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Dec 28, 2019
Capri Q3 2020 Earnings Report
Revenue and adjusted earnings per share exceeded expectations.
Key Takeaways
Capri Holdings Limited reported a 9.2% increase in third quarter revenue, driven by the addition of Versace and growth from Jimmy Choo, with Michael Kors revenue performing better than anticipated. Adjusted earnings per share were $1.66, surpassing expectations.
Third quarter revenue growth of 9.2%.
Third quarter adjusted earnings per share of $1.66.
Repaid approximately $300 million of debt in the third quarter, and approximately $500 million year-to-date.
The company anticipates annual revenue of approximately $5.65 billion and adjusted earnings per share of $4.45 to $4.50.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company expects the situation in China to reduce revenue by approximately $100 million and earnings per share by $0.40 to $0.45 for the fourth quarter and full year. For the fourth quarter of fiscal year 2020, total revenue is expected to be approximately $1.3 billion and diluted earnings per share of $0.68 to $0.73.
Positive Outlook
- Versace revenue of approximately $210 million with a positive operating margin.
- Jimmy Choo revenue of approximately $130 million.
- Jimmy Choo operating margin improvement reflecting expense leverage and the normalization of strategic investments.
- Net interest expense of approximately $0 million.
- Effective tax rate of approximately 7%.
Challenges Ahead
- Outbreak of coronavirus in China which the Company expects will materially impact its financial results.
- Situation in China is expected to reduce revenue by approximately $100 million and earnings per share by $0.40 to $0.45 for the fourth quarter and full year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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