===Tapestry (TPR) : Judge has blocked acquisition of Capri Holdings (CPRI)

Judge has blocked Tapestry (TPR) acquisition of Capri Holdings (CPRI), according to CNBC. In which, Tapestry issues statement on District Court ruling. 

Greenlight Capital (David Einhorn) discloses updated portfolio positions in 13F filing

New FHN SDRL ATVI positions, Exited GPN CIVI

Highlights from Q2 2023 filing as compared to Q1 2023:

• New positions in: FHN (~1.3 mln shares), SDRL (~0.27 mln), ATVI (~0.22 mln), AAP (~0.04 mln), HRI (~0.04 mln), SHC (~0.01 mln)
• Increased positions in: NPWR (to ~2.51 mln shares from ~0.76 mln shares), GPK (to ~1.77 mln from ~1.07 mln), BKI (to ~1.34 mln from ~0.92 mln), CPRI (to ~1.65 mln from ~1.24 mln), SWN (to ~9.23 mln from ~8.92 mln) CEIX (to ~2.85 mln from ~2.72 mln),
• Maintained positions in: GRBK (~16.6 mln shares), BHF (~3.12 mln shares), LIVN (~1.03 mln shares), GLD (~0.23 mln shares), FCNCA (~0.02 mln shares)
• Closed positions in: GPN (from ~0.6 mln shares), CIVI (from ~0.46 mln), PANA (from ~0.28 mln), CNXC (from ~0.21 mln)
• Decreased positions in: KD (to ~4.45 mln shares from ~8.5 mln shares), NBSE (to ~0.14 mln from ~2.73 mln), TECK (to ~1.35 mln from ~2.49 mln), NYCB (to ~1.71 mln from ~2.28 mln), THC (to ~0.93 mln from ~1.43 mln), SLV (to ~1.24 mln from ~1.49 mln), REZI (to ~0.49 mln from ~0.66 mln), WFRD (to ~0.43 mln from ~0.58 mln), ODP (to ~1.52 mln from ~1.63 mln), GPOR (to ~0.22 mln from ~0.28 mln)

===Capri Holdings (CPRI) to be acquired by Tapestry (TPR) for $57.00 per share or approx. $8.5 bln

 

Tapestry (TPR) confirms definitive agreement to acquire Capri Holdings for $57.00 per share in cash (total enterprise value of approx. $8.5 bln); expected to be immediately accretive

• Transaction Details: The Boards of Directors of each of Tapestry, Inc. and Capri Holdings Limited have unanimously approved the transaction. The transaction is anticipated to close in calendar year 2024, subject to approval by the Capri Holdings shareholders, as well as the receipt of required regulatory approvals, and other customary closing conditions. The all-cash offer for Capri Holdings of $57.00 per share represents a premium of ~59% to the 30-day volume weighted average price ending August 9, 2023. The total enterprise value of the transaction of ~$8.5 bln represents a 9x adjusted EBITDA multiple on a trailing-twelve-month basis, or 7x including expected synergies. The transaction is not subject to a financing condition. Tapestry has secured $8.0 bln in fully committed bridge financing from Bank of America N.A. and Morgan Stanley Senior Funding, Inc. The purchase price of ~$8.5 bln is expected to be funded by a combination of senior notes, term loans, and excess Tapestry cash, a portion of which will be used to pay certain of Capri's existing outstanding debt. Importantly, Tapestry has engaged with the rating agencies and is committed to a solid Investment Grade Rating. Tapestry will suspend its share repurchase activity to prioritize de-leveraging via debt reduction and anticipates reaching a leverage ratio of below 2.5x Debt/EBITDA within 24 months post-close. Furthermore, Tapestry is instituting a long-term leverage target of under 2.5x Debt/EBITDA.
• Tapestry, Inc. is scheduled to report fiscal fourth quarter and full year 2023 results on Thursday, August 17th. Tapestry expects to report annual revenue and earnings per diluted share consistent with its previously issued guidance range. Due to the announcement of the transaction, Capri Holdings Limited will not hold its previously scheduled earnings call and will publish its financial results for the first quarter of fiscal 2024 after the market close today, August 10th, via press release.
• Capri Holdings expects to report revenue and earnings per diluted share for its first fiscal quarter 2024 slightly above its previously issued guidance range. Capri Holdings does not intend to provide a financial outlook moving forward.
• Tapestry's Board of Directors approving a 17% increase to its quarterly dividend per share, resulting in an anticipated payout of $1.40 per share or ~$325 mln in Fiscal Year 2024.

