Have you assessed how the international operations of Capri Holdings (CPRI Quick QuoteCPRI - Free Report) performed in the quarter ended September 2024? For this luxury retailer, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Upon examining CPRI's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The company's total revenue for the quarter stood at $1.08 billion, declining 16.4% year over year. Now, let's delve into CPRI's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Unveiling Trends in CPRI's International Revenues

EMEA generated $348 million in revenues for the company in the last quarter, constituting 32.25% of the total. This represented a surprise of -0.6% compared to the $350.09 million projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $305 million (28.58%), and in the year-ago quarter, it contributed $401 million (31.06%) to the total revenue.

Of the total revenue, $140 million came from Asia during the last fiscal quarter, accounting for 12.97%. This represented a surprise of -28.58% as analysts had expected the region to contribute $196.03 million to the total revenue. In comparison, the region contributed $189 million, or 17.71%, and $200 million, or 15.49%, to total revenue in the previous and year-ago quarters, respectively.

Revenue Projections for Overseas Markets

The current fiscal quarter's total revenue for Capri Holdings, as projected by Wall Street analysts, is expected to reach $1.33 billion, reflecting a decline of 6.7% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: EMEA is anticipated to contribute 26.1% or $347.71 million and Asia 15.1% or $200.84 million.

For the entire year, the company's total revenue is forecasted to be $4.74 billion, which is a reduction of 8.2% from the previous year. The revenue contributions from different regions are expected as follows: EMEA will contribute 27.9% ($1.33 billion) and Asia 16.9% ($803.41 million) to the total revenue.

In Conclusion

Relying on global markets for revenues presents both prospects and challenges for Capri Holdings. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

Currently, Capri Holdings holds a Zacks Rank #5 (Strong Sell), signifying its potential to underperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Examining the Latest Trends in Capri Holdings' Stock Value

The stock has declined by 52.3% over the past month compared to the 4.4% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Retail-Wholesale sector, which includes Capri Holdings, has increased 5.3% during this time frame. Over the past three months, the company's shares have experienced a loss of 36.8% relative to the S&P 500's 13.1% increase. Throughout this period, the sector overall has witnessed a 18.6% increase.