TacticScaleWhat Capri Does & How It Makes Money (CPRI)
Updated October 2026 · reflects Capri's latest reported financials
Global luxury fashion group owning Michael Kors and Jimmy Choo. It earns most of its revenue from selling branded apparel, handbags, footwear and accessories through its own retail stores and e-commerce sites and through wholesale sales to department and specialty stores.
How Capri makes money
It earns most of its revenue from selling branded apparel, handbags, footwear and accessories through its own retail stores and e-commerce sites and through wholesale sales to department and specialty stores. It also collects licensing income from partners that make and sell watches, jewelry, eyewear and fragrances under its brands.
What Capri does
Capri Holdings is a London-based luxury fashion company, founded in 1981 and known as Michael Kors Holdings until it renamed itself in December 2018. It reports two segments, Michael Kors and Jimmy Choo. Under these brands it designs and markets women's and men's apparel, handbags, small leather goods, footwear, jewelry, scarves, belts and other accessories. The company sells through its own retail stores and e-commerce sites, and through department stores, specialty stores and licensed wholesale partners across the Americas, Europe, the Middle East, Africa, Asia and Oceania. It also earns money from licensing deals that let partners make and sell brand-name watches, jewelry, eyewear and fragrances.
Products & services
- Michael Kors
- Jimmy Choo
- Handbags and small leather goods
- Luxury footwear
- Apparel and accessories
- Licensed watches, eyewear and fragrances
What is Capri worth?
On an owner-earnings DCF, Capri's most-likely value is about $26 versus a recent price near $15 (71% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$18) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.
On the financials alone, $15 is below even the no-growth floor ($18); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -2.3%/yr. A bargain only if that pessimism is overdone.
⚠ High leverage — net debt is 5.5× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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