Capri, the parent company of Michael Kors, surges in stock price after raising its annual performance forecast

Koyena Das

Reuters, October 30 - On Friday, shares of Michael Kors (CPRI.N), a subsidiary of Capri Holdings, surged more than 19% after the luxury group raised its annual revenue and profit forecasts, stating that sales are expected to return to growth thanks to new product lines and increased marketing efforts.

Given that consumers remain cautious about discretionary purchases, Capri has been working to revive demand for its biggest brand, Michael Kors.

Details as follows:

• If the rally holds, the stock is set for its best single-day performance in 18 months

• CEO John Idol said on the earnings call that, driven by new product launches, holiday shopping demand and increased marketing spend, third-quarter revenue trends are expected to improve, with growth resuming in the fourth quarter

• According to data compiled by the London Stock Exchange Group (LSEG), the company now expects 2027 fiscal year revenue of $3.42 billion, up from a previous expectation of $3.40 billion, and also above analysts’ projected $3.41 billion

• Full-year earnings per share are expected to be $2.20, up from the previous target of $2.15 per share

• Second-quarter adjusted earnings per share were $0.42, exceeding the expected $0.21

• This quarter, Michael Kors revenue fell by 8.6%, while Jimmy Choo’s revenue grew by approximately 12%

• Guggenheim Securities analyst Simeon Siegel commented that, given the ongoing pressures, this performance guidance could boost market sentiment among investors who have placed Capri in the “out of sight, out of mind” category

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