CPRI Stock Forecast & Price Target

Capri Holdings's stock outlook appears positive due to Jimmy Choo's revenue growth, which rose 5.0% year-over-year to $167 million, and was driven by strong consumer response to new styles, particularly in the Americas. Additionally, a robust increase in the brand's customer database by 8% year-over-year indicates enhanced consumer engagement and loyalty, which is crucial for sustaining future sales growth. The forecasted rise in capital expenditures for FY26 to approximately $120 million suggests a commitment to investment in growth initiatives, further reinforcing a positive trajectory for the company's financial performance.

Capri Holdings experienced a notable contraction in operating margin, decreasing 140 basis points year-over-year to 7.7%, which fell slightly below the company’s expectations and mirrored consensus estimates. The company's total revenues declined by 4.0% year-over-year to $1.025 billion, marking a trend of sustained sales decreases across its major brands, particularly with Michael Kors witnessing a 5.6% revenue drop in the latest quarter. Additionally, despite reducing net debt to $80 million from $1.17 billion, the ongoing store closures and declining retail footprint for both Michael Kors and Jimmy Choo raise concerns about the company's long-term growth prospects and overall financial stability.