This week's biggest % winners & losers : Feb 6 - 10, 23 (wk 6)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers

• Healthcare: OMER (5.05 +63.43%), CSII (19.73 +34%), CTLT (70.62 +25.99%), GLYC (3.46 +11.81%)
• Industrials: BLBD (19.92 +33.24%), ARCB (100.6 +16.03%), NVT (44.62 +10.86%)
• Information Technology: NEWR (76.00 +17.52%), FTNT (59.55 +12.36%), MMS (83.93 +12.12%), AYX (63.16 +11.35%)
• Financials: EHTH (9.00 +21.46%)
• Energy: DHT (10.34 +22.08%), NGL (2.09 +20.81%), BP (40.74 +15.89%), STNG (57.37 +14.39%), EQNR (33 +13.36%)

This week's top % losers

• Healthcare: GMED (59.84 -24.85%), CGC (2.28 -21.91%), NVTA (2.09 -20.23%)
• Industrials: AZUL (5.1 -24.67%), BV (6.51 -22.5%), GOL (2.43 -19.97%)
• Consumer Discretionary: CPRI (50.06 -26.34%), CVNA (10.93 -24.39%), BBBY (2.37 -22.3%), FOSL (4.47 -20.83%), CHGG (16.94 -20.64%), SFIX (4.19 -20.44%), GRPN (7.09 -19.25%)
• Information Technology: LYFT (10.31 -40.68%), TWOU (9.86 -23.03%)

===Capri Holdings (CPRI) reported earnings on Wed 8 Feb 23 (b/o)

 

Capri Holdings misses by $0.40, misses on revs; guides Q4 EPS below consensus, revs below consensus; guides FY24 EPS below consensus, revs below consensus 

• Reports Q3 (Dec) earnings of $1.84 per share, excluding non-recurring items, $0.40 worse than the S&P Capital IQ Consensus of $2.24; revenues fell 6.0% year/year to $1.51 bln vs the $1.54 bln S&P Capital IQ Consensus.
• Gross profit was $1.01 billion and gross margin was 66.5%, compared to $1.05 billion and 65.1% in the prior year. Adjusted gross profit was $1.00 billion and adjusted gross margin was 66.3%, compared to $1.05 billion and 65.1% in the prior year.
• Co issues downside guidance for Q4, sees EPS of $0.90-0.95, excluding non-recurring items, vs. $1.39 S&P Capital IQ Consensus; sees Q4 revs of $1.275 bln vs. $1.41 bln S&P Capital IQ Consensus.
• Co issues downside guidance for FY24, sees EPS of $6.40, excluding non-recurring items, vs. $7.24 S&P Capital IQ Consensus; sees FY24 revs of $5.8 bln vs. $6.02 bln S&P Capital IQ Consensus.

Earnings this week : Feb 6 - 10, 23 (wk 6)

Monday (Feb 6)

• Morning:  AMG CNA CMI ENR IDXX NBIX ON TKR TSN
• Afternoon: ATVI ACM AOSL BRBR CHGG CINF DIOD FN KMT KFRC LEG NOV PINS POWI RMBS SPG SSD SKY SWKS SAVE TTWO UDR VRNS ZI

Tuesday (Feb 7)

