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Capri Holdings (CPRI)
NYSE:CPRI
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Capri Holdings
(NYSE:CPRI)
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Rating:47Neutral
Price Target:
$20.00
▼(-1.62% Downside)
Action:ReiteratedDate:02/04/26
The score is held down primarily by weak financial performance (revenue decline, losses, and historically fragile leverage/equity metrics) and bearish technicals (below key moving averages with negative MACD). Offsetting these risks, the latest earnings commentary points to improving financial flexibility (net debt ~+$80M), narrowed FY26 guidance, and a stated path back to growth in FY2027, but execution and near-term demand/margin headwinds remain significant.
Positive Factors
Balance-sheet repair via Versace sale
The Versace sale materially reduced net debt from roughly $1.6B to about $80M, delivering lasting financial flexibility. This lowers refinancing risk, creates capacity for targeted reinvestment and a planned buyback, and gives management room to execute strategic product and store investments into FY2027.
Improved cash generation
Sustained operating and free cash flow provides a durable funding source for debt paydown, capex and shareholder returns. Strong cash conversion helps absorb earnings volatility, supports strategic initiatives and reduces reliance on external financing over the intermediate term.
Brand-level margin recovery & Jimmy Choo momentum
Underlying gross-margin expansion and concrete Jimmy Choo strength signal product and pricing improvements that are structural. Wholesale growth, better full-price sell-throughs and a growing consumer database support durable margin recovery if the company sustains sourcing, pricing and merchandising actions into FY2027.
Negative Factors
Persistent revenue decline and losses
Ongoing top-line contraction and negative margins indicate the core business has yet to restore structural profitability. Even with margin improvements, shrinking revenue and current loss profile undermine sustainable earnings power and require successful execution across brands and channels to reverse over the medium term.
Historically fragile equity / leverage sensitivity
A very thin equity cushion makes the company highly sensitive to further losses or valuation swings. Even after debt reduction, limited equity restricts flexibility, increases the impact of adverse results on leverage metrics, and makes capital-structure resilience contingent on sustained profitability.
Concentration risk & regional/brand weakness
Heavy reliance on Michael Kors and regional exposure (notably Americas) plus wholesale counterparty risk create structural vulnerability. If flagship brand recovery or regional demand lags, company-wide growth and cash flow improvement could be delayed, making recovery dependent on successful execution.
Capri Holdings (CPRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.42B
Dividend YieldN/A
Average Volume (3M)3.21M
Price to Earnings (P/E)―
Beta (1Y)1.71
Revenue Growth-17.66%
EPS Growth-223.06%
CountryUS
Employees10,200
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.81
Shares Outstanding119,161,865
10 Day Avg. Volume2,453,573
30 Day Avg. Volume3,206,279
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)6.52
Price to Sales (P/S)0.54
P/FCF Ratio15.69
Enterprise Value/Market Cap1.82
Enterprise Value/Revenue1.19
Enterprise Value/Gross Profit1.93
Enterprise Value/Ebitda24.19
Forecast
1Y Price Target
$26.46Price Target Upside30.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Capri Holdings Business Overview & Revenue Model
Company DescriptionCapri 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 MoneyCapri 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 Key Performance Indicators (KPIs)
Any
Revenue by Geography
Details total sales by region to highlight which countries drive the company’s top line, signaling geographic concentration, growth pockets, and vulnerability to local economic cycles or currency movements.
Details total sales by region to highlight which countries drive the company’s top line, signaling geographic concentration, growth pockets, and vulnerability to local economic cycles or currency movements.
