Capri Holdings’ Stock (NYSE: CPRI) Under Pressure Leading Into Earnings – What To Expect

Capri Holdings stock (NYSE: CPRI) has provided a bumpy ride for holders over the past 12 months, with a decline of 48.76% in the 12 months leading into today's earnings only telling part of the story.

The global luxury conglomerate behind Michael Kors, and Jimmy Choo, is navigating a period of strategic transformation, with the proposed merger with Tapestry now firmly in the rear-view mirror. The company’s stock price, currently trading at $17.55 has rallied more than 40% from April's lows, although this morning's pre-market drop of 1.65% may be more indicative of the market’s uncertainty around its near-term prospects.

Investor attention is now squarely focused on Capri Holdings’ upcoming Q4 and full-year fiscal 2025 earnings release, scheduled for after the closing bell today (May 28). Analysts are expecting the company to deliver earnings per share of $0.22 on the period, a significant drop from the $0.42 reported in the previous quarter. Revenue is expected to come in at $989.05 million, with current forecasts also anticipating further drops in the upcoming quarter ($959.91 million)

The accompanying management commentary is expected to provide critical insights into the company’s financial health, the effectiveness of recent restructuring efforts, and the outlook for fiscal 2026 and beyond. Given the recent turbulence in revenue and profit trends, this event is likely to serve as a catalyst for near-term price action.

Fundamental Headwinds and Strategic Shifts

The recent swings in CPRI’s stock price underscore the tension between short-term optimism and longer-term structural challenges. The sharp one-month rally suggests opportunistic buying and perhaps some short covering, yet the persistent decline over the past year highlights deeper issues.

Capri Holdings’ most recent quarterly results revealed a concerning 11.6% drop in revenue to $1.26 billion. Management has since guided for total revenues of approximately $4.4 billion in fiscal 2025, with a further decline to $4.1 billion anticipated for fiscal 2026. These projections have forced the company to revisit its strategic playbook, targeting a return to growth in fiscal 2027. The ongoing revenue contraction, coupled with cautious forward guidance, has cast a shadow over investor sentiment.

In response, Capri Holdings has initiated a significant leadership shakeup at Michael Kors, its flagship brand. John D. Idol, Chairman and CEO of Capri Holdings, will now also serve as CEO of Michael Kors, while Philippa Newman assumes the role of Chief Product Officer. These moves, combined with cost-cutting measures and a focus on reviving the wholesale business, are designed to stabilize revenues and restore profitability. However, the departure of key executives and the scale of restructuring required suggest that the turnaround will not be immediate.

Analysts Remain Divided

Analyst price targets for CPRI currently range from $14.00 to $52.00, reflecting a wide spectrum of opinion on the company’s ability to execute its turnaround. Telsey Advisory Group maintains a “Market Perform” rating, and raised the firm's price target from $23 to $17. Jefferies has reiterated a “Hold” stance, and the firm has upped their price target from $20 to $23. Baird have also lowered Capri Holdings price target from $26 to $18. The firm keeps a “Neutral” rating.

In response to Capri Holdings selling Versace to Prada (PRDSY), Wells Fargo have also lowered the firm's price target from $30 to $25. Wells Fargo keeps an “Overweight” rating on the shares. The consensus appears to be one of cautious neutrality, with most observers awaiting tangible signs of operational improvement before turning more constructive.

What Next?

Despite its recent struggles, Capri Holdings retains significant global reach. Its portfolio of luxury brands continues to resonate with diverse consumer bases across North America, Europe, and Asia. The company’s business model spans direct retail, wholesale, and e-commerce, offering some resilience amid shifting consumer trends. However, the luxury retail landscape remains fiercely competitive, and Capri’s ability to drive brand relevance and margin expansion will be critical in the years ahead.

Recent financial underperformance, leadership restructuring, and strategic recalibration have all contributed to recent stock price movements. While the group’s iconic brands and global footprint provide a platform for recovery, persistent revenue headwinds and execution risks cloud the near-term outlook. Markets will no doubt be focused on the upcoming earnings call for insights into how these changes are impacting the business and whether management’s initiatives can restore growth and profitability in the coming years.