Capri Holdings (CPRI) AI Stock Analysis

• Market Cap: $2.19B
• Dividend Yield: N/A
• Average Volume (3M): 3.71M
• Price to Earnings (P/E): 6.5
• Beta (1Y): 1.75
• Revenue Growth: -17.66%
• EPS Growth: -223.06%
• Country: US
• Employees: 10,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.81
• Shares Outstanding: 119,161,865
• 10 Day Avg. Volume: 3,470,749
• 30 Day Avg. Volume: 3,713,103
• PEG Ratio: 0.00
• Price to Book (P/B): 6.52
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 15.69
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 1.84
• Enterprise Value/Ebitda: 23.01
• 1Y Price Target: $26.00
• Price Target Upside: 40.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 1.4
• Revenue Forecast (FY): $3.47B

• Rating: 51 Neutral
• Price Target: $18.50 ▼(-0.16% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held back primarily by weak financial performance (revenue decline, losses, and historically very high leverage/low equity) and bearish technicals. Offsetting factors include strong TTM cash flow and a more constructive earnings outlook supported by improved balance-sheet flexibility following the Versace sale, though near-term margin and revenue headwinds remain.

Positive Factors

Cash generation

Sustained TTM operating cash flow and strong free cash flow provide durable internal funding for working capital, store renovations and strategic initiatives. Reliable cash generation reduces reliance on external financing and supports deleveraging and execution of multi‑year recovery plans.

Balance-sheet improvement (Versace sale)

The Versace divestiture meaningfully transformed balance‑sheet flexibility, cutting net debt from roughly $1.6B to about $80M. This materially lowers refinancing risk, creates room for targeted investment and gives management time and capital to execute sourcing and pricing initiatives without immediate liquidity pressure.

Jimmy Choo momentum

Consistent top‑line and wholesale strength at Jimmy Choo signals durable brand momentum and category diversification. Double‑digit wholesale growth and higher retail comps imply scalable distribution and consumer resonance that can offset Michael Kors cyclicality and support group recovery as investments and merchandising actions continue.

Negative Factors

Revenue decline & losses

Persistent revenue contraction and a materially negative net margin indicate operating performance has not yet converted gross margin strength into profits. Continued top‑line weakness requires sustained improvements in product mix, full‑price sell‑through and expense control to restore durable profitability.

Fragile equity / leverage

Extremely elevated debt‑to‑equity driven by a thin equity base leaves the company exposed to shocks despite recent debt paydown. Negative ROE reflects cumulative losses; a shallow equity cushion limits financial flexibility and raises the bar for sustained cash generation to absorb future volatility or fund strategic initiatives.

Tariff & regional margin pressure

Higher-than-anticipated tariffs and adverse mix trimmed reported gross margins and highlight structural cost exposure. Combined with notable Michael Kors softness in the Americas, regional concentration and external cost pressures could compress margins over multiple quarters absent durable sourcing or pricing fixes.

Capri Holdings Business Overview & Revenue Model

Company Description

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also licenses Versace brand name and trademarks to third parties to retail and/or wholesale its products; and has licensing agreements to the manufacture and sale of jeans, fragrances, watches, eyewear, and home furnishings. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Capri Holdings makes money primarily by selling branded luxury products through two main go-to-market channels: (1) direct-to-consumer (DTC) and (2) wholesale. In its DTC business, the company generates revenue from sales in company-operated retail stores and from e-commerce transactions on brand websites and other owned digital storefronts; this channel captures the full retail selling price (net of discounts, returns, and taxes) and typically includes revenue from core categories such as handbags and small leather goods, ready-to-wear/apparel, footwear, and accessories. In its wholesale business, Capri sells merchandise to third-party retailers (e.g., department stores and specialty stores), recognizing revenue based on shipments or transfers under applicable terms; wholesale generally produces lower gross margins than DTC but can drive volume and broaden distribution. In addition to product sales, Capri also earns revenue from licensing arrangements in certain categories where products are manufactured and sold by third parties under its brands (commonly categories such as fragrances, eyewear, or watches, depending on the specific agreements in place), with Capri receiving royalties and/or other licensing income rather than directly booking product sales. Across channels, earnings are influenced by brand desirability and pricing power, the mix of full-price versus promotional sales, geographic demand trends, store productivity and traffic, digital conversion, inventory management and markdown levels, and foreign currency movements. Significant partnerships that can contribute to revenue include relationships with third-party wholesale accounts and, where applicable, license partners that produce and distribute licensed products under Capri’s brands.

Capri Holdings Financial Statement Overview

Summary

Financials are pressured by declining TTM revenue (-5.976%), a loss-making profile (TTM net margin -15.2%) and very weak equity metrics (debt-to-equity ~12.5x; TTM ROE ~-273%). Offsetting this, gross margin remains strong (~61%) and TTM cash generation is solid (operating cash flow $567M; free cash flow $491M), but profitability and balance-sheet fragility keep the score low.

