European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>Capri Holdings’ sale of Versace to Prada removes a structurally weak asset, shifting its balance sheet from net debt to net cash, simplifying its brand portfolio for sharper strategic focus.</li>
<li>Post-Transaction, Capri trades at just 4.4x EBITDA despite becoming a leaner, debt-free luxury group with two globally recognized brands — a setup primed for significant multiple expansion and investor re-rating.</li>
<li>A sum-of-the-parts valuation excluding Versace suggests Capri’s fair value is $30–33 per share, offering investors over 100% upside as the company pivots from portfolio fixer-upper to focused luxury contender.</li>
</ul>


Capri Holdings’ sale of Versace to Prada removes a structurally weak asset, shifting its balance sheet from net debt to net cash, simplifying its brand portfolio for sharper strategic focus.
Post-Transaction, Capri trades at just 4.4x EBITDA despite becoming a leaner, debt-free luxury group with two globally recognized brands — a setup primed for significant multiple expansion and investor re-rating.
A sum-of-the-parts valuation excluding Versace suggests Capri’s fair value is $30–33 per share, offering investors over 100% upside as the company pivots from portfolio fixer-upper to focused luxury contender.


Capri Unstitched: A Versace Sale Could Unlock Value for CPRI

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Capri Holdings Limited's recent earnings call highlighted several challenges and strategic pivots across its three primary luxury brands—Versace, Jimmy Choo, and Michael Kors.</li><li>During the third quarter of fiscal 2025, the company experienced a 12% decrease in revenue compared to the prior year, amounting to $1.3 billion.</li><li>This decline was primarily attributed to weakened demand for fashion luxury goods globally, with a notable downturn in China, along with strategic missteps and a store optimization program that affected sales.</li></ul>

Capri Holdings Limited's recent earnings call highlighted several challenges and strategic pivots across its three primary luxury brands—Versace, Jimmy Choo, and Michael Kors.During the third quarter of fiscal 2025, the company experienced a 12% decrease in revenue compared to the prior year, amounting to $1.3 billion.This decline was primarily attributed to weakened demand for fashion luxury goods globally, with a notable downturn in China, along with strategic missteps and a store optimization program that affected sales.

Capri Holdings: Fashion Empire in Crisis? What Went Wrong After the Failed Tapestry Merger?

<ul><li>Capri Holdings Limited reported mixed financial results for the fourth quarter and the full fiscal year 2023, navigating a challenging economic environment while demonstrating resilience across its luxury brands—Versace, Jimmy Choo, and Michael Kors.</li><li>The company achieved a high-single-digit increase in revenue and mid-single-digit growth in earnings per share on a constant-currency basis over the fiscal year.</li><li>However, the results fell short of initial expectations, particularly in the wholesale channel, which experienced significant declines.</li></ul>

Capri Holdings Limited reported mixed financial results for the fourth quarter and the full fiscal year 2023, navigating a challenging economic environment while demonstrating resilience across its luxury brands—Versace, Jimmy Choo, and Michael Kors.The company achieved a high-single-digit increase in revenue and mid-single-digit growth in earnings per share on a constant-currency basis over the fiscal year.However, the results fell short of initial expectations, particularly in the wholesale channel, which experienced significant declines.

Capri Holdings Limited: Cost Structure Optimization As A Pivotal Factor Driving Growth! - Major Drivers

<ul><li>Capri Holdings Limited recently reported its earnings for the fourth quarter and full fiscal year of 2023.</li><li>The company saw a revenue increase in high single digits and a mid-single digit rise in earnings per share on a 52- week constant currency basis.</li><li>Despite not fully meeting initial expectations, there were significant areas of performance strength.</li></ul>

Capri Holdings Limited recently reported its earnings for the fourth quarter and full fiscal year of 2023.The company saw a revenue increase in high single digits and a mid-single digit rise in earnings per share on a 52- week constant currency basis.Despite not fully meeting initial expectations, there were significant areas of performance strength.

