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Investing.com -- Capri Holdings (NYSE:CPRI) saw its shares more than 5% after the company offered upbeat annual guidance following its better-than-expected fiscal first-quarter results.
The Michael Kors owner posted Q1 earnings per share (EPS) of $0.50, notably above the $0.12 consensus estimate.
Revenue for the quarter fell 7.7% in constant currency to $797 million, though it was still ahead of expectations of $773.1 million.
Capri reported an adjusted operating margin of 2.5%.
"We are encouraged by our first quarter results. Trends improved sequentially leading to both revenue and earnings per share that exceeded our expectations," John D. Idol, Chairman and CEO of Capri, said.
"We remain on track to stabilize our business this year while establishing a solid foundation for a return to growth in fiscal 2027. Although the global macroeconomic environment remains dynamic, we are focused on positioning Capri Holdings to deliver multiple years of revenue and earnings growth as well as increase shareholder value."
Operating cash flow for the quarter was $20 million, while capital expenditures totaled $13 million, resulting in free cash flow of $7 million.
Looking ahead, Capri guided Q2 EPS between $0.10 and $0.15, below the consensus of $0.28, but projected revenue of $815–835 million, ahead of the $799.7 million estimate.
For the full fiscal year 2026, the company expects EPS in the range of $1.20 to $1.40, with the midpoint of that range ahead of the consensus of $1.27.
Revenue is projected between $3.375 billion and $3.45 billion, also above the $3.36 billion average estimate.
For the Michael Kors brand, the company expects total revenue to range between $2.8 billion and $2.875 billion, with an operating margin projected in the high single digits.