Capri Holdings (CPRI) AI Stock Analysis

• Market Cap: $2.63B
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: -17.66%
• EPS Growth: -223.06%
• Country: US
• Employees: 10,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -0.03
• Shares Outstanding: 119,143,280
• 10 Day Avg. Volume: 2,024,388
• 30 Day Avg. Volume: 2,287,156
• 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: 1.95
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 2.08
• Enterprise Value/Ebitda: 22.40
• 1Y Price Target: $24.60
• Price Target Upside: 9.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.35
• Revenue Forecast (FY): $3.44B

• Rating: 46 Neutral
• Price Target: $20.00 ▼(-10.75% Downside)

Capri Holdings' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and high leverage. Technical analysis suggests a neutral to slightly bearish trend, while valuation metrics are unattractive due to negative profitability. The earnings call provided some positive strategic initiatives, but these are overshadowed by ongoing financial challenges.

Positive Factors

Debt Reduction Strategy

Reducing debt with proceeds from the Versace sale will strengthen the balance sheet, enhance financial flexibility, and support long-term growth initiatives.

Share Repurchase Program

The share repurchase program indicates confidence in future cash flows and aims to enhance shareholder value, reflecting a positive long-term outlook.

Growth in Asia

Strong growth in Asia for Michael Kors suggests successful market penetration and potential for sustained revenue expansion in a key geographic region.

Negative Factors

Declining Revenues

The decline in overall revenue indicates challenges in maintaining sales momentum, which could impact long-term profitability and market position.

High Financial Leverage

High leverage and negative equity position limit financial flexibility and increase risk, potentially affecting the company's ability to invest in growth.

Negative Profitability

Ongoing negative profitability challenges the company's ability to generate sustainable earnings, impacting long-term financial health and shareholder returns.

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 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 Financial Statement Overview

Summary

Capri Holdings is facing significant financial challenges, including declining revenues, negative profitability, and high financial leverage. The negative equity position and declining free cash flow further exacerbate the company's financial instability.

Income Statement

Capri Holdings has faced declining revenues with a negative growth rate of -6.08% in the TTM period. The company is struggling with profitability, as evidenced by a negative net profit margin of -26.65% and a negative EBIT margin. Despite a relatively healthy gross profit margin of 63.26%, the overall income statement reflects challenges in maintaining profitability and growth.

Balance Sheet

The balance sheet shows significant financial leverage with a negative equity position, resulting in an undefined debt-to-equity ratio for the TTM period. The return on equity is also negative, indicating losses relative to shareholder equity. The company's financial stability is a concern given the high leverage and negative equity.

Cash Flow

Capri Holdings' cash flow statement reveals a decline in free cash flow by 39.87% in the TTM period. The operating cash flow to net income ratio is low at 0.14, suggesting limited cash generation relative to net losses. However, the free cash flow to net income ratio is relatively better at 0.48, indicating some ability to generate cash despite net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.95B	4.44B	4.44B	5.17B	5.62B	5.65B
Gross Profit	2.47B	2.83B	2.83B	3.34B	3.72B	3.74B
EBITDA	229.00M	245.00M	245.00M	555.00M	1.02B	1.21B
Net Income	-1.17B	-1.18B	-1.18B	-229.00M	616.00M	822.00M
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	65.00M	153.00M	120.00M	545.00M	573.00M	513.00M
Operating Cash Flow	190.00M	281.00M	309.00M	771.00M	704.00M	624.00M
Investing Cash Flow	-20.00M	-53.00M	-135.00M	183.00M	58.00M	-124.00M
Financing Cash Flow	-139.00M	-242.00M	-208.00M	-776.00M	-800.00M	-870.00M

Capri Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 22.41 is above the 20-day moving average (MA) of 21.70, above the 50-day MA of 21.18, and above the 200-day MA of 19.41, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 56.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPRI.

Capri Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUXE	66 Neutral	$1.19B	1.66	60.72%	―	51.76%	―
MOV	65 Neutral	$287.92M	23.64	3.52%	7.67%	-0.65%	-51.59%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SIG	61 Neutral	$3.87B	31.53	6.82%	1.32%	-1.63%	-72.22%
TPR	58 Neutral	$21.37B	93.45	16.05%	1.47%	8.14%	-65.04%
REAL	54 Neutral	$1.54B	―	―	―	14.30%	23.73%
CPRI	46 Neutral	$2.63B	―	-165.96%	―	-17.66%	-223.06%

Capri Holdings Corporate Events

Capri Holdings Announces $1 Billion Share Buyback Plan

On November 4, 2025, Capri Holdings announced a three-year share repurchase program of up to $1 billion, expected to start in fiscal 2027. This initiative aligns with the company’s strategic focus on strengthening its financial position following the anticipated sale of Versace, with plans to use the proceeds to reduce debt and enhance shareholder value. The company’s second quarter fiscal 2026 results showed a revenue decrease of 2.5%, but exceeded expectations in gross margin and operating income, reflecting progress in strategic initiatives. The sale of Versace is expected to close in the fiscal third quarter, with Capri Holdings concentrating on the growth of Michael Kors and Jimmy Choo.

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.

Capri Holdings Shareholders Approve Key Proposals at Meeting

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.

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.

Capri Holdings Reports Q1 Fiscal 2026 Results

Capri Holdings Limited is a global fashion luxury group known for its iconic brands Michael Kors, Jimmy Choo, and Versace, specializing in glamorous style and craftsmanship across the fashion luxury sector.

Capri Holdings’ Earnings Call: Cautious Optimism Amid Challenges

Capri Holdings’ recent earnings call painted a picture of cautious optimism, as the company navigates through challenges while capitalizing on strategic initiatives. Despite facing revenue declines, wholesale channel softness, and tariff impacts, Capri Holdings is witnessing positive momentum. The company is making strides with improved consumer engagement and successful product strategies, alongside a promising store renovation program and enhanced influencer partnerships, all of which are poised to drive future growth.

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.