Capri Holdings Ltd (CPRI) Stock Analysis and Equity Research Report 2025
Welcome to our comprehensive Capri Holdings Ltd (CPRI) stock analysis and equity research report for 2025. As a leading luxury fashion company owning iconic brands like Michael Kors, Versace, and Jimmy Choo, Capri Holdings continues to navigate the dynamic luxury goods sector. This report provides in-depth insights into CPRI's business overview, financial performance, stock valuation, and investment outlook, optimized for investors seeking detailed CPRI equity research reports, Capri Holdings stock analysis, and CPRI analyst ratings. Data is current as of September 27, 2025, with the stock trading at approximately $19.46 (source: Nasdaq and recent market data).
Business Overview of Capri Holdings Ltd (CPRI)
Capri Holdings Ltd (NYSE: CPRI) is a global luxury fashion group with a diversified portfolio. Below are the key points from our equity research analysis, focusing on core operations and strategic positioning in the luxury sector.
1. Dominant Segment Revenue Structure and Overall Decline
Capri Holdings operates through three primary segments: Michael Kors (72% of total revenue), Versace (17%), and Jimmy Choo (11%). In fiscal 2025, total revenue reached $4.39 billion, down 15.4% year-over-year due to U.S. demand weakness and inventory challenges. This highlights reliance on Michael Kors while exposing risks like outlet saturation (source: fiscal 2025 10-K and MD&A).
2. Geographical Revenue Shift Toward Asia Amid Global Diversification
Revenue is diversified geographically: Americas (55%), EMEA (23%), and Asia (22%) in fiscal 2025. Asia's share has grown from 15% in 2021, driven by digital investments and expansion in markets like China, offsetting U.S. declines but introducing currency risks (source: annual reports and earnings disclosures).
3. Forward Guidance and Strategic Focus on Growth Recovery
Management projects low-single-digit growth to $4.5–4.8 billion by fiscal 2027, with margins of 10–12%. Mid-term targets aim for $5.5–6.0 billion and 15–18% margins via Asia expansion, digital transformation ($200 million invested), and sustainability. This addresses high debt (EV/EBITDA 19.98) and aims for EBITDA of $800–900 million by 2030 (source: Q3 fiscal 2025 earnings and 10-K).
Financial Analysis of Capri Holdings Ltd (CPRI)
Our CPRI financial forecast and stock analysis reveal challenges and recovery potential. Key points include:
1. Significant Revenue Decline and Segment Underperformance
Revenue fell from $5,654 million in FY2022 to $4,442 million in FY2025 (CAGR -7.8%), underperforming the luxury industry's 4-6% growth. Michael Kors saw -16.2% YoY decline in FY2025 (source: Bloomberg and FactSet).
2. Erosion of Profitability and Negative Returns
EBIT shifted to a -$752 million loss in FY2025 (margin -16.9%), with net income at -$1,182 million. ROE hit -321.2%, below industry averages. Free cash flow was $153 million (source: financial statements).
3. Modest Projected Recovery Amid Ongoing Challenges
Consensus estimates project $4.0 billion revenue in FY2026 (-10% YoY) rebounding to $4.4 billion in FY2027 (+10% YoY). Analysts maintain a 'Hold' rating with $25.36 target (source: Bloomberg, FactSet, and recent reports from 13 firms).
Conclusion and Investment Outlook for CPRI Stock
In summary, Capri Holdings Ltd (CPRI) offers a mixed profile with strong brands and Asia growth potential, offset by revenue declines and high leverage. As of September 27, 2025, the stock is at $19.46, below its 200-day moving average, with a market cap of ~$2.36 billion (source: Nasdaq and recent news).
Pros
- Diversified portfolio: Michael Kors (72%), Versace (17%), Jimmy Choo (11%).
- Asia growth (22% revenue share).
- Strategic investments in digital and sustainability for 15-18% margins by 2030.
- Positive cash flow ($281 million in FY2025) and institutional ownership (101.43%).
- Revenue CAGR -7.8% (FY2022–2025).
- Negative profitability (ROE -321.2%).
- High debt (Debt/Equity 12.8x).
- Underperformance vs. peers like Kering.
| Fiscal Year | Michael Kors | Versace | Jimmy Choo | Total |
|---|---|---|---|---|
| 2021 | 2,924 | 718 | 418 | 4,060 |
| 2022 | 4,056 | 1,088 | 613 | 5,757 |
| 2023 | 4,088 | 1,107 | 618 | 5,813 |
| 2024 | 3,775 | 1,069 | 613 | 5,457 |
| 2025 | 3,164 | 748 | 483 | 4,395 |
| Fiscal Year | Americas | EMEA | Asia |
|---|---|---|---|
| 2021 | 62% | 23% | 15% |
| 2022 | 58% | 24% | 18% |
| 2023 | 56% | 24% | 20% |
| 2024 | 55% | 23% | 22% |
| 2025 | 55% | 23% | 22% |
Cons
| Fiscal Year | EBIT Margin (%) | Net Income Margin (%) | ROE (%) |
|---|---|---|---|
| 2021 | 3.2 | -1.5 | -3.2 |
| 2022 | 12.7 | 14.5 | 28.4 |
| 2023 | 10.8 | 10.6 | 24.1 |
| 2024 | 5.4 | -4.2 | -10.5 |
| 2025 | -16.9 | -26.6 | -321.2 |
Valuation Comparison and Assessment
CPRI's P/S ratio (0.54) and forward P/E (15.15) suggest undervaluation vs. sector averages. Consensus target: $25.36 (~30% upside). However, high EV/EBITDA (19.98) indicates risks. Overall, undervalued at $19.46 assuming recovery (source: Bloomberg and analyst reports).
For more CPRI stock charts, news, and investment reports, explore our resources. This Capri Holdings valuation report is for informational purposes only and not investment advice.