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Capri Holdings (NYSE:CPRI) Operating Margin %

: 16.01% (As of Dec. 2022)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Capri Holdings's Operating Income for the three months ended in Dec. 2022 was $242 Mil. Capri Holdings's Revenue for the three months ended in Dec. 2022 was $1,512 Mil. Therefore, Capri Holdings's Operating Margin % for the quarter that ended in Dec. 2022 was 16.01%.

Warning Sign:

Capri Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.8%.

The historical rank and industry rank for Capri Holdings's Operating Margin % or its related term are showing as below:

CPRI' s Operating Margin % Range Over the Past 10 Years
Min: 9.04   Med: 19.38   Max: 30.49
Current: 15.89


CPRI's Operating Margin % is ranked better than
88.84% of 1093 companies
in the Retail - Cyclical industry
Industry Median: 3.50 vs CPRI: 15.89

Capri Holdings's 5-Year Average Operating Margin % Growth Rate was -8.80% per year.

Capri Holdings's Operating Income for the three months ended in Dec. 2022 was $242 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2022 was $918 Mil.


Capri Holdings Operating Margin % Historical Data

The historical data trend for Capri Holdings's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Capri Holdings Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.73 16.80 10.05 9.04 18.00

Capri Holdings Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.44 11.80 17.21 18.84 16.01

Competitive Comparison

For the Luxury Goods subindustry, Capri Holdings's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Capri Holdings Operating Margin % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Capri Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Capri Holdings's Operating Margin % falls in comparison to its industry or sector. The grey bar indicates the Operating Margin %'s extreme value range as defined by GuruFocus.



Capri Holdings Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Capri Holdings's Operating Margin % for the fiscal year that ended in Mar. 2022 is calculated as

Operating Margin %=Operating Income (A: Mar. 2022 ) / Revenue (A: Mar. 2022 )
=1018 / 5654
=18.00 %

Capri Holdings's Operating Margin % for the quarter that ended in Dec. 2022 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2022 ) / Revenue (Q: Dec. 2022 )
=242 / 1512
=16.01 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Capri Holdings  (NYSE:CPRI) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Capri Holdings Operating Margin % Related Terms

Thank you for viewing the detailed overview of Capri Holdings's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Capri Holdings (NYSE:CPRI) Business Description

Capri Holdings logo
Traded in Other Exchanges
Address
33 Kingsway, London, GBR, WC2B 6UF
Michael Kors, Versace, and Jimmy Choo are the brands of Capri Holdings, a marketer, distributor, and retailer of upscale accessories and apparel. Kors, Capri's largest brand, offers handbags, footwear, and apparel through more than 800 company-owned stores, wholesale, and e-commerce. Versace (acquired in 2018) is known for its ready-to-wear luxury fashion, while Jimmy Choo (acquired in 2017) is best known for women's luxury footwear. John Idol has served as CEO since 2003.
Executives
Joshua Schulman officer: CEO - Michael Kors 603 WEST 50TH STREET, NEW YORK X1 10019
Jenna Hendricks officer: SVP, Chief People Officer 33 KINGSWAY, LONDON X0 WC2B 6UF
Marilyn C Crouther director 9300 LEE HIGHWAY, FAIRFAX VA 22031
Daniel Purefoy officer: SVP, Global Ops 33 KINGSWAY, LONDON X0 WC2B 6UF
Ann Mclaughlin Korologos director PO BOX 3599, BATTLECREEK MI 49016-3599
Freestone Robin Anthony David director 33 KINGSWAY, LONDON X0 WC2B 6UF
Jean Tomlin director C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036
Thomas Jr. Edwards officer: EVP, CFO, COO & Treasurer 6820 LBJ FREEWAY, DALLAS TX 75240
Krista A Mcdonough officer: SVP, General Counsel 33 KINGSWAY, LONDON X0 WC2B 6UF
Cathy Marie Robinson officer: SVP, Corp Str & Ch Ops Off C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036
Michael David Kors director, officer: Hon Chair & Chief Creative Off C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, ATTN. LEE SPORN, NEW YORK NY 10036
Jane A. Thompson director C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036
Stephen F Reitman director 11 WEST 42ND STREET, 21ST FLOOR, NEW YORK NY 10036
M William Benedetto director 11 WEST 42ND STREET, 21ST FLOOR, NEW YORK NY 10036
John D Idol director, officer: Chairman & CEO 650 MADISON AVE, NEW YORK NY 10022

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