Capri Holdings Posts Wider-Than-Expected Q4 Loss, But Shares Rise 5%

• Telsey Advisory updated its rating for NYSE:CPRI to "Market Perform" with a price target increase from $17 to $20.
• Despite a fourth-quarter adjusted loss of $4.90 per share, quarterly sales reached $1.035 billion, surpassing analyst estimates.
• Significant announcements include setting long-term brand-specific targets, the departure of CFO/COO Tom Edwards, and the sale of Versace to Prada for $1.375 billion.

Capri Holdings Limited (NYSE:CPRI) is a global fashion luxury group that owns iconic brands like Michael Kors, Versace, and Jimmy Choo. The company operates in the highly competitive luxury fashion industry, where it competes with other major players such as LVMH and Kering. On May 29, 2025, Telsey Advisory updated its rating for CPRI to "Market Perform," advising investors to hold the stock. At that time, the stock was priced at $18.51.

Telsey Advisory Group analyst Dana Telsey maintained a "Market Perform" rating for CPRI, while increasing the price target from $17 to $20. This suggests a cautious optimism about the stock's future performance. Despite a fourth-quarter adjusted loss of $4.90 per share, which was significantly below the expected 14-cent loss, the company's quarterly sales reached $1.035 billion. This figure surpassed the analyst consensus estimate of $986.57 million, although it still represented a 15.4% decline year over year.

The mixed results for Capri Holdings highlight a smaller-than-expected decline in sales but a more substantial drop in gross margins. Since the third quarter of FY25, the company has made several significant announcements. These include setting long-term brand-specific targets during its Investor Day, the departure of longtime CFO/COO Tom Edwards, and the sale of Versace to Prada for $1.375 billion. Analyst Dana Telsey views these developments as crucial for the company's future strategy.

Currently, CPRI is priced at $18.51, reflecting an increase of 2.61% or $0.47. During the trading day, the stock has fluctuated between a low of $18.07 and a high of $19.03. Over the past year, CPRI has reached a high of $43.34 and a low of $11.86. The company's market capitalization stands at approximately $2.18 billion, indicating its size and presence in the luxury fashion market.

Today's trading volume for CPRI is 3,777,786 shares on the NYSE, suggesting active investor interest. The stock's performance and recent strategic moves, such as the sale of Versace, are likely to influence its future trajectory. As highlighted by Telsey Advisory, these developments are seen as pivotal for Capri Holdings' long-term strategy and market positioning.

• Dana Telsey of Telsey Advisory Group has raised the price target for NYSE:CPRI to $20, indicating an 8.05% potential upside.
• Despite a significant fourth-quarter adjusted loss, Capri Holdings' sales exceeded expectations, reaching $1.035 billion.
• The company is undergoing strategic changes, including the sale of Versace to Prada for $1.375 billion, aiming to reshape its future direction.

Capri Holdings Limited, trading as CPRI on the NYSE, is a renowned global fashion luxury group. The company, which owns iconic brands such as Michael Kors, Versace, and Jimmy Choo, has recently been the subject of a price target update by Dana Telsey from Telsey Advisory. Telsey has set a price target of $20 for CPRI, suggesting an 8.05% potential increase from its current trading price of $18.51.

Telsey Advisory Group's Dana Telsey has maintained a Market Perform rating on CPRI, while raising the price target from $17 to $20. This adjustment follows Capri Holdings' report of a fourth-quarter adjusted loss of $4.90 per share, significantly below the anticipated 14-cent loss. Despite this, the company's quarterly sales reached $1.035 billion, surpassing the analyst consensus estimate of $986.57 million.

The company's sales, although better than expected, still represented a 15.4% decline year over year. On a constant currency basis, total revenue decreased by 14.1%. This mixed result was marked by a smaller-than-expected decline in sales but a more substantial drop in gross margins, highlighting challenges in maintaining profitability.

Capri Holdings has been active in reshaping its strategy. Since the third quarter of FY25, the company announced long-term brand-specific targets during its Investor Day, the departure of longtime CFO/COO Tom Edwards, and the sale of Versace to Prada for $1.375 billion. These moves are seen as pivotal for the company's future direction.

