How does capri hldgs. make money?

capri hldgs. generates $4.4B in annual revenue (annual revenue · their business grew -14.1% last year).

What is CPRI's XVARY composite score?

capri hldgs. (CPRI) has an XVARY composite score of 37/100, rated weak. This combines growth, value, risk, and momentum factors.

CPRI — capri hldgs. stock analysis

Start here if you're new

what it is

Capri sells Michael Kors, Jimmy Choo, and Versace-branded clothes, shoes, bags, and fragrance.

how it gets paid

Last year Capri Hldgs made $4.4B in revenue. Michael Kors was the main engine at $3.0B, or 68% of sales.

why growth slowed
Revenue fell 14.1% last year. The $2.7B quarter mattered because it was up 161% vs. prior year.

what just happened

Revenue hit $2.7B, while gross margin stayed at 61.5%.

At a glance

B balance sheet — gets the job done, barely

5/100 earnings predictability — expect surprises

24.7x trailing p/e — priced about right

18.0% return on capital — nothing to write home about

$1.60 fy2026 eps est

xvary composite: 37/100 — weak

What they do

Capri sells Michael Kors, Jimmy Choo, and Versace-branded clothes, shoes, bags, and fragrance.

Michael Kors was 68% of 2024 sales, while Jimmy Choo was 14%. That gap matters because your business does not hinge on one aisle. Capri also had 1,158 retail stores and 14,200 employees as of 3/29/25, so leaving the brands means replacing a lot of shelf space.

consumer luxury midcap apparel turnaround

How they make money

$4.4B annual revenue · their business grew -14.1% last year

Michael Kors

$3.0B

Jimmy Choo

$0.6B

Versace

$0.8B

The products that matter

core apparel and footwear demand

apparel

part of a $4.4B business

Apparel matters because traffic and full-price sell-through start here. The problem is disclosure: this snapshot does not break out category revenue, so you are watching the whole company instead of the engine underneath it.

disclosure thin

higher-ticket fashion and accessories mix

handbags and accessories

61.5% gross margin backdrop

Accessories usually carry the better economics in fashion. Capri's gross margin says the shelf still works. The catch is that net margin says the operating model behind the shelf still needs repair.

profit test

wholesale and retail execution

channel mix

linked to the roughly $4B fy2026 revenue estimate

When analysts model only about $4B in next-year revenue after $4.4B this year, they are telling you stabilization has not shown up yet. You need cleaner sell-through, fewer markdowns, or both.

watch demand

Key numbers

$4.4B

annual revenue

This is the size of the whole business. A 14.1% drop from last year means about $700M vanished from the top line.

16.9%

operating margin

Operating margin means profit after running the business, before taxes and interest. At -16.9%, you lose $169 for every $1,000 of sales.

24.7x

trailing p/e

Trailing P/E means price divided by last year's earnings. At 24.7x, you pay $24.70 for each $1 of profit.

61.5%

gross margin

Gross margin means what is left after product costs. At 61.5%, the clothes still sell with a luxury markup.

Financial health

B

strength

balance sheet grade B — adequate — nothing special
risk rank 4 — safer than 20% of stocks
price stability 10 / 100
long-term debt $1.8B (38% of capital)
net profit margin 6.0% — keeps 6 cents of every dollar in revenue
return on equity 36% — $0.36 profit for every $1 investors have put in

B — functional but not a standout on the balance sheet.

Total return vs. market

You invested $10,000 in CPRI 3 years ago → it's now worth $4,110.

The index would have given you $14,770.

same period. same starting point. CPRI trailed the market by $10,660.

source: institutional data · total return

What just happened

beat estimates

Revenue hit $2.7B, while gross margin stayed at 61.5%.

Revenue rose 161% vs. prior year, and EPS reached $1.18. The catch is that operating margin is still -16.9%, so gross profit is not the same thing as real profit.

