Capri Holdings (CPRI) AI Stock Analysis

• Market Cap: $3.09B
• Dividend Yield: N/A
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: -17.66%
• EPS Growth: -223.06%
• Country: US
• Employees: 10,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -0.03
• Shares Outstanding: 119,143,280
• 10 Day Avg. Volume: 2,432,123
• 30 Day Avg. Volume: 2,660,158
• PEG Ratio: >-0.01
• Price to Book (P/B): 6.52
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 15.69
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 2.08
• Enterprise Value/Ebitda: 22.40
• 1Y Price Target: $26.27
• Price Target Upside: -1.65% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $27.00 ▲(1.09% Upside)

Capri Holdings' overall stock score is primarily impacted by its financial challenges, including declining revenues and high leverage. However, positive technical indicators and strategic corporate events, such as the Versace sale and share buyback plan, provide some optimism. Valuation concerns due to negative earnings and lack of dividend yield further weigh down the score.

Positive Factors

Debt Reduction

The sale of Versace allows Capri Holdings to repay the majority of its debt, significantly strengthening its balance sheet and providing financial flexibility for future growth.

Share Buyback Program

The share buyback program demonstrates Capri Holdings' commitment to enhancing shareholder value and reflects confidence in its financial stability and future growth prospects.

Market Expansion in Asia

Strong revenue growth in Asia indicates successful market expansion and increased brand penetration, supporting long-term revenue growth and global market presence.

Negative Factors

Declining Revenue

The decline in revenue reflects ongoing challenges in maintaining sales momentum, potentially impacting long-term growth and profitability if not addressed.

High Leverage

High leverage poses financial risks, limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Profitability

Negative profitability highlights operational inefficiencies and challenges in cost management, which could hinder long-term financial health and competitiveness.

Capri Holdings Business Overview & Revenue Model

Company Description

Capri Holdings Limited is a global fashion luxury group that encompasses a portfolio of renowned brands, including Versace, Jimmy Choo, and Michael Kors. The company operates in the luxury goods sector, focusing on the design, marketing, and distribution of high-end apparel, accessories, footwear, and fragrances. Capri Holdings aims to deliver innovative products that reflect the heritage and craftsmanship of its brands, catering to a diverse clientele across the world.

How the Company Makes Money

Capri Holdings generates revenue primarily through the sale of its luxury products across various channels, including retail stores, e-commerce platforms, and wholesale distribution. The company benefits from multiple revenue streams by leveraging its diverse brand portfolio. Each brand contributes to earnings through direct-to-consumer sales and partnerships with high-end department stores and specialty retailers. Additionally, Capri Holdings invests in marketing and brand development to enhance its market presence and drive sales. Key partnerships with global retailers and strategic collaborations also play a significant role in expanding its distribution network and increasing brand visibility, ultimately contributing to its overall revenue growth.

Capri Holdings Financial Statement Overview

Summary

Capri Holdings is facing significant financial challenges, including declining revenues, negative profitability, and high financial leverage. The negative equity position and declining free cash flow further exacerbate the company's financial instability.

Income Statement

Capri Holdings has faced declining revenues with a negative growth rate of -6.08% in the TTM period. The company is struggling with profitability, as evidenced by a negative net profit margin of -26.65% and a negative EBIT margin. Despite a relatively healthy gross profit margin of 63.26%, the overall income statement reflects challenges in maintaining profitability and growth.

Balance Sheet

The balance sheet shows significant financial leverage with a negative equity position, resulting in an undefined debt-to-equity ratio for the TTM period. The return on equity is also negative, indicating losses relative to shareholder equity. The company's financial stability is a concern given the high leverage and negative equity.

Cash Flow

Capri Holdings' cash flow statement reveals a decline in free cash flow by 39.87% in the TTM period. The operating cash flow to net income ratio is low at 0.14, suggesting limited cash generation relative to net losses. However, the free cash flow to net income ratio is relatively better at 0.48, indicating some ability to generate cash despite net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.95B	4.44B	4.44B	5.17B	5.62B	5.65B
Gross Profit	2.47B	2.83B	2.83B	3.34B	3.72B	3.74B
EBITDA	229.00M	245.00M	245.00M	555.00M	1.02B	1.21B
Net Income	-1.17B	-1.18B	-1.18B	-229.00M	616.00M	822.00M
Balance Sheet
Total Assets	5.21B	5.21B	6.69B	7.29B	7.48B	7.48B
Cash, Cash Equivalents and Short-Term Investments	166.00M	166.00M	199.00M	249.00M	169.00M	232.00M
Total Debt	3.10B	3.10B	3.58B	3.60B	3.04B	3.45B
Total Liabilities	4.84B	4.84B	5.09B	5.45B	4.92B	5.32B
Stockholders Equity	368.00M	368.00M	1.60B	1.85B	2.56B	2.16B
Cash Flow
Free Cash Flow	65.00M	153.00M	120.00M	545.00M	573.00M	513.00M
Operating Cash Flow	190.00M	281.00M	309.00M	771.00M	704.00M	624.00M
Investing Cash Flow	-20.00M	-53.00M	-135.00M	183.00M	58.00M	-124.00M
Financing Cash Flow	-139.00M	-242.00M	-208.00M	-776.00M	-800.00M	-870.00M

Capri Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 26.71 is above the 20-day moving average (MA) of 24.62, above the 50-day MA of 22.64, and above the 200-day MA of 19.70, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 66.93 is Neutral, neither overbought nor oversold. The STOCH value of 40.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$330.59M	21.63	4.40%	6.48%	0.63%	-7.37%
TPR	69 Neutral	$24.19B	105.80	16.05%	1.21%	8.14%	-65.04%
LUXE	67 Neutral	$1.32B	2.13	56.42%	―	97.28%	―
SIG	64 Neutral	$3.77B	27.69	8.24%	1.37%	-0.40%	-68.99%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CPRI	56 Neutral	$3.09B	―	-165.96%	―	-17.66%	-223.06%
REAL	54 Neutral	$1.71B	―	―	―	14.30%	23.73%

Capri Holdings Corporate Events

Capri Holdings Sells Versace to Prada for $1.375B

On December 2, 2025, Capri Holdings Limited completed the sale of its Versace business to Prada S.p.A for $1.375 billion in cash. The proceeds from this transaction are intended to repay the majority of the company’s debt, significantly strengthening its balance sheet and providing financial flexibility to invest in growth and return capital to shareholders. Additionally, Capri Holdings entered into a retention and performance bonus agreement with Krista McDonough, its Chief Legal and Sustainability Officer, to incentivize her continued employment and recognize her contributions to the sale. The company remains focused on its strategic initiatives for Michael Kors and Jimmy Choo, aiming to stabilize its business and establish a foundation for growth in fiscal 2027.

Capri Holdings Announces $1 Billion Share Buyback Plan

On November 4, 2025, Capri Holdings announced a three-year share repurchase program of up to $1 billion, expected to start in fiscal 2027. This initiative aligns with the company’s strategic focus on strengthening its financial position following the anticipated sale of Versace, with plans to use the proceeds to reduce debt and enhance shareholder value. The company’s second quarter fiscal 2026 results showed a revenue decrease of 2.5%, but exceeded expectations in gross margin and operating income, reflecting progress in strategic initiatives. The sale of Versace is expected to close in the fiscal third quarter, with Capri Holdings concentrating on the growth of Michael Kors and Jimmy Choo.