Did you analyze how Capri Holdings (CPRI Quick QuoteCPRI - Free Report) fared in its international operations for the quarter ending December 2024? Given the widespread global presence of this luxury retailer, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

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.

In our recent assessment of CPRI's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

For the quarter, the company's total revenue amounted to $1.26 billion, experiencing a decline of 11.6% year over year. Next, we'll explore the breakdown of CPRI's international revenue to understand the importance of its overseas business operations.

Exploring CPRI's International Revenue Patterns

EMEA accounted for 27.04% of the company's total revenue during the quarter, translating to $341 million. Revenues from this region represented a surprise of +4.54%, with Wall Street analysts collectively expecting $326.18 million. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $348 million (32.25%) and $376 million (26.35%) to the total revenue, respectively.

During the quarter, Asia contributed $166 million in revenue, making up 13.16% of the total revenue. When compared to the consensus estimate of $165.1 million, this meant a surprise of +0.55%. Looking back, Asia contributed $140 million, or 12.97%, in the previous quarter, and $208 million, or 14.58%, in the same quarter of the previous year.

Revenue Forecasts for the International Markets

Wall Street analysts expect Capri Holdings to report $1 billion in total revenue for the current fiscal quarter, indicating a decline of 18% from the year-ago quarter. EMEA and Asia are expected to contribute 29.9% ($300.18 million) and 17.3% ($173.62 million) to the total revenue, respectively.

For the full year, the company is expected to generate $4.38 billion in total revenue, down 15.2% from the previous year. Revenues from EMEA and Asia are expected to constitute 29.2% ($1.28 billion) and 15.2% ($667.73 million) of the total, respectively.

Closing Remarks

Relying on international markets for revenues, Capri Holdings faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

At present, Capri Holdings holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. 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

Over the past month, the stock has lost 7.6% versus the Zacks S&P 500 composite's 4.2% increase. The Zacks Retail-Wholesale sector, of which Capri Holdings is a part, has risen 9.1% over the same period. The company's shares have increased 6.7% over the past three months compared to the S&P 500's 1.5% increase. Over the same period, the sector has risen 9.5%.