Capri Holdings Q3 Earnings Beat Expectations with Strong Cash Flow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Should l Buy CPRI?
Source: seekingalpha
- Earnings Beat Expectations: Capri Holdings reported a Q3 Non-GAAP EPS of $0.81, exceeding estimates by $0.03, demonstrating resilience in profitability despite a 3.7% year-over-year revenue decline to $1.03 billion.
- Strong Cash Flow: The company generated $271 million in cash flow from operating activities in Q3, with capital expenditures of $19 million, resulting in a robust free cash flow of $252 million, enhancing financial flexibility for future investments.
- Significant Debt Reduction: As of December 27, 2025, Capri's net debt decreased to $80 million from $1.17 billion a year earlier, indicating substantial progress in debt management and improving the company's balance sheet.
- Optimistic FY 2026 Outlook: Capri anticipates total revenue for FY 2026 to range between $3.45 billion and $3.475 billion, surpassing consensus estimates, with projected EPS of $1.30 to $1.40, reflecting strong confidence in future growth prospects.
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Analyst Views on CPRI
Wall Street analysts forecast CPRI stock price to rise
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 20.510
Low
21.00
Averages
26.46
High
32.00
Current: 20.510
Low
21.00
Averages
26.46
High
32.00
About CPRI
Capri Holdings Limited is a global fashion luxury company, consisting of brands, such as Michael Kors and Jimmy Choo. Its Michael Kors segment includes the sale of Michael Kors products through four primary Michael Kors retail formats: Collection stores, Lifestyle stores (including concessions), outlet stores and e-commerce sites, through which it sells Michael Kors products, as well as licensed products bearing the Michael Kors name, directly to consumers throughout the Americas, certain parts of EMEA and certain parts of Asia. It also sells Michael Kors products directly to department stores, primarily located across the Americas and Europe, to specialty stores and travel retail shops, and to its geographic licensees. Its Jimmy Choo segment includes the sale of Jimmy Choo luxury footwear, handbags and small leather goods through directly operated Jimmy Choo retail and outlet stores throughout the Americas, certain parts of EMEA and certain parts of Asia, through its e-commerce sites.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DME Capital Increases Stake in Capri Holdings Significantly
- Share Increase: According to an SEC filing dated February 17, 2026, DME Capital increased its position in Capri Holdings by 2,080,410 shares during Q4, with an estimated transaction value of $48.12 million, indicating confidence in Capri's future performance.
- Increased Holding Proportion: Capri Holdings now accounts for 4.1% of DME's assets under management, up from 2.1% in Q3, making it the seventh-largest holding, reflecting investor optimism about the company.
- Declining Financial Performance: Despite the increase in holdings, Capri Holdings is expected to finish FY 2026 with $3.5 billion in sales, down from $4.4 billion in FY 2025, highlighting the market challenges the company faces.
- Tariff Impact: With the Supreme Court ruling parts of the Trump administration's tariffs unconstitutional, Capri may benefit from improved gross margins in the future, even as its stock has declined by 5.3% over the past year.
See More
Capri Holdings Appoints New CFO and COO
- Executive Appointment: Capri Holdings has appointed Tyler Reddie as CFO and COO, effective March 30, bringing extensive experience from his previous role as CFO of The Body Shop, which is expected to enhance the company's financial and operational management.
- Strategic Leadership: Reddie is recognized as an exceptional finance and operations leader, and his strategic mindset and international experience are anticipated to support Capri's future growth and long-term value creation, as noted by CEO John Idol.
- Stock Price Movement: Capri Holdings shares experienced a slight decline in after-hours trading, priced at $20.26, indicating a cautious market response to the new executive appointment.
- Brand Impact: As the parent company of luxury brands like Michael Kors and Jimmy Choo, the executive change at Capri Holdings may influence its brand strategy and market performance, prompting investors to monitor future business developments.
See More
David Einhorn's Concerns on AI Overvaluation Impacting Stock Picks
- Investment Strategy Shift: David Einhorn invested tens of millions in Q4 2025 to increase stakes in Graphic Packaging and Capri Holdings by over 70%, reflecting his concerns about AI-driven market overvaluation and indicating a strategic pivot away from big tech.
- Stock Performance Volatility: Despite Graphic Packaging's shares dropping about 23% in Q4 2025 and over 44% for the year, Wall Street analysts remain optimistic, with an average price target suggesting more than 35% upside, indicating expectations for a rebound in the stock.
