Capri Holdings Surges 12% as JPMorgan Turns Bullish on Growth Expectations

Capri Holdings Ltd. (NYSE:CPRI) surged 12.28% to $22.03 on Wednesday after JPMorgan upgraded the company to "overweight" from "neutral." The investment firm expects a sequential growth in revenues, gross and operating margins due to Michael Kors' strategies and efforts to cut back on discounts and make the brand more exclusive. Capri Holdings reported a Q1 FY26 net income of $53 million, a 6% decline in total revenues to $797 million, and targets revenues of $3.375 billion to $3.45 billion for the full fiscal period.

Capri Holdings Ltd. (NYSE: CPRI) experienced a significant increase in stock price, surging 12.28% to $22.03 on Wednesday, July 2, 2025, following an upgrade by JPMorgan Chase & Co. from "neutral" to "overweight." The investment firm expects Capri Holdings to achieve sequential growth in revenues, gross, and operating margins, primarily driven by Michael Kors' strategies to reduce discounts and enhance the brand's exclusivity [1].

The company reported a net income of $53 million for the first quarter of fiscal year 2026 (Q1 FY26), representing a 6% decline in total revenues to $797 million. Despite the revenue decrease, Capri Holdings projects revenues of between $3.375 billion and $3.45 billion for the full fiscal period [2].

Capri Holdings' international operations also showed mixed results. The company's total revenue for the quarter was $797 million, down 25.3% from the year-ago quarter. The EMEA region generated $228 million in revenues, a surprise of +6.69% compared to analyst projections, while Asia accounted for $110 million in revenues, a surprise of -2.06% [3].

The upgrade by JPMorgan Chase & Co. was based on the firm's expectation that Capri Holdings' efforts to improve the Michael Kors brand will lead to enhanced financial performance. The company's strategy to reduce discounts and make the brand more exclusive aligns with the firm's view of Capri Holdings' potential for growth.

Overall, Capri Holdings' stock price surge reflects investor confidence in the company's ability to execute its strategies and achieve improved financial performance. However, the company's international operations continue to face challenges, and investors should monitor Capri Holdings' performance closely as it navigates these challenges.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-xtx-topco-ltd-takes-position-in-capri-holdings-limited-nysecpri-2025-08-10/
[2] https://internationalleathermaker.com/declines-for-capri-holdings-in-first-quarter-results/
[3] https://finance.yahoo.com/news/international-markets-capri-holdings-cpri-131503758.html