CPRI Stock Forecast & Price Target

Capri Holdings is viewed positively because the Michael Kors reset is gaining traction, with positive full-price comparable sales in North America and China, improving wholesale POS, higher AURs, and stronger full-price sell-throughs signaling better brand health despite near-term top-line pressure. The company is also benefiting from cleaner inventory, reduced promotional activity, lower markdown exposure, and store renovations that are producing strong double-digit sales lifts, while gross margin at Michael Kors expanded 280bps to 63.9% even as revenue fell 7.1% y/y to $590 million. Jimmy Choo adds diversification with revenue up 10.5% to $179 million and operating margin expanding 480bps to 7.3%, supporting the case that Capri can drive earnings recovery and operating leverage as its turnaround progresses.

Capri Holdings is facing a weak fundamental setup, with estimated company sales declining to $750 million in 1Q27 and $781 million in 2Q27, down 6% and 9% y/y respectively, while Michael Kors remains the key drag with expected declines of 8% and 11%. Although Jimmy Choo is projected to grow 2% to 3%, it is too small to offset the much larger Kors brand, and FY27 sales are still only expected to reach $3.4 billion to $3.5 billion with operating margins of just 5% to 5.4%. Even with 4Q26 gross margin at 64.8% and inventory down 17% y/y to $581 million, much of that improvement came from a $40 million tariff refund benefit, implying underlying profitability remains fragile and earnings quality is not yet durable.