📊 CPRI Key Takeaways
Is Capri Holdings Ltd (CPRI) a Good Investment?
Capri Holdings faces significant operational headwinds with revenue declining 14.1% YoY while operating income collapsed to just $50M from much higher prior year levels, resulting in a dangerously thin 1.9% operating margin. The company's high leverage (2.23x debt/equity) and weak quick ratio (0.52x) create financial fragility despite adequate interest coverage, and the inflated ROE of 134.3% reflects minimal equity value rather than operational strength.
Capri Holdings shows weakening core fundamentals, with revenue down 14.1% year over year and operating margin compressed to just 1.9%, indicating significant pressure on demand and operating efficiency. While the business remains profitable and free-cash-flow positive, the quality of earnings looks fragile given very low equity, modest liquidity, and margins that leave little room for further disruption. The balance of fundamentals points to a challenged turnaround rather than a healthy growth story.
Why Buy Capri Holdings Ltd Stock? CPRI Key Strengths
- Strong gross margin of 61.5% demonstrates pricing power and brand value
- Positive free cash flow of $97M provides liquidity cushion
- Substantial interest coverage of 127.2x indicates manageable debt service burden
- Cash reserves of $154M provide near-term operational flexibility
- Gross margin remains strong at 61.5%, suggesting the brands still retain pricing power and product-level profitability
- The company is still generating positive operating cash flow and free cash flow, which supports flexibility during a weak sales period
- Interest coverage is very high, indicating current debt servicing burden is manageable despite leverage concerns
CPRI Stock Risks: Capri Holdings Ltd Investment Risks
- Severe revenue decline of 14.1% YoY signals demand deterioration and market share loss
- Operating margin collapsed to 1.9% indicating cost structure misalignment with lower volumes
- High financial leverage (2.23x debt/equity) with minimal equity base ($105M) creates solvency risk
- Quick ratio of 0.52x reveals potential liquidity stress if operations further deteriorate
- Negative EPS momentum with 410% YoY decline despite flat net income suggests share dilution concerns
- Revenue contraction of 14.1% signals weakening sales momentum and raises concern about brand demand and execution
- Operating margin of 1.9% is extremely thin, making earnings vulnerable to small cost increases or additional sales declines
- Stockholders' equity is only $105M against $3.23B of liabilities, which makes ROE misleadingly high and leaves the balance sheet structurally weak
Key Metrics to Watch
- Revenue trajectory and comparable store sales trends to confirm demand stabilization
- Operating margin recovery path given current 1.9% level
- Free cash flow sustainability as capital needs may increase for brand investment
- Debt reduction progress given high leverage relative to thin equity cushion
- Inventory levels and promotional intensity impacting gross margins
- Revenue growth and operating margin recovery
- Free cash flow generation and stockholders' equity rebuild
Capri Holdings Ltd (CPRI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.6% FCF margin may limit capital allocation flexibility.
CPRI Profit Margin, ROE & Profitability Analysis
CPRI vs Market Sector: How Capri Holdings Ltd Compares
How Capri Holdings Ltd compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Capri Holdings Ltd Stock Overvalued? CPRI Valuation Analysis 2026
Based on fundamental analysis, Capri Holdings Ltd has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Capri Holdings Ltd Balance Sheet: CPRI Debt, Cash & Liquidity
CPRI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Capri Holdings Ltd's revenue has shown modest growth of 1% over the 5-year period. The most recent EPS of $4.60 reflects profitable operations.
CPRI Revenue Growth, EPS Growth & YoY Performance
CPRI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.0B | $116.0M | $0.96 |
| Q2 2026 | $856.0M | $10.0M | $0.09 |
| Q1 2026 | $797.0M | -$14.0M | $-0.12 |
| Q3 2025 | $1.3B | $105.0M | $0.88 |
| Q2 2025 | $1.1B | $10.0M | $0.09 |
| Q1 2025 | $1.1B | -$14.0M | $-0.11 |
| Q3 2024 | $1.4B | $105.0M | $0.88 |
| Q2 2024 | $1.3B | $90.0M | $0.77 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Capri Holdings Ltd Dividends, Buybacks & Capital Allocation
CPRI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Capri Holdings Ltd (CIK: 0001530721)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CPRI
What is the AI rating for CPRI?
Capri Holdings Ltd (CPRI) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPRI's key strengths?
Claude: Strong gross margin of 61.5% demonstrates pricing power and brand value. Positive free cash flow of $97M provides liquidity cushion. ChatGPT: Gross margin remains strong at 61.5%, suggesting the brands still retain pricing power and product-level profitability. The company is still generating positive operating cash flow and free cash flow, which supports flexibility during a weak sales period.
What are the risks of investing in CPRI?
Claude: Severe revenue decline of 14.1% YoY signals demand deterioration and market share loss. Operating margin collapsed to 1.9% indicating cost structure misalignment with lower volumes. ChatGPT: Revenue contraction of 14.1% signals weakening sales momentum and raises concern about brand demand and execution. Operating margin of 1.9% is extremely thin, making earnings vulnerable to small cost increases or additional sales declines.
What is CPRI's revenue and growth?
Capri Holdings Ltd reported revenue of $2.7B.
Does CPRI pay dividends?
Capri Holdings Ltd does not currently pay dividends.
Where can I find CPRI SEC filings?
Official SEC filings for Capri Holdings Ltd (CIK: 0001530721) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CPRI's EPS?
Capri Holdings Ltd has a diluted EPS of $1.18.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CPRI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Capri Holdings Ltd has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CPRI stock overvalued or undervalued?
Valuation metrics for CPRI: ROE of 134.3% (sector avg: 15%), net margin of 5.3% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy CPRI stock in 2026?
Our dual AI analysis gives Capri Holdings Ltd a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CPRI's free cash flow?
Capri Holdings Ltd's operating cash flow is $142.0M, with capital expenditures of $45.0M. FCF margin is 3.6%.
How does CPRI compare to other Market stocks?
Vs Default sector averages: Net margin 5.3% (avg: 12%), ROE 134.3% (avg: 15%), current ratio 1.14 (avg: 1.8).
Is Capri Holdings Ltd carrying too much debt?
CPRI has a debt-to-equity ratio of 2.23x, which is above the Market sector average of 0.7x. However, the current ratio of 1.14 suggests adequate short-term liquidity.
Why is CPRI's return on equity (ROE) so high?
Capri Holdings Ltd has a return on equity of 134.3%, significantly above the Market sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 5.3% net margin.