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Capri Holdings
(NYSE:CPRI)
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Rating:50Neutral
Price Target:
$14.00
▲(5.26% Upside)
Action:Reiterated
Date:09/17/26
The score is held back primarily by weak financial quality—especially very high leverage and sharp revenue contraction—despite positive free cash flow and a return to positive net income. Technicals also remain weak with the stock below key moving averages and negative MACD. Offsetting these, valuation is reasonable (P/E ~11) and the latest earnings call guidance emphasizes margin expansion, cost reductions, and higher EPS outlook, though near-term revenue headwinds and tariff/FX risks persist.
Positive Factors
Jimmy Choo growth and margin improvement
Jimmy Choo is showing sustained brand momentum across retail and wholesale, with strong Americas growth and a third consecutive positive quarter. Higher operating margins indicate improving brand productivity and provide a durable growth counterweight to weakness elsewhere in the portfolio.
Negative Factors
Severe revenue contraction
The scale and persistence of revenue contraction indicate a substantial challenge in restoring demand and maintaining brand relevance. A smaller revenue base also makes fixed costs harder to absorb, limiting operating leverage and increasing dependence on margin gains and disciplined cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Jimmy Choo growth and margin improvement
Jimmy Choo is showing sustained brand momentum across retail and wholesale, with strong Americas growth and a third consecutive positive quarter. Higher operating margins indicate improving brand productivity and provide a durable growth counterweight to weakness elsewhere in the portfolio.
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
$1.70B
Dividend YieldN/A
Average Volume (3M)5.13M
Price to Earnings (P/E)11.9
Beta (1Y)1.78
Revenue Growth-17.40%
EPS GrowthN/A
CountryUS
Employees14,650
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)1.26
Shares Outstanding113,651,620
10 Day Avg. Volume3,399,908
30 Day Avg. Volume5,132,891
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 Cap2.07
Enterprise Value/Revenue1.02
Enterprise Value/Gross Profit1.68
Enterprise Value/Ebitda14.73
Forecast
1Y Price Target
$20.38Price Target Upside53.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)2.12
Revenue Forecast (FY)$3.40B
Capri Holdings Business Overview & Revenue Model
Company Description
Capri Holdings Limited engages in the design, marketing, distribution, and retail of branded women’s and men’s apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, Asia, and the Oceania. ...
How the Company Makes Money
Capri Holdings makes money primarily by selling branded luxury and premium fashion products through two main channels: direct-to-consumer (DTC) and wholesale. (1) Direct-to-consumer revenue comes from sales made in company-operated retail stores a...
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 | 240.00M | 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
Positive
13.30
Price Trends
14.45
Positive
16.35
Negative
18.54
Negative
Market Momentum
0.09
Negative
55.49
Neutral
55.35
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 13.3 is below the 20-day moving average (MA) of 14.68, below the 50-day MA of 14.45, and below the 200-day MA of 18.54, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 55.49 is Neutral, neither overbought nor oversold. The STOCH value of 55.35 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 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $11.29B | 11.74 | 41.10% | ― | 7.48% | 8.03% | |
70 Outperform | $5.99B | 16.32 | 12.12% | ― | 19.55% | 19.15% | |
64 Neutral | $3.24B | 21.93 | 16.05% | 1.90% | 18.33% | 56.39% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $422.84M | -5.57 | -69.12% | ― | -9.10% | -15.30% | |
50 Neutral | $1.70B | 11.90 | 88.57% | ― | -17.40% | ― | |
50 Neutral | $34.60M | -0.32 | -243.20% | 10.58% | -38.03% | 18.52% |
* Consumer Cyclical Sector Average
CPRI
Capri Holdings
14.95
-5.03
-25.18%
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SHOO
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31.79%
BIRD
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2.93
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BIRK
Birkenstock Holding plc
33.65
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-20.97%
Capri Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
Capri Holdings Names New Chief Legal and Sustainability Officer
Positive
Sep 16, 2026
On September 16, 2026, Capri Holdings announced it had appointed Catherine So as Chief Legal and Sustainability Officer, with her role becoming effective on October 19, 2026. The move followed her tenure as Senior Vice President and General Counse...
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 ...
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.