- Healthcare Investments: Einhorn more than doubled his position in Acadia Healthcare to over $58 million, despite a 43% plunge in Q4; however, analysts maintain a buy rating with a price target suggesting over 16% upside in the next 12 months, reflecting confidence in its recovery.
- Cautious on Tech Stocks: While expressing concerns about tech valuations, Einhorn established a $35 million stake in Global Payments, which fell 31% in 2025 but rebounded nearly 5% in 2026, with analysts' price targets implying over 25% upside, suggesting market optimism for its future performance.
See More
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- Airbnb Upgrade: Citizens upgrades Airbnb from market perform to market outperform with a price target of $160, anticipating multiple upcoming catalysts that could drive the stock beyond current expectations.
- GE Vernova Rating Recovery: Baird upgrades GE Vernova from neutral to outperform, asserting that concerns about capacity are overblown and that the energy infrastructure cycle is still in its early stages, positioning GE Vernova as a key beneficiary.
- Broadridge Financial Upgrade: DA Davidson raises Broadridge's rating from hold to buy, arguing that the recent 30% decline in shares presents a buying opportunity, maintaining a price target of $228 as the sell-off is seen as excessive.
See More
Capri Holdings Exceeds Q3 2026 Expectations with Strategic Focus
- Strong Financial Performance: Capri Holdings reported total revenue of $1.025 billion for Q3, down 4% year-over-year, yet earnings per share rose approximately 30% to $0.81, indicating improved profitability under strategic adjustments and boosting investor confidence.
- Significant Debt Reduction: The completion of the Versace sale allowed Capri to reduce net debt from $1.6 billion to $80 million, enhancing financial flexibility and supporting future strategic investments, which is crucial for long-term growth.
- Brand Strategy Adjustments: Revenue for Michael Kors declined by 5.6%, while Jimmy Choo saw a 5% increase, reflecting the company's efforts in brand repositioning and market strategy, which are expected to lay a solid foundation for sustainable growth.
- Optimistic Future Outlook: Management narrowed full-year fiscal 2026 revenue guidance to between $3.45 billion and $3.475 billion, with an anticipated gross margin of 61%, demonstrating confidence in future growth driven by ongoing strategic investments and disciplined cost management.
See More
Capri Holdings Exceeds Q3 Revenue and EPS Expectations
- Strong Financial Performance: Capri Holdings reported total revenue of $1.025 billion for Q3, a 4.0% year-over-year decline, yet adjusted EPS reached $0.81, exceeding market expectations and demonstrating the company's resilience in challenging conditions.
- Significant Debt Reduction: The sale of Versace enabled Capri Holdings to reduce net debt to $80 million, down from $1.17 billion a year ago, enhancing financial flexibility and securing the foundation for future strategic investments.
- Differentiated Brand Performance: Michael Kors generated $858 million in revenue, a 5.6% decline, while Jimmy Choo's revenue increased by 5.0% to $167 million, indicating positive outcomes in brand portfolio management and potential for further resource optimization.
- Optimistic Future Outlook: The company anticipates total revenue of approximately $3.45 to $3.475 billion for FY 2026, reflecting confidence in future growth and providing clear earnings expectations for investors, thereby bolstering market confidence.
See More
DME Capital Increases Stake in Capri Holdings Significantly
- Share Increase: According to an SEC filing dated February 17, 2026, DME Capital increased its position in Capri Holdings by 2,080,410 shares during Q4, with an estimated transaction value of $48.12 million, indicating confidence in Capri's future performance.
- Increased Holding Proportion: Capri Holdings now accounts for 4.1% of DME's assets under management, up from 2.1% in Q3, making it the seventh-largest holding, reflecting investor optimism about the company.
- Declining Financial Performance: Despite the increase in holdings, Capri Holdings is expected to finish FY 2026 with $3.5 billion in sales, down from $4.4 billion in FY 2025, highlighting the market challenges the company faces.
- Tariff Impact: With the Supreme Court ruling parts of the Trump administration's tariffs unconstitutional, Capri may benefit from improved gross margins in the future, even as its stock has declined by 5.3% over the past year.
See More
Capri Holdings Appoints New CFO and COO
- Executive Appointment: Capri Holdings has appointed Tyler Reddie as CFO and COO, effective March 30, bringing extensive experience from his previous role as CFO of The Body Shop, which is expected to enhance the company's financial and operational management.
- Strategic Leadership: Reddie is recognized as an exceptional finance and operations leader, and his strategic mindset and international experience are anticipated to support Capri's future growth and long-term value creation, as noted by CEO John Idol.
