Capri Holdings: Navigating Tariff Challenges with Cautious Optimism and Strategic Adjustments

Bank of America Securities analyst Lorraine Hutchinson has reiterated their neutral stance on CPRI stock, giving a Hold rating yesterday.

Lorraine Hutchinson’s rating is based on a combination of factors influencing Capri Holdings’ current and future financial performance. The company has faced challenges due to tariff pressures, which have led to a reduction in the fiscal 2026 guidance. This includes reclassifying Versace as a discontinued operation and adjusting revenue and operating income expectations downward. Despite these challenges, there are signs of a potential turnaround, particularly with the Kors brand, where new product styles have shown promising sales performance.
Additionally, the company is implementing various strategies to mitigate the impact of tariffs, such as sourcing diversification and cost efficiencies. However, these efforts are somewhat offset by the de-leverage caused by declining sales. The balance between these mitigating efforts and the ongoing pressures has led to a Hold rating, reflecting a cautious outlook on the company’s ability to navigate these challenges while recognizing the potential for recovery in certain areas.

In another report released yesterday, Telsey Advisory also maintained a Hold rating on the stock with a $17.00 price target.