Capri Holdings Completes $1.375 Billion Sale of Versace to Prada, Reducing Debt Burden
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 02 2025
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Source: Businesswire
- Transaction Completion: Capri Holdings has successfully completed the sale of Versace to Prada for $1.375 billion in cash, which is expected to significantly improve the company's financial condition by substantially reducing its leverage ratio.
- Debt Repayment Plan: The company plans to use the proceeds from this transaction to repay the majority of its debt, thereby enhancing financial flexibility to enable further investments and return capital to shareholders in the future.
- Brand Strategy Focus: Capri remains committed to executing strategic initiatives across Michael Kors and Jimmy Choo to maximize the potential of these iconic brands, with expectations to stabilize its business and establish a foundation for growth by fiscal 2027.
- Leadership Acknowledgment: CEO John D. Idol expressed gratitude to the Versace team for their contributions, particularly recognizing Donatella Versace's leadership, and emphasized that the partnership with Prada will guide the brand into its next growth phase.
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Analyst Views on CPRI
Wall Street analysts forecast CPRI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CPRI is 26.73 USD with a low forecast of 22.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
6 Buy
9 Hold
0 Sell
Moderate Buy
Current: 22.960
Low
22.00
Averages
26.73
High
32.00
Current: 22.960
Low
22.00
Averages
26.73
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.
TD Cowen Upgrades Capri Holdings (CPRI) to Buy, Raises Price Target to $32
- Rating Upgrade: TD Cowen upgraded Capri Holdings from Neutral to Buy, citing the company's sharper pricing strategy and trend-right styles as key factors for improved market performance.
- Margin Expansion Potential: Analysts highlighted substantial operating margin expansion potential for Capri this year, alongside financial deleverage opportunities, which are expected to enhance the company's financial health.
- Brand Transformation Progress: Significant progress in the Michael Kors transformation was noted, including store closures, outlet remerchandising, and handbag pricing architecture, indicating positive outcomes in market positioning.
- Stock Price Reaction: Capri Holdings' shares rose 2.9% in Thursday afternoon trading, reflecting market optimism regarding the company's new products and strategic pricing architecture.
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Capri Holdings (CPRI) Receives Overweight Rating with Price Target of $26.93
- Rating Upgrade: Capri Holdings has received an overweight rating with a price target set at $26.93, indicating analysts' optimistic expectations for its future performance, which may attract more investor interest.
- Market Confidence: This rating reflects market confidence in Capri Holdings' potential within the fashion industry's recovery, potentially driving its stock price upward and strengthening the company's position in a competitive market.
- Investment Appeal: The analyst's price target exceeds the current market level, suggesting significant upside potential for Capri Holdings, which may attract institutional investors seeking value opportunities.
- Strategic Implications: By enhancing its rating and price target, Capri Holdings could bolster its brand image and market recognition, thereby promoting sales growth and long-term profitability.
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