Capri Holdings (CPRI) AI Stock Analysis

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Capri Holdings

(NYSE:CPRI)

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Neutral 51 (OpenAI - 5.2)

Rating:51Neutral

Price Target:

$20.50

▲(0.84% Upside)

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

High Gross Margin

Sustained ~61% gross margin reflects luxury pricing power and favorable product mix, providing structural protection for profitability as top-line recovers. High gross margins give management flexibility to absorb marketing, sourcing or tariff pressures while investing in brand and store renovations.

Strong Cash Generation

Robust TTM operating and free cash flow provide a durable funding source for capex, store remodels and strategic initiatives without reliance on equity raises. Positive FCF supports debt paydown, cushions interim losses, and enables targeted investments to drive a return to sustainable growth.

Material Deleveraging

The Versace divestiture materially reduced net leverage, transforming capital structure and increasing financial flexibility. Lower net debt cuts interest burden and covenant risk, enabling management to prioritize merchandising, store investment and brand marketing to rebuild revenue and margins.

Negative Factors

Loss-Making Profile

Persistent net losses and declining trailing revenues indicate operating leverage is not yet translating into profitability. Structural recovery requires sustained full-price sell-through, margin recapture and cost discipline; until then losses erode equity and limit reinvestment capacity.

Thin Equity / High Leverage History

Even after debt reduction, a very thin equity cushion leaves the balance sheet fragile versus shocks. High leverage metrics historically increase refinancing and rating risk, constrain strategic optionality and raise the consequences of any renewed margin or revenue weakness.

Brand & Regional Concentration Risk

Heavy reliance on Michael Kors, which shows persistent regional softness (notably the Americas), creates concentration exposure. If the flagship brand or key regions lag, group recovery is impaired despite momentum at smaller brands like Jimmy Choo, prolonging overall turnaround timelines.

Capri Holdings (CPRI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.42B

Dividend YieldN/A

Average Volume (3M)3.21M

Price to Earnings (P/E)―

Beta (1Y)1.71

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. Volume2,387,868

30 Day Avg. Volume3,213,065

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 Cap1.81

Enterprise Value/Revenue1.18

Enterprise Value/Gross Profit1.93

Enterprise Value/Ebitda24.14

Forecast

1Y Price Target

$26.46

Price Target Upside30.16% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering14

EPS Forecast (FY)1.4

Revenue Forecast (FY)$3.47B

Capri Holdings Business Overview & Revenue Model

Company DescriptionCapri 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 MoneyCapri Holdings generates revenue primarily through the sale of its luxury products across various channels, including retail stores, e-commerce platforms, and wholesale distribution. The company benefits from multiple revenue streams by leveraging its diverse brand portfolio. Each brand contributes to earnings through direct-to-consumer sales and partnerships with high-end department stores and specialty retailers. Additionally, Capri Holdings invests in marketing and brand development to enhance its market presence and drive sales. Key partnerships with global retailers and strategic collaborations also play a significant role in expanding its distribution network and increasing brand visibility, ultimately contributing to its overall revenue growth.

Capri Holdings Key Performance Indicators (KPIs)

Any

Revenue by Geography

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.

Chart InsightsAll regions show a multi-year decline since the 2021 peak, with the Americas weakening most — driven largely by a pullback in North America outlet sales and strategic price discipline. Management’s commentary clarifies the picture: Michael Kors is gaining traction in Asia and EMEA (full‑price and wholesale timing helped recent prints), while Jimmy Choo and outlet/wholesale timing pressures are the primary drag. The Versace sale and $1B buyback signal capital moves that may accelerate deleveraging, but watch Jimmy Choo recovery and outlet trends for a true regional rebound.

Data provided by:

The Fly

Capri 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.

Q3-2026 Updates

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.

Earnings Per Share Increase

Diluted EPS for the quarter increased ~30% to $0.81, reflecting improved profitability and expense discipline despite revenue headwinds.

Underlying Gross Margin Expansion (Excluding Tariffs)

Underlying gross margin expanded +70 basis points company-wide. By brand, Michael Kors excluding tariffs expanded +60 bps and Jimmy Choo excluding tariffs expanded +80 bps, driven by better full-price sell-throughs and reduced promotions.

