Capri Holdings (MKO) AI Stock Analysis

Company Guidance

For fiscal 2027, Capri now anticipates revenue of approximately $3.42 billion, including Michael Kors revenue of $2.77 billion and Jimmy Choo revenue of $650 million, gross margin of approximately 64% compared to 62.3% last year, operating expenses of approximately $2 billion, operating income of approximately $175 million, a 50% increase over last year, Michael Kors operating margin in the low double-digit range, Jimmy Choo returning to profitability with operating margin in the low single-digit range, net interest and other income of approximately $100 million, an effective tax rate in the low teens range, weighted average shares outstanding of approximately 108 million, share repurchases of $300 million, and diluted earnings per share of $2.20, representing 45% growth over the prior year; third quarter revenue is expected to be just over $1 billion, including Michael Kors revenue of $830 million and Jimmy Choo revenue of $175 million, operating income of approximately $90 million, Michael Kors operating margin in the mid-teens percent range, Jimmy Choo operating margin in the low to mid-single-digit percent range, net interest and other income of approximately $25 million, an effective tax rate in the mid-teens range, weighted average shares outstanding of 103 million, and diluted earnings per share of $0.95; over the long term, Michael Kors is expected to achieve $4 billion in revenue with operating margins in the low 20% range, while Jimmy Choo is expected to achieve $800 million in revenue and operating margins in the low double-digit range.