Income Statement

Profitability has deteriorated materially versus prior years. Revenue in TTM (Trailing-Twelve-Months) declined (-5.976%), and the company is currently loss-making (TTM net margin -15.2%) with slightly negative operating profitability (TTM EBIT margin ~-0.3%). While gross margin remains strong for luxury (TTM ~61%), operating leverage has not translated into earnings, and results are well below the profitability seen in FY2021–FY2022.

Balance Sheet

Leverage is the primary concern. TTM debt-to-equity is extremely elevated (~12.5x) due to a sharply reduced equity base ($105M), and returns on equity are deeply negative (TTM ROE ~-273%) driven by losses. Total debt has come down versus FY2024–FY2025 levels, but the balance sheet remains fragile given the thin equity cushion relative to the debt load.

Cash Flow

Cash generation is a relative bright spot. TTM operating cash flow ($567M) and free cash flow ($491M) are strong and improved meaningfully versus the latest annual period (FY2025 free cash flow $153M), indicating better cash discipline and/or working-capital tailwinds. However, cash flow still does not fully cover the earnings shortfall (TTM free cash flow remains below the net loss), and prior-year cash flow performance has been uneven.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.71B	4.44B	4.44B	5.62B	5.65B	5.65B
Gross Profit	2.28B	2.83B	2.83B	3.72B	3.74B	3.74B
EBITDA	182.00M	245.00M	245.00M	1.02B	1.21B	1.21B
Net Income	-504.00M	-1.18B	-1.18B	616.00M	822.00M	822.00M
Balance Sheet
Total Assets	3.33B	5.21B	6.69B	7.29B	7.48B	7.48B
Cash, Cash Equivalents and Short-Term Investments	164.00M	166.00M	199.00M	249.00M	169.00M	232.00M
Total Debt	2.14B	3.10B	3.58B	3.60B	3.04B	3.45B
Total Liabilities	3.23B	4.84B	5.09B	5.45B	4.92B	5.32B
Stockholders Equity	105.00M	368.00M	1.60B	1.85B	2.56B	2.16B
Cash Flow
Free Cash Flow	252.00M	153.00M	120.00M	545.00M	573.00M	513.00M
Operating Cash Flow	342.00M	281.00M	309.00M	771.00M	704.00M	624.00M
Investing Cash Flow	1.28B	-53.00M	-135.00M	183.00M	58.00M	-124.00M
Financing Cash Flow	-1.62B	-242.00M	-208.00M	-776.00M	-800.00M	-870.00M

Capri Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPRI, the sentiment is Negative. The current price of 18.53 is below the 20-day moving average (MA) of 19.47, below the 50-day MA of 21.74, and below the 200-day MA of 21.19, indicating a bearish trend. The MACD of -0.94 indicates Negative momentum. The RSI at 39.35 is Neutral, neither overbought nor oversold. The STOCH value of 64.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPRI.

Capri Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOV	73 Outperform	$371.05M	10.69	4.21%	6.79%	0.63%	-7.37%
TPR	67 Neutral	$28.71B	11.94	63.26%	1.16%	8.14%	-65.04%
LUXE	65 Neutral	$1.14B	-21.03	56.42%	―	97.28%	―
SIG	64 Neutral	$3.41B	50.41	8.20%	1.46%	-0.40%	-68.99%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CPRI	51 Neutral	$2.19B	6.45	-244.66%	―	-17.66%	-223.06%
REAL	46 Neutral	$1.16B	-108.42	11.34%	―	14.30%	23.73%

Capri Holdings Corporate Events

Capri Holdings Names Tyler Reddien New CFO and COO

On February 24, 2026, Capri Holdings announced that its board has appointed Tyler Reddien as Chief Financial Officer and Chief Operating Officer, effective March 30, 2026. Reddien, a veteran finance and operations executive with experience at Natura &Co, The Body Shop, Hertz and United Airlines, will report to CEO John D. Idol and assume a central role overseeing Capri’s financial management and operational performance.

The company detailed a comprehensive employment package designed to align Reddien’s incentives with the group’s performance, including a $700,000 base salary, annual cash incentives tied to results, multi-year equity awards and relocation support. Capri also put in place severance protections and a change-in-control continuity agreement, underscoring the strategic importance of the dual CFO/COO role as it pursues operational discipline and growth, while interim CFO Rajal Mehta returns to his prior position as Michael Kors brand CFO on March 30, 2026.

The most recent analyst rating on (CPRI) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Capri Holdings stock, see the CPRI Stock Forecast page.