Capri Holdings LimitedCPRI
NYSE • Consumer Cyclical
$17.21
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
-18.7% YoY
Gross Margin
60.8%
Health Score
3/10
D/E Ratio
8.43
Confidence
LOW
Business Snapshot
Capri Holdings is a luxury fashion group that owns and operates brands including Michael Kors, Versace, and Jimmy Choo, generating revenue primarily from accessories, footwear, and apparel. The company competes in the premium and luxury segments against global conglomerates like LVMH and Kering but holds a smaller market share. With trailing twelve-month revenue of $3.71 billion, it qualifies as a mid-cap company. A defining characteristic is its portfolio of iconic luxury brands, but the company is currently undergoing restructuring amid declining sales and significant net losses.
Financial Health
Gross margin of 60.8% is slightly below the prior year's 61.0%, still healthy for luxury goods, but net margin of -13.6% reflects deep operating losses. Debt/equity stands at 8.43x, an extremely high leverage ratio that signals a stretched balance sheet, while the current ratio of 1.14x provides a thin liquidity cushion...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 8.43x indicates extreme leverage; the current ratio of 1.14x provides minimal liquidity buffer.
- EARNINGS QUALITY — Only 2 of the last 4 quarters beat analyst estimates, and TTM net income is negative at $-504 million, implying inconsistent earnings delivery.
- 52-WEEK POSITION — Current price of $17.21 is near the 52-week low of $16.22 and well below the midpoint of $22.245, reflecting sustained downward pressure.
- VALUATION DIVERGENCE — FMP DCF of $57.99 versus Python DCF not calculable creates uncertainty; the single available DCF estimate is highly optimistic given revenue declines and net losses.
- REVENUE DECELERATION — YoY revenue fell 18.7%, and while QoQ grew 19.7%, the year-on-year decline dominates the narrative and signals structural challenges....