• Morning: ADNT AGCO ARMK ARCC BP BV CG CARR CTLT CNC CTS DCPH DD FISV IT GPK HAE HAIN HLNE HTZ INCY J KKR LIN MAC MBUU MSGS NVT OMF PINC RCL SCSC SPR TDG VVV XYL
• Afternoon:  AMCR AIZ ATO BKH CSL CMG CNO CCK DEI EGP EHC ENPH ESS EEFT EXEL FMC FTNT FRSH HRB PEAK HIW HMN ICHR ILMN INSP JKHY RAMP LUMN MODN NCR NEWR OMC PAYC PRU QGEN RRR RXO SIMO SSNC TENB VFC VRTX VSAT VOYA WERN WU YUMC ZWS

Wednesday (Feb 8)

• Morning:  BDC BXMT BG CPRI CDW CRNC CME COHR COTY CRTO CVS D ETN EPC EMR FOXA GPRE INGR NYT PAG PFGC PERI RDWR REYN RITM SITC TRMB UBER VSH YUM
• Afternoon:  ME AEIS AFRM AB NLY APP ASGN AVB ACLS AZEK CDAY CXW DHT APPS ENS NVST EFX EQH EQC ESE RE FRT FR FLT FLNC FORM FWRD ULCC GT HI HPP PI IFF FROG LNC MAT MMS MGM MC MOH MPWR ORLY PTEN PYCR PDM PPC PAA QNST RDN RPD REXR HOOD SON SONO STE STC SLF THC TTMI TWO DIS WTS XPO

Thursday (Feb 9)

• Morning: ABBV APO MT ARES AZN BAX BWA BRKR CCJ CGC CSII CIGI CYBR DBD DUK ESMT FAF GTES HLT HIMX HII NSIT NSP IPG ITT K KIM LITE MAS MDU MSGE NNN PATK PEP PM PDS RL SPGI SEE SSTK SWI TPR TTGT TU TPX TRI WMG WEX WTW
• Afternoon:  AYX BE BHF CBT CC NET ROAD OFC CRSR COUR CUZ DXCM DOCS EQR EXPE FLO G KN LGF.A LYFT MTD MHK MSI NWSA ONTO OSCR PYPL PECO PRO QLYS RBC REG SPSC STEP TEX MODG VTR VRSN YELL YELP

Friday (Feb 10)  

• Morning:  ENB ESNT FTS GPN IQV MGA COOP NWL PRLB SXT SPB SLVM WPC

-=Capri Holdings (CPRI) reported earnings on Wed 29 May 19 (b/o)

Capri Holdings beats by $0.02, beats on revs; guides Q1 EPS, revs below consensus; reaffirms FY20 EPS guidance, slightly lowers FY20 revs outlook 

• Reports Q4 (Mar) earnings of $0.63 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $0.61; revenues rose 13.9% year/year to $1.34 bln vs the $1.33 bln S&P Capital IQ Consensus.
  • Versace revenue was $137 million. The Company acquired Versace on December 31, 2018, and compared to Versace stand-alone results from the prior year, revenue increased high single digits.
  • Jimmy Choo revenue of $139 million increased 28.7% compared to the prior year. On a constant currency basis, total revenueincreased 35.1%. On a constant currency basis, comparable store sales increased mid single digits.
  • Michael Kors revenue of $1.068 billion decreased 0.4% compared to the prior year. On a constant currency basis, total revenue increased 1.8%. On a constant currency basis, comparable store sales decreased 1.0%.
• Co issues downside guidance for Q1, sees EPS of $0.85-0.90, excluding non-recurring items, vs. $1.22 S&P Capital IQ Consensus; sees Q1 revs of ~$1.36 bln vs. $1.44 bln S&P Capital IQ Consensus.
• Co issues guidance for FY20, continues to see EPS of $4.95, excluding non-recurring items, vs. $4.95 S&P Capital IQ Consensus; sees FY20 revs of ~$6 bln (Prior ~$6.1 bln) vs. $6.1 bln S&P Capital IQ Consensus.
• "Looking ahead, Fiscal 2020 will be an investment year for our group, and we believe our initiatives will deliver strong revenue growth for Capri Holdings. Longer term, our three brands position Capri Holdings to accelerate revenue from $6 billion to $8 billion dollars, which will be led by Versace and Jimmy Choo, with Michael Kors remaining a strong foundation for Capri Holdings. We expect to grow Versace from $900 million to $2 billion dollars in revenue, expand Jimmy Choo from nearly $600 million to $1 billion in revenue, while building Michael Kors from $4.5 billion to $5.0 billion in revenue. Taken together, we believe our three iconic, founder-led fashion brands position Capri Holdings to deliver multiple years of earnings growth."

