Capri Holdings Sees Price Targets Cut to $22-$26 as Q3 Pressures Loom
TD Cowen cut Capri Holdings’ price target to $26 from $32, maintaining Buy; Goldman Sachs trimmed it to $24 from $27 and UBS to $22 from $25 with Neutral. Analysts cited stronger fiscal Q3 Michael Kors and Jimmy Choo offset by wholesale reset, outlet pressure and back-half recovery risk.
1. Analyst Rating Updates
On February 4, TD Cowen reduced its price target for Capri Holdings to $26 from $32 while maintaining a Buy rating. Goldman Sachs cut its target to $24 from $27 with a Neutral rating, and UBS lowered its forecast to $22 from $25, also keeping Neutral.
2. Q3 Performance Drivers
Analysts noted fiscal Q3 improvements driven by stronger-than-expected Michael Kors full-price sales and robust Jimmy Choo performance. These brands showed sequential gains after prior softness, underpinning the better-than-anticipated quarterly results.
3. Headwinds and Recovery Risks
Despite top-line gains, firms warned that wholesale reset initiatives and outlet channel pressure continue to weigh on near-term margins. UBS highlighted that the turnaround may be back-half weighted, increasing the risk of a delayed full recovery.