Capri Holdings (CPRI) AI Stock Analysis

• Market Cap: $2.58B
• Dividend Yield: N/A
• Average Volume (3M): 3.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: -16.69%
• EPS Growth: -279.61%
• Country: US
• Employees: 10,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.50
• Shares Outstanding: 119,048,060
• 10 Day Avg. Volume: 3,202,329
• 30 Day Avg. Volume: 3,473,954
• 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: 1.81
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 1.77
• Enterprise Value/Ebitda: 17.01
• 1Y Price Target: $24.13
• Price Target Upside: 10.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 50 Neutral
• Price Target: $20.50 ▼(-6.05% Downside)

Capri Holdings' overall stock score reflects significant financial challenges, including declining revenues and high leverage, which weigh heavily on the score. Technical indicators provide some support, but valuation concerns and mixed earnings call sentiment limit the upside.

Positive Factors

Brand Engagement

Increased brand engagement through strategic marketing and influencer partnerships enhances long-term customer loyalty and market presence.

Strategic Initiatives

Renovating stores and closing underperforming locations can optimize retail operations, potentially improving profitability and customer experience.

Product Innovation

Successful new product launches in accessories can drive revenue growth and strengthen brand positioning in the luxury market.

Negative Factors

Revenue Decline

A consistent decline in revenue indicates challenges in market demand and competitive positioning, affecting long-term financial health.

High Financial Leverage

High leverage and negative equity can limit financial flexibility and increase risk, impacting the company's ability to invest in growth.

Tariff Costs

Rising tariff costs can erode profit margins and increase operational costs, posing a long-term challenge to maintaining competitive pricing.

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 generates revenue primarily through the sale of its luxury goods across its three main brands. Key revenue streams include direct-to-consumer sales from retail stores and e-commerce platforms, as well as wholesale distribution to department stores and specialty retailers. The company also earns income from licensing agreements for its fragrances and eyewear. Significant partnerships with various retailers and e-commerce platforms enhance its market reach and brand visibility, while seasonal collections and strategic marketing campaigns drive consumer demand. Additionally, the growing trend of online shopping has contributed to increased sales through their digital channels.

Capri Holdings Financial Statement Overview

Summary

Capri Holdings is facing financial challenges with declining revenues, negative profitability, and high leverage. Despite these issues, the company maintains positive free cash flow, which is a relative strength. Strategic cost management and revenue growth initiatives are crucial for financial recovery.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.17B	4.44B	5.17B	5.62B	5.65B	4.06B
Gross Profit	2.64B	2.83B	3.34B	3.72B	3.74B	2.60B
EBITDA	275.00M	245.00M	575.00M	1.00B	1.19B	258.00M
Net Income	-1.11B	-1.18B	-229.00M	616.00M	822.00M	-63.00M
Balance Sheet
Total Assets	5.47B	5.21B	6.69B	7.29B	7.48B	7.48B
Cash, Cash Equivalents and Short-Term Investments	129.00M	166.00M	199.00M	249.00M	169.00M	232.00M
Total Debt	2.72B	3.10B	3.58B	3.60B	3.04B	3.45B
Total Liabilities	5.48B	4.84B	5.09B	5.45B	4.92B	5.32B
Stockholders Equity	-17.00M	368.00M	1.60B	1.85B	2.56B	2.16B
Cash Flow
Free Cash Flow	92.00M	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: 21.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 21.82 is above the 20-day moving average (MA) of 21.18, above the 50-day MA of 20.20, and above the 200-day MA of 19.78, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 56.24 is Neutral, neither overbought nor oversold. The STOCH value of 72.02 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
SIG	75 Outperform	3.87B	31.00	7.64%	1.29%	-1.63%	-72.22%
MOV	71 Outperform	309.88M	25.26	3.30%	7.09%	-0.65%	-51.59%
LUXE	63 Neutral	757.16M	-19.12	0.00%	―	7.08%	-42.22%
TPR	60 Neutral	22.87B	132.99	21.36%	1.32%	5.09%	-80.06%
CPRI	50 Neutral	$2.58B	―	-142.38%	―	-16.69%	-279.61%
LANV	46 Neutral	253.20M	-1.01	3750.68%	―	-23.54%	-49.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Capri Holdings Corporate Events

Capri Holdings Shareholders Approve Key Proposals at Meeting

At the 2025 Annual Meeting of Shareholders held on August 7, 2025, Capri Holdings Limited shareholders voted on several proposals. The election of two Class II directors, the ratification of Ernst & Young LLP as the independent registered public accounting firm, and the executive compensation plan were all approved. Additionally, the company decided to hold an annual advisory vote on executive compensation and approved the Fourth Amended and Restated Omnibus Incentive Plan.

Capri Holdings Reports Q1 Fiscal 2026 Results

Capri Holdings reported its financial results for the first quarter of Fiscal 2026, ending June 28, 2025, with a 6.0% decrease in revenue on a reported basis. The company saw improvements in trends, with revenue and earnings per share exceeding expectations, indicating progress in strategic initiatives. The Versace transaction with Prada is anticipated to close in the latter half of 2025, with Capri Holdings focusing on stabilizing its business and positioning for growth in fiscal 2027. The company expects continued revenue and earnings growth and aims to increase shareholder value despite a dynamic global macroeconomic environment.