-=Capri Holdings (CPRI) reported earnings on Wed 6 Feb 2019 (b/o)

Capri Holdings beats by $0.18, misses on revs; guides Q4 EPS below consensus, revs below consensus; guides FY20 EPS above consensus, revs in-line

• Reports Q3 (Dec) earnings of $1.76 per share, excluding non-recurring items, $0.18 better than the S&P Capital IQ Consensus of $1.58; revenues fell 0.1% year/year to $1.44 bln vs the $1.46 bln S&P Capital IQ Consensus.
  • Michael Kors Retail revenue of $838.0 million decreased 1.0% compared to the prior year. Comparable store sales decreased 2.4%, which was in line with expectations. On a constant currency basis, comparable store sales decreased 1.0%.
  • Michael Kors Wholesale revenue declined 8.3% to $394.9 million compared to the prior year.
  • Jimmy Choo revenue was $161.6 million.
• Co issues downside guidance for Q4, sees EPS of $0.56-0.61, excluding non-recurring items, vs. $0.78 S&P Capital IQ Consensus; sees Q4 revs of ~$1.33 bln vs. $1.37 bln S&P Capital IQ Consensus.
  • Michael Kors revenue is expected to be approximately $1.07 billion, including a low single digit decline in reported comparable sales close to the higher end of the range. Michael Kors constant currency comparable sales are expected to decline close to the low end of the low single digits range. Jimmy Choo revenue is expected to be approximately $130 million, including a comparable sales increase in the low single digits on a reported basis and mid single digits on a constant currency basis. Versace revenue is expected to be approximately $130 million. Operating margin is expected to be approximately 10.3%, reflecting brand operating margins of approximately 13.6% for Michael Kors, negative 4.5% for Jimmy Choo and slightly negative for Versace. Diluted earnings per share are expected to be in the range of $0.56 to $0.61, which includes approximately $0.15 of dilution from Versace.
• Co issues guidance for FY20, sees EPS of $4.95 vs. $4.88 S&P Capital IQ Consensus; sees FY20 revs of ~$6.1 bln vs. $6.11 bln S&P Capital IQ Consensus.
  • Revs including approximately $900 million for Versace, $650 million for Jimmy Choo and $4.55 billion for Michael Kors. The Company expects an operating margin of approximately 15.5%.

Earnings this week : Feb. 4 - 8, 2019 (wk 6)

Earnings expected this week:

Monday (Feb 4)

• Morning: ALXN CLX ON SYY
• Afternoon: AVB FN GILD GOOG GLUU HIG LM STX

Tuesday (Feb 5)

• Morning: ADM AME ARMK BDX CHD CNC EL EMR ENR INGR IT LII LITE RL 
• Afternoon: ALL APC APU CB CERN DATA DIS DOX  EA MANH  MCHP MODN  MTSI MYGN MXL OI  PAA  PAYC SAVE SCSC  SFLY   SNAP SWKS TCS  TENB ULTI USNA VNOM VRTX ZEN

Wednesday (Feb 6)

• Morning:  ABG BSX BCO CSTE CPRI CTSH CMI ELAN FDC FDV GM HUM LLY  NYT REGN  SPOT TRVG  TTWO 
• Afternoon: ACLS AEL AHL AINV AOSL BLKB CCK CCMP CDAY CENT CINF CMG CSGS CUB CUZ DHT ECHO EGP ELY ENS ENSG FEYE FLO FLT FORM FTNT GBDC GPRO HQY ICHR IRBT KNL LCI LNC MC MET MTCH MTRX NEWR NOV NTGR NTR NXPI ORLY OSUR PAHC PCTY PRU PSDO PSEC RGLD RYN SONO TRMB TTGT TTMI TWO UHAL VVV WERN ZNGA

