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Sep 25, 2021
Capri Q2 2022 Earnings Report
Revenue and earnings exceeded expectations, and the full year adjusted earnings per share outlook was raised.
Key Takeaways
Capri Holdings Limited reported strong second quarter fiscal 2022 results, with revenue increasing by 17% and adjusted earnings per share exceeding expectations. The company raised its full year adjusted earnings per share outlook to $5.30 and authorized a new $1 billion share repurchase program.
Revenue increased 17%, with better than anticipated results across all three luxury houses
Adjusted gross margin expanded 440 basis points versus prior year
Adjusted operating margin of 18.5%
Adjusted earnings per share of $1.53
Capri
Capri
Capri Revenue by Segment
Capri Revenue by Geographic Location
Revenue by Segment
Michael Kors Revenue
CapyFin.comJimmy Choo Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Revenue
CapyFin.com Forward Guidance
The Company expects total revenue of approximately $1.46 billion and diluted earnings per share of approximately $1.65 for the third quarter of fiscal year 2022.
Positive Outlook
- Total revenue of approximately $5.4 billion for fiscal year 2022
- Operating margin of approximately 18% for fiscal year 2022
- Net interest income of approximately $10 million for fiscal year 2022
- Effective tax rate of approximately 17% for fiscal year 2022
- Diluted earnings per share of approximately $5.30 for fiscal year 2022
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, including any significant additional store closures or new government restrictions that could further impact traffic and sales trends
- Greater supply chain disruptions that could further extend inventory delays or increase transportation expenses
- Versace operating margin in the low double digit range for Q3 2022
- Jimmy Choo operating margin in the negative mid single digit range for Q3 2022
- Michael Kors operating margin in the high 20% range for Q3 2022
Revenue & Expenses
Visualization of income flow from segment revenue to net income