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Capri Holdings
(NYSE:CPRI)
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Rating:49Neutral
Price Target:
$16.00
▲(3.63% Upside)
Action:Reiterated
Date:08/06/26
CPRI scores below average primarily due to weak financial performance (especially sharp revenue contraction and very high leverage) and bearish technical trends (below key moving averages with negative MACD). These are partially offset by positive free cash flow, a reasonable P/E valuation, and an earnings outlook that targets meaningful margin and EPS improvement despite near-term revenue and macro headwinds.
Positive Factors
Brand Portfolio & Consumer Engagement
Strong brand portfolio (Versace, Jimmy Choo, Michael Kors) plus rising consumer engagement indicate durable pricing power and customer loyalty. Jimmy Choo's consistent growth and database gains show product-market fit and channel traction that support sustainable revenue and higher-margin mix over multiple quarters.
Negative Factors
High Leverage / Balance-Sheet Risk
Despite recent debt paydowns, the equity base remains small and leverage is structurally high, constraining flexibility. Elevated debt-to-equity amplifies sensitivity to earnings volatility, increases refinancing and covenant risk, and limits the company's ability to absorb shocks or pursue large strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Brand Portfolio & Consumer Engagement
Strong brand portfolio (Versace, Jimmy Choo, Michael Kors) plus rising consumer engagement indicate durable pricing power and customer loyalty. Jimmy Choo's consistent growth and database gains show product-market fit and channel traction that support sustainable revenue and higher-margin mix over multiple quarters.
Read all positive factors
Capri Holdings Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
The Fly
The FlyCapri Holdings (CPRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.75B
Dividend YieldN/A
Average Volume (3M)2.96M
Price to Earnings (P/E)12.4
Beta (1Y)1.76
Revenue Growth-17.40%
EPS GrowthN/A
CountryUS
Employees14,650
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)1.26
Shares Outstanding113,651,620
10 Day Avg. Volume3,392,492
30 Day Avg. Volume2,962,418
Financial Highlights & Ratios
PEG Ratio-0.21
Price to Book (P/B)25.76
Price to Sales (P/S)0.59
P/FCF Ratio147.18
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$20.69Price Target Upside34.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)2.12
Revenue Forecast (FY)$3.41B
Capri Holdings Business Overview & Revenue Model
Company Description
Capri Holdings Limited (CPRI) is a global fashion luxury group that designs, markets, distributes, and retails luxury apparel, footwear, handbags, accessories, and other lifestyle products. The company operates through its luxury fashion brands—Ve...
How the Company Makes Money
Capri Holdings makes money primarily by selling luxury fashion products through three brand segments: Versace, Jimmy Choo, and Michael Kors. Revenue is generated through (1) direct-to-consumer sales, which include purchases made at company-operate...
Capri Holdings Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call balanced meaningful operational and financial progress — margin expansion, improving EPS, strong Jimmy Choo momentum, sizable net-debt reduction and early retail renovation success — against near-term revenue headwinds driven by intentional markdown reductions, inventory timing issues and EMEA softness. Management lowered full-year revenue guidance but maintained a materially higher EPS target and outlined expense actions and inventory receipt acceleration to mitigate short-term impacts while emphasizing confidence in a return to growth in the back half of the year.Positive Updates
Earnings and Profitability Beat
Q1 net income of $76 million and diluted EPS of $0.67, up ~30% year-over-year; operating income improved ~40% and total company operating income was $28 million with operating margin expanding 110 basis points to 3.6%.
Negative Updates
Revenue Decline and Revised Outlook
Total company Q1 revenue of $769 million decreased 3.5% year-over-year (4.1% decline in constant currency). Full-year revenue guidance was revised down to approximately $3.4 billion due to inventory timing, weaker EMEA trends and FX headwinds.
Read all updates
Q1-2027 Updates
Positive
Negative
Earnings and Profitability Beat
Q1 net income of $76 million and diluted EPS of $0.67, up ~30% year-over-year; operating income improved ~40% and total company operating income was $28 million with operating margin expanding 110 basis points to 3.6%.
