Shares of Capri Holdings Ltd. slipped to a new 52-week low of $13.61 on Tuesday, extending a prolonged downturn that has erased nearly half of the company’s value year-to-date. The stock last traded at $13.57, down 44% since the start of 2024 and nearly 52% below its 52-week high of $28.27.
The decline comes despite the company reporting better-than-expected first-quarter results last month. Adjusted earnings per share reached $0.67, surpassing Wall Street’s forecast of $0.39, while revenue totaled $769 million, exceeding analyst projections of $757 million. Analysts noted that stronger margins and disciplined cost controls supported the earnings beat even as revenue declined.
Capri, which owns luxury brands including Michael Kors and Jimmy Choo, has faced headwinds from softening consumer demand and broader challenges in the retail sector. The company recently lowered its full-year sales outlook, reflecting cautious expectations for consumer spending in the coming quarters.
Despite the recent stock decline, Capri’s financial metrics remain relatively strong. The company’s gross profit margin stands at 63%, while its Piotroski Score—a measure of financial health—is 9, considered a perfect score. Its price-to-earnings ratio is 17.78, and its PEG ratio is 0.15, metrics that have drawn attention on platforms such as InvestingPro, where Capri is listed among the most undervalued stocks in its peer group.
Over the past year, Capri’s shares have fallen 36.01%, underperforming broader market benchmarks and highlighting investor concerns over luxury retail dynamics and macroeconomic uncertainty.