Jimmy Choo Momentum and Growth

Jimmy Choo revenue exceeded expectations, up 5% reported (1.9% constant currency). Retail improved sequentially (low-single-digit comp), wholesale grew double digits, Americas up ~23%, Bonbon group grew double digits, and footwear and casual categories showed high- to mid-single-digit gains; Jimmy Choo consumer database +8% YoY.

Improved Full-Price Performance and Consumer Engagement (Michael Kors)

Michael Kors saw sequential improvement in full-price channels with low-double-digit increases in full-price sales in that channel, higher AURs, and healthier mix. Influencer posts up 100% YoY and impressions/engagement ~+300%; Michael Kors global consumer database +8% YoY; three sequential quarters of online traffic improvement reported.

Operating Expense Reductions

Operating expense decreased by $32M versus prior year, delivering ~80 basis points of expense leverage and supporting EPS/margin resilience.

Retail Investment Progress — Store Renovation Program

Announced plan to renovate ~50% of store fleet and key department store locations over three years; renovated locations are already showing meaningful increases in traffic and sales versus prior year.

Narrowed Fiscal 2026 Guidance with Path to FY2027 Growth

Company narrowed FY26 revenue guidance to $3.45B–$3.475B, gross margin ~61%, and FY26 diluted EPS guidance of $1.30–$1.40; management reiterated expectation of a return to revenue and earnings growth in fiscal 2027 driven by gross margin expansion, sourcing efficiencies and targeted price increases.

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.

Consolidated Gross Margin Pressure from Tariffs

GAAP gross margin declined to 60.8%, down 230 basis points year-over-year; higher-than-anticipated tariffs (approximately +50 bps in the quarter) driven by sales mix of new product materially offset underlying margin gains.

Michael Kors Revenue and Regional Weakness

Michael Kors revenue declined 5.6% reported (7.3% constant currency); global retail sales down mid-single digits, wholesale down mid-single digits. By geography Michael Kors: Americas -9%, EMEA +6%, Asia -1%; The Americas was a notable drag.

Operating Margin Decline — Consolidated and Brand-Level

Consolidated operating margin fell to 7.7% from 9.2% a year ago. Michael Kors operating margin declined to 13.9% from 16.2%. Although Jimmy Choo improved to 1.8% (from -3.8%), full-year guidance signaled Jimmy Choo operating margin could be in the negative low-single-digit range, indicating near-term margin pressure for that brand on a FY basis.

Regional Softness — Americas and Asia

Total company revenue by geography: Americas -7%, EMEA +5%, Asia -4%. Jimmy Choo reported Asia revenue down ~10%, indicating continued headwinds in parts of APAC.

Inventory and Units Expectation

Ending inventory was $663M, down 6.5% YoY. Management expects year-end inventory to be approximately flat to prior year, with a decrease in units offset by higher tariff and FX rates — implying units will be down, which could temper near-term top-line recovery.

Reserve for Wholesale Customer Bankruptcy

Company recorded a reserve of $15M related to a wholesale customer bankruptcy (reserve spans Michael Kors, Jimmy Choo and other brands); the reserve is a modest but tangible risk to collections and wholesale recoveries.

Near-Term Revenue Headwinds from Strategic Price & Channel Actions

Deliberate reductions in promotional activity and efforts to clean up off-price distribution (including reductions in Daigou sales at outlet) created near-term revenue pressure, particularly in outlets and The Americas; management expects these to be temporary but they weigh on current results.

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

Financials are pressured by declining TTM revenue (-5.976%), a loss-making profile (TTM net margin -15.2%) and very weak equity metrics (debt-to-equity ~12.5x; TTM ROE ~-273%). Offsetting this, gross margin remains strong (~61%) and TTM cash generation is solid (operating cash flow $567M; free cash flow $491M), but profitability and balance-sheet fragility keep the score low.

Income Statement

Negative

Profitability has deteriorated materially versus prior years. Revenue in TTM (Trailing-Twelve-Months) declined (-5.976%), and the company is currently loss-making (TTM net margin -15.2%) with slightly negative operating profitability (TTM EBIT margin ~-0.3%). While gross margin remains strong for luxury (TTM ~61%), operating leverage has not translated into earnings, and results are well below the profitability seen in FY2021–FY2022.

