-=Capri Holdings (CPRI) reported earnings on Wed 6 Feb 2019 (b/o)

Capri Holdings beats by $0.18, misses on revs; guides Q4 EPS below consensus, revs below consensus; guides FY20 EPS above consensus, revs in-line

• Reports Q3 (Dec) earnings of $1.76 per share, excluding non-recurring items, $0.18 better than the S&P Capital IQ Consensus of $1.58; revenues fell 0.1% year/year to $1.44 bln vs the $1.46 bln S&P Capital IQ Consensus.
  • Michael Kors Retail revenue of $838.0 million decreased 1.0% compared to the prior year. Comparable store sales decreased 2.4%, which was in line with expectations. On a constant currency basis, comparable store sales decreased 1.0%.
  • Michael Kors Wholesale revenue declined 8.3% to $394.9 million compared to the prior year.
  • Jimmy Choo revenue was $161.6 million.
• Co issues downside guidance for Q4, sees EPS of $0.56-0.61, excluding non-recurring items, vs. $0.78 S&P Capital IQ Consensus; sees Q4 revs of ~$1.33 bln vs. $1.37 bln S&P Capital IQ Consensus.
  • Michael Kors revenue is expected to be approximately $1.07 billion, including a low single digit decline in reported comparable sales close to the higher end of the range. Michael Kors constant currency comparable sales are expected to decline close to the low end of the low single digits range. Jimmy Choo revenue is expected to be approximately $130 million, including a comparable sales increase in the low single digits on a reported basis and mid single digits on a constant currency basis. Versace revenue is expected to be approximately $130 million. Operating margin is expected to be approximately 10.3%, reflecting brand operating margins of approximately 13.6% for Michael Kors, negative 4.5% for Jimmy Choo and slightly negative for Versace. Diluted earnings per share are expected to be in the range of $0.56 to $0.61, which includes approximately $0.15 of dilution from Versace.
• Co issues guidance for FY20, sees EPS of $4.95 vs. $4.88 S&P Capital IQ Consensus; sees FY20 revs of ~$6.1 bln vs. $6.11 bln S&P Capital IQ Consensus.
  • Revs including approximately $900 million for Versace, $650 million for Jimmy Choo and $4.55 billion for Michael Kors. The Company expects an operating margin of approximately 15.5%.