One-glance verdict
Within fair range
$13.74 our estimate vs market $15.95
Wall Street consensus: $22.22 (61.7% higher than our fair-value estimate)
16% above our estimate
Fundamentals snapshot
Capri Holdings Limited
CPRI · NYQ · Consumer Cyclical · Luxury Goods
Current price
$15.95
52-week range
$12.40 - $28.27
Market cap
$1.83B
Balance sheet
Distressed
1.01x Concerning
Net debt $1.28B. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 59.3% above its 5-year average P/E.
- Risk Operating margin compressed from 14.9% to 1.8% over 3 years.
What this company does
Capri Holdings Limited
Capri Holdings is a global luxury company that owns the well-known fashion brands Michael Kors, Versace, and Jimmy Choo. The company makes most of its money selling high-end handbags, shoes, and clothing through its own stores and other major retailers. Because Capri sells expensive, non-essential items, its sales are often tied to how confident consumers feel about spending money.
How the company got here
Capri Holdings started as Michael Kors, a brand founded by the American designer of the same name in 1981. The company grew significantly and went public in 2011, which provided the money to expand worldwide. To grow beyond a single brand, it bought the luxury shoe brand Jimmy Choo in 2017 and the high-fashion Italian brand Versace in 2018, changing its name to Capri Holdings to reflect its new identity as a multi-brand luxury group. More recently, the company has been refining its focus, including an agreement to sell Versace.
What it actually does
Capri Holdings is a global company that sells high-end apparel, handbags, shoes, and accessories. You might recognize their products from their own retail stores, in major department stores, or on their websites. The company doesn't just sell clothing; it also has licensing agreements (giving other companies the right to use its brand names) for products like watches, jewelry, eyewear, and fragrances.
Michael Kors
This is the company's original and largest brand, making up the majority of its sales. Michael Kors is known for what's called 'accessible luxury,' meaning it's a high-end brand that many people can still afford. It sells everything from handbags and small leather goods to clothing and watches, aiming for a 'jet-set' style that is both stylish and sporty. Customers buy these items at Michael Kors stores, department stores, and online.
Jimmy Choo
This brand is famous for its luxury women's shoes, often seen on red carpets. Started in London in 1996, Jimmy Choo has expanded to include handbags, accessories, and fragrances for both women and men. While smaller than Michael Kors, it holds a powerful position in the high-fashion world. People buy Jimmy Choo products from its own boutiques and other high-end retailers globally.
What management is betting on now
The company's leadership is focused on strengthening its two core brands, Michael Kors and Jimmy Choo, after agreeing to sell Versace. A major priority is to refresh the Michael Kors brand by renovating hundreds of stores to improve the customer experience. They are also working to increase the desirability of their products through new designs and marketing, aiming to sell more items at full price rather than through promotions. For Jimmy Choo, the plan is to continue its growth, particularly in accessories, to complement its famous shoe collections.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$23.00M
FY2025 Q3
$278.00M
FY2025 Q4
$-188.00M
FY2026 Q1
$-21.00M
FY2026 Q2
$-65.00M
FY2026 Q3
$183.00M
FY2026 Q4
$-83.00M
FY2027 Q1
$48.00M
Revenue
$769.00M
Net income
$69.00M
Diluted EPS
0.60
Operating cash flow
$73.00M
Free cash flow
$48.00M
Fetching…
Sources
Revenue
$796.00M
Net income
$-4.00M
Diluted EPS
-0.04
Operating cash flow
$-65.00M
Free cash flow
$-83.00M
Fetching…
Sources
Revenue
$1.02B
Net income
$116.00M
Diluted EPS
0.96
Operating cash flow
$202.00M
Free cash flow
$183.00M
Fetching…
Sources
Revenue
$856.00M
Net income
$-28.00M
Diluted EPS
-0.22
Operating cash flow
$-52.00M
Free cash flow
$-65.00M
Fetching…
Sources
Revenue
$797.00M
Net income
$53.00M
Diluted EPS
0.44
Operating cash flow
$-8.00M
Free cash flow
$-21.00M
Fetching…
Sources
Revenue
$1.03B
Net income
$-645.00M
Diluted EPS
-5.48
Operating cash flow
$-161.00M
Free cash flow
$-188.00M
Fetching…
Sources
Revenue
$1.26B
Net income
$-547.00M
Diluted EPS
-4.61
Operating cash flow
$309.00M
Free cash flow
$278.00M
Fetching…
Sources
Revenue
$1.08B
Net income
$24.00M
Diluted EPS
0.20
Operating cash flow
$50.00M
Free cash flow
$23.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $13.74 vs current price $15.95
Wall Street consensus is the average analyst price target: $22.22 (61.7% higher than our fair-value estimate).
Our most-likely fair value is $13.74 a share — about 13.8% away from today's price of $15.95, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $1.3B. Interest coverage 1.0x.
Net debt
$1.28B
Interest coverage
1.01x
Capri Holdings Limited's profit covers its interest bill about 1.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
CPRI
BASELINE
Capri Holdings Limited
Total debt $1.39B Interest coverage 1.01x This is the baseline the peer rows are being compared against.
Total debt $3.96B Interest coverage 34.68x +3,324% vs CPRI Carries about 34.2x more debt cushion than CPRI.
What you should know
The case for and against CPRI
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 59.3% above its 5-year average P/E.
-
Operating margin compressed from 14.9% to 1.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
20.45x
Forward P/E
6.31x
P/B
13.13x
P/S
0.53x
EV/EBITDA
15.88x
PEG ratio
0.20x
Profitability
How much profit each dollar creates
Gross margin
62.5%
Operating margin
1.8%
Net margin
4.4%
ROE
144.6%
ROA
1.1%
Health
Liquidity and balance-sheet strength
Debt / equity
9.73x
Current ratio
1.19x
Quick ratio
0.39x
Total debt
$1.39B
Total cash
$114.00M
Growth
How the business has been compounding
Revenue TTM
$3.45B
Revenue 5Y CAGR
-11.5%
EPS TTM
0.78
EPS 5Y CAGR
-37.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$158.00M
Free CF TTM
$14.00M
FCF margin
0.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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