CPRI Stock Forecast & Price Target

Capri Holdings has exhibited robust growth trends, particularly in Asia, where a 25.4% year-over-year increase in brand growth was reported for FQ2, following a prior contraction. Additionally, both Michael Kors and Jimmy Choo have expanded their global consumer databases by 9% year-over-year, indicating a strengthening brand presence and consumer engagement. Financially, Capri Holdings maintains a solid liquidity position with cash and equivalents of $120 million, while also managing to improve average unit retail (AUR) in the men's category despite flat revenue.

Capri Holdings experienced a 2.5% year-over-year decline in total revenues for the second quarter, amounting to $856 million, despite outperforming market forecasts. Michael Kors, which constitutes 85% of sales, reported a 1.8% decline, while Jimmy Choo's revenue fell 6.4%, marking a trend of four consecutive quarters of decline for both brands. The adjusted gross margin is expected to decline by 200 to 250 basis points in the next quarter due to increased inventory carrying full tariff impacts, indicating ongoing pressures affecting profitability.