Capri Holdings Limited

Valuation Analysis

About the Company

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. It operates through two segments: Michael Kors and Jimmy Choo. The company offers handbags, small leather goods, jewelry, scarves and belts, and footwear and related accessories through a distribution network, including retail stores, department and specialty stores, and licenses to wholesale customers, as well as e-commerce sites. It also undertakes licensing agreements relating to manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdin

Capri Holdings Limited Stock at a Glance

Capri Holdings Limited (CPRI) is currently trading at $21.33 with a market capitalization of $2.5B. The trailing P/E ratio stands at 32.82x, with a forward P/E of 8.25x. The 52-week range spans from $16.22 to $28.27; the current price is 24.5% below the yearly high. Year-over-year revenue growth stands at -3.7%. The net profit margin stands at 3.94%.

💰 Dividend

Capri Holdings Limited currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

16 analysts rate Capri Holdings Limited (CPRI) on consensus: Buy. The average price target is $25.72, implying +20.58% from the current price. Analyst price targets range from $20.00 to $45.50.

Capri Holdings Limited: The Investment Case in Detail

Capri Holdings Limited (CPRI) operates in the Consumer Cyclical — specifically Luxury Goods — and is headquartered in United Kingdom. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 62.26%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 35.09% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Wall Street consensus sits at Buy with an average price target implying roughly 20.58% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

Revenue is contracting at -3.7% year-over-year — until that trend reverses, valuation is exposed to further downgrades. With a net margin of just 3.94%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. The debt-to-equity ratio of 1690.48% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

Valuation in Context

With a PEG ratio of 0.27, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 8.25x is meaningfully below the trailing 32.82x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 20.58% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to market-like volatility, elevated short interest (9.41%), higher leverage relative to equity.

Trading Data

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