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Research Alert: Capri Holdings Posts Mixed Quarter; Fy 27 Eps Guidance Well-above Estimates

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

CPRI returned to profitability in Q4 FY 26 (Mar.) with adjusted EPS of $0.22 versus $(4.55) the prior year, $0.10 above consensus, though results were aided by a $65M IEEPA tariff refund. Revenue declined to $796M (-3.7% reported, -7.0% constant currency) and $4M below estimates as Michael Kors fell 5.5% while Jimmy Choo rose 5.3%. The company's financial position improved following the December 2025 completion of the Versace divestiture, with net debt declining from $1.4B to $222M and $79M in Q4 share repurchases. Management provided optimistic FY 27 guidance expecting low single-digit revenue growth to ~$3.525B and 40% EPS growth to $2.15. We believe CPRI is in the early innings of a multi-year turnaround with the balance sheet transformation removing a key overhang and providing flexibility for buybacks providing a floor on shares. We like the risk-reward here and believe Michael Kors can return to a $4B brand over the long term despite continued underlying business challenges.

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