Capri Holdings Q3 Revenue Tops $1.025B as Analysts Slash Price Targets
TD Cowen cut Capri Holdings’ price target to $26 from $32 after Q3 results beat forecasts, citing limited upside; Goldman Sachs and UBS lowered targets to $24 and $22 while retaining ratings. Capri posted $1.025 billion Q3 revenue and slashed net debt to $80 million after Versace sale.
1. Analyst Price Target Cuts
TD Cowen reduced its price target on Capri Holdings to $26 from $32 following Q3 results, citing limited upside; Goldman Sachs lowered its target to $24 from $27 and UBS cut to $22 from $25 while keeping their respective ratings. Analysts highlighted improving product momentum but noted outlet pressure and wholesale reset risks.
2. Strong Q3 Sales and Brand Performance
Capri reported $1.025 billion in third-quarter revenue, surpassing the $1 billion estimate. The company saw sequential improvement in Michael Kors full-price sales and stronger-than-expected results at Jimmy Choo, with management targeting a return to growth in fiscal 2027 through ongoing strategic initiatives.
3. Debt Reduction via Versace Divestiture
Capri completed the sale of Versace and used the proceeds to significantly reduce debt, finishing the quarter with $80 million of net debt. The improved balance sheet supports the company’s self-help initiatives and strengthens financial flexibility.