CPRI Should I Buy
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Capri Holdings Ltd (CPRI) is not a strong buy at the moment for a beginner investor with a long-term strategy. While there are some positive catalysts, the financial performance and lack of strong technical or proprietary trading signals suggest a cautious approach. Holding the stock or waiting for further positive developments may be more prudent.
The MACD histogram is positive at 0.09 and expanding, indicating a mild bullish trend. RSI is neutral at 58.058, and moving averages are converging, suggesting no clear directional momentum. The stock is trading near resistance levels (R1: 21.185, R2: 21.683) with support at S1: 19.575 and S2: 19.078.
David Einhorn increased his stake in Capri Holdings by over 70%, signaling confidence from a notable investor. Analysts have noted improvements in Michael Kors and Jimmy Choo performance, and some firms upgraded the stock or maintained positive ratings. Barclays added the stock to its top ideas list, citing attractive risk/reward at current levels.
Revenue, net income, and EPS have all declined significantly YoY in Q3 2026, with net income and EPS dropping over 121%. Gross margin also declined by 3.76%. Analysts highlight ongoing outlet pressure, wholesale resets, and a prolonged turnaround timeline. The market sentiment remains cautious, with no significant insider or hedge fund activity.
In Q3 2026, Capri Holdings reported a revenue decline of -4.03% YoY to $1.025 billion. Net income dropped sharply by -121.21% YoY to $116 million, and EPS fell by -121.04% YoY to 0.97. Gross margin decreased to 57.85%, down -3.76% YoY, indicating weaker profitability.
Analyst sentiment is mixed. Goldman Sachs, UBS, and Wells Fargo lowered price targets, citing a prolonged turnaround and lack of near-term catalysts. However, Baird and Barclays upgraded or maintained positive ratings, citing attractive valuation and improving retail trends. Price targets range from $21 to $32, with a median around $26.
