Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin-1.0%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-0.5%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt-355.0 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$144M
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$199M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Price-to-Book29.26x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow-$83M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings$45M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Capri Holdings Limited
Capri Holdings Limited engages in the design, marketing, distribution, and retail of branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, Asia, and the Oceania. It operates through two segments: Michael Kors and Jimmy Choo. The company offers handbags, small leather goods, jewelry, scarves and belts, and footwear and related accessories through a distribution network, including retail stores, department and specialty stores, and licenses to wholesale customers, as well as e-commerce sites. It also undertakes licensing agreements relating to manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is based in London, the United Kingdom.
Capri Holdings Limited engages in the design, marketing, distribution, and retail of branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, Asia, and the Oceania. It operates through two segments: Michael Kors and Jimmy Choo. The company offers handbags, small leather goods, jewelry, scarves and belts, and footwear and related accessories through a distribution network, including retail stores, department and specialty stores, and licenses to wholesale customers, as well as e-commerce sites. It also undertakes licensing agreements relating to manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is based in London, the United Kingdom.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
0
57,000
Reconciled Depreciation
31,000
30,000
Reconciled Cost Of Revenue
280,000
402,000
EBITDA
23,000
88,000
EBIT
-8,000
58,000
Net Interest Income
33,000
9,000
Interest Income
9,000
8,000
Normalized Income
11,400
66,480
Net Income From Continuing And Discontinued Operation
-4,000
116,000
Total Expenses
804,000
967,000
Total Operating Income As Reported
-27,000
46,000
Diluted Average Shares
118,798
120,601
Basic Average Shares
118,798
119,852
118,544
Diluted EPS
0
0
0
Basic EPS
0
0
0
Diluted NI Availto Com Stockholders
-4,000
116,000
Net Income Common Stockholders
-4,000
116,000
Net Income
-4,000
116,000
Minority Interests
-1,000
0
Net Income Including Noncontrolling Interests
-3,000
116,000
Net Income Discontinuous Operations
-4,000
59,000
-552,000
Net Income Continuous Operations
1,000
57,000
Tax Provision
9,000
-2,000
Pretax Income
10,000
55,000
Other Income Expense
-15,000
-12,000
Other Non Operating Income Expenses
4,000
Special Income Charges
-19,000
-12,000
Impairment Of Capital Assets
19,000
0
81,000
Restructuring And Mergern Acquisition
0
12,000
Gain On Sale Of Security
0
-15,000
Net Non Operating Interest Income Expense
33,000
9,000
Total Other Finance Cost
-8,000
Interest Income Non Operating
9,000
8,000
Operating Income
-8,000
58,000
Operating Expense
524,000
565,000
Depreciation Amortization Depletion Income Statement
31,000
30,000
Depreciation And Amortization In Income Statement
31,000
30,000
Amortization
Amortization Of Intangibles Income Statement
Depreciation Income Statement
Selling General And Administration
493,000
535,000
Gross Profit
516,000
623,000
Cost Of Revenue
280,000
402,000
Total Revenue
796,000
1,025,000
Operating Revenue
796,000
1,025,000
Balance Sheet
2026
2025
2024
Treasury Shares Number
113,867
109,873
Ordinary Shares Number
115,175
119,148
Share Issued
229,042
229,021
Net Debt
222,000
80,000
Total Debt
1,420,000
1,311,000
Tangible Book Value
-684,000
-673,000
Invested Capital
437,000
339,000
Working Capital
199,000
148,000
Net Tangible Assets
-684,000
-673,000
Capital Lease Obligations
1,063,000
1,077,000
Common Stock Equity
80,000
105,000
Total Capitalization
423,000
329,000
Total Equity Gross Minority Interest
84,000
108,000
Minority Interest
4,000
3,000
Stockholders Equity
80,000
105,000
Gains Losses Not Affecting Retained Earnings
-323,000
-375,000
Other Equity Adjustments
-323,000
-375,000
Treasury Stock
5,543,000
5,464,000
Retained Earnings
4,434,000
4,438,000
Additional Paid In Capital
1,512,000
1,506,000
Total Liabilities Net Minority Interest
3,150,000
3,225,000
Total Non Current Liabilities Net Minority Interest
2,196,000
2,154,000
Other Non Current Liabilities
935,000
1,023,000
Liabilities Heldfor Sale Non Current
0
0
Non Current Deferred Liabilities
88,000
74,000
Non Current Deferred Taxes Liabilities
88,000
74,000
Long Term Debt And Capital Lease Obligation
1,173,000
1,057,000
Long Term Capital Lease Obligation
830,000
833,000
Long Term Debt
343,000
224,000
Current Liabilities
954,000
1,071,000
Other Current Liabilities
56,000
75,000
Current Deferred Liabilities
13,000
15,000
Current Deferred Revenue
13,000
15,000
Current Debt And Capital Lease Obligation
247,000
254,000
Current Capital Lease Obligation
233,000
244,000
Current Debt
14,000
10,000
Other Current Borrowings
14,000
10,000
Payables And Accrued Expenses
638,000
727,000
Current Accrued Expenses
271,000
254,000
Interest Payable
15,000
Payables
367,000
473,000
Total Tax Payable
56,000
127,000
Income Tax Payable
23,000
87,000
Accounts Payable
311,000
346,000
Total Assets
3,234,000
3,333,000
Total Non Current Assets
2,081,000
2,114,000
Other Non Current Assets
92,000
94,000
