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HomeMarketMichael Kors parent Capri stock slides 19% premarket after earnings miss and...

Michael Kors parent Capri stock slides 19% premarket after earnings miss and soft guidance

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Capri Holdings Ltd. stock
slid 19% in premarket trade Wednesday, after the parent of Michael Kors, Jimmy Choo and Versace . The company had net income of $225 million, or $1.72 a share, for the quarter, down from $322 million, or $2.11 a share, in the year-earlier period. Adjusted per-share earnings came to $1.84, well below the $2.22 FactSet consensus. Revenue fell 6% to $1.51 billion, also below the $1.53 billion FactSet consensus. “Overall, our performance in the third quarter was more challenging than anticipated,” Chief Executive John Idol said in a statement. While the company saw growth in its own retail channel for its three luxury houses, the global wholesale business was disappointing and resulted in expense deleverage and a lower operating margin, he said. “We have begun taking measures to better align operating expenses with the change in revenue by channel,” he said. “At the same time we will continue to make strategic investments to drive long term growth.” The company is expecting mid-single-digit revenue and earnings growth in fiscal 2024, he said. By segment, Versace revenue fell 0.7% to $249 million, Jimmy Choo revenue was down 5.6% to $168 million and Michael Kors revenue was down 7.2T% to $1.095 billion. For fiscal 2023, the company is expecting revenue of about $5.56 billion and EPS of about $6.10. FactSet is calling for revenue of $5.72 billion and EPS of $6.87. The stock has fallen 3% in the last 12 months, while the S&P 500
has fallen 8%.


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