Wed pm/Thur am (vol) https://finviz.com/screener.ashx?v=211&t=ACLS,AEL,AHL,AINV,AOSL,BLKB,CCK,CCMP,CDAY,CENT,CINF,CMG,CSGS,CUB,CUZ,DHT,ECHO,EGP,ELY,ENS,ENSG,FEYE,FLO,FLT,FORM,FTNT,GBDC,GPRO,HQY,ICHR,IRBT,KNL,LCI,LNC,MC,MET,MTCH,MTRX,NEWR,NOV,NTGR,NTR,NXPI,ORLY,OSUR,PAHC,PCTY,PRU,PSDO,PSEC,RGLD,RYN,SONO,TRMB,TTGT,TTMI,TWO,UHAL,VVV,WERN,ZNGA,ADNT,ADS,AMAG,ANDX,ARW,BCE,BR,BSIG,BV,CAH,CDW,CEIX,CNHI,COR,DNKN,DTE,EIGI,EPC,FCAU,GRA,GRUB,HAIN,HBI,ICE,K,LABL,LCII,LH,MAC,MAS,MD,MMS,MPC,MPLX,MPW,ODFL,PAG,PBH,PENN,PM,PRLB,PTEN,SEE,SNA,SNY,SPB,SPGI,TGI,TKR,TMUS,TPR,TSN,TWTR,VIRT,VSTO,WLTW,WMS,WWE,YUM&ta=0&o=-volume

Thursday (Feb 7)

• Morning: ADNT ADS AMAG ANDX ARW BCE BR BSIG BV CAH CDW CEIX CNHI COR DNKN DTE EIGI EPC FCAU GRA GRUB HAIN HBI ICE K LABL LCII LH MAC MAS MD MMS MPC MPLX MPW ODFL PAG PBH PENN PM PRLB PTEN SEE SNA SNY SPB SPGI TGI TKR TMUS TPR TSN TWTR VIRT VSTO WLTW WMS WWE YUM
• Afternoon: ATEN ATGE ALNY ASYS ANGI MT ATHN BECN BHE BKH CARB CSL CBL CCS COLM OFC DXC EGAN EHC ESE EEFT EXPE FISV FSCT FTV FET FWRD G HUBG IAC KN LGND MTW MCFT MAT MTD MOBL MHK MSI NCR UEPS NR NWSA NUAN OMCL CNXN PMT POWI PRI PRO QRVO QNST RPD RSG SGEN SKX SWI SYNA TDC TBI USX VRSN VVI VSAT VRTU VCRA WTS WU ZAYO 

Friday (Feb 8)

• Morning: ARNC AVA BPL CAE CBOE CLF COTY ESNT EXC GT GRC EAF HAS IMGN PCG PSX  PSXP RDN UNVR VTR 

Michael Kors (KORS) changes name to Capri Holdings (CPRI)

• Michael Kors completes acquisition of Versace, changes name to Capri Holdings; will begin trading under symbol CPRI on January 2.
• Michael Kors bought Versace for $2.1 billion in September 2018 as part of its action plan to become a luxury fashion conglomerate to rival Kering and LVMH. Under the Capri Holdings label – the name it chose to reflect its new portfolio approach – also sits Jimmy Choo, which Kors acquired in 2017 for $1.2 billion.

     "With the acquisition of Versace, we have now created one of the leading global fashion luxury groups in the world," Chief Executive John Idol said in a statement. "The new name for our group, Capri Holdings, is inspired by the fabled island which has long been recognized as an iconic, glamorous and luxury destination." The acquisition is expected to help grow the company's revenue to $8.0 billion in the long term and to boost Versace's revenue to $2 billion. The company is aiming to grow revenue at its Jimmy Choo brand to $1.0 billion and its core Michael Kors brand to $5 billion. Versace was purchased for a total enterprise value of 1.83 billion euros ($2.1 billion). The Michael Kors brand has struggled in recent quarters to meet sales estimates, leading the company to pull back from the wholesale channel to protect it from discounting.