Why Capri Holdings Stock Fell Today
Shares of fashion apparel company Capri Holdings (NYSE: CPRI) fell on Wednesday after the company released financial results for its fiscal fourth quarter of 2023. As of 1 p.m. ET, Capri Holdings stock was down 10% and hitting 52-week lows.
In Q4, which ended April 1, Capri Holdings had revenue of $1.3 billion, which was down 10.5%. However, don't blame the decline in revenue for the stock's performance today. Revenue of $1.3 billion was about 5% higher than management's guidance.
Rather, Capri Holdings stock is down because of its profitability -- or rather its lack thereof. The company had a loss from operations of $40 million compared to operating income of $119 million in the prior-year period. For perspective, management had guided for an 8.5% operating margin in Q4, which would have equated to operating income of over $100 million.
Source Fool.com
