Capri Holdings Limited's Financial Performance Analysis

• Earnings per Share (EPS) reported at -$4.90, significantly below the estimated -$0.16.
• Revenue exceeded estimates at approximately $1.04 billion, despite a year-over-year decrease.
• High debt-to-equity ratio of 2.92 indicates significant reliance on debt financing.

Capri Holdings Limited, trading as NYSE:CPRI, is a global fashion luxury group that owns renowned brands like Michael Kors and Versace. On May 28, 2025, CPRI reported an earnings per share (EPS) of -$4.90, which was significantly lower than the estimated EPS of -$0.16. This unexpected loss has led to a decline in the company's shares in premarket trading.

Despite the earnings loss, Capri Holdings generated a revenue of approximately $1.04 billion, surpassing the estimated revenue of around $960 million. However, this is a decrease from the $1.22 billion reported in the same quarter the previous year. The company has managed to exceed consensus revenue estimates twice in the last four quarters, as highlighted by Zacks.

The company's financial challenges are further emphasized by its negative price-to-earnings (P/E) ratio of approximately -2.19, indicating ongoing losses. The price-to-sales ratio stands at about 0.47, suggesting that the stock is valued at less than half of its sales per share. Additionally, the enterprise value to sales ratio is approximately 1.07, reflecting the company's total valuation relative to its sales.

Capri Holdings' CEO, John D. Idol, has expressed concerns about the impact of tariffs on the global economic environment, which has led the company to revise its revenue forecast for fiscal 2026. The luxury retailer anticipates that trade uncertainties and currency fluctuations will negatively impact demand, as highlighted by Zacks.

The company's financial health is further strained by a high debt-to-equity ratio of around 2.92, indicating a significant reliance on debt financing. However, with a current ratio of approximately 1.21, Capri Holdings maintains a reasonable level of liquidity to cover its short-term liabilities. Despite these challenges, the company continues to navigate the complex global market.