Data provided by:
The Fly
The FlyCapri Holdings Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Positive
The call presented a mix of constructive strategic progress and material near-term headwinds. Positives include a transformative balance-sheet transaction (Versace sale) that reduced net debt from roughly $1.6B to ~$80M, a ~30% increase in quarterly EPS, underlying gross margin expansion excluding tariffs, cost reductions and clear momentum at Jimmy Choo (revenue and wholesale strength). Offsetting these are a 4% decline in total revenue, a 230-basis-point decline in reported gross margin driven by tariffs and mix, Michael Kors revenue softness (notably in The Americas), a modest reserve related to a wholesale bankruptcy, and guidance indicating continued margin pressure for the full year for parts of the portfolio. Management reiterated confidence in a return to growth in fiscal 2027 as strategic initiatives (pricing architecture, product, influencer marketing, store renovations and sourcing actions) continue to take hold.Q3-2026 Updates
Positive Updates
Strong Balance Sheet Update — Versace Sale and Debt Reduction
Completed sale of Versace for approximately $1.4 billion in cash; ended the quarter with $154M cash, $234M debt and net debt of ~$80M (vs. ~ $1.6B net debt at end of prior quarter), materially strengthening financial flexibility.
Earnings Per Share Increase
Diluted EPS for the quarter increased ~30% to $0.81, reflecting improved profitability and expense discipline despite revenue headwinds.
Underlying Gross Margin Expansion (Excluding Tariffs)
Underlying gross margin expanded +70 basis points company-wide. By brand, Michael Kors excluding tariffs expanded +60 bps and Jimmy Choo excluding tariffs expanded +80 bps, driven by better full-price sell-throughs and reduced promotions.
Jimmy Choo Momentum and Growth
Jimmy Choo revenue exceeded expectations, up 5% reported (1.9% constant currency). Retail improved sequentially (low-single-digit comp), wholesale grew double digits, Americas up ~23%, Bonbon group grew double digits, and footwear and casual categories showed high- to mid-single-digit gains; Jimmy Choo consumer database +8% YoY.
Improved Full-Price Performance and Consumer Engagement (Michael Kors)
Michael Kors saw sequential improvement in full-price channels with low-double-digit increases in full-price sales in that channel, higher AURs, and healthier mix. Influencer posts up 100% YoY and impressions/engagement ~+300%; Michael Kors global consumer database +8% YoY; three sequential quarters of online traffic improvement reported.
Operating Expense Reductions
Operating expense decreased by $32M versus prior year, delivering ~80 basis points of expense leverage and supporting EPS/margin resilience.
Retail Investment Progress — Store Renovation Program
Announced plan to renovate ~50% of store fleet and key department store locations over three years; renovated locations are already showing meaningful increases in traffic and sales versus prior year.
Narrowed Fiscal 2026 Guidance with Path to FY2027 Growth
Company narrowed FY26 revenue guidance to $3.45B–$3.475B, gross margin ~61%, and FY26 diluted EPS guidance of $1.30–$1.40; management reiterated expectation of a return to revenue and earnings growth in fiscal 2027 driven by gross margin expansion, sourcing efficiencies and targeted price increases.
Negative Updates
Total Revenue Decline
Total company revenue for the quarter was $1.025 billion, down 4% reported and down 5.9% on a constant-currency basis versus prior year.
Consolidated Gross Margin Pressure from Tariffs
GAAP gross margin declined to 60.8%, down 230 basis points year-over-year; higher-than-anticipated tariffs (approximately +50 bps in the quarter) driven by sales mix of new product materially offset underlying margin gains.
Michael Kors Revenue and Regional Weakness
Michael Kors revenue declined 5.6% reported (7.3% constant currency); global retail sales down mid-single digits, wholesale down mid-single digits. By geography Michael Kors: Americas -9%, EMEA +6%, Asia -1%; The Americas was a notable drag.
Operating Margin Decline — Consolidated and Brand-Level
Consolidated operating margin fell to 7.7% from 9.2% a year ago. Michael Kors operating margin declined to 13.9% from 16.2%. Although Jimmy Choo improved to 1.8% (from -3.8%), full-year guidance signaled Jimmy Choo operating margin could be in the negative low-single-digit range, indicating near-term margin pressure for that brand on a FY basis.
Regional Softness — Americas and Asia
Total company revenue by geography: Americas -7%, EMEA +5%, Asia -4%. Jimmy Choo reported Asia revenue down ~10%, indicating continued headwinds in parts of APAC.