Read all positive updates
Company Guidance
Capri updated fiscal 2027 guidance calling for approximately $3.4 billion of revenue (Michael Kors ~$2.765 billion; Jimmy Choo ~$635 million), gross margin of ~64% (vs. 62.3% last year), operating expenses of ~ $2.0 billion (a $70 million reduction vs. prior outlook) and operating income of ~ $170 million (up ~40% YoY), with full‑year diluted EPS of ~ $2.15 (≈40% growth). The plan assumes U.S. tariff rates of 10.0–12.5%, net interest & other income of ~ $100 million, an effective tax rate in the low‑teens, and weighted average shares of ~110 million (assuming $200 million of repurchases). Q2 guidance is ~$780 million total revenue (Michael Kors ~$645 million—including ~$50 million from lower Q2 inventory receipts, ~$15 million EMEA softness, ~$10 million FX and ~$10 million timing shift—and Jimmy Choo ~$135 million), operating income of ~$10 million, Q2 net interest & other income of ~$25 million, a Q2 tax rate in the mid‑30s, ~112 million weighted shares and diluted EPS of ~$0.20. Balance sheet/inventory highlights tied to the guidance: cash $114 million, debt $338 million (net debt $224 million), Q1 repurchases of ~$50 million with $871 million remaining authorization, ending inventory $624 million (down ~20% YoY; ~25% at Michael Kors) and second‑quarter inventory expected to decline high single digits before normalizing in H2.Capri Holdings Financial Statement Overview
Summary
Income Statement
36
Negative
Balance Sheet
22
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.45B | 3.47B | 4.44B | 4.44B | 5.62B | 5.65B |
| Gross Profit | 2.10B | 2.05B | 2.83B | 2.83B | 3.72B | 3.74B |
| EBITDA | 239.00M | 228.00M | 245.00M | 245.00M | 1.02B | 1.21B |
| Net Income | 153.00M | 92.00M | -1.18B | -1.18B | 616.00M | 822.00M |
Balance Sheet | ||||||
| Total Assets | 3.21B | 3.23B | 5.21B | 6.69B | 7.29B | 7.48B |
| Cash, Cash Equivalents and Short-Term Investments | 114.00M | 135.00M | 166.00M | 199.00M | 249.00M | 169.00M |
| Total Debt | 1.39B | 1.42B | 3.10B | 3.58B | 3.60B | 3.04B |
| Total Liabilities | 3.07B | 3.15B | 4.84B | 5.09B | 5.45B | 4.92B |
| Stockholders Equity | 138.00M | 80.00M | 368.00M | 1.60B | 1.85B | 2.56B |
Cash Flow | ||||||
| Free Cash Flow | 83.00M | 14.00M | 153.00M | 120.00M | 545.00M | 573.00M |
| Operating Cash Flow | 158.00M | 77.00M | 281.00M | 309.00M | 771.00M | 704.00M |
| Investing Cash Flow | 1.21B | 1.22B | -53.00M | -135.00M | 183.00M | 58.00M |
| Financing Cash Flow | -1.47B | -1.30B | -242.00M | -208.00M | -776.00M | -800.00M |
Capri Holdings Technical Analysis
Negative
15.44
Price Trends
17.90
Negative
18.36
Negative
20.58
Negative
Market Momentum
-0.66
Negative
38.82
Neutral
19.14
Positive
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 15.44 is below the 20-day moving average (MA) of 16.01, below the 50-day MA of 17.90, and below the 200-day MA of 20.58, indicating a bearish trend. The MACD of -0.66 indicates Negative momentum. The RSI at 38.82 is Neutral, neither overbought nor oversold. The STOCH value of 19.14 is Positive, 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 41 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $579.61M | 26.24 | 6.40% | 3.01% | 4.30% | 76.21% | |
67 Neutral | $33.29B | 48.95 | 106.44% | 1.12% | 14.13% | -15.62% | |
67 Neutral | $3.72B | 13.09 | 16.01% | 1.47% | 1.35% | 661.25% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.11B | 1.84 | 34.62% | ― | 194.57% | ― | |
57 Neutral | $1.45B | -17.01 | 21.10% | ― | 17.73% | -112.49% | |
49 Neutral | $1.75B | 12.39 | 88.57% | ― | -17.40% | ― |
* Consumer Cyclical Sector Average
CPRI
Capri Holdings
15.57
-4.05
-20.64%
TPR
Tapestry
160.54
51.09
46.68%
MOV
Movado Group
37.00
22.02
147.06%
SIG
Signet Jewelers
94.72
16.17
20.59%
REAL
RealReal
11.80
4.15
54.25%
LUXE
LuxExperience
7.71
-0.17
-2.16%
Capri Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Capri Shareholders Back Directors, Auditor and Incentive Plan
Positive
Jul 30, 2026
At the July 29, 2026 annual meeting, Capri Holdings shareholders elected three Class III directors—John D. Idol, Robin Freestone, and Mahesh Madhavan—to serve until the 2029 annual meeting, with strong majorities supporting each nomine...
Business Operations and StrategyPrivate Placements and Financing
Capri Holdings Amends and Extends Revolving Credit Facility
Neutral
Jun 25, 2026
On June 24, 2026, Capri Holdings Limited amended its existing credit agreement, reducing the size of its revolving credit facility from $1.5 billion to $1.0 billion while extending the maturity of the replacement 2026 Revolving Credit Facility to ...
Executive/Board ChangesShareholder Meetings
Capri Holdings Announces Planned Board Transition and Refreshment
Neutral
Jun 16, 2026
On June 11, 2026, Capri Holdings Limited announced that director Stephen Reitman intends not to stand for re-election to the Board of Directors at the company’s 2026 Annual Meeting of Shareholders. His term will therefore end at the conclusi...
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.