Capri Holdings (CPRI)
NYSE:CPRI
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Capri Holdings
(NYSE:CPRI)
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Rating:51Neutral
Price Target:
$18.50
▼(-6.66% Downside)
Action:ReiteratedDate: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, sizeable operating and free cash flow provides durable internal funding for capex, store renovation and sourcing improvements without immediate reliance on capital markets. Strong cash generation also enables ongoing deleveraging and gives management flexibility to execute strategic initiatives over the next several quarters.
Negative Factors
Loss-making profile
Persistent negative net margin and multi-period revenue erosion weaken retained earnings and limit reinvestment. Ongoing losses pressure equity, reduce room for error on strategic initiatives, and mean the company must rely on cash conversion and structural fixes to restore sustainable profitability over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained, sizeable operating and free cash flow provides durable internal funding for capex, store renovation and sourcing improvements without immediate reliance on capital markets. Strong cash generation also enables ongoing deleveraging and gives management flexibility to execute strategic initiatives over the next several quarters.
Read all positive factors
Capri Holdings (CPRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.36B
Dividend YieldN/A
Average Volume (3M)2.96M
Price to Earnings (P/E)6.5
Beta (1Y)1.76
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. Volume2,532,805
30 Day Avg. Volume2,957,649
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 Cap1.84
Enterprise Value/Revenue1.17
Enterprise Value/Gross Profit1.91
Enterprise Value/Ebitda23.86
Forecast
1Y Price Target
$25.33Price Target Upside27.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)1.85
Revenue Forecast (FY)$3.54B
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 segmen...
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 retai...
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.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.
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.
Read all updates
Q3-2026 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
24
Negative
Balance Sheet
18
Very Negative
Cash Flow
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
Neutral
19.82
Price Trends
19.50
Positive
22.22
Negative
21.27
Negative
Market Momentum
-0.19
Negative
59.01
Neutral
86.12
Negative
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 19.82 is above the 20-day moving average (MA) of 18.25, above the 50-day MA of 19.50, and below the 200-day MA of 21.27, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 59.01 is Neutral, neither overbought nor oversold. The STOCH value of 86.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $416.18M | 19.42 | 5.33% | 6.79% | 0.63% | -7.37% | |
68 Neutral | $30.90B | 11.94 | 63.26% | 1.16% | 8.14% | -65.04% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $1.16B | -21.03 | 56.42% | ― | 97.28% | ― | |
51 Neutral | $2.36B | 6.45 | -244.66% | ― | -17.66% | -223.06% | |
51 Neutral | $3.73B | 12.94 | 16.38% | 1.46% | -0.40% | -68.99% | |
46 Neutral | $1.15B | -108.42 | 11.34% | ― | 14.30% | 23.73% |
* Consumer Cyclical Sector Average
CPRI
Capri Holdings
19.82
5.19
35.48%
TPR
Tapestry
152.62
89.61
142.23%
MOV
Movado Group
26.64
14.11
112.66%
SIG
Signet Jewelers
93.06
36.19
63.62%
REAL
RealReal
9.69
4.55
88.52%
LUXE
LuxExperience
8.48
0.63
8.03%
Capri Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
Capri Holdings Names Tyler Reddien New CFO and COO
Positive
Feb 25, 2026
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 Natu...
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.