Capri Holdings (CPRI) has disclosed a new risk, in the Brand / Reputation category.
Capri Holdings faces a critical business risk regarding potential impairment charges on its acquired brands. Mandatory testing of goodwill and other intangible assets could lead to substantial financial adjustments if the assets’ carrying value surpasses their fair value. In Fiscal 2024, the company already reported significant impairment charges of $227 million and $262 million for Versace and Jimmy Choo, respectively. Such adjustments could materially affect Capri Holdings’ financial outcomes, casting a shadow on its profitability and asset valuation.
Overall, Wall Street has a Hold consensus rating on CPRI stock based on 2 Holds.
To learn more about Capri Holdings’ risk factors, click here.
