CPRI Stock Forecast & Price Target

Capri Holdings demonstrated a significant turnaround in sales, with a notable 25.4% year-over-year growth in Asia during FQ2, indicating a recovery from previous contractions and improved consumer sentiment. The company also reported a 9% year-over-year increase in the global consumer database for both Michael Kors and Jimmy Choo, signifying enhanced brand engagement and market presence. As management anticipates improved retail trends and a return to growth in FY27, along with a strong cash position, this sets a foundation for a positive outlook on the company's stock performance.

Capri Holdings has reported a 2.5% year-over-year decline in total revenues for the second quarter, amounting to $856 million, which, while exceeding market forecasts, highlights a concerning trend of reduced sales across its primary brands. Specifically, sales of Michael Kors, which represent 85% of the company's quarterly revenue, decreased by 1.8% year-over-year, indicating weak performance particularly in the Americas, while Jimmy Choo also experienced a 6.4% decline, marking the fourth consecutive quarter of downturn for both brands. Furthermore, the company anticipates a significant gross margin contraction of approximately 200 to 250 basis points due to the full tariff impact on inventory, raising concerns about profitability and operational efficiency in the near term.