Capri Holdings (CPRI) AI Stock Analysis

• Market Cap: $2.15B
• Dividend Yield: N/A
• Average Volume (3M): 3.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: -16.69%
• EPS Growth: -279.61%
• Country: US
• Employees: 10,200
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Luxury Goods
• EPS (TTM): 0.50
• Shares Outstanding: 117,923,400
• 10 Day Avg. Volume: 3,032,964
• 30 Day Avg. Volume: 3,144,018
• 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: 2.18
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 1.69
• Enterprise Value/Ebitda: 19.14
• 1Y Price Target: $22.50
• Price Target Upside: 23.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 51 Neutral
• Price Target: $18.00 ▼(-1.10% Downside)

Capri Holdings' overall score is primarily impacted by its financial challenges, including declining revenues and high leverage. While there are positive signs from strategic initiatives and cash flow resilience, the lack of profitability and valuation concerns weigh heavily on the score. The cautiously optimistic sentiment from the earnings call provides some support, but significant risks remain.

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.

Negative Factors

Financial Guidance

The company has cut its financial guidance due to tariff pressures and the reclassification of Versace as a discontinued operation.

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 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 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 faces significant financial challenges, including declining revenues, negative profitability, and high leverage. Despite these issues, the company maintains positive free cash flow, indicating some resilience in cash generation.

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	4.44B	4.44B	5.17B	5.62B	5.65B	4.06B
Gross Profit	2.78B	2.83B	3.34B	3.72B	3.74B	2.60B
EBITDA	245.00M	245.00M	575.00M	1.00B	1.19B	258.00M
Net Income	-1.18B	-1.18B	-229.00M	616.00M	822.00M	-63.00M
Balance Sheet
Total Assets	5.21B	5.21B	6.69B	7.29B	7.48B	7.48B
Cash, Cash Equivalents and Short-Term Investments	166.00M	166.00M	199.00M	249.00M	169.00M	232.00M
Total Debt	3.10B	3.10B	3.58B	3.60B	3.04B	3.45B
Total Liabilities	4.84B	4.84B	5.09B	5.45B	4.92B	5.32B
Stockholders Equity	368.00M	368.00M	1.60B	1.85B	2.56B	2.16B
Cash Flow
Free Cash Flow	153.00M	153.00M	120.00M	545.00M	573.00M	513.00M
Operating Cash Flow	281.00M	281.00M	309.00M	771.00M	704.00M	624.00M
Investing Cash Flow	-53.00M	-53.00M	-135.00M	183.00M	58.00M	-124.00M
Financing Cash Flow	-242.00M	-242.00M	-208.00M	-776.00M	-800.00M	-870.00M

Capri Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Negative. The current price of 18.2 is below the 20-day moving average (MA) of 19.06, above the 50-day MA of 18.14, and below the 200-day MA of 20.47, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 30.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPRI.

Capri Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPR	74 Outperform	$23.16B	29.44	40.27%	1.32%	2.67%	1.31%
MOV	64 Neutral	$245.04M	19.21	3.67%	9.27%	-1.36%	-54.97%
SIG	63 Neutral	$3.13B	82.29	2.04%	1.62%	-3.98%	-93.50%
LUXE	63 Neutral	$691.51M	―	-8.75%	―	7.08%	-42.22%
Sector *	62 Neutral	AU$3.02B	29.09	4.95%	4.87%	2.19%	-27.19%
CPRI	51 Neutral	$2.15B	―	-142.38%	―	-16.69%	-279.61%
LANV	49 Neutral	$287.21M	―	-195.94%	―	-22.86%	-38.76%

Capri Holdings Corporate Events

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.

The most recent analyst rating on (CPRI) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Capri Holdings stock, see the CPRI Stock Forecast page.