The Short Answer
Capri Holdings stock (CPRI) is doubtful for Muslim investors. Capri 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 screen passes — but leverage and luxury-branding considerations keep CPRI in doubtful territory.
Current quantitative Sharia screen
Based on 10-K figures for the period ended 2026-03-28; calculated 2026-07-15.
357 / 3,234
135 / 3,234
346 / 3,234
- Financial
- Incomplete
- Overall
- Incomplete
Debt/assets is 11.04%, liquidity/assets is 4.17% and receivables plus cash/assets is 10.70%; known ratios pass, but the gross non-compliant-income numerator is unavailable.
- Financial
- Pass
- Overall
- Incomplete
Known debt, liquidity and receivables-plus-cash ratios pass the examined total-assets limits; gross non-compliant income is not a stored MSCI ratio input and luxury-branding treatment remains unclassified.
- Financial
- Pass
- Overall
- Incomplete
Known financial ratios pass the examined limits; this is not an official SAC classification, gross income treatment remains incomplete and product presentation remains qualitative.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored and qualitative activity treatment remains incomplete.
Business-activity disclosure
Capri owns Michael Kors and Jimmy Choo and sells apparel, handbags, footwear and accessories after the Versace sale. Clothing and accessories are generally permissible at the activity level, while luxury-fashion imagery, product presentation, licensing and brand promotion require qualitative review.
Limitation: The filing does not quantify a universal prohibited-activity numerator for luxury branding, imagery, licensing, product presentation or net investment-hedge income.
Purification
The filing reports $77 million of net interest income, but its hedge components prevent a reproducible gross non-compliant-income calculation; no fixed purification percentage is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions from Capri's March 28, 2026 Form 10-K.
- Debt combines $14 million of short-term debt and $343 million of long-term debt; operating leases are excluded.
- Cash and cash equivalents are $135 million; no separate interest-bearing securities balance is identified.
- Receivables, net are $211 million and fiscal-year total revenue is $3,474 million.
- The filing reports $77 million of net interest income, primarily including net investment-hedge effects; it is not substituted for a gross non-compliant-income numerator.
- Versace was sold to Prada in December 2025 and is presented as discontinued operations where applicable.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Capri's March 28, 2026 Form 10-K reports $3,234 million of assets and $357 million of short- and long-term debt, or 11.04% debt/assets. Cash/assets is 4.17% and receivables-plus-cash/assets is 10.70%; the known asset-based financial ratios pass after the Versace-sale deleveraging. The filing reports $77 million of net interest income, but hedge effects mean it is not treated as gross non-compliant income.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
What Capri Holdings Does
Capri Holdings Limited (headquartered in London, incorporated in the British Virgin Islands) is a luxury fashion group:
- Michael Kors: Accessible-luxury apparel, handbags, footwear, and accessories.
- Jimmy Choo: Luxury footwear and accessories.
- Versace: Sold to Prada in December 2025 — no longer part of Capri.
Selling clothing and accessories is a permissible activity, so the business screen passes. The concerns are leverage and luxury branding.
Why It Raises Sharia Concerns
1. Leverage (Deciding Screen)
Capri has historically carried a meaningful interest-bearing debt load. Although it used the Versace-sale proceeds to repay the majority of its debt and reduce leverage, its total-debt-to-market-cap ratio should still be confirmed against the 33% threshold using the latest filings — the deciding screen.
2. Luxury Branding
Luxury-fashion marketing leans on imagery and branding that some observant investors weigh as a modesty/lifestyle concern at the product-and-promotion level.
3. Interest Income
Capri earns incidental interest income on cash. This should be checked against the 5% interest-income threshold and the corresponding portion of returns purified.
Current Quantitative Screen (March 28, 2026)
- Debt / assets: 11.04% — $357 million / $3,234 million
- Cash / assets: 4.17% — $135 million / $3,234 million
- Receivables + cash / assets: 10.70% — $346 million / $3,234 million
- Net interest income: $77 million reported, but hedge effects prevent a gross purification numerator
The known quantitative ratios pass the displayed asset-based limits, but CPRI remains methodology-dependent because luxury branding, imagery and product presentation require qualitative, school-specific review. Market-cap methods are not calculated.
What About Purification?
Investors who take the lenient view that CPRI is merely doubtful rather than impermissible should apply purification for the interest exposure — donating the corresponding share of gains to charity. Stricter investors may prefer apparel names with lower leverage and more modest branding.
How to Read the Result
Capri's known financial ratios pass the displayed asset-based tests, but the overall result remains DOUBTFUL / METHODOLOGY-DEPENDENT because scholars may differ on luxury-fashion imagery, branding and product presentation. This is ZakatInvest's filing-based analysis, not an official outside-agency classification.
Bottom Line
Capri Holdings (CPRI) remains doubtful / methodology-dependent. The post-Versace balance sheet passes the known asset-based ratios, but luxury-fashion branding and imagery require a personal, school-specific qualitative judgment. Re-screen after new filings or brand changes.
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