Capri Holdings Ltd. shares fell to a 52-week low of $13.61 on Friday, extending a steep decline that has erased nearly half of the company’s value in 2024.
The luxury fashion conglomerate, which owns brands including Michael Kors and Versace, has seen its stock drop 44% year-to-date and nearly 52% from its 52-week high of $28.27. Over the past 12 months, the shares have fallen 36.01%, underperforming broader retail benchmarks amid shifting consumer demand and cost pressures.
Despite the broader downturn, Capri reported a first-quarter adjusted earnings per share of $0.67, exceeding Wall Street expectations of $0.39. Revenue totaled $769 million, topping analyst projections of $757 million. The company attributed the outperformance to improved gross margins and disciplined cost controls, even as overall sales declined.
Capri’s valuation metrics reflect its recent struggles. The stock carries a price-to-earnings ratio of 17.78 and a price/earnings-to-growth (PEG) ratio of 0.15, figures that InvestingPro flags as indicators of potential undervaluation. The company’s gross profit margin stands at 63%, while its Piotroski Score—a measure of financial health—is rated at 9, described as a perfect score.
The company has adopted a cautious stance for the full year, lowering its sales outlook in response to ongoing macroeconomic uncertainty and shifting consumer behavior in the luxury segment. Capri’s shares, which closed at $13.57 on Friday, remain under pressure as investors weigh the contrast between its strong quarterly performance and the broader market headwinds facing the retail sector.
