CPRI Stock Forecast & Price Target

Capri Holdings demonstrated strong growth in Asia, achieving a 25.4% year-over-year increase in FQ2, coupled with a 9% increase in its global consumer database for both Michael Kors and Jimmy Choo, indicating solid brand engagement. The performance trends in Europe remained positive, with Michael Kors recording a 3.7% growth in FQ2, reflecting consistent demand in key markets. Furthermore, management anticipates a recovery in retail trends in the latter half of fiscal 2026, positioning Capri Holdings for potential growth in fiscal year 2027.

Capri Holdings reported a 2.5% year-over-year decline in total revenues for the second quarter, totaling $856 million, despite outperforming market forecasts; the decline was particularly pronounced in its flagship brand, Michael Kors, which saw a 1.8% decrease in sales. Both Michael Kors and Jimmy Choo have now experienced consecutive quarterly topline declines, indicating persistent struggles in the luxury market, with notable weaknesses in key categories such as footwear. Additionally, the company has projected further declines in adjusted gross margins, attributed to the elevated costs associated with tariffs on inventory, thereby reinforcing a negative outlook on its financial health.