Capri Holdings (CPRI) AI Stock Analysis

• Market Cap: $1.99B
• Dividend Yield: N/A
• Average Volume (3M): 4.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -12.34%
• EPS Growth: -574.65%
• Country: US
• Employees: 10,200
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Luxury Goods
• EPS (TTM): 0.45
• Shares Outstanding: 117,909,800
• 10 Day Avg. Volume: 2,883,597
• 30 Day Avg. Volume: 4,881,118
• PEG Ratio: 0.01
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.94
• Enterprise Value/Market Cap: 2.39
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 1.66
• Enterprise Value/Ebitda: 4.94
• 1Y Price Target: $20.33
• Price Target Upside: 20.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

Capri Holdings faces significant financial and operational challenges, with declining revenue and profitability. Technical indicators point to bearish momentum, while the valuation remains unattractive. Recent strategic moves, such as the sale of Versace and securing a credit facility, provide some positive outlook, but the near-term risks weigh heavily on the overall score.

Positive Factors

Financial Stability

The $1.375 billion sale price of Versace could immediately remove almost all leverage from Capri Holdings' balance sheet.

Potential Upside

If Capri Holdings can return to its historical EBITDA multiple, this implies a fair value of $25 per share, indicating potential upside for investors.

Shareholder Value

Capri Holdings plans to use proceeds from the Versace sale for a mix of debt paydown and possible share repurchase, which can strengthen its financial position.

Negative Factors

Business Challenges

Versace's revenues have fallen significantly, with EBITDA barely breaking even, indicating a decline in performance.

Sales and Margin Pressures

Strategic wholesale reduction creates a near-term headwind to both sales and margin.

Uncertainty

Conclusions about the impact on Capri Holdings' shares are uncertain as there's a possibility the deal may not be finalized.

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 luxury goods under its three flagship brands: Versace, Jimmy Choo, and Michael Kors. The company operates through retail stores, e-commerce platforms, and wholesale partnerships. Revenue streams include direct sales to consumers via branded retail stores and online channels, as well as wholesale distribution to high-end department stores and specialty retailers. Additionally, Capri Holdings benefits from licensing agreements and collaborations that expand its product offerings and brand reach. The company's earnings are significantly influenced by brand strength, global market presence, and strategic marketing initiatives aimed at enhancing brand visibility and consumer engagement.

Capri Holdings Financial Statement Overview

Summary

Capri Holdings faces significant financial challenges, with declining revenues and profitability impacting both the income statement and cash flow metrics. Despite maintaining positive cash flow, the company's high leverage and negative profitability metrics raise concerns.

Income Statement

Capri Holdings has experienced a notable decline in both revenue and profitability. The TTM (Trailing-Twelve-Months) figures show a gross profit margin of 62.8% and a significant negative net profit margin of -21.8%, indicating high costs relative to revenue. The EBIT and EBITDA margins are negative, reflecting operational challenges. Revenue growth has been inconsistent, with recent periods showing declines, which raises concerns about the company's ability to sustain growth in a competitive retail environment.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 2.92 in the TTM, indicating potential financial risk if earnings do not improve. The equity ratio stands at 18.1%, suggesting a relatively low proportion of equity in asset financing. Return on equity is negative at -94.5% in the TTM, highlighting profitability challenges. Despite these concerns, the company's asset base provides some stability.

Cash Flow

Capri Holdings maintains a positive operating cash flow, with an operating cash flow to net income ratio of -0.48 in the TTM, indicating efficient cash generation despite net losses. The free cash flow growth rate shows improvement, and the free cash flow to net income ratio is -0.33, reflecting robust cash flow management. However, the negative ratios highlight ongoing profitability issues impacting cash flow generation.

