CPRI Stock Forecast & Price Target

Capri Holdings is viewed positively because Michael Kors shows early signs of a turnaround, with full-price comps improving, wholesale POS turning positive, gross margin expanding 280 bps to 63.9%, and newer product plus store renovations driving stronger sell-through. Jimmy Choo adds to the case, posting 10.5% revenue growth to $179 million and 480 bps of operating margin expansion to 7.3%, while Capri’s broader financial strength and expected return to normalized FCF support value creation. Management’s willingness to optimize the portfolio, combined with cleaner inventory, reduced promotional activity, and margin improvement potential at Michael Kors, gives the company multiple avenues for EPS recovery and shareholder upside.

Capri Holdings is facing a negative outlook because its core Michael Kors franchise is still shrinking, with revenue down 5.5% in 4Q26 and an estimated 8% decline in 1Q27, while EMEA softness from lower tourist traffic is also pressuring trends. Although margins improved on stronger full-price sell-throughs, lower promotions, and tariff benefits, those gains look partly nonrecurring, as excluding the tariff refund 4Q26 gross margin would have been about 59.8%, showing underlying profitability remains fragile. The balance between lower inventory and expense control is helping earnings, but overall sales are still expected to fall to $3.4 billion in FY27 and the company remains heavily dependent on a brand that is not yet showing durable top-line recovery.