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Jul 02, 2022

Capri Q1 2023 Earnings Report

Achieved record first quarter revenue and adjusted earnings per share.

Key Takeaways

Capri Holdings Limited reported strong first quarter fiscal 2023 results, with revenue increasing 8.5% to $1.36 billion and adjusted earnings per share reaching $1.50, exceeding expectations due to strong momentum across all three luxury houses.

Revenue increased 8.5% on a reported basis and 15.2% in constant currency, with better than anticipated results across all three luxury houses

Adjusted operating margin of 18.5%

Adjusted earnings per share of $1.50

Company repurchased approximately 6.1 million ordinary shares for approximately $300 million

Total Revenue
$1.36B
Previous year: $1.25B
+8.5%
EPS
$1.5
Previous year: $1.42
+5.6%
Gross Profit
$901M
Previous year: $856M
+5.3%
Cash and Equivalents
$221M
Previous year: $356M
-37.9%
Free Cash Flow
$101M
Previous year: $181M
-44.2%
Total Assets
$7.61B
Previous year: $7.62B
-0.2%

Capri

Capri

Capri Revenue by Segment

Capri Revenue by Geographic Location

Forward Guidance

The Company expects total revenue of approximately $1.4 billion and diluted earnings per share of approximately $1.55 for the second quarter of fiscal year 2023.

Positive Outlook

  • Total revenue of approximately $5.85 billion for fiscal year 2023
  • Gross margin approximately flat to fiscal 2022
  • Operating margin of approximately 18% for fiscal year 2023
  • Diluted earnings per share of approximately $6.85 for fiscal year 2023
  • Total revenue of approximately $1.4 billion for the second quarter of fiscal year 2023

Challenges Ahead

  • Financial results could differ materially from the current outlook due to a number of external events which are not reflected in our guidance
  • Any significant additional store closures or new government restrictions that could further impact traffic and sales trends
  • Any greater supply chain disruptions that could further extend inventory delays or increase transportation expenses
  • Operating margin of approximately 17% for the second quarter of fiscal year 2023
  • Ending inventory to be below prior year

Revenue & Expenses

Visualization of income flow from segment revenue to net income