- Stock Price Movement: Capri Holdings shares experienced a slight decline in after-hours trading, priced at $20.26, indicating a cautious market response to the new executive appointment.
- Brand Impact: As the parent company of luxury brands like Michael Kors and Jimmy Choo, the executive change at Capri Holdings may influence its brand strategy and market performance, prompting investors to monitor future business developments.
See More
David Einhorn's Concerns on AI Overvaluation Impacting Stock Picks
- Investment Strategy Shift: David Einhorn invested tens of millions in Q4 2025 to increase stakes in Graphic Packaging and Capri Holdings by over 70%, reflecting his concerns about AI-driven market overvaluation and indicating a strategic pivot away from big tech.
- Stock Performance Volatility: Despite Graphic Packaging's shares dropping about 23% in Q4 2025 and over 44% for the year, Wall Street analysts remain optimistic, with an average price target suggesting more than 35% upside, indicating expectations for a rebound in the stock.
- Healthcare Investments: Einhorn more than doubled his position in Acadia Healthcare to over $58 million, despite a 43% plunge in Q4; however, analysts maintain a buy rating with a price target suggesting over 16% upside in the next 12 months, reflecting confidence in its recovery.
- Cautious on Tech Stocks: While expressing concerns about tech valuations, Einhorn established a $35 million stake in Global Payments, which fell 31% in 2025 but rebounded nearly 5% in 2026, with analysts' price targets implying over 25% upside, suggesting market optimism for its future performance.
See More
Latest Wall Street Rating Updates
- AMD Rating Reaffirmed: Barclays reiterates its overweight rating on AMD, citing the company's growing share in the PC and server markets, alongside significant spending potential from clients like OpenAI, indicating strong future growth in AI.
- Airbnb Upgrade: Citizens upgrades Airbnb from market perform to market outperform with a price target of $160, anticipating multiple upcoming catalysts that could drive the stock beyond current expectations.
- GE Vernova Rating Recovery: Baird upgrades GE Vernova from neutral to outperform, asserting that concerns about capacity are overblown and that the energy infrastructure cycle is still in its early stages, positioning GE Vernova as a key beneficiary.
- Broadridge Financial Upgrade: DA Davidson raises Broadridge's rating from hold to buy, arguing that the recent 30% decline in shares presents a buying opportunity, maintaining a price target of $228 as the sell-off is seen as excessive.
See More
Capri Holdings Exceeds Q3 2026 Expectations with Strategic Focus
- Strong Financial Performance: Capri Holdings reported total revenue of $1.025 billion for Q3, down 4% year-over-year, yet earnings per share rose approximately 30% to $0.81, indicating improved profitability under strategic adjustments and boosting investor confidence.
- Significant Debt Reduction: The completion of the Versace sale allowed Capri to reduce net debt from $1.6 billion to $80 million, enhancing financial flexibility and supporting future strategic investments, which is crucial for long-term growth.
- Brand Strategy Adjustments: Revenue for Michael Kors declined by 5.6%, while Jimmy Choo saw a 5% increase, reflecting the company's efforts in brand repositioning and market strategy, which are expected to lay a solid foundation for sustainable growth.
- Optimistic Future Outlook: Management narrowed full-year fiscal 2026 revenue guidance to between $3.45 billion and $3.475 billion, with an anticipated gross margin of 61%, demonstrating confidence in future growth driven by ongoing strategic investments and disciplined cost management.
See More
Capri Holdings Exceeds Q3 Revenue and EPS Expectations
- Strong Financial Performance: Capri Holdings reported total revenue of $1.025 billion for Q3, a 4.0% year-over-year decline, yet adjusted EPS reached $0.81, exceeding market expectations and demonstrating the company's resilience in challenging conditions.
- Significant Debt Reduction: The sale of Versace enabled Capri Holdings to reduce net debt to $80 million, down from $1.17 billion a year ago, enhancing financial flexibility and securing the foundation for future strategic investments.
- Differentiated Brand Performance: Michael Kors generated $858 million in revenue, a 5.6% decline, while Jimmy Choo's revenue increased by 5.0% to $167 million, indicating positive outcomes in brand portfolio management and potential for further resource optimization.
- Optimistic Future Outlook: The company anticipates total revenue of approximately $3.45 to $3.475 billion for FY 2026, reflecting confidence in future growth and providing clear earnings expectations for investors, thereby bolstering market confidence.
See More