Non Current Deferred Assets
0
1,000
Non Current Deferred Taxes Assets
0
1,000
Goodwill And Other Intangible Assets
764,000
778,000
Other Intangible Assets
562,000
575,000
Goodwill
202,000
203,000
Net PPE
1,225,000
1,241,000
Accumulated Depreciation
-627,000
-629,000
Gross PPE
1,852,000
1,870,000
Leases
341,000
352,000
Construction In Progress
24,000
10,000
Other Properties
959,000
975,000
Machinery Furniture Equipment
421,000
426,000
Buildings And Improvements
88,000
88,000
Land And Improvements
19,000
19,000
Current Assets
1,153,000
1,219,000
Other Current Assets
21,000
27,000
Assets Held For Sale Current
0
0
Restricted Cash
10,000
10,000
Prepaid Assets
106,000
162,000
Inventory
581,000
663,000
Other Inventories
645,000
851,000
Raw Materials
18,000
41,000
Receivables
300,000
203,000
Receivables Adjustments Allowances
-46,000
-53,000
Other Receivables
23,000
31,000
Taxes Receivable
65,000
Accrued Interest Receivable
20,000
13,000
Accounts Receivable
238,000
212,000
Cash Cash Equivalents And Short Term Investments
135,000
154,000
Cash And Cash Equivalents
135,000
154,000
Cash Flow
2026
2025
2024
Free Cash Flow
-83,000
183,000
Repurchase Of Capital Stock
-79,000
0
Repayment Of Debt
-501,000
-2,062,000
Issuance Of Debt
624,000
531,000
Capital Expenditure
-18,000
-19,000
Interest Paid Supplemental Data
0
16,000
Income Tax Paid Supplemental Data
11,000
14,000
End Cash Position
145,000
164,000
Beginning Cash Position
164,000
231,000
Effect Of Exchange Rate Changes
21,000
-10,000
Changes In Cash
-40,000
-57,000
Financing Cash Flow
43,000
-1,531,000
Cash Flow From Continuing Financing Activities
43,000
-1,531,000
Net Other Financing Charges
0
Net Common Stock Issuance
-79,000
0
Common Stock Payments
-79,000
0
Net Issuance Payments Of Debt
123,000
-1,531,000
Net Long Term Debt Issuance
123,000
-1,531,000
Long Term Debt Payments
-501,000
-2,062,000
Long Term Debt Issuance
624,000
531,000
Investing Cash Flow
-18,000
1,272,000
Cash From Discontinued Investing Activities
0
1,291,000
-9,000
Cash Flow From Continuing Investing Activities
-18,000
-19,000
Net Investment Purchase And Sale
0
Capital Expenditure Reported
-18,000
-19,000
Operating Cash Flow
-65,000
202,000
Cash From Discontinued Operating Activities
-4,000
-69,000
6,000
Cash Flow From Continuing Operating Activities
-61,000
271,000
Change In Working Capital
-102,000
173,000
Change In Other Working Capital
7,000
Change In Payables And Accrued Expense
-145,000
54,000
Change In Accrued Expense
-111,000
79,000
Change In Payable
-34,000
-25,000
Change In Account Payable
-34,000
-25,000
Change In Prepaid Assets
-11,000
-11,000
Change In Inventory
77,000
101,000
Change In Receivables
-23,000
22,000
Other Non Cash Items
-15,000
5,000
Stock Based Compensation
6,000
7,000
Asset Impairment Charge
19,000
0
81,000
Deferred Tax
5,000
0
Deferred Income Tax
5,000
0
Depreciation Amortization Depletion
31,000
30,000
Depreciation And Amortization
31,000
30,000
Amortization Cash Flow
7,000
7,000
Amortization Of Intangibles
7,000
7,000
Depreciation
23,000
25,000
Operating Gains Losses
-6,000
-1,000
Net Foreign Currency Exchange Gain Loss
-6,000
-1,000
Net Income From Continuing Operations
1,000
57,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $1.0B▼ $796M-23.1%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 61.0%▼ 64.8%+3.9pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: -0.8%▲ -1.0%-0.2pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: -62.3%▲ -0.5%+61.8pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$796M/qtr (≈$3.2B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.21x current ratio
vs ≥ 2.0x
❌ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
-$83M
vs Positive
Operating Cash Flow
-$65M
Latest quarter · Buffett's cash reality check
ROIC
-0.3%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
27.9x
Net Assets: $84M
Peers & Industry
No auto-detected peers for Luxury Goods. You can manually compare CPRI against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
1.66%
Low — management has little skin in the game
Return on Equity (ROE)
-5.0%
Weak — poor returns on equity
Return on Assets (ROA)
-0.1%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$81M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+8.3% YoY
Debt is roughly stable
Leadership Team
John Idol
Chairman & CEO
Age 66
Pay: $2,058,699
Tyler Reddien
CFO & COO
Jennifer Michelle Davis
Vice President of Investor Relations
Denise Guerra
Senior Vice President of Brand Communications
Michele Chan
President of Women's Ready-To-Wear
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
12.43%
14,265,870
FMR, LLC
9.38%
10,768,256
Vanguard Portfolio Management LLC
4.96%
5,698,764
Vanguard Capital Management LLC
4.50%
5,160,197
DME Capital Management, LP
4.29%
4,930,318
State Street Corporation
3.82%
4,385,867
UBS Group AG
3.40%
3,904,550
Primecap Management Company
3.02%
3,462,035
⚠️Very high debt-to-equity — leverage risk
Risk Analysis
Beta (Market Risk)
1.40
Moderate volatility — moves slightly more than market
Short Interest
9.4% of float
Moderate short interest
Debt-to-Equity
16.90x
High leverage — significant financial risk
Current Ratio
1.21x
Adequate liquidity
52-Week Price Range
Low: $16.22Current: $20.32High: $28.27
Currently at 34% of 52-week range
Capri Holdings Limited (CPRI) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 64.8%. Operating margin: -1.0%. Net margin: -0.5%. Market cap: $2.3B. Sector: Consumer Cyclical. Industry: Luxury Goods. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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