Capri Holdings sees stock drop amid market weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 27 2024
0mins
Should l Buy CPRI?
Capri Holdings Ltd's stock fell by 7.54% as it crossed below the 5-day SMA, reflecting broader market trends.
The decline comes as the Nasdaq-100 and S&P 500 indices are down 1.30% and 1.13%, respectively, indicating sector rotation away from consumer discretionary stocks like Capri Holdings. Despite David Einhorn's significant investment in the company, the current market conditions have led to a notable drop in its stock price.
This movement suggests that Capri Holdings is facing challenges in a bearish market, and investors may need to reassess their positions in light of ongoing volatility.
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Analyst Views on CPRI
Wall Street analysts forecast CPRI stock price to rise
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 17.620
Low
21.00
Averages
26.46
High
32.00
Current: 17.620
Low
21.00
Averages
26.46
High
32.00
About CPRI
Capri Holdings Limited is a global fashion luxury company, consisting of brands, such as Michael Kors and Jimmy Choo. Its Michael Kors segment includes the sale of Michael Kors products through four primary Michael Kors retail formats: Collection stores, Lifestyle stores (including concessions), outlet stores and e-commerce sites, through which it sells Michael Kors products, as well as licensed products bearing the Michael Kors name, directly to consumers throughout the Americas, certain parts of EMEA and certain parts of Asia. It also sells Michael Kors products directly to department stores, primarily located across the Americas and Europe, to specialty stores and travel retail shops, and to its geographic licensees. Its Jimmy Choo segment includes the sale of Jimmy Choo luxury footwear, handbags and small leather goods through directly operated Jimmy Choo retail and outlet stores throughout the Americas, certain parts of EMEA and certain parts of Asia, through its e-commerce sites.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Capri Holdings CEO John Idol Purchases 55,000 Shares
- Share Purchase Details: On March 11, 2026, Capri Holdings CEO John D. Idol purchased 55,000 shares in an open-market transaction valued at $989,000, increasing his direct holdings to 2,257,645 shares, which reflects his bullish outlook on the company's future.
- Ownership Percentage Change: This transaction raised Idol's direct ownership by 2.50%, and he also retains 485,806 restricted stock units (RSUs) that can be converted into common stock, further enhancing his equity exposure.
- Market Performance Context: The average purchase price of approximately $17.98 per share was close to the market close of $17.86 on March 11, 2026, while Capri Holdings experienced a total return of -13.54% over the past year, indicating that the stock attracted the CEO's purchase despite recent price declines.
- Company Financial Overview: Capri Holdings reported a revenue of $4.33 billion and a net loss of $504 million over the trailing twelve months, with projected sales for fiscal 2026 expected to drop to $3.5 billion, highlighting challenges in the high-end fashion market that investors should carefully assess moving forward.
See More
John D. Idol Acquires 55,000 Shares of Capri Holdings
- Share Acquisition: On March 11, 2026, Capri Holdings' Chairman and CEO John D. Idol acquired 55,000 shares in open market transactions for approximately $989,000 at an average price of $17.98 per share, increasing his direct ownership by 2.5%, which indicates his confidence in the company's future prospects.
- Ownership Status: Following this transaction, Idol's total direct holdings reached 2,257,645 shares, reflecting a substantial stake in the company and suggesting he views the current stock price as attractive, despite a decline from the 52-week high of $28.27 last December.
- Financial Performance: Capri Holdings reported revenue of $1.03 billion for the fiscal third quarter of 2026, representing a 4% year-over-year decline, and forecasts a drop in total sales to $3.5 billion for the fiscal year, down from $4.4 billion in 2025, highlighting significant challenges ahead for the company.
- Market Outlook: While Idol's purchase signals a bullish outlook on the stock, analysts recommend monitoring the company's performance over the next few quarters before making investment decisions, especially given that Capri was not included in Motley Fool's list of top investment stocks.
See More
Capri Holdings Options Trading Analysis
- Options Selling Risk: Selling puts on Capri Holdings does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, and unless shares decline by 44%, the only benefit is a 7.8% annualized return from the premium.
