Capri Holdings LimitedNYSE: CPRI

Capri Holdings (CPRI) Q4 results showcase sequential sales improvement in the retail channel, whereas sales from wholesale channel remains challenged.

Although the revenue and EPS for Capri Holdings (CPRI) give a sense of how its business performed in the quarter ended March 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Capri Holdings (CPRI) came out with quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.97 per share a year ago.

The $8.5 billion acquisition of Capri Holding by Tapestry, which was announced last August, is now on hold following reports from the NYT Dealbook that the Federal Trade Commission could potentially take legal action to prevent the deal from going through.

The FTC is said to be preparing to take legal action to prevent the merger of high-end fashion companies Tapestry and Capri, which own popular brands such as Versace and Coach.

The FTC is getting ready to file a lawsuit to stop Tapestry, the parent company of Coach, from purchasing Capri Holdings, the owner of Michael Kors, for $8.5 billion, according to sources familiar with the situation as reported by NYT Dealbook.

The apparel business is one that is wrought with difficulties. Not only are the companies required to constantly adjust to the fickle consumers' clothing preferences, but they are also have to efficiently manage the inventories of these shifting options.

Tapestry's latest quarterly earnings exceeded expectations, with management raising full-year EPS guidance. The company is making progress toward closing on its acquisition of Capri Holdings, representing a transformative deal and new growth driver. We are bullish on TPR stock and view shares as still attractively valued even following the rally in recent months.

Although the revenue and EPS for Capri Holdings (CPRI) give a sense of how its business performed in the quarter ended December 2023, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.