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Capri Holdings Limited

CPRI
28
Luxury Goods · Consumer Cyclical
Price
$16.38
-0.56 (-3.31%)
Market Cap
$1.88B
Winston Score
28
Winston is worried
Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

21.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 152.5M (2022) → 119.8M (2026)

Capri Holdings is a fashion company that owns three clothing and accessories brands: Michael Kors, Versace, and Jimmy Choo. Michael Kors sells handbags, shoes, and clothing aimed at middle-to-upper-income shoppers, while Versace targets high-end luxury buyers and Jimmy Choo is known for expensive shoes and accessories. The company competes in the global luxury and accessible luxury goods market.

Capri makes money by selling products through its own retail stores, department stores, and online channels, as well as through licensing its brand names. It operates across North America, Europe, and Asia, with Michael Kors generating the large majority of revenue. The company's main competitive advantage is brand recognition, particularly for Michael Kors, but that brand has faced years of declining sales as it struggles to stay relevant against stronger luxury competitors like Coach parent Tapestry and European luxury houses. Reversing the Michael Kors revenue slide is the central challenge the business must solve.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-17.9% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-18.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

2.5%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$166M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Capri Holdings Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
61.0%
Premium pricing power — 61.0% gross margin
Operating Margin
-11.2%
Losing money on operations — -11.2%
ROCE
-6.2%
Weak — -6.2% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
-12.6%
Shrinking sales (-12.6% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
6.8%
Modest free cash flow (6.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
4.08
Heavy debt load (4.08)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
15.8x
Fair value — P/E 15.8

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+6.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (15.8 → 8.9)

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Dividends

Not applicable for this business.
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