Capri Holdings Surges 14.5% on $250M Trading Volume Spike, Ranks 460th in Market Activity

Capri Holdings (CPRI) surged 14.51% on August 6, 2025, with a trading volume of $0.25 billion, marking a 195.24% increase from the prior day and ranking 460th in market activity. The company reported first-quarter fiscal 2026 results, revealing a 6.0% year-over-year revenue decline to $797 million on a reported basis, with a 7.7% drop in constant currency. Despite the revenue contraction, adjusted operating margin improved to 2.5%, and diluted earnings per share reached $0.50, reflecting operational efficiency gains. Management highlighted sequential improvement in trends, with earnings and revenue exceeding expectations, signaling progress in strategic initiatives to revitalize its luxury brands.

Capri announced the pending sale of its Versace business to Prada S.p.A. for $1.375 billion in cash, a transaction expected to close by year-end 2025. The deal, classified as a discontinued operation, has shifted focus to stabilizing Michael Kors and Jimmy Choo. Michael Kors revenue fell 5.9% to $635 million, while Jimmy Choo’s revenue declined 6.4% to $162 million. Both segments maintained modest operating margins, with Michael Kors at 9.9% and Jimmy Choo at 2.5%. The company emphasized disciplined cost management and inventory growth of 10.8% to $779 million, partly driven by higher tariffs and currency effects.

Looking ahead, Capri outlined a fiscal 2026 revenue target of $3.375–$3.45 billion, with operating income projected at $100 million. The firm anticipates a return to growth in fiscal 2027 after stabilizing operations in 2026. Free cash flow for Q1 totaled $7 million, with $129 million in cash and $1.7 billion in borrowings. Management reiterated confidence in executing strategic initiatives amid macroeconomic uncertainties, positioning the company to enhance shareholder value post-Versace divestiture.

A strategy of purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the impact of liquidity concentration in volatile markets, where high-volume stocks often exhibit stronger short-term momentum due to increased trading activity and demand.