Capri Holdings (NYSE:CPRI) reported stronger-than-expected first-quarter fiscal 2027 results, surpassing Wall Street forecasts for both earnings and revenue. However, the luxury fashion group reduced its full-year revenue outlook, sending shares modestly lower after the announcement.
The company posted adjusted earnings of $0.67 per share, comfortably ahead of the analyst consensus estimate of $0.39. Revenue totalled $769 million, exceeding expectations of $757 million, although it declined 3.5% from $797 million in the same quarter last year.
Full-year revenue outlook reduced
Despite the better-than-expected first-quarter performance, Capri lowered its fiscal 2027 revenue forecast to approximately $3.4 billion, below the Wall Street consensus estimate of $3.51 billion.
Management said the revised outlook reflects several temporary challenges, including around $50 million of lower-than-expected second-quarter revenue at Michael Kors due to inventory delays.
The company also cited approximately $50 million of weaker demand across Europe, the Middle East and Africa (EMEA) linked to the ongoing conflict in the Middle East, as well as a further $35 million impact from unfavourable foreign exchange movements.
Earnings guidance remains unchanged
Capri maintained its full-year adjusted earnings per share guidance at approximately $2.15, representing expected growth of around 40% compared with the previous fiscal year.
For the second quarter of fiscal 2027, the company forecast revenue of approximately $780 million, significantly below the analyst consensus estimate of $851 million.
Management attributed the weaker outlook to inventory delays affecting Michael Kors, softer demand across EMEA, foreign currency headwinds and the timing of wholesale shipments that benefited first-quarter results.
CEO highlights operational progress
Chairman and Chief Executive Officer John D. Idol said the company remains encouraged by its first-quarter performance despite the revised revenue outlook.
“We are encouraged by our first quarter results, which exceeded our expectations and demonstrated the progress we are making to build a stronger and more profitable business,” Idol said.
Jimmy Choo offsets weakness at Michael Kors
Michael Kors generated revenue of $590 million during the quarter, a decline of 7.1% from the prior year.
By contrast, Jimmy Choo delivered revenue growth of 10.5%, with sales increasing to $179 million.
Capri also expanded its gross margin by 200 basis points to 65.0%, supported by stronger full-price selling and lower tariff costs.
During the quarter, the company repurchased approximately 2.6 million shares for $50 million at an average purchase price of $19.31 per share.
Capri Holdings stock price
