📊 CPRI Key Takeaways
Is Capri Holdings Ltd (CPRI) a Good Investment?
Capri Holdings faces significant operational and financial headwinds with declining revenue (-4.1% YoY), razor-thin operating margins (0.7%), and extreme leverage (4.46x debt-to-equity ratio) relative to a minimal equity cushion of only $80M. Weak free cash flow generation ($14M) and deteriorating quick ratio (0.60x) create material refinancing and solvency risks if trends worsen.
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.
Capri Holdings Ltd Key Strengths (CPRI)
- Gross margins of 62.3% demonstrate pricing power and brand strength in luxury segment
- Positive operating cash flow of $77M provides near-term liquidity foundation
- Strong interest coverage ratio of 58.5x indicates current debt service is manageable
- 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
- Revenue contraction of 4.1% YoY signals market share erosion or sector weakness in luxury goods
- Operating margin collapse to 0.7% reveals structural profitability deterioration and rising cost pressures
- Extreme debt-to-equity leverage of 4.46x combined with only $80M equity cushion creates acute refinancing risk if credit conditions tighten
- Anemic free cash flow of $14M (0.4% of revenue) insufficient to service $357M long-term debt obligations and fund recovery
- Quick ratio of 0.60x below 1.0 threshold indicates potential liquidity stress if operations deteriorate further
- 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
- Quarterly revenue growth trajectory and comparable store sales stability
- Operating margin recovery through cost management or pricing initiatives
- Free cash flow generation and debt reduction progress quarterly
- Quick ratio and working capital trends for near-term solvency signals
- Debt refinancing activity and credit facility covenant compliance status
- 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 0.4% 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 declined by 27% over the 5-year period, indicating business contraction. The most recent EPS of $-1.96 indicates the company is currently unprofitable.
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 Grade of C from Claude (C) and ChatGPT (C) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPRI's key strengths?
Claude: Gross margins of 62.3% demonstrate pricing power and brand strength in luxury segment. Positive operating cash flow of $77M provides near-term liquidity foundation. 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: Revenue contraction of 4.1% YoY signals market share erosion or sector weakness in luxury goods. Operating margin collapse to 0.7% reveals structural profitability deterioration and rising cost pressures. 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 $3.5B.
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 $1.14.
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 grade reflects both perspectives for balanced insights.
What is CPRI's fundamental grade?
Based on our AI fundamental analysis in June 2026, Capri Holdings Ltd has a C grade with 81% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CPRI stock overvalued or undervalued?
Valuation metrics for CPRI: ROE of 171.3% (sector avg: 15%), net margin of 3.9% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is CPRI's AI grade for 2026?
Our dual AI analysis gives Capri Holdings Ltd a combined C grade 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 $77.0M, with capital expenditures of $63.0M. FCF margin is 0.4%.
How does CPRI compare to other Market stocks?
Vs Default sector averages: Net margin 3.9% (avg: 12%), ROE 171.3% (avg: 15%), current ratio 1.21 (avg: 1.8).
Is Capri Holdings Ltd carrying too much debt?
CPRI has a debt-to-equity ratio of 4.46x, which is above the Market sector average of 0.7x. However, the current ratio of 1.21 suggests adequate short-term liquidity.
Why is CPRI's return on equity (ROE) so high?
Capri Holdings Ltd has a return on equity of 171.3%, 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 3.9% net margin.