{"id":106144,"date":"2021-02-02T19:33:42","date_gmt":"2021-02-02T19:33:42","guid":{"rendered":"https:\/\/fin2me.com\/?p=106144"},"modified":"2021-02-02T19:33:42","modified_gmt":"2021-02-02T19:33:42","slug":"europe-lockdowns-expected-to-dent-capri-revenue-china-in-focus","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/europe-lockdowns-expected-to-dent-capri-revenue-china-in-focus\/","title":{"rendered":"Europe lockdowns expected to dent Capri revenue, China in focus"},"content":{"rendered":"
(Reuters) – Capri Holdings is expected to post a fourth straight fall in quarterly revenue on Wednesday as the blow from fresh lockdowns in Europe eclipses a China-driven recovery in sales of its luxury handbags and apparel.<\/p> A spike in coronavirus infections from late last year forced many European governments to put their economies back into lockdown, keeping consumers away from stores during the crucial holiday shopping season.<\/p>\n Capri not only has to deal with store closures in Europe and sluggish department store traffic due to the pandemic, but also a \u201cstale\u201d Michael Kors brand image, Jane Hali & Associates retail analyst Jessica Ramirez said.<\/p>\n Investors will be hoping that Capri\u2019s Versace and Jimmy Choo brands can emulate fashion giant LVMH\u2019s growth in China, which helped cushion some of the pandemic\u2019s impact in other markets.<\/p>\n Sales of luxury goods in China have been rising since the easing of COVID-19 measures in the second half of 2020, sparking hopes that one of the world\u2019s biggest markets for high-end fashion could ease the pain of companies suffering in regions where the virus continues to rage.<\/p>\n For an interactive graphic on Capri’s past revenue figures, click here: tmsnrt.rs\/2MKydWo<\/p>\n (Graphic: Capri set for another pandemic hit quarte: )<\/p>\n * Capri Holdings is expected to report a 15.2% decline in quarterly revenue to $1.33 billion when it reports results on Feb. 3, according to the mean estimate of 18 analysts, based on Refinitiv data.<\/p>\n * Analysts on average expect a 23.7% fall in Capri\u2019s third-quarter Europe revenue, according to Consensus Metrix.<\/p>\n * The analyst mean estimate for Capri is for earnings of $1.01 cents per share. For the same quarter last year, the company reported earnings of $1.66 per share.<\/p>\n * The current average analyst rating on the company\u2019s shares is \u201cbuy\u201d and the breakdown of recommendations is 14 \u201cstrong buy\u201d or \u201cbuy,\u201d 11 \u201chold\u201d.<\/p>\n * Wall Street\u2019s median 12-month price target for Capri Holdings Ltd is $46, about 10.4% above its last closing price of $41.65.<\/p>\n * The company\u2019s shares have gained over 40% in the last 12 months.<\/p>\n (Graphic: Shares of U.S. luxury retailers over the past year Shares of U.S. luxury retailers over the past year: )<\/p>\nCONTEXT<\/h2>\n
THE FUNDAMENTALS<\/h2>\n
WALL STREET SENTIMENT<\/h2>\n
EARNINGS SURPRISE<\/h2>\n