Capri HoldingsSteve Madden

Capri Holdings vs Steve Madden

Capri Holdings vs Steve Madden: this page compares their business models, financial performance, and market context in a neutral, accessible way. It explains how each company operates, their competiti...

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Brand IP Guardians

Brand IP Guardians

A collection of premium apparel and accessory companies with strong intellectual property and brand identities. These companies could benefit if Lululemon's lawsuit against Costco establishes a legal precedent protecting fashion designs from imitation.

Published: July 2, 2025

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Style & Status

Style & Status

Personal identity is often expressed through the clothing, accessories, and footwear we choose to wear. This collection focuses on companies that have mastered the art of branding, enabling them to capitalize on the powerful link between personal style and perceived status.

Published: June 17, 2025

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Investment Analysis

Pros

  • Capri Holdings has announced a new $1 billion share repurchase program, signalling confidence in future cash flow and shareholder returns.
  • The company is executing a strategic restructuring, including the planned sale of Versace, which is expected to reduce debt and focus resources on core brands.
  • Management expects retail trends to improve in the latter half of fiscal 2026, with a long-term goal to restore double-digit operating margins.

Considerations

  • Capri Holdings reported a significant EPS miss in Q2 2025, reflecting ongoing profitability challenges despite a revenue beat.
  • Gross and operating margins have declined year-on-year, indicating pressure from competition and higher costs in the luxury segment.
  • Total revenue fell 15.4% in fiscal 2025, highlighting persistent top-line weakness and uncertain near-term growth prospects.

Pros

  • Steven Madden maintains a diversified product portfolio and strong brand presence across multiple fashion segments and international markets.
  • The company operates through a mix of wholesale, direct-to-consumer, and licensing channels, supporting revenue resilience and market reach.
  • Steven Madden has a consistent dividend yield above 2%, providing income appeal for investors in the consumer discretionary sector.

Considerations

  • Steven Madden's trailing P/E ratio is elevated compared to sector peers, suggesting limited valuation upside in the near term.
  • The company's net income has remained relatively flat, with limited margin expansion in recent periods despite revenue growth.
  • Steven Madden is exposed to cyclical consumer spending trends and fashion volatility, which can impact sales and profitability.

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