CPRI

What You Should Know

Capri Holdings Limited is a luxury fashion group that owns the Michael Kors and Jimmy Choo brands following the December 2025 sale of Versace to Prada, and designs and sells apparel, handbags, footwear, and accessories. Selling clothing and accessories is a permissible activity, so the business-activity screen passes. Two things keep CPRI doubtful. First, leverage: Capri has historically carried a meaningful interest-bearing debt load, and although it used the Versace sale proceeds to repay the majority of its debt and reduce leverage, the total-debt-to-market-cap ratio should still be confirmed against the 33% threshold using the latest filings — the deciding screen. Second, luxury-fashion marketing leans on imagery and branding that some observant investors weigh at the product-and-promotion level. The receivables ratio and any interest income should be checked against their thresholds and the corresponding portion of returns purified. Given the leverage and luxury-branding considerations, CPRI is generally screened as doubtful.