📊 CPRI Key Takeaways
Investment Thesis
Capri Holdings faces significant operational headwinds with revenue declining 14.1% YoY while operating income collapsed to just $50M from much higher prior year levels, resulting in a dangerously thin 1.9% operating margin. The company's high leverage (2.23x debt/equity) and weak quick ratio (0.52x) create financial fragility despite adequate interest coverage, and the inflated ROE of 134.3% reflects minimal equity value rather than operational strength.
CPRI Strengths
- Strong gross margin of 61.5% demonstrates pricing power and brand value
- Positive free cash flow of $97M provides liquidity cushion
- Substantial interest coverage of 127.2x indicates manageable debt service burden
- Cash reserves of $154M provide near-term operational flexibility
CPRI Risks
- Severe revenue decline of 14.1% YoY signals demand deterioration and market share loss
- Operating margin collapsed to 1.9% indicating cost structure misalignment with lower volumes
- High financial leverage (2.23x debt/equity) with minimal equity base ($105M) creates solvency risk
- Quick ratio of 0.52x reveals potential liquidity stress if operations further deteriorate
- Negative EPS momentum with 410% YoY decline despite flat net income suggests share dilution concerns
Key Metrics to Watch
- Revenue trajectory and comparable store sales trends to confirm demand stabilization
- Operating margin recovery path given current 1.9% level
- Free cash flow sustainability as capital needs may increase for brand investment
- Debt reduction progress given high leverage relative to thin equity cushion
- Inventory levels and promotional intensity impacting gross margins
CPRI Financial Metrics
💡 AI Analyst Insight
The relatively thin 3.6% FCF margin may limit capital allocation flexibility.
CPRI Profitability Ratios
CPRI vs Default Sector
How Capri Holdings Ltd compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CPRI Balance Sheet & Liquidity
CPRI 5-Year Financial Trend
5-Year Trend Summary: Capri Holdings Ltd's revenue has shown modest growth of 1% over the 5-year period. The most recent EPS of $4.60 reflects profitable operations.
CPRI Growth Metrics (YoY)
CPRI Quarterly 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.
CPRI Capital Allocation
CPRI SEC Filings
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 an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPRI's key strengths?
Strong gross margin of 61.5% demonstrates pricing power and brand value. Positive free cash flow of $97M provides liquidity cushion.
What are the risks of investing in CPRI?
Severe revenue decline of 14.1% YoY signals demand deterioration and market share loss. Operating margin collapsed to 1.9% indicating cost structure misalignment with lower volumes.
What is CPRI's revenue and growth?
Capri Holdings Ltd reported revenue of $2.7B.
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 $1.18.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.