Capri Holdings Limited Analysis and Stock Market Performance

Capri Holdings Limited is a global fashion luxury group that owns some of the world's most iconic fashion brands, including Versace, Jimmy Choo, and Michael Kors.

The company was formed in 2018 through the merger of Michael Kors Holdings Limited and Versace Holdings S.p.A. The merger created a global fashion powerhouse with a portfolio of brands that span across multiple categories.

Capri Holdings Limited is listed on the New York Stock Exchange (NYSE) under the ticker symbol CPRI. The company's stock has been steadily increasing in value since its IPO in 2019.

The company's revenue has been steadily increasing, with a significant boost in sales from the Versace brand.

Capri Holdings Ltd. operates as a global fashion luxury group, designing and distributing sportswear, accessories, footwear, and apparel of branded women's and men's apparel.

The company was founded by Michael David Kors on December 13, 2002, and is headquartered in London, the United Kingdom.

Capri Holdings Limited was founded in 1981, but it was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018.

The company operates through three segments: Versace, Jimmy Choo, and Michael Kors, offering a wide range of products including ready-to-wear, eyewear, watches, jewelry, fragrances, and home furnishings.

The company engages in the design, marketing, distribution, and retail of branded women's and men's apparel, footwear, and accessories in various regions around the world, including the United States, Canada, and Europe.

Capri Holdings' financial performance is a mixed bag. The company's total cash is at $129M as of the most recent quarter.

The company's total debt to equity ratio is not available, but its levered free cash flow is a healthy $253.5M over the trailing 12 months.

Here are some key financial metrics for Capri Holdings:

The company's revenue is a significant $4.39B, but its net income is a loss of $1.13B over the trailing 12 months.

Capri Holdings's sales dropped 16.4% to $1.08 billion in the second quarter of 2025, ended 28 September.

The company declined to provide financial guidance for the full year or host a conference call due to the merger being blocked by the Federal Trade Commission.

Gross profit fell 16.6% to $694 million in Q2 as Capri's margins were squeezed.

The Americas market declined 12% for Michael Kors, while EMEA dropped 15% and Asia plummeted 43%.

Jimmy Choo's revenues returned to growth, increasing 6.1% to $140 million, with the Americas down 8% and Asia down 8%.

Capri reported a fifth consecutive period of disappointing results since announcing the definitive agreement to be acquired by Tapestry.

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The company's valuation measures provide a snapshot of its financial health. Market capitalization stands at $2.53 billion.

The enterprise value, on the other hand, is significantly higher at $5.12 billion. This suggests that investors are placing a premium on the company's shares.

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The forward price-to-earnings ratio is 16.21, indicating that investors are willing to pay $16.21 for every dollar of earnings the company is expected to generate in the future.

The price-to-sales ratio is 0.57, which is relatively low compared to other companies in the industry. This could be a sign that the company's stock is undervalued.

Here's a breakdown of the company's valuation measures:

Capri Holdings' profitability and income statement reveal some concerning trends. The company's profit margin is a staggering -25.39%, indicating that it's losing money on every sale.

Revenue for the latest quarter was $4.39 billion, but net income was a whopping -$1.13 billion, resulting in a diluted EPS of -$9.56. This suggests that the company is struggling to turn a profit despite its high revenue.

Here are the key metrics from Capri Holdings' income statement:

The company's net income dropped 73.3% to $24 million in Q2, indicating a significant decline in profitability. This is likely due to the challenging global retail environment and the impact of the blocked merger with Tapestry.

The financial performance of Capri Holdings, the parent company of Versace and Jimmy Choo, has been underwhelming compared to the broader market. Over the past year, Capri Holdings' stock price has dropped by 50.38%.

In contrast, the S&P 500 index has seen a significant gain of 17.43% over the same period. This disparity is even more pronounced over the past five years, where Capri Holdings' stock has declined by 2.35%, while the S&P 500 has risen by 94.23%.

The annualized returns for the past five years paint a similar picture, with Capri Holdings' stock delivering a negative return of 0.48%, whereas the S&P 500 has yielded a positive return of 14.20%. Since its IPO, Capri Holdings' stock has dropped by 14%, whereas the S&P 500 has skyrocketed by 456%.

Here's a summary of the performance comparison between Capri Holdings and the S&P 500 over various time periods:

Analysts have given the company a "buy" rating, citing its strong revenue growth and improving profit margins.

The average price target for the company's stock is $45.

Analysts expect the company's revenue to increase by 15% in the next quarter.

Several analysts have upgraded their rating for the company's stock in the past quarter, reflecting their confidence in its financial performance.

The company's stock has a high short interest ratio, which could lead to a significant price increase if the company meets or beats expectations.

Luxury stock investment can be a thrilling but also a complex world. Market Cap is a key metric to consider, with Capri Holdings boasting a Market Cap of 2.53B.

One way to gauge a company's value is by looking at its Enterprise Value, which for Capri Holdings stands at 5.12B. This is a significant amount, and it's essential to consider it when evaluating the company's worth.

The Price/Earnings (P/E) ratio can give us an idea of how much investors are willing to pay for each dollar of earnings. Unfortunately, we don't have a trailing P/E ratio for Capri Holdings, but we do know that its Forward P/E ratio is 16.21.

For more insights, see: Retained Cash Flow / Net Debt

If we look at the comparison with the S&P, we can see that Capri Holdings has underperformed in the past year, with a return of -50.38%. In contrast, the S&P has seen a return of 17.43%.

To make informed investment decisions, it's also essential to consider the company's valuation measures, such as Price/Sales and Enterprise Value/Revenue. Here's a quick snapshot:

These numbers can give us a better understanding of the company's financial health and valuation.

Tapestry, the owner of Coach and Kate Spade, agreed to acquire Capri Holdings, the parent company of Michael Kors and Versace, in an $8.5 billion deal.

The deal aimed to create a powerful company that could compete with European luxury giants like LVMH Moët Hennessy Louis Vuitton, owner of Gucci and Saint Laurent.

The combined company would operate under the name Tapestry and bring together iconic brands like Coach, Kate Spade, and Versace, along with Jimmy Choo and Michael Kors.

This momentous decision would result in a combined $12 billion in revenue and strengthen the reach of both Tapestry and Capri in the European, Middle Eastern, and African markets.

The deal also offered financial advantages, including the potential to save $200 million in operating and supply-chain costs within three years.

However, the Federal Trade Commission (FTC) sued to block the merger, stating that the deal would give the combined company a dominant share of the “accessible luxury” handbag market.

The merger was blocked, and Capri Holdings's sales dropped 16.4% to $1.08 billion in the second quarter of 2025, ended 28 September.

Capri's individual brands, such as Michael Kors and Versace, also saw significant declines in revenue, with Michael Kors's revenues dropping 15.9% year-on-year to $738 million.

The merger being blocked has had a significant impact on Capri Holdings's financial performance, with the company reporting a fifth consecutive period of disappointing results since announcing the definitive agreement to be acquired by Tapestry.

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Capri Holdings Limited faced a tough fiscal third quarter, coming up short on earnings expectations amid a challenging operating environment.

The company's performance was impacted by a difficult market situation.

Capri Holdings is the owner of high-end fashion brands like Michael Kors and Versace, which puts pressure on the company to deliver strong results.

Joshua Schulman's surprise exit from the company has added to the challenges facing Capri Holdings.

John Idol, the company's CEO, is now under more scrutiny as he tries to build an LVMH competitor.