Have you evaluated the performance of Capri Holdings' (CPRI) international operations during the quarter that concluded in December 2025? Considering the extensive worldwide presence of this luxury retailer, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
Our review of CPRI's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
For the quarter, the company's total revenue amounted to $1.03 billion, experiencing a decline of 18.7% year over year. Next, we'll explore the breakdown of CPRI's international revenue to understand the importance of its overseas business operations.
A Closer Look at CPRI's Revenue Streams Abroad
EMEA accounted for 26.2% of the company's total revenue during the quarter, translating to $268 million. Revenues from this region represented a surprise of -0.05%, with Wall Street analysts collectively expecting $268.14 million. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $261 million (30.5%) and $341 million (27%) to the total revenue, respectively.
During the quarter, Asia contributed $111 million in revenue, making up 10.8% of the total revenue. When compared to the consensus estimate of $111.46 million, this meant a surprise of -0.41%. Looking back, Asia contributed $104 million, or 12.2%, in the previous quarter, and $166 million, or 13.2%, in the same quarter of the previous year.
Anticipated Revenues in Overseas Markets
The current fiscal quarter's total revenue for Capri Holdings, as projected by Wall Street analysts, is expected to reach $804.44 million, reflecting a decline of 22.3% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: EMEA is anticipated to contribute 29.9% or $240.68 million, and Asia 13.5% or $108.8 million.
For the full year, the company is projected to achieve a total revenue of $3.47 billion, which signifies a fall of 21.8% from the last year. The share of this revenue from various regions is expected to be: EMEA at 28.7% ($997.82 million), and Asia at 12.5% ($434.27 million).
Key Takeaways
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 era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
At present, Capri Holdings holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Assessing Capri Holdings' Stock Price Movement in Recent Times
Over the past month, the stock has lost 22.7% versus the Zacks S&P 500 composite's 0.2% decrease. The Zacks Retail-Wholesale sector, of which Capri Holdings is a part, has declined 1% over the same period. The company's shares have declined 7% over the past three months compared to the S&P 500's 3.4% increase. Over the same period, the sector has risen 1.3%
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Capri Holdings Limited (CPRI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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