CPRI Stock Forecast & Price Target

Capri Holdings is viewed positively because Michael Kors is showing early but tangible signs of a turnaround, with positive full-price comps in North America and China, improving wholesale POS, higher AURs, and better sell-through as promotional intensity is reduced. Recent results also point to meaningful margin improvement, with Michael Kors gross margin up 280bps to 63.9% and Jimmy Choo revenue rising 10.5% to $179 million, while its operating margin expanded 480bps to 7.3% on stronger sales and cost control. The outlook is further supported by financial strength, cleaner inventory, expected margin expansion to 64.3%, and the potential for EPS recovery as operating leverage improves and shareholder value actions remain possible.

Capri Holdings is facing a negative outlook because underlying demand remains soft, with revenue down 3.5% y/y to $769 million in 1Q27 and an expected 9% y/y decline in 2Q27 sales, while Michael Kors—the core brand—remains under pressure and is projected to fall 11% in 2Q27. Although margins improved, much of the gross margin expansion was supported by lower tariff rates and a tariff refund benefit, which masks weaker organic profitability, and EMEA weakness from lower tourist traffic shows the recovery is uneven. Inventory reductions and cost controls help, but with FY27 sales still estimated at $3.4 billion and operating margin at only 5.0%, the business appears to be relying on expense savings rather than durable top-line momentum.