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Capri Holdings
(NYSE:CPRI)
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Rating:51Neutral
Price Target:
$21.00
▲(0.48% Upside)
Action:Reiterated
Date:05/29/26
The score is held back primarily by weak financial performance and elevated balance-sheet leverage risk, which reduces financial flexibility. Offsetting this, the earnings call provided constructive FY2027 guidance for margin and EPS improvement and shareholder returns, while technicals are improving short-term but remain weaker longer-term; valuation is middling with no dividend support.
Positive Factors
Diversified luxury brand portfolio
Owning three established luxury brands diversifies revenue across segments, geographies and channels. This structural portfolio provides pricing power, cross-channel distribution flexibility and resilience to localized demand shocks, supporting durable revenue potential over multiple cycles.
Negative Factors
Extremely elevated leverage
Severely eroded equity and very high debt-to-equity materially increase refinancing, covenant and interest-rate vulnerability. This stressed capital structure limits discretionary investment, constrains strategic flexibility and raises the risk of adverse outcomes if cash flow deteriorates.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified luxury brand portfolio
Owning three established luxury brands diversifies revenue across segments, geographies and channels. This structural portfolio provides pricing power, cross-channel distribution flexibility and resilience to localized demand shocks, supporting durable revenue potential over multiple cycles.
Read all positive factors
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 (CPRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.18B
Dividend YieldN/A
Average Volume (3M)3.50M
Price to Earnings (P/E)17.1
Beta (1Y)1.81
Revenue Growth-21.79%
EPS GrowthN/A
CountryUS
Employees14,650
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)1.11
Shares Outstanding114,796,104
10 Day Avg. Volume2,852,818
30 Day Avg. Volume3,497,486
Financial Highlights & Ratios
PEG Ratio-0.21
Price to Book (P/B)25.76
Price to Sales (P/S)0.59
P/FCF Ratio147.18
Enterprise Value/Market Cap1.63
Enterprise Value/Revenue1.02
Enterprise Value/Gross Profit1.72
Enterprise Value/Ebitda15.60
Forecast
1Y Price Target
$23.30Price Target Upside11.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)2.11
Revenue Forecast (FY)$3.52B
Capri Holdings Business Overview & Revenue Model
Company Description
Capri Holdings Limited engages in the design, marketing, distribution, and retail of branded women’s and men’s apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, Asia, and the Oceania. ...
How the Company Makes Money
Capri Holdings makes money primarily by selling luxury fashion products through three brand segments: Versace, Jimmy Choo, and Michael Kors. Revenue is generated through (1) direct-to-consumer sales, which include purchases made at company-operate...
Capri Holdings Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive tone: management highlighted a return to profitability, meaningful gross margin expansion, strengthened balance sheet after the Versace sale, significant share repurchases and concrete FY2027 guidance calling for low single-digit revenue growth, ~200 bps gross margin expansion and a 40% increase in EPS. Brand-level momentum at Michael Kors (full-price comp recovery, higher AURs, store renovation benefits) and accelerating Jimmy Choo retail/wholesale trends were emphasized. Key risks and near-term headwinds include the deliberate quality-of-sale actions that trimmed ~ $150M in FY2026 revenue and will weigh on early FY2027 results, continued outlet and wholesale pressures (especially for Michael Kors), Jimmy Choo’s current profitability shortfall, tariff uncertainty and modest FX-driven expense increases. Overall, the positive operational traction, margin improvement and strong capital position outweigh the near-term revenue headwinds and uncertainties.Positive Updates
Return to Profitability and EPS Recovery
Capri returned to profitability in Q4 with net income of $27 million and diluted EPS of $0.22 (versus a loss the prior year). Management expects FY2027 diluted EPS of approximately $2.15, a 40% increase over last year.
Negative Updates
Top-Line Pressure from Quality-of-Sale Actions
Management's initiatives to improve quality of sale (reducing promotional activity, third-party sales and off-price shipments) reduced fiscal 2026 revenue by over $150 million and are expected to remain a headwind into the first half of FY2027 (~$75 million impact referenced), delaying near-term revenue growth.
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Q4-2026 Updates
Positive
Negative
Return to Profitability and EPS Recovery
Capri returned to profitability in Q4 with net income of $27 million and diluted EPS of $0.22 (versus a loss the prior year). Management expects FY2027 diluted EPS of approximately $2.15, a 40% increase over last year.
