Capri Stock Jumps 16% on the Day It Reported Quarterly Results

Capri Holdings Ltd (NYSE: CPRI) rose 16.3% on Friday, closing at $18.68 against a previous close of $16.06, while the S&P 500 ETF (SPY) fell 1.77%. Volume ran at about 3.4 times the normal level.

The move came on the day the company released its second-quarter fiscal 2027 results in an 8-K filed before the open. Revenue fell 5.5% to $809 million, but gross margin rose to 63.3% from 61.0% a year earlier. Net income was $27 million, or $0.25 per diluted share, compared with a net loss of $34 million a year earlier. Adjusted earnings per share were $0.42.

The company also increased its fiscal 2027 outlook. It now expects total revenue of about $3.42 billion, operating income of about $175 million and diluted earnings per share of about $2.20. Chairman and Chief Executive John D. Idol said trends improved each month during the quarter across both Michael Kors and Jimmy Choo, and the company continues to expect total revenue to return to growth in the second half of fiscal 2027.

Jimmy Choo drives the quarter

Jimmy Choo revenue rose 11.5% to $146 million, and its operating margin improved to 1.4% from a loss-making (6.9)% a year earlier. Michael Kors revenue fell 8.6% to $663 million, though its operating margin edged up to 10.3%.

Cash and buybacks

Cash and cash equivalents totaled $125 million at the end of the quarter, with total borrowings of $461 million, leaving net debt of $336 million. The company spent $150 million repurchasing about 10.3 million shares during the quarter and had $721 million remaining under its repurchase program.