Capri cuts revenue outlook but keeps profit target; takeover talk lifts shares
Full-year revenue outlook cut by $125 million Capri lowered fiscal 2027 revenue guidance to about $3.4 billion, blaming lower inventory, softer Europe sales and currency swings. Less revenue means less money coming in, which weighs on the stock — though the company kept its profit-per-share target by cutting costs.
The guidance cut is the main new negative force on CPRI this period.
Profit target held as Q1 earnings beat and costs cut First-quarter profit came in at 67 cents a share versus 40 cents expected, and Capri still expects about $2.15 for the year, up 40%, helped by $70 million of expense cuts and $50 million of buybacks. Steady profit supports the share price even as sales shrink.
It is the counterweight that explains why the stock did not collapse after the revenue cut.
Store closures and brand reset: Michael Kors weak, Jimmy Choo strong Capri closed 41 stores in a year, leaving 871, after selling Versace. Michael Kors sales fell 7.1% but Jimmy Choo rose 10.5%. Management says Michael Kors should return to growth in the second half on new products, less discounting and higher prices — a promise, not yet a fact.
Shows the split inside the business and the turnaround plan that drives future expectations.
Report of contact with potential acquirers sends shares up 10% Capri shares jumped 10% on a report it has connected with potential buyers. A takeover would likely mean a purchase price above the current share price, so the news lifts the stock — but it is only a report, with no confirmed offer or price.
This is the single biggest new price-moving event of the period.