Capri Holdings Benefits From Jimmy Choo's Rising Brand Momentum

CPRI's Jimmy Choo gains momentum as strong product innovation and marketing drive sales, consumer engagement and higher profitability.

Zacks Equity Research

3 min read

Jimmy Choo continues to gain momentum for Capri Holdings Limited CPRI, with the luxury brand delivering strong performance in the first quarter of fiscal 2027. Revenues increased 10.5% year over year to $179 million. Constant-currency revenues increased 9.3%, reflecting solid underlying demand.

Growth was broad-based across regions, channels and categories. Americas revenues climbed 26.1% to $58 million from $46 million, while EMEA revenues increased 5.1% to $82 million from $78 million. Asia revenues rose 2.6% to $39 million from $38 million. Direct retail sales increased low double digits sequentially across all regions, while wholesale revenues grew low double digits. North American department stores posted double-digit point-of-sale growth.

Marketing initiatives are strengthening brand desirability and consumer engagement. The Natural Reflection campaign showcased new hero products, while regional ambassadors and influencers expanded Jimmy Choo’s global reach. A global influencer trip generated nearly 50 million impressions, while curated events for top clients drove a 40% increase in very important client ("VIC") sales. These efforts contributed to a 7% increase in the global consumer database.

Product innovation is providing additional growth avenues. Accessories sales increased double digits, led by the Bon Bon and Cinch franchises, while newer groups such as Bar and Curve broadened the brand’s reach. Footwear also performed well across dress and casual categories. Management views casual footwear as a long-term growth opportunity to increase purchase frequency among existing consumers and attract new customers.

Stronger sales are translating into improved profitability. Jimmy Choo’s operating income increased to $13 million from $4 million, while operating margin expanded 480 basis points to 7.3%, primarily due to expense leverage on higher revenues. Capri expects Jimmy Choo revenues of approximately $635 million and a low-single-digit operating margin in fiscal 2027. Longer term, management targets $800 million in revenues and operating margins in the low-double-digit range, underscoring its confidence in the brand’s growth potential.

CPRI’s Price Performance, Valuation & Estimates

Shares of Capri Holdings have lost 26.1% in the past three months as compared with the industry’s 6.4% decline.

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From a valuation standpoint, CPRI trades at a forward price-to-earnings ratio of 5.98X, below the industry’s average of 13.20X. It has a Value Score of A.

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The Zacks Consensus Estimate for Capri Holdings’ fiscal 2027 earnings implies year-over-year growth of 40.7%, whereas the same for fiscal 2028 indicates an uptick of 21%. Earnings estimates for fiscal 2027 and 2028 have been increased 5 cents and 6 cents, respectively, over the past 30 days.

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CPRI’s Zacks Rank & Key Picks

Capri Holdings currently carries a Zacks Rank #3 (Hold).

FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales implies growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.

Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales indicates growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.

Fossil Group, Inc. FOSL is involved in designing, marketing and distributing consumer fashion accessories. It also carries a Zacks Rank #2.

The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings implies growth of 96.7% from the year-ago actuals. FOSL delivered a trailing four-quarter average negative earnings surprise of 236.2%.

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