Cautious Outlook for Capri Holdings Amid Strategic Challenges and Financial Setbacks

Capri Holdings (CPRI – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Matthew Boss from J.P. Morgan maintained a Hold rating on the stock and has a $18.00 price target.

Matthew Boss has given his Hold rating due to a combination of factors impacting Capri Holdings. The company reported an adjusted fourth-quarter EPS loss that was significantly below expectations, primarily due to a non-cash tax valuation allowance charge. Although the reported revenues were slightly better than anticipated, the gross margins and SG&A expenses were not favorable, leading to a lower-than-expected adjusted EBIT margin.
Looking forward, Capri Holdings’ guidance for the fiscal year 2026 indicates challenges, with expected declines in consolidated revenues and operating income. The company’s strategic initiatives, such as brand reinvigoration at Michael Kors, are expected to take time to materialize. Despite some positive projections, such as higher-than-expected EPS guidance, the overall outlook remains cautious, prompting the Hold rating. The lowered price target reflects these concerns, acknowledging the need for significant improvements in distribution, product design, and customer engagement to achieve the desired growth and profitability.

In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $21.00 price target.