CPRI Stock Forecast & Price Target

Capri Holdings has demonstrated a positive financial trajectory with Jimmy Choo achieving a revenue increase of 5.0% to $167 million, reflecting strong consumer response to new styles and improved full-price sell-through in the wholesale channel. Additionally, capital expenditures for FY26 have been revised upward to approximately $120 million, indicating a commitment to growth and investment in brand development. The company's consumer engagement has strengthened, with an 8% year-over-year growth in its customer database, suggesting a solid foundation for future sales expansion and brand loyalty.

Capri Holdings experienced a significant year-over-year contraction in operating margin, which decreased by 140 basis points to 7.7%, falling slightly below expectations and highlighting ongoing profitability challenges. The company's total revenues for the third quarter were down 4.0% year-over-year to $1.025 billion, reflecting a concerning trend as both major brands, Michael Kors and Jimmy Choo, reported declines in sales and store counts. Additionally, while the company reduced its net debt to $80 million, the underlying revenue decline, particularly a 5.6% drop in Michael Kors sales, raises concerns about the sustainability of its financial performance moving forward.