- Cost Basis Analysis: If the contract is exercised at a $10 strike, the seller's cost basis would be $8.61 per share after commissions, indicating that actual gains only materialize under significant price drops, highlighting the risk-reward imbalance in options trading.
- Volatility Indicator: Capri Holdings has a trailing twelve-month volatility of 64%, which, when combined with fundamental analysis, can assist investors in assessing whether selling the December 2027 puts at a $10 strike is a worthwhile risk.
- Market Trading Dynamics: On Monday afternoon, the put volume among S&P 500 components reached 1.08 million contracts, matching call volume, indicating a higher demand for puts than the long-term median, reflecting investor concerns about market volatility.
See More
Oil Prices Surge Amid U.S.-Iran Tensions
- Oil Price Surge: Oil prices are rising sharply due to concerns over the U.S.-Iran conflict, with global benchmark Brent nearing $90 per barrel and U.S. crude approaching $87, posing challenges to American energy self-sufficiency and potentially leading Gulf producers to halt exports, exacerbating market uncertainty.
- Market Pressure: Rising oil prices are putting pressure on stock futures, particularly in light of an unexpected drop in February payrolls, leaving the market in a state of limbo, prompting analysts to advise caution against exiting stocks despite the prevailing uncertainty.
- Strong Performance by Marvell: Chipmaker Marvell raised its revenue growth projections for fiscal years 2027 and 2028 following a strong finish to FY26, driven by booming data center demand, with shares rising 11% in premarket trading, indicating strong market confidence in its growth trajectory.
- Costco Sales Growth: Costco reported impressive same-store sales growth, although its membership renewal rates in the U.S. and Canada remain under pressure, leading analysts to raise their price targets, reflecting optimism about the company's long-term performance despite current challenges.
See More
Abercrombie & Fitch, Gap, VF Corp, Capri, Ralph Lauren, and Tapestry Experience Declines of 2% to 8%
- Stock Performance: Abercrombie & Fitch, Gap, VF Corp, Capri, Ralph Lauren, and Tapestry have all seen their stock prices decline by 2% to 8%.
- Market Trends: The drop in stock prices reflects broader market trends affecting retail companies.
See More
DME Capital Increases Stake in Capri Holdings Significantly
- Share Increase: According to an SEC filing dated February 17, 2026, DME Capital increased its position in Capri Holdings by 2,080,410 shares during Q4, with an estimated transaction value of $48.12 million, indicating confidence in Capri's future performance.
- Increased Holding Proportion: Capri Holdings now accounts for 4.1% of DME's assets under management, up from 2.1% in Q3, making it the seventh-largest holding, reflecting investor optimism about the company.
- Declining Financial Performance: Despite the increase in holdings, Capri Holdings is expected to finish FY 2026 with $3.5 billion in sales, down from $4.4 billion in FY 2025, highlighting the market challenges the company faces.
- Tariff Impact: With the Supreme Court ruling parts of the Trump administration's tariffs unconstitutional, Capri may benefit from improved gross margins in the future, even as its stock has declined by 5.3% over the past year.
See More
Capri Holdings CEO John Idol Purchases 55,000 Shares
- Share Purchase Details: On March 11, 2026, Capri Holdings CEO John D. Idol purchased 55,000 shares in an open-market transaction valued at $989,000, increasing his direct holdings to 2,257,645 shares, which reflects his bullish outlook on the company's future.
- Ownership Percentage Change: This transaction raised Idol's direct ownership by 2.50%, and he also retains 485,806 restricted stock units (RSUs) that can be converted into common stock, further enhancing his equity exposure.
- Market Performance Context: The average purchase price of approximately $17.98 per share was close to the market close of $17.86 on March 11, 2026, while Capri Holdings experienced a total return of -13.54% over the past year, indicating that the stock attracted the CEO's purchase despite recent price declines.
- Company Financial Overview: Capri Holdings reported a revenue of $4.33 billion and a net loss of $504 million over the trailing twelve months, with projected sales for fiscal 2026 expected to drop to $3.5 billion, highlighting challenges in the high-end fashion market that investors should carefully assess moving forward.
See More
John D. Idol Acquires 55,000 Shares of Capri Holdings
- Share Acquisition: On March 11, 2026, Capri Holdings' Chairman and CEO John D. Idol acquired 55,000 shares in open market transactions for approximately $989,000 at an average price of $17.98 per share, increasing his direct ownership by 2.5%, which indicates his confidence in the company's future prospects.
