Why Capri Holdings Stock Dropped Like a Rock Today
Capri HoldingsShares of luxury fashion company Capri Holdings (NYSE: CPRI) dropped like a rock on Wednesday after the company delivered quarterly results and financial guidance that fell short of Wall Street's expectations. As of 10:30 a.m. ET, Capri Holdings stock was down by a whopping 25%, pushing it below where it was trading exactly 10 years ago.Wall Street's reaction to Capri Holdings' results for its fiscal 2023 third quarter looks a little extreme when considering its top-line figure. For the period, which ended Dec. 31, the company had guided for revenue of $1.53 billion. In fact, it generated revenue of $1.51 billion -- underperforming guidance by about 1%.The market, however, appears more concerned about Capri Holdings' deteriorating profit margins. In its fiscal second quarter, its operating margin was almost 18%, and management had guided for margins to rise to greater than 20% in fiscal Q3. In reality, its operating margin fell to 15.6% because of problems with its wholesale business.Continue reading
43.93 CHF -10.84%
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