Capri Holdings (NYSE:CPRI) reported a disappointing Q4, with an EPS loss far exceeding expectations and guidance that falls short on revenue—raising questions about near‑term profit recovery.
Q4 Results: Significant EPS Shortfall, Modest Revenue Beat
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GAAP EPS: –$4.90 vs. –$0.13 consensus (a $4.77 miss)
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Revenue: $1.04 billion vs. $999.13 million estimate
This marks Capri’s largest EPS miss in recent history. Over the past eight quarters, Capri has beaten or missed estimates by an average of $0.45, per the Historical Earnings API, highlighting the severity of this quarter’s shortfall.
Disappointing 2026 Guidance
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Q1 2026 EPS: $0.10–$0.15 (vs. $0.10 consensus)
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Q1 2026 Revenue: $765–$780 million (vs. $959.9 million consensus)
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FY 2026 EPS: $1.20–$1.40 (vs. $1.06 consensus)
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FY 2026 Revenue: $3.30–$3.40 billion (vs. $4.11 billion consensus)
The wide revenue gap underscores slowing wholesale orders and promotional pressure across Capri’s luxury brands.
Valuation Snapshot & Analyst Sentiment
Capri trades at approximately 8.5× trailing‑12‑month EBITDA—below the 11× apparel sector median—according to the Ratios TTM API. Despite the miss, the consensus price target is $25, implying about 42% upside from the $17.55 close, per the Price Target Summary API.
Credit Profile and Liquidity
Capri maintains an investment‑grade BBB– rating, with $1.2 billion in cash and equivalents to support operations through this downturn. See detailed credit metrics in FMP’s Company Rating & Information API.
What’s Next?
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Earnings Calendar: Capri’s Q1 results are scheduled for August 12—add the date via the Earnings Calendar API.
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Inventory and Order Trends: Monitor wholesale order backlogs and inventory turns for signals of recovery in fashion spending.
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Margin Drivers: Watch for commentary on cost‑cutting initiatives and pricing power in upcoming calls.
With Capri’s shares down nearly 20% over three months, investors will be watching management’s execution on inventory control, promotional discipline, and cost leverage to gauge whether the company can close its valuation gap versus peers.
