Why Is Fashion Luxury Company Capri Stock Gaining Today?

Capri Holdings CPRI shares traded higher on Wednesday after the company revealed its long-term growth targets.

The company reiterated its FY25 revenues projections at $4.4 billion versus the $4.465 billion estimate. Revenues are expected to be $4.1 billion in FY26 and $4.4 billion in FY27.

John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “We are optimistic about the long-term growth potential for Versace, Jimmy Choo and Michael Kors as we execute our strategic initiatives.”

For 2025, Michael Kors is projected to generate $3.0 billion in revenue. Versace is expected to achieve $810 million in revenue. Jimmy Choo’s revenue is forecasted to reach $600 million.

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For FY25, the company projects an adjusted operating margin of 2.3%. The adjusted operating margin is expected to rise to 3.7% for FY26.

For FY25, Michael Kors is expected to have a low double-digit operating margin. Versace is projected to have a negative high single-digit operating margin. Jimmy Choo’s operating margin is anticipated to be in the negative low single-digit range.

“Our powerful brands have enduring value and proven resilience, reinforcing our confidence in their ability to deliver revenue and earnings growth over time,” Idol adds.

In November last year, Tapestry, Inc. terminated the merger agreement with Capri, citing uncertainty in the legal process.

According to Benzinga Pro, CPRI stock has lost over 53% in the past year. Investors can gain exposure to the stock via Elevation Series Trust Clough Select Equity ETF CBSE.

Price Action: CPRI shares are trading higher by 2.28% to $22.00 at last check Wednesday.

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