Capri stock soars after Michael Kors parent reports earnings beat and gives guidance ahead of expectations

Capri Holdings Ltd.
CPRI,
+2.36%
shares soared nearly 13% in Wednesday premarket trading after fiscal third-quarter earnings sailed ahead of Street expectations. Net income totaled $322 million, or $2.11 per share, up from $179 million, or $1.18 per share, last year. Adjusted EPS of $2.22 blew past the FactSet consensus of $1.69. Revenue of $1.609 billion was up from $1.302 billion and also ahead of the FactSet consensus for $1.470 billion. “Results were driven by strong momentum across all three luxury houses reflecting the power of Versace, Jimmy Choo and Michael Kors,” said Chief Executive John Idol in a statement. Michael Kors revenue reached $1.18 billion, Versace revenue was $251 million, and Jimmy Choo revenue totaled $178 million. “Looking to fiscal 2023, we expect to generate double-digit revenue and earnings growth,” Idol said. Capri is guiding for fourth-quarter revenue of about $1.4 billion and EPS of about 80 cents. The FactSet consensus is for revenue of $1.391 billion and EPS of 73 cents. For the year, Capri’s outlook is for revenue of about $5.56 billion and EPS of $6.00. The FactSet consensus is for revenue of $5.413 billion and EPS of $5.34. Capri stock has run up nearly 44% for the past year while the S&P 500 index
SPX,
+0.69%
has gained 18.8%.