Episode Details

Capri Holdings Limited Q4 FY2026 earnings breakdown - conversational walkthrough with a price-aware verdict and Wall Street consensus comparison. Hosts Hudson Thomas and Lana Chen. THE CALL: HOLD (3/5 conviction, MODERATE) - CURRENT @ $18.79 - HOLD - ACCUMULATE below $16.50 with $13.00 reassess level - TRIM above $28.00 TRIGGER: Two consecutive quarters of Michael Kors revenue stabilization (flat to positive YoY) AND Jimmy Choo reaching operating breakeven WINDOW: 12-18 months - MK comp recovery plus Jimmy Choo profitability proof WALL STREET CONSENSUS - Ratings: 0 Strong Buy / 24 Buy / 28 Hold / 2 Sell / 0 Strong Sell - HOLD - Median 12-month PT: $24.00 (range $20 - $32) - Charged Alpha vs consensus: Charged Alpha is in line with consensus at HOLD. THESIS Capri is a two-brand luxury turnaround trading at nine times forward earnings after slashing net debt from $1.4B to $222M via the Versace sale. Bull lever: Adjusted EPS of $0.22 doubled the $0.11 guide; gross margin expanded 490 bps; FY2027 EPS guide of $2.15 implies forty percent growth and a $200M buyback amplifies per-share upside. Key risk: Michael Kors revenue is declining - Americas channel down 14% suggests brand positioning challenges that store renovations alone may not fix within the investment window. KEY METRICS - Q4 FY2026 - Revenue: $796M (-3.7% YoY; missed $812M est) - Adjusted EPS: $0.22 (vs $0.11 guide - +100% beat, doubled the guide) - GAAP: net income +$1M, operating margin -3.4% (continuing ops; near-breakeven) - Gross margin: 64.8% (+490 bps YoY - quality-of-sale working) - Segments: Michael Kors $656M (-5.5% YoY, 82% of rev) | Jimmy Choo $140M (+5.3% YoY, 18%) - Versace: classified as discontinued operations (sold to Prada for $1.375B, Dec 2025) - Balance sheet: net debt $222M, down from $1.4B a year ago - FY2027 guide: ~$3.525B revenue, ~$2.15 diluted EPS (~40% growth), $200M buyback QUALITY CHECK - Management quality grade: B - Earnings quality grade: B- DISCLAIMER This is for informational and educational purposes only. Not financial advice. Charged Alpha does not have a position in CPRI. Do your own research before any investment decision. #CPRI #CapriHoldingsLimited #MichaelKors #JimmyChoo #earnings #investing #stocks #ChargedAlpha #luxury