-=Capri Holdings (CPRI) reported earnings on Wed 29 May 19 (b/o)

Capri Holdings beats by $0.02, beats on revs; guides Q1 EPS, revs below consensus; reaffirms FY20 EPS guidance, slightly lowers FY20 revs outlook 

• Reports Q4 (Mar) earnings of $0.63 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $0.61; revenues rose 13.9% year/year to $1.34 bln vs the $1.33 bln S&P Capital IQ Consensus.
  • Versace revenue was $137 million. The Company acquired Versace on December 31, 2018, and compared to Versace stand-alone results from the prior year, revenue increased high single digits.
  • Jimmy Choo revenue of $139 million increased 28.7% compared to the prior year. On a constant currency basis, total revenueincreased 35.1%. On a constant currency basis, comparable store sales increased mid single digits.
  • Michael Kors revenue of $1.068 billion decreased 0.4% compared to the prior year. On a constant currency basis, total revenue increased 1.8%. On a constant currency basis, comparable store sales decreased 1.0%.
• Co issues downside guidance for Q1, sees EPS of $0.85-0.90, excluding non-recurring items, vs. $1.22 S&P Capital IQ Consensus; sees Q1 revs of ~$1.36 bln vs. $1.44 bln S&P Capital IQ Consensus.
• Co issues guidance for FY20, continues to see EPS of $4.95, excluding non-recurring items, vs. $4.95 S&P Capital IQ Consensus; sees FY20 revs of ~$6 bln (Prior ~$6.1 bln) vs. $6.1 bln S&P Capital IQ Consensus.
• "Looking ahead, Fiscal 2020 will be an investment year for our group, and we believe our initiatives will deliver strong revenue growth for Capri Holdings. Longer term, our three brands position Capri Holdings to accelerate revenue from $6 billion to $8 billion dollars, which will be led by Versace and Jimmy Choo, with Michael Kors remaining a strong foundation for Capri Holdings. We expect to grow Versace from $900 million to $2 billion dollars in revenue, expand Jimmy Choo from nearly $600 million to $1 billion in revenue, while building Michael Kors from $4.5 billion to $5.0 billion in revenue. Taken together, we believe our three iconic, founder-led fashion brands position Capri Holdings to deliver multiple years of earnings growth."