Capri Holdings on Wednesday projected annual earnings that exceed analyst expectations, signaling confidence in a turnaround plan centered on reinvigorating the Michael Kors brand to offset a backdrop of softer demand.
The New York-based apparel and accessories group said it anticipates fiscal year 2027 profit per share of roughly $2.15, compared with a $1.83 consensus among analysts, according to data compiled by LSEG. The company reported that its shares rose about 1% in premarket trading. Capri's stock has, however, declined about 24% so far this year.
Management is pursuing a strategy that emphasizes selling bags and shoes at full price and accelerating product innovation. The company said these moves are intended to broaden Michael Kors's shopper base and particularly to appeal to wealthier customers, a cohort the company views as still spending on discretionary goods.
On the issue of tariffs, Capri said it plans to recover all duties paid under the International Emergency Economic Powers Act as of March 28 and has recorded a refund of $65 million to be received. The company presented that refund as a recovery related to prior tariff payments.
The company framed the Michael Kors-focused turnaround as a central offset to overall demand weakness, suggesting that improved product positioning and pricing discipline will help stabilize results. Capri did not provide additional financials or an updated timeline for the broader recovery beyond the fiscal 2027 per-share forecast.
Investors reacted modestly to the update in early trading, with the premarket move of about 1% reflecting the market's assessment of the company's prospects against a year-to-date share-price decline of roughly 24%.
Context and strategy
Capri is emphasizing a return to full-price selling for key categories and directing innovation resources at extending the brand's appeal. Management highlighted targeting higher-end consumers who have continued to purchase discretionary items, as a key element of the plan to revive Michael Kors.
No new financial guidance beyond the fiscal 2027 EPS forecast and the recorded tariff refund was released in the statement.