Capri remains a core holding at Avory & Company according to our latest 13-F filings. (See dIsclosure page for more information)
Following our participation in Capri Holdings Investor Day 2022, we come away even more convinced of the current and future momentum of the business. Management increased its future revenue target to $8B from $7B while expecting a 20% operating margin to go along with it. This implies an eventual $1.6B operating income business that spends a mere $100-200m in capital expenditures yearly. The business is valued at around $7.5B enterprise today. We believe that the company is meaningfully undervalued relative to the roadmap laid out and its business execution.
Here is are our main takeaways from the event.
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**Not a recommendation for purchase or sale of any securities mentioned