- Ownership Status: Following this transaction, Idol's total direct holdings reached 2,257,645 shares, reflecting a substantial stake in the company and suggesting he views the current stock price as attractive, despite a decline from the 52-week high of $28.27 last December.
- Financial Performance: Capri Holdings reported revenue of $1.03 billion for the fiscal third quarter of 2026, representing a 4% year-over-year decline, and forecasts a drop in total sales to $3.5 billion for the fiscal year, down from $4.4 billion in 2025, highlighting significant challenges ahead for the company.
- Market Outlook: While Idol's purchase signals a bullish outlook on the stock, analysts recommend monitoring the company's performance over the next few quarters before making investment decisions, especially given that Capri was not included in Motley Fool's list of top investment stocks.
See More
Capri Holdings Options Trading Analysis
- Options Selling Risk: Selling puts on Capri Holdings does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, and unless shares decline by 44%, the only benefit is a 7.8% annualized return from the premium.
- Cost Basis Analysis: If the contract is exercised at a $10 strike, the seller's cost basis would be $8.61 per share after commissions, indicating that actual gains only materialize under significant price drops, highlighting the risk-reward imbalance in options trading.
- Volatility Indicator: Capri Holdings has a trailing twelve-month volatility of 64%, which, when combined with fundamental analysis, can assist investors in assessing whether selling the December 2027 puts at a $10 strike is a worthwhile risk.
- Market Trading Dynamics: On Monday afternoon, the put volume among S&P 500 components reached 1.08 million contracts, matching call volume, indicating a higher demand for puts than the long-term median, reflecting investor concerns about market volatility.
See More
Oil Prices Surge Amid U.S.-Iran Tensions
- Oil Price Surge: Oil prices are rising sharply due to concerns over the U.S.-Iran conflict, with global benchmark Brent nearing $90 per barrel and U.S. crude approaching $87, posing challenges to American energy self-sufficiency and potentially leading Gulf producers to halt exports, exacerbating market uncertainty.
- Market Pressure: Rising oil prices are putting pressure on stock futures, particularly in light of an unexpected drop in February payrolls, leaving the market in a state of limbo, prompting analysts to advise caution against exiting stocks despite the prevailing uncertainty.
- Strong Performance by Marvell: Chipmaker Marvell raised its revenue growth projections for fiscal years 2027 and 2028 following a strong finish to FY26, driven by booming data center demand, with shares rising 11% in premarket trading, indicating strong market confidence in its growth trajectory.
- Costco Sales Growth: Costco reported impressive same-store sales growth, although its membership renewal rates in the U.S. and Canada remain under pressure, leading analysts to raise their price targets, reflecting optimism about the company's long-term performance despite current challenges.
See More
Abercrombie & Fitch, Gap, VF Corp, Capri, Ralph Lauren, and Tapestry Experience Declines of 2% to 8%
- Stock Performance: Abercrombie & Fitch, Gap, VF Corp, Capri, Ralph Lauren, and Tapestry have all seen their stock prices decline by 2% to 8%.
- Market Trends: The drop in stock prices reflects broader market trends affecting retail companies.
See More
DME Capital Increases Stake in Capri Holdings Significantly
- Share Increase: According to an SEC filing dated February 17, 2026, DME Capital increased its position in Capri Holdings by 2,080,410 shares during Q4, with an estimated transaction value of $48.12 million, indicating confidence in Capri's future performance.
- Increased Holding Proportion: Capri Holdings now accounts for 4.1% of DME's assets under management, up from 2.1% in Q3, making it the seventh-largest holding, reflecting investor optimism about the company.
- Declining Financial Performance: Despite the increase in holdings, Capri Holdings is expected to finish FY 2026 with $3.5 billion in sales, down from $4.4 billion in FY 2025, highlighting the market challenges the company faces.
- Tariff Impact: With the Supreme Court ruling parts of the Trump administration's tariffs unconstitutional, Capri may benefit from improved gross margins in the future, even as its stock has declined by 5.3% over the past year.
See More
