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Capri Holdings Ltd (NYSE:CPRI) - Fundamental Short Investment Case

Research

Publication Date: 05 Nov 2019 - By Robert Prather By Robert Prather
Actionable
Differentiated

Equity Fundamental Equity Global Consumer Discretionary

Capri Holdings Limited operates as a holding company designing apparel and accessories through three brands - Michael Kors, Jimmy Choo, and Versace. Jimmy Choo and Versace were purchased in 2017 and 2018, respectively. 

Vision believes now is an opportune time to short Capri as the onus is on a retailer to improve once operations deteriorate, much less when it is a leveraged firm. Retail examples where the valuation looked cheap, yet stocks fell further include Hugo Boss, Macy's, Tapestry, and Tailored Brands. We think rising inventories, declining wholesale doors paired with DTC store closures/impairments, the resale market gaining in materiality, a structural shift in the handbag market, and Google trends preclude a rebound in operations. 

The report comes with a 1 hour call with the advisor.

Capri Holdings Ltd NYSE:CPRI - Fundamental Investment Case

Source: Vision Research Fundamental

Pages: 50

Released: 05 Nov 2019

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The Author

Robert Prather

Equity Analyst

Technology, Industrials, Consumer, Telecom & Media