Capri Holdings (CPRI) AI Stock Analysis

• Market Cap: $2.20B
• Dividend Yield: N/A
• Average Volume (3M): 3.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: -14.08%
• EPS Growth: -411.39%
• Country: US
• Employees: 10,200
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Luxury Goods
• EPS (TTM): -4.90
• Shares Outstanding: 117,923,400
• 10 Day Avg. Volume: 2,314,568
• 30 Day Avg. Volume: 3,013,944
• PEG Ratio: 0.11
• Price to Book (P/B): 6.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.48
• Enterprise Value/Market Cap: 2.33
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.85
• Enterprise Value/Ebitda: -68.55
• 1Y Price Target: $21.50
• Price Target Upside: 15.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 53 Neutral
• Price Target: $20.00 ▲(7.64%Upside)

Capri Holdings faces significant financial challenges that weigh heavily on its overall score. However, the sale of Versace and positive technical indicators provide some optimism. Strategic initiatives and successful execution of growth plans are critical for future improvement.

Positive Factors

Brand Perception

Customers are responding positively to Michael Kors' return to its 'jetset heritage' and a broader range of price points, indicating a positive shift in brand perception and purchase intent.

Capital Structure

The sale of Versace to Prada for $1.375B is a game changer for Capri Holdings' capital structure, reducing debt and improving financial flexibility.

Valuation

In a Bull Case scenario, the valuation is compelling with the stock trading at an attractive ~4.0x EBITDA, highlighting strong risk/reward potential.

Negative Factors

Cost Structure

Cost cutting benefits have been overshadowed by sales declines, resulting in a negative impact on operating margins.

Revenue Guidance

Management's outlined expectations for Michael Kors revenues are down 7.2% YOY at the midpoint, and Jimmy Choo revenues are down 9.9% YOY at the midpoint.

Tariff Impact

Tariff pressures are expected to increase the cost of goods sold by $60 million.

Capri Holdings Business Overview & Revenue Model

Company Description

Capri Holdings Limited is a multinational fashion holding company, known for its luxury and high-end fashion brands. The company operates through three primary segments: Versace, Jimmy Choo, and Michael Kors. Each brand is recognized globally for its distinctive style and high-quality products, including apparel, footwear, and accessories. Capri Holdings is dedicated to delivering luxury fashion experiences and has a strong presence in retail markets worldwide.

How the Company Makes Money

Capri Holdings makes money primarily through the sale of luxury fashion items under its key brands: Versace, Jimmy Choo, and Michael Kors. Revenue is generated from both direct-to-consumer sales through branded retail stores and e-commerce platforms, as well as from wholesale operations where products are sold to third-party retailers. The company also earns from licensing agreements, allowing certain products to be produced and distributed by other companies under its brand names. Significant partnerships with luxury retailers and a focus on expanding into emerging markets contribute to Capri Holdings' earnings.

Capri Holdings Financial Statement Overview

Summary

Capri Holdings is facing significant financial challenges with declining revenues, negative profitability, and high leverage. Despite a strong cash flow position, the company's financial health is under pressure, necessitating strategic cost management and revenue growth initiatives.

Income Statement

Capri Holdings has experienced a significant decline in revenue over the past years, with a notable revenue decrease of 14.06% from the previous year. The company is currently facing profitability challenges, as evidenced by a negative EBIT margin and a net profit margin of -26.61%. Additionally, the gross profit margin has decreased to 63.61%, indicating pressure on cost management.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 8.43, indicating substantial leverage and financial risk. The equity ratio has decreased to 7.06%, reflecting a diminished equity base relative to total assets. Return on equity is currently negative, further emphasizing profitability issues.

Cash Flow

Capri Holdings has managed to maintain a positive free cash flow, with a growth rate of 27.5%. The operating cash flow to net income ratio is healthy at 2.38, demonstrating robust cash generation relative to earnings. However, cash flow remains under pressure due to ongoing losses.

Breakdown	Mar 2025	Mar 2024	Jun 2023	Jun 2022	Mar 2021
Income Statement
Total Revenue	4.44B	5.17B	5.62B	5.65B	4.06B
Gross Profit	2.83B	3.34B	3.72B	3.74B	2.60B
EBITDA	245.00M	575.00M	1.00B	1.19B	258.00M
Net Income	-1.18B	-229.00M	616.00M	822.00M	-63.00M
Balance Sheet
Total Assets	5.21B	6.69B	7.29B	7.48B	7.48B
Cash, Cash Equivalents and Short-Term Investments	166.00M	199.00M	249.00M	169.00M	232.00M
Total Debt	3.10B	3.58B	3.60B	3.04B	3.45B
Total Liabilities	4.84B	5.09B	5.45B	4.92B	5.32B
Stockholders Equity	368.00M	1.60B	1.85B	2.56B	2.16B
Cash Flow
Free Cash Flow	153.00M	120.00M	545.00M	573.00M	513.00M
Operating Cash Flow	281.00M	309.00M	771.00M	704.00M	624.00M
Investing Cash Flow	-53.00M	-135.00M	183.00M	58.00M	-124.00M
Financing Cash Flow	-242.00M	-208.00M	-776.00M	-800.00M	-870.00M

Capri Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.58
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 18.58 is above the 20-day moving average (MA) of 18.05, above the 50-day MA of 17.70, and below the 200-day MA of 22.09, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 46.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CPRI.

Capri Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIG	75 Outperform	$3.23B	87.83	2.04%	1.63%	-3.98%	-93.50%
TPR	74 Outperform	$21.10B	26.73	40.27%	1.38%	2.67%	1.31%
Sector *	67 Neutral	¥252.71B	13.20	6.45%	2.71%	5.22%	-11.89%
MOV	63 Neutral	$255.14M	20.00	3.67%	8.66%	-1.36%	-54.97%
LUXE	63 Neutral	$634.38M	―	-8.75%	―	7.08%	-42.22%
CPRI	53 Neutral	$2.20B	―	-120.18%	―	-14.08%	-411.39%
LANV	45 Neutral	$312.41M	―	-195.94%	―	-22.86%	-38.76%

Capri Holdings Corporate Events

Capri Holdings Sells Versace to Prada for $1.375B

On April 10, 2025, Capri Holdings announced a definitive agreement to sell its Versace business to Prada S.p.A. for $1.375 billion in cash. The transaction, expected to close in the second half of 2025, aims to strengthen Capri’s balance sheet and enable strategic investments in its other brands, Michael Kors and Jimmy Choo. This move is part of Capri’s strategy to increase shareholder value and focus on long-term growth for its remaining brands.