Read all positive updates
Company Guidance
Capri guided fiscal 2027 revenue to grow low single‑digits to about $3.525 billion (Michael Kors ≈ $2.9B; Jimmy Choo ≈ $625M), with full‑year gross margin expanding ~200 basis points (first half ≈ +300 bps; second half ≈ +100 bps; a 53rd week adds ~1 point to revenue) and operating income of ≈ $190M (+60% YoY). They expect diluted EPS of ≈ $2.15 (+40% YoY) assuming $200M of share repurchases (weighted average shares ≈ 112M), net interest & other income of $85–90M, an effective tax rate in the low teens, modestly higher operating expenses, and capital expenditures of ≈ $125M (store renovations/openings and IT/digital). Cadence: first‑half revenue down low single digits with retail roughly flat and wholesale down low double digits (first‑half EPS ≈ $0.85, ≈ +80% YoY); second half revenue accelerating to mid‑single digits (second‑half EPS ≈ $1.25, ≈ +20% YoY). Q1 guidance: revenue ≈ $750M (Michael Kors ≈ $585M, Jimmy Choo ≈ $165M), operating income ≈ $10M, net interest ≈ $20M, effective tax ≈ ‑50%, shares ≈ 116M and EPS ≈ $0.40. Guidance assumes an additional 10% U.S. tariff and the company plans to renovate ≈100 stores (and ~150 department‑store doors) in FY27; note inventory was down 17% at quarter end.Capri Holdings Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
18
Very Negative
Cash Flow
42
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.47B | 4.44B | 4.44B | 5.62B | 5.65B |
| Gross Profit | 2.05B | 2.83B | 2.83B | 3.72B | 3.74B |
| EBITDA | 228.00M | 245.00M | 245.00M | 1.02B | 1.21B |
| Net Income | 92.00M | -1.18B | -1.18B | 616.00M | 822.00M |
Balance Sheet | |||||
| Total Assets | 3.23B | 5.21B | 6.69B | 7.29B | 7.48B |
| Cash, Cash Equivalents and Short-Term Investments | 135.00M | 166.00M | 199.00M | 249.00M | 169.00M |
| Total Debt | 1.42B | 3.10B | 3.58B | 3.60B | 3.04B |
| Total Liabilities | 3.15B | 4.84B | 5.09B | 5.45B | 4.92B |
| Stockholders Equity | 80.00M | 368.00M | 1.60B | 1.85B | 2.56B |
Cash Flow | |||||
| Free Cash Flow | 14.00M | 153.00M | 120.00M | 545.00M | 573.00M |
| Operating Cash Flow | 77.00M | 281.00M | 309.00M | 771.00M | 704.00M |
| Investing Cash Flow | 1.22B | -53.00M | -135.00M | 183.00M | 58.00M |
| Financing Cash Flow | -1.30B | -242.00M | -208.00M | -776.00M | -800.00M |
Capri Holdings Technical Analysis
Negative
20.90
Price Trends
19.05
Negative
19.18
Negative
21.12
Negative
Market Momentum
-0.06
Positive
47.71
Neutral
20.89
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 20.9 is above the 20-day moving average (MA) of 19.58, above the 50-day MA of 19.05, and below the 200-day MA of 21.12, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 20.89 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 41 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $593.17M | 26.67 | 6.39% | 6.79% | 4.30% | 76.21% | |
67 Neutral | $28.99B | 43.84 | 106.44% | 1.16% | 14.13% | -15.62% | |
67 Neutral | $3.31B | 11.65 | 16.01% | 1.46% | 1.35% | 661.25% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.10B | 1.84 | 34.62% | ― | 194.57% | ― | |
54 Neutral | $1.40B | -19.98 | 17.42% | ― | 17.16% | -48.49% | |
51 Neutral | $2.18B | 17.14 | 102.24% | ― | -21.79% | ― |
* Consumer Cyclical Sector Average
CPRI
Capri Holdings
18.96
0.82
4.52%
TPR
Tapestry
144.21
55.16
61.94%
MOV
Movado Group
37.61
22.08
142.16%
SIG
Signet Jewelers
84.12
1.25
1.51%
REAL
RealReal
11.58
6.27
118.08%
LUXE
LuxExperience
8.03
0.21
2.69%
Capri Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Capri Holdings Announces Planned Board Transition and Refreshment
Neutral
Jun 16, 2026
On June 11, 2026, Capri Holdings Limited announced that director Stephen Reitman intends not to stand for re-election to the Board of Directors at the company’s 2026 Annual Meeting of Shareholders. His term will therefore end at the conclusi...
Executive/Board Changes
Capri Holdings Announces Leadership Change in Legal and ESG
Neutral
Apr 9, 2026
On April 6, 2026, Capri Holdings Limited announced that Krista McDonough, its Chief Legal and Sustainability Officer, has voluntarily decided to resign to pursue another professional opportunity, with her departure effective June 26, 2026. The com...
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.