidance was raised to $2.20 per share from $2.15.
- Second-quarter adjusted profit was 42 cents per share, double the 21-cent estimate.
- Michael Kors revenue fell 8.6% in the quarter, while Jimmy Choo grew about 12%. Modaes puts total quarterly sales at $809 million.
The turnaround plan
CEO John Idol said revenue trends should improve in the third quarter and return to growth in the fourth, helped by new product launches, holiday demand and higher marketing spending. Guggenheim analyst Simeon Siegel said the guidance could win back investors who had put Capri in the “out of sight, out of mind” bucket.
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