Inventory and Units Expectation
Ending inventory was $663M, down 6.5% YoY. Management expects year-end inventory to be approximately flat to prior year, with a decrease in units offset by higher tariff and FX rates — implying units will be down, which could temper near-term top-line recovery.
Reserve for Wholesale Customer Bankruptcy
Company recorded a reserve of $15M related to a wholesale customer bankruptcy (reserve spans Michael Kors, Jimmy Choo and other brands); the reserve is a modest but tangible risk to collections and wholesale recoveries.
Near-Term Revenue Headwinds from Strategic Price & Channel Actions
Deliberate reductions in promotional activity and efforts to clean up off-price distribution (including reductions in Daigou sales at outlet) created near-term revenue pressure, particularly in outlets and The Americas; management expects these to be temporary but they weigh on current results.
Company Guidance
Capri narrowed fiscal 2026 guidance to revenue of $3.45–3.475 billion (Michael Kors $2.86–2.875B; Jimmy Choo $590–600M), gross margin of ~61%, operating expenses slightly above $2.0 billion, and operating income of ~$100 million (Michael Kors operating margin in the high single‑digits; Jimmy Choo operating margin in the negative low single‑digits); it expects full‑year net interest income of $85–90M, an effective tax rate in the low‑to‑mid‑teens, weighted average shares of ~120M and diluted EPS of $1.30–$1.40, with year‑end inventory anticipated to be roughly flat to prior year — the company finished Q3 with $154M cash, $234M debt (net debt ≈ $80M) and said it expects gross‑margin expansion and a return to revenue and earnings growth in FY2027 driven by better full‑price sell‑throughs, sourcing efficiencies and targeted price increases.Capri Holdings Financial Statement Overview
Summary
Fundamentals are pressured by declining TTM revenue (-5.98%), a loss-making profile (TTM net margin -15.2%) and negative operating profitability (TTM EBIT margin ~-0.3%). Balance-sheet risk remains a key overhang given extremely high TTM debt-to-equity (~12.5x) and a thin equity base, despite improved cash generation (TTM operating cash flow $567M; free cash flow $491M) acting as a partial offset.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–FY2022.24
Negative
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.18
Very Negative
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.63
Positive
| 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
Negative
20.33
Price Trends
23.63
Negative
23.08
Negative
21.11
Negative
Market Momentum
-0.85
Negative
39.89
Neutral
49.25
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 20.33 is below the 20-day moving average (MA) of 21.17, below the 50-day MA of 23.63, and below the 200-day MA of 21.11, indicating a bearish trend. The MACD of -0.85 indicates Negative momentum. The RSI at 39.89 is Neutral, neither overbought nor oversold. The STOCH value of 49.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPRI.
Capri Holdings Risk Analysis
Capri Holdings disclosed 42 risk factors in its most recent earnings report. Capri Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Capri Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $402.41M | 25.71 | 4.40% | 6.79% | 0.63% | -7.37% | |
67 Neutral | $31.28B | 63.40 | 55.34% | 1.16% | 8.14% | -65.04% | |
65 Neutral | $1.35B | 2.20 | 56.42% | ― | 97.28% | ― | |
64 Neutral | $3.95B | 28.24 | 8.24% | 1.46% | -0.40% | -68.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $1.35B | -8.37 | ― | ― | 14.30% | 23.73% | |
47 Neutral | $2.42B | -4.38 | -96.50% | ― | -17.66% | -223.06% |
* Consumer Cyclical Sector Average
CPRI
Capri Holdings
20.33
0.05
0.25%
TPR
Tapestry
154.51
71.82
86.84%
MOV
Movado Group
25.66
7.14
38.55%
SIG
Signet Jewelers
97.03
46.34
91.41%
REAL
RealReal
11.61
4.87
72.26%
LUXE
LuxExperience
9.87
-0.68
-6.45%
Capri Holdings Corporate Events
Business Operations and StrategyM&A Transactions
Capri Holdings Sells Versace to Prada for $1.375B
Positive
Dec 2, 2025
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.
The most recent analyst rating on (CPRI) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Capri Holdings stock, see the CPRI Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.