: Michael Kors parent Capri’s stock jumps 4.4% as earnings top consensus estimates despite sales decline

Capri Holdings Ltd.’s stock CPRI jumped 4.4% in premarket trade Wednesday, after the parent of the Michael Kors, Versace and Jimmy Choo brands swung to a loss in the fiscal fourth-quarter but managed to beat consensus estimates and offer upbeat guidance. Capri had a net loss of $34 million, or 28 cents a share, for the quarter to April 1, after income of $81 million, or 54 cents a share, in the year-earlier period. Its adjusted per-share earnings came to 97 cents, ahead of the 94 cent FactSet consensus. Revenue fell 10.5% to $1.335 billion, but topped the $1.278 billion FactSet consensus. “While we recognize that there are near-term uncertainties in the Americas, we are encouraged by the strong trends in Asia and continued growth in EMEA,”: CEO John Idol said in a statement. Versace revenue fell 13% in the quarter, while Jimmy Choo revenue was down 3.2% and Michael Kors was down 10.9%. The company is now expecting fiscal 2024 revenue of about $5.7 billion, matching the FactSet consensus. It expects EPS of about $6.40, ahead of the $6.24 FactSet consensus. The stock has fallen 31% in the year to date, while the S&P 500 SPX has gained 9.5%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.