Balance Sheet

Very Negative

Leverage is the primary concern. TTM debt-to-equity is extremely elevated (~12.5x) due to a sharply reduced equity base ($105M), and returns on equity are deeply negative (TTM ROE ~-273%) driven by losses. Total debt has come down versus FY2024–FY2025 levels, but the balance sheet remains fragile given the thin equity cushion relative to the debt load.

Cash Flow

Positive

Cash generation is a relative bright spot. TTM operating cash flow ($567M) and free cash flow ($491M) are strong and improved meaningfully versus the latest annual period (FY2025 free cash flow $153M), indicating better cash discipline and/or working-capital tailwinds. However, cash flow still does not fully cover the earnings shortfall (TTM free cash flow remains below the net loss), and prior-year cash flow performance has been uneven.

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

Technical Analysis Sentiment

Negative

Last Price20.33

Price Trends

50DMA

23.63

Negative

100DMA

23.08

Negative

200DMA

21.11

Negative

Market Momentum

MACD

-0.85

Negative

RSI

39.89

Neutral

STOCH

49.25

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 20.33 is below the 20-day moving average (MA) of 21.17, below the 50-day MA of 23.63, and below the 200-day MA of 21.11, indicating a bearish trend. The MACD of -0.85 indicates Negative momentum. The RSI at 39.89 is Neutral, neither overbought nor oversold. The STOCH value of 49.25 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 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOV	73 Outperform	$402.41M	25.71	4.40%	6.79%	0.63%	-7.37%
TPR	67 Neutral	$31.28B	63.40	55.34%	1.16%	8.14%	-65.04%
LUXE	65 Neutral	$1.35B	2.20	56.42%	―	97.28%	―
SIG	64 Neutral	$3.95B	28.24	8.24%	1.46%	-0.40%	-68.99%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
REAL	54 Neutral	$1.35B	-8.37	―	―	14.30%	23.73%
CPRI	51 Neutral	$2.42B	-4.38	-96.50%	―	-17.66%	-223.06%

* Consumer Cyclical Sector Average

Performance Comparison

CPRI

Capri Holdings

20.26

-1.46

-6.72%

TPR

Tapestry

156.92

73.95

89.13%

MOV

Movado Group

25.51

7.49

41.56%

SIG

Signet Jewelers

98.27

49.32

100.76%

REAL

RealReal

12.02

5.49

84.07%

LUXE

LuxExperience

9.63

-1.06

-9.92%

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 Natura &Co, The Body Shop, Hertz and United Airlines, will report to CEO John D. Idol and assume a central role overseeing Capri’s financial management and operational performance.

The company detailed a comprehensive employment package designed to align Reddien’s incentives with the group’s performance, including a $700,000 base salary, annual cash incentives tied to results, multi-year equity awards and relocation support. Capri also put in place severance protections and a change-in-control continuity agreement, underscoring the strategic importance of the dual CFO/COO role as it pursues operational discipline and growth, while interim CFO Rajal Mehta returns to his prior position as Michael Kors brand CFO on March 30, 2026.

The most recent analyst rating on (CPRI) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Capri Holdings stock, see the CPRI Stock Forecast page.

Business Operations and StrategyM&A Transactions

Capri Holdings Sells Versace to Prada for $1.375B

Positive

Dec 2, 2025

On December 2, 2025, Capri Holdings Limited completed the sale of its Versace business to Prada S.p.A for $1.375 billion in cash. The proceeds from this transaction are intended to repay the majority of the company’s debt, significantly strengthening its balance sheet and providing financial flexibility to invest in growth and return capital to shareholders. Additionally, Capri Holdings entered into a retention and performance bonus agreement with Krista McDonough, its Chief Legal and Sustainability Officer, to incentivize her continued employment and recognize her contributions to the sale. The company remains focused on its strategic initiatives for Michael Kors and Jimmy Choo, aiming to stabilize its business and establish a foundation for growth in fiscal 2027.

The most recent analyst rating on (CPRI) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Capri Holdings stock, see the CPRI Stock Forecast page.

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.Date of analysis: Feb 26, 2026