Breakdown
TTM	Mar 2024	Jun 2023	Jun 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.63B	5.17B	5.62B	5.65B	4.06B	5.55B
	Gross Profit
2.86B	3.34B	3.72B	3.74B	2.60B	3.27B
	EBIT
-603.00M	-241.00M	510.00M	718.00M	19.00M	-192.00M
	EBITDA
-403.00M	575.00M	1.00B	1.19B	258.00M	52.00M
	Net Income Common Stockholders
-1.01B	-229.00M	616.00M	822.00M	-63.00M	-225.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
356.00M	199.00M	249.00M	169.00M	232.00M	592.00M
	Total Assets
5.91B	6.69B	7.29B	7.48B	7.48B	7.95B
	Total Debt
3.12B	3.58B	3.60B	3.04B	3.45B	4.37B
	Net Debt
2.76B	3.38B	3.35B	2.87B	3.21B	3.77B
	Total Liabilities
4.83B	5.09B	5.45B	4.92B	5.32B	5.78B
	Stockholders Equity
1.07B	1.60B	1.85B	2.56B	2.16B	2.17B
Cash Flow		Free Cash Flow
334.84M	120.00M	545.00M	573.00M	513.00M	636.00M
	Operating Cash Flow
485.68M	309.00M	771.00M	704.00M	624.00M	859.00M
	Investing Cash Flow
-63.82M	-135.00M	183.00M	58.00M	-124.00M	62.00M
	Financing Cash Flow
-303.90M	-208.00M	-776.00M	-800.00M	-870.00M	-497.00M

Capri Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 16.88 is above the 20-day moving average (MA) of 14.86, below the 50-day MA of 17.65, and below the 200-day MA of 25.95, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 91.60 is Negative, 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
TPR	78 Outperform	$15.18B	21.27	40.27%	1.79%	2.67%	1.31%
SIG	61 Neutral	$2.61B	5.56	2.62%	1.85%	-6.52%	-104.24%
Sector *	61 Neutral	$6.68B	11.75	3.01%	3.94%	2.61%	-21.96%
MOV	60 Neutral	$221.69M	17.51	3.95%	9.20%	-8.69%	-57.84%
LUXE	56 Neutral	$659.96M	―	-8.28%	―	12.01%	-23.53%
CPRI	49 Neutral	$1.99B	―	-67.22%	―	-12.34%	-574.65%
LANV	44 Neutral	$345.25M	―	-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.

Spark’s Take on CPRI Stock

According to Spark, TipRanks’ AI Analyst, CPRI is a Neutral.

Capri Holdings faces significant financial and operational challenges, reflected in its declining revenue and profitability. While the company is implementing strategic initiatives and enhancing financial flexibility, the current bearish technical indicators and negative valuation metrics suggest a cautious outlook. The company’s efforts to stabilize and eventually return to growth are positive but are overshadowed by near-term risks.

To see Spark’s full report on CPRI stock, click here.

Capri Holdings CFO Thomas Edwards Announces Resignation

On March 27, 2025, Thomas J. Edwards, Jr., the Executive Vice President, Chief Financial Officer, and Chief Operating Officer of Capri Holdings, announced his resignation effective June 20, 2025, to pursue another opportunity. His departure is not due to any disagreements with the company’s operations or policies. Rajal Mehta, who has been with the company for 16 years and is currently the Chief Financial Officer of the Michael Kors brand, will serve as Interim CFO. This transition is expected to maintain continuity and stability within Capri Holdings’ financial operations, as the company continues to focus on its growth strategies.

Capri Holdings Announce New Long-Term Financial Targets

On February 19, 2025, Capri Holdings Limited held its Investor Day in New York City, where it announced new long-term financial targets. The company expressed optimism about the growth potential of its brands, Versace, Jimmy Choo, and Michael Kors, as it pursues strategic initiatives. Capri Holdings highlighted that its powerful brands have enduring value and resilience, which it expects to drive revenue and earnings growth over time. The guidance provided is based on adjusted, non-GAAP measures and is subject to external factors such as global economic conditions and currency fluctuations.

Capri Holdings Secures $2.2 Billion Credit Facility

On February 4, 2025, Capri Holdings Limited finalized an amended and restated credit agreement, establishing a $2.2 billion senior secured credit facility with JPMorgan Chase Bank among others. The facility includes a $700 million term loan and a $1.5 billion revolving credit line, maturing in July 2027, and aims to support the company’s operations through repaying existing debts and financing general corporate needs. This strategic financial restructuring enhances Capri Holdings’ liquidity and financial flexibility, potentially strengthening its position in the market.