Capri (CPRI) is anticipated to post fiscal Q2 earnings per share in line with consensus estimates and reiterate its fiscal 2027 EPS guidance of $2.15, UBS Securities said in a note Friday.
The company is seen projecting Michael Kors sales to grow year over year in fiscal H2, in line with the anticipated view of the market after the company reset its expectations, analysts said.
The stock could see upside if the company delivers a solid Q2 beat against a conservative guide, while downside risks include a soft Q3 outlook due to ongoing MK product delays, lowering confidence in an H2 sales inflection, and weak consumer demand in Europe and China pressuring management's fiscal 2027 revenue outlook.
Investors remain skeptical of the company's ability to return to consistent growth with Michael Kors, analysts said. To turn sentiment around, UBS said Capri should deliver in-line fiscal Q2 EPS, reaffirm fiscal 2027 EPS guidance, and issue fiscal Q3 EPS guidance of around $0.90.
Capri plans to report its fiscal Q2 financial results on Oct. 30.
UBS Securities has a neutral rating on the stock, with a price target of $17.
Price: 15.90, Change: -0.46, Percent Change: -2.81