$2.7B

revenue

$1.18

eps

61.5%

gross margin

the number that mattered

The $2.7B quarter mattered because it was up 161% vs. prior year, but the margin math still looks rough.

capri recently completed the sale of versace to prada s.p.a.

on december 2nd, capri sold the iconic upscale brand to italian luxury fashion house prada for $1.375 billion in cash. capri had bought versace back in 2018 to expand in the high-end luxury fashion space, but this proved tough to juggle in recent years, especially given growing weakness in the core michael kors business. capri plans to use the proceeds of the sale to strengthen its other two existing brands (michael kors and jimmy choo), pay down a majority of its debt to shore up the balance sheet, and enhance shareholder returns via a new $1 billion stock repurchase program to begin in the upcoming fiscal year.
the business has continued to struggle overall, though there have been signs of stabilization.

operating trends have been weak for some time, reflecting soft demand amid macroeconomic challenges. after posting steep losses in the past couple of years, capri had a mixed start in fiscal 2025 (ends march 31st), but then stumbled again in the second quarter, with top- and bottom-line comparisons going negative from the year before.
sales showed sequential improvement, however, which is encouraging.
and management expected further progress in the back half.
strategic turnaround initiatives remain in place.

no doubt, the tariff situation, persistent inflation, and weak consumer confidence are making for a tough operating environment.

source: company earnings report, 2026

What could go wrong

The main risk is not abstract retail weakness. It is a very specific setup: a business doing $4.4B in revenue with 61.5% gross margin, only 6.0% net margin, and $1.8B of long-term debt while sales are still falling.

∘

med

revenue has not proven it found a floor

Sales fell 14.1% last year to $4.4B, and the current next-year estimate is only about $4B. That is not a rebound. That is the street penciling in more shrinkage.

If estimates keep moving lower, the multiple stops looking reasonable and starts looking stale.

∘

med

gross margin is doing its job. the income statement below it is not.

61.5% gross margin sounds like a premium brand portfolio. 6.0% net margin sounds like a company still paying for markdowns, overhead, or weak execution.

If that spread does not close, shareholders do not fully benefit from the luxury pricing on the shelf.

∘

med

$1.8B of debt matters more when the business is smaller

Long-term debt is 38% of capital. That is manageable in a steady business. Capri is not giving you a steady business right now.

If revenue stays under pressure, debt shifts from background issue to loud constraint.

∘

med

the stock has already lost credibility with investors

Price stability is 10 / 100, and $10,000 became $4,110 over 3 years. The market does not hand trust back in one quarter.

Even a decent print may not be enough. You need a pattern of cleaner numbers, not a single better headline.

If revenue stays weak and margins stay negative, the stock is priced like a fix-up job for a reason.

source: institutional data · regulatory filings · risk analysis

Pay attention to

the key metric

revenue has to stop falling

$4.4B fell 14.1% from last year, and the next full-year estimate is roughly $4B. If the top line keeps shrinking, everything else is window dressing.

margin watch

watch the gap between 61.5% gross margin and 6.0% net margin

Here is the cleanest scoreboard on the page. If that gap narrows, the repair is working. If it does not, premium pricing is being wasted somewhere in the cost stack.

balance sheet

debt gets louder when predictability is weak

$1.8B in long-term debt is manageable only if the business steadies. With earnings predictability at 5 / 100, you should treat debt and volatility as linked problems.

valuation setup

the $30 midpoint works only if estimates stop sliding

The street sees 22% upside to the midpoint target. That view rests on about $1.60 of EPS and a business that still has not shown a clean sales floor.

Analyst rankings

earnings predictability

5 / 100

Earnings predictability measures how reliable the profit trend has been. In human-speak: analysts do not trust this company to deliver clean, repeatable numbers yet.

risk rank

4

Risk rank 4 means this screens as riskier than most stocks. Pair that with 10 / 100 price stability and you get the practical version: this name moves like a story stock, not a steady compounder.

source: institutional data

Institutional activity

institutions have been net buying for 2 consecutive quarters — 141 buyers vs. 137 sellers in 3q2025. total institutional holdings: 0.1B shares. net buying for 2 quarters.

source: institutional data · 1q2025-3q2025

source: institutional data

Price targets

3-5 year target range

$13 $46

$25 current price

$30 target midpoint · +22% from current · 3-5yr high: $40 (+60% · 12% ann'l return)

source: institutional data · analyst targets

The deep dive

CPRI

xvary deep dive

cpri

the full analysis is in the works.

what you'll get

dcf valuation model

bull / base / bear scenarios

competitive moat breakdown

quarterly earnings tracker

operating model projections

risk matrix with kill criteria

original price target + conviction

updated with every earnings

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