Currently, CPRI is trading at $18.51, with a 2.61% increase today, translating to a $0.47 rise. The stock has fluctuated between $18.07 and $19.03 during the trading day. Over the past year, CPRI has seen a high of $43.34 and a low of $11.86, with a market capitalization of approximately $2.18 billion and a trading volume of 3,777,786 shares.

Capri Holdings Limited, trading as NYSE:CPRI, is a global fashion luxury group that owns renowned brands like Michael Kors and Versace. On May 28, 2025, CPRI reported an earnings per share (EPS) of -$4.90, which was significantly lower than the estimated EPS of -$0.16. This unexpected loss has led to a decline in the company's shares in premarket trading.

Despite the earnings loss, Capri Holdings generated a revenue of approximately $1.04 billion, surpassing the estimated revenue of around $960 million. However, this is a decrease from the $1.22 billion reported in the same quarter the previous year. The company has managed to exceed consensus revenue estimates twice in the last four quarters, as highlighted by Zacks.

The company's financial challenges are further emphasized by its negative price-to-earnings (P/E) ratio of approximately -2.19, indicating ongoing losses. The price-to-sales ratio stands at about 0.47, suggesting that the stock is valued at less than half of its sales per share. Additionally, the enterprise value to sales ratio is approximately 1.07, reflecting the company's total valuation relative to its sales.

Capri Holdings' CEO, John D. Idol, has expressed concerns about the impact of tariffs on the global economic environment, which has led the company to revise its revenue forecast for fiscal 2026. The luxury retailer anticipates that trade uncertainties and currency fluctuations will negatively impact demand, as highlighted by Zacks.

The company's financial health is further strained by a high debt-to-equity ratio of around 2.92, indicating a significant reliance on debt financing. However, with a current ratio of approximately 1.21, Capri Holdings maintains a reasonable level of liquidity to cover its short-term liabilities. Despite these challenges, the company continues to navigate the complex global market.

On Wednesday, May 29, 2024, Capri Holdings Limited (NYSE:CPRI), a prominent player in the global fashion luxury group sector, reported its earnings after the market closed. The company revealed an earnings per share (EPS) of approximately -4.03, missing the estimated EPS of 0.72. Additionally, CPRI's revenue for the period was about $1.22 billion, falling short of the expected $1.29 billion. This performance indicates a challenging period for the company, as highlighted by its Chairman and Chief Executive Officer, John D. Idol, who expressed disappointment with the results.

Capri Holdings' financial outcomes for the fourth quarter and the entire fiscal year of 2024, which concluded on March 30, 2024, showed a revenue decline of 8.4% on a reported basis and 7.9% in constant currency during the fourth quarter. The company also reported an adjusted operating margin of 6.4% and adjusted earnings per share of $0.42. These figures reflect the difficulties CPRI faced in maintaining its profitability and revenue growth amidst a challenging market environment.

The company's financial metrics, such as the price-to-earnings (P/E) ratio of approximately -17.49, indicate that CPRI is currently facing challenges in generating profits relative to its share price. The price-to-sales (P/S) ratio stands at about 0.77, suggesting that the company's shares are trading at a value slightly less than its sales revenue. Furthermore, with an enterprise value to sales (EV/Sales) ratio of approximately 1.42, it shows that the market values the company at a higher rate than just its sales figures, despite its recent financial performance.

CPRI's valuation in relation to its operating cash flow is relatively high, with an enterprise value to operating cash flow (EV/OCF) ratio of around 27.77. This indicates that the market may still have some confidence in the company's future cash flow generation capabilities. However, the earnings yield of approximately -5.72% and a debt-to-equity (D/E) ratio of about 2.24 suggest that CPRI is currently not generating positive earnings from its assets and has a higher level of debt compared to its equity, which could pose a risk for investors.

The current ratio of roughly 0.95 shows that CPRI might have a tight liquidity position, indicating the company's ability to cover its short-term liabilities with its short-term assets is nearly balanced but slightly below ideal. This financial situation underscores the challenges Capri Holdings faces in managing its finances effectively in a competitive and ever-evolving luxury fashion market.