Capri Holdings (CPRI) Valuation: Assessing the Impact of Earnings Miss and $1 Billion Buyback Plan

Capri Holdings (CPRI) caught the market’s attention after it posted a quarterly decline in sales and reported a net loss. At the same time, the company unveiled an ambitious $1 billion share repurchase plan along with new financial guidance.

See our latest analysis for Capri Holdings.

Capri Holdings’ share price has been on the rebound lately, climbing 15.7% over the past month and closing at $22.11. This momentum stands out given the recent dip in sales and net loss announcement. However, its 1-year total shareholder return is just 7.75%, reminding investors that the turnaround is still in early days after several tough years.

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With Capri’s recent dip into the red offset by a bold buyback and new guidance, the real question is whether its stock remains undervalued, or if investors are already banking on a swift recovery and future growth.

Most Popular Narrative: 15.5% Undervalued

Capri Holdings’ most widely followed narrative sets a fair value that sits notably above the last close, suggesting the market may be missing key drivers just beneath the surface.

Sequential improvement in full-price store traffic, reduced discounting, and growing success of new product launches, supported by data-driven marketing and influencer engagement, signal effective brand revitalization and are expected to drive AUR and revenue growth.

Read the complete narrative.

What is fueling this valuation upside? The secret sauce is major improvements in profit margins and a projected revenue transformation that could shift Capri’s long-term trajectory. Eager to see which ambitious assumptions analysts are betting on to reach their target? Unlock the full story and discover the projections that could change everything.

Result: Fair Value of $26.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing revenue declines at key brands and exposure to rising tariffs could quickly challenge Capri's recovery story if improvements do not materialize.

Find out about the key risks to this Capri Holdings narrative.

Build Your Own Capri Holdings Narrative

If you think there’s another angle or prefer hands-on research, Capri’s full dataset is at your fingertips. You can craft your own perspective in just minutes. Do it your way

A great starting point for your Capri Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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