CPRI Stock Forecast & Price Target

Capri Holdings demonstrated strong growth potential, particularly in Asia, with a remarkable 25.4% year-over-year growth in FQ2, following a previous contraction, and notable improvements in footwear sales driven by new product offerings. The expansion of the global consumer database for both Michael Kors and Jimmy Choo, which saw increases of 9% year-over-year, highlights the brands' successful engagement strategies and broadening market presence. Additionally, Capri's strategic focus on retail improvement, expected to yield growth in FY27, along with its current liquidity position of $120 million in cash against net debt of $1.64 billion, suggests a solid foundation to navigate future challenges and capitalize on emerging opportunities.

Capri Holdings has reported a decline in total revenues for the second quarter, down 2.5% year-over-year to $856 million, despite surpassing market expectations. The key brand, Michael Kors, which generates 85% of sales, showed a decrease of 1.8% in revenue, reflecting challenges in the Americas market along with a fourth consecutive quarter of topline declines for both Michael Kors and Jimmy Choo. Additionally, the company's guidance anticipates a significant decrease in adjusted gross margins, primarily due to increasing inventory costs impacted by tariffs, which further contributes to a negative financial outlook.