Capri Holdings' turnaround is showing signs of progress after the company sold its Versace brand to Prada for $1.375 billion, returned to profitability, and strengthened its balance sheet through debt reduction and positive free cash flow. In its fiscal 2026 fourth quarter, Capri reported earnings of 22 cents per share, a sharp improvement from a loss of $4.90 per share a year earlier, while revenue from continuing operations, which excludes Versace, totaled $796 million, down 3.7% year over year. The company expects revenue growth to return in fiscal 2027, with earnings per share projected to rise 40% to $2.15, as Michael Kors improves profitability and Jimmy Choo returns to the black. Despite these improvements, Capri shares remain down roughly 65% from the highs reached after the Tapestry merger announcement and trade at a substantial discount to peers such as Tapestry and Ralph Lauren, with a price-to-sales ratio of 0.6 compared to 4.3 and 3.0, respectively. Wall Street maintains a consensus Hold rating on the stock, with an average 12-month price target of $24.79, implying roughly 30% upside from current levels.
Capri Holdings LtdReturn to profitability, debt reduction, positive free cash flow, and improved earnings outlook.
Prada SpAAcquired Versace from Capri for $1.375 billion, a strategic acquisition.
PVH Corp
Ralph Lauren Corp Class A
Tapestry Inc