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Capri Holdings (CPRI)
NYSE:CPRI
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Capri Holdings (CPRI) AI Stock Analysis

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CPRI

Capri Holdings

(NYSE:CPRI)

Rating:49Neutral
Price Target:
$20.50
▼(-4.87% Downside)
Capri Holdings' overall stock score is primarily impacted by its financial challenges, including declining revenues and high leverage. While technical indicators show some positive momentum, valuation concerns due to negative profitability weigh heavily. The earnings call provided a mixed outlook, with strategic initiatives showing promise but significant challenges remaining.
Positive Factors
Earnings
Capri Holdings achieved its first profit and largest revenue beat in over two years, driven by improvements in the MK brand.
Financial Performance
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 (CPRI) vs. SPDR S&P 500 ETF (SPY)

Capri Holdings Business Overview & Revenue Model

Company DescriptionCapri Holdings Limited (CPRI) is a global fashion luxury group that includes three iconic brands: Versace, Jimmy Choo, and Michael Kors. Operating in the high-end fashion sector, Capri Holdings designs, markets, and distributes a wide range of luxury accessories, footwear, apparel, and fragrances. The company aims to deliver high-quality, stylish products that cater to a discerning clientele, leveraging its strong brand heritage and design innovation.
How the Company Makes MoneyCapri 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 Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call detailed both positive initiatives, such as strategic improvements and brand engagement, and significant challenges, particularly in revenue decline and tariff costs. While there are encouraging signs of strategic success, the overall financial performance was impacted by macroeconomic factors.
Q1-2026 Updates
Positive Updates
Sequential Improvement in Revenue Trends
Though total revenue decreased by 6% year-over-year to $797 million, there was a sequential improvement in trends across all regions and channels, signaling progress in strategic initiatives.
Positive AUR Trends
Average Unit Retail (AUR) trends turned positive in the full-price channel for the first time in three years at Michael Kors, indicating a successful pricing strategy.
Michael Kors Strategic Initiatives Gaining Traction
The company's strategic initiatives, including influencer partnerships and pricing architecture, have led to positive shifts in brand affinity and engagement, with a 9% increase in the global database.
Improved Engagement and Brand Affinity
Michael Kors and Jimmy Choo both saw a 9% increase in their global consumer databases, driven by strategic marketing and influencer partnerships.
Jimmy Choo Accessories Momentum
Jimmy Choo's accessories business experienced strong sales, with notable performance from the Bonbon and Sinch bags, and a successful introduction of the Curve bag.
Negative Updates
Overall Revenue Decline
Total company revenue decreased 6% year-over-year, with notable declines in Michael Kors and Jimmy Choo revenues.
Footwear Revenue Challenges
Michael Kors reported a double-digit revenue decline in footwear, driven by a sequential decline in the dress category.
Increased Tariff Costs
Tariff rates increased, leading to an estimated impact of $85 million on cost of goods sold for fiscal 2026, up from a previous estimate of $60 million.
Wholesale Channel Softness
The wholesale channel faced broad-based softness, with high single-digit revenue declines, impacted by initiatives to reduce wholesale exposure.
Regional Revenue Declines
Revenue declined 9% in the Americas and 15% in Asia, reflecting continued geographical challenges.
Company Guidance
During the Capri Holdings Limited First Quarter Fiscal 2026 Conference Call, several key metrics and strategic initiatives were discussed. The company reported a total revenue of $797 million, marking a 6% decrease from the previous year. Earnings per share were noted at $0.50. Despite the overall revenue decline, there was a sequential improvement in trends across all regions. Michael Kors saw a 6% revenue decrease, with positive signs in full-price stores where average unit retail prices (AUR) turned positive for the first time in three years. Jimmy Choo experienced a 6.4% revenue decrease, attributed mainly to shipment phasing in the wholesale channel, but showed improved performance in full-price sell-throughs and AURs. For fiscal 2026, Capri anticipates total revenue between $3.375 billion and $3.45 billion, with Michael Kors contributing between $2.8 billion and $2.875 billion, and Jimmy Choo between $565 million and $575 million. The company also highlighted a strategic shift towards enhancing brand engagement through social media and influencer partnerships, and plans to renovate 50% of its store fleet over the next three years, while closing 75 underperforming Michael Kors stores within the current fiscal year.

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
40
Negative
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
35
Negative
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
50
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.44B4.44B5.17B5.62B5.65B4.06B
Gross Profit2.78B2.83B3.34B3.72B3.74B2.60B
EBITDA245.00M245.00M575.00M1.00B1.19B258.00M
Net Income-1.18B-1.18B-229.00M616.00M822.00M-63.00M
Balance Sheet
Total Assets5.21B5.21B6.69B7.29B7.48B7.48B
Cash, Cash Equivalents and Short-Term Investments166.00M166.00M199.00M249.00M169.00M232.00M
Total Debt3.10B3.10B3.58B3.60B3.04B3.45B
Total Liabilities4.84B4.84B5.09B5.45B4.92B5.32B
Stockholders Equity368.00M368.00M1.60B1.85B2.56B2.16B
Cash Flow
Free Cash Flow153.00M153.00M120.00M545.00M573.00M513.00M
Operating Cash Flow281.00M281.00M309.00M771.00M704.00M624.00M
Investing Cash Flow-53.00M-53.00M-135.00M183.00M58.00M-124.00M
Financing Cash Flow-242.00M-242.00M-208.00M-776.00M-800.00M-870.00M

Capri Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.55
Price Trends
50DMA
19.18
Positive
100DMA
17.72
Positive
200DMA
19.73
Positive
Market Momentum
MACD
0.63
Negative
RSI
60.61
Neutral
STOCH
75.30
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 21.55 is above the 20-day moving average (MA) of 20.17, above the 50-day MA of 19.18, and above the 200-day MA of 19.73, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 60.61 is Neutral, neither overbought nor oversold. The STOCH value of 75.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
71
Outperform
$3.61B92.452.04%1.31%-3.98%-93.50%
63
Neutral
$269.18M21.253.67%7.99%-1.36%-54.97%
63
Neutral
$706.00M-8.75%7.08%-42.22%
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
60
Neutral
$20.96B119.599.76%1.39%5.09%-80.06%
49
Neutral
$2.55B-142.38%-16.69%-279.61%
41
Neutral
$267.06M-195.94%-22.86%-38.76%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CPRI
Capri Holdings
21.55
-14.33
-39.94%
TPR
Tapestry
100.98
61.37
154.94%
MOV
Movado Group
17.52
-4.74
-21.29%
SIG
Signet Jewelers
93.37
10.41
12.55%
LUXE
LuxExperience
8.44
4.54
116.41%
LANV
Lanvin Group Holdings
2.02
0.20
10.99%

Capri Holdings Corporate Events

Executive/Board ChangesShareholder Meetings
Capri Holdings Shareholders Approve Key Proposals at Meeting
Neutral
Aug 7, 2025

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.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Capri Holdings Reports Q1 Fiscal 2026 Results
Positive
Aug 6, 2025

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.

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: Aug 19, 2025