Capri Holdings Limited: Expansion of Direct-to-Consumer Channels and E-Commerce! - Major Drivers

<ul><li>Capri Holdings Limited recently reported its financial performance for the fourth quarter and full fiscal year of 2023.</li><li>Despite facing numerous challenges, including an uncertain macroeconomic environment and specific difficulties in the Americas, the company managed to achieve high single-digit revenue growth and mid-single digit growth in earnings per share on a 52-week constant currency basis.</li><li>However, these figures fell short of the company's initial expectations.</li></ul>

Capri Holdings Limited recently reported its financial performance for the fourth quarter and full fiscal year of 2023.Despite facing numerous challenges, including an uncertain macroeconomic environment and specific difficulties in the Americas, the company managed to achieve high single-digit revenue growth and mid-single digit growth in earnings per share on a 52-week constant currency basis.However, these figures fell short of the company's initial expectations.

Capri Holdings Limited: Why We Are Bullish Even If The Tapestry Acquisition Does Not Go Through!  - Major Drivers

United States

Capri Holdings Limited retails apparel. The Company offers fashion luxury women's and men's accessories, footwear, apparel, watches, jewelry, eyewear, and fragrance products, as well as provides delivery services. Capri Holdings serves customers worldwide.

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Capri Holdings (CPRI US)

Capri Unstitched: A Versace Sale Could Unlock Value for CPRI

Capri Holdings' sale of Versace to Prada boosts financial health and strategic focus, setting the stage for significant growth potential and over...

Jesus Rodriguez Aguilar

Capri Holdings: Fashion Empire in Crisis? What Went Wrong After the Failed Tapestry Merger?

Capri Holdings Limited's recent earnings call highlighted several challenges and strategic pivots across its three primary luxury brands—Versace,...

Baptista Research

Capri Holdings Limited: Cost Structure Optimization As A Pivotal Factor Driving Growth! - Major Drivers

Capri Holdings Limited reported mixed financial results for the fourth quarter and the full fiscal year 2023, navigating a challenging economic...

Baptista Research

Capri Holdings Limited: Expansion of Direct-to-Consumer Channels and E-Commerce! - Major Drivers

Capri Holdings Limited recently reported its earnings for the fourth quarter and full fiscal year of 2023. The company saw a revenue increase in...

Baptista Research

Capri Holdings Limited: Why We Are Bullish Even If The Tapestry Acquisition Does Not Go Through! - Major Drivers

Capri Holdings Limited recently reported its financial performance for the fourth quarter and full fiscal year of 2023. Despite facing numerous...

Baptista Research

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Capri Unstitched: A Versace Sale Could Unlock Value for CPRI

​Capri Holdings' sale of Versace to Prada boosts financial health and strategic focus, setting the stage for significant growth potential and over...

Jesus Rodriguez Aguilar

Capri Holdings: Fashion Empire in Crisis? What Went Wrong After the Failed Tapestry Merger?

Capri Holdings Limited's recent earnings call highlighted several challenges and strategic pivots across its three primary luxury brands—Versace,...

Baptista Research

Capri Holdings Limited: Cost Structure Optimization As A Pivotal Factor Driving Growth! - Major Drivers

Capri Holdings Limited reported mixed financial results for the fourth quarter and the full fiscal year 2023, navigating a challenging economic...

Baptista Research

Capri Holdings Limited: Expansion of Direct-to-Consumer Channels and E-Commerce! - Major Drivers

Capri Holdings Limited recently reported its earnings for the fourth quarter and full fiscal year of 2023. The company saw a revenue increase in...

Baptista Research

Capri Holdings Limited: Why We Are Bullish Even If The Tapestry Acquisition Does Not Go Through! - Major Drivers

Capri Holdings Limited recently reported its financial performance for the fourth quarter and full fiscal year of 2023. Despite facing numerous...

Baptista Research

Capri Holdings' sale of Versace to Prada boosts financial health and strategic focus, setting the stage for significant growth potential and over...