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On September 30, 2025 the European Commission approved Prada’s acquisition of Versace, clearing a key regulatory hurdle and allowing the transaction to proceed toward a 2025 close. Coverage around late September and early October highlights Prada’s plans to reposition Versace and notes Capri Holdings’ intent to use proceeds to strengthen its balance sheet and accelerate investment in Michael Kors and Jimmy Choo.
Technical Analysis
ADX at 14.89 indicates no established trend; momentum lacks the strength that typically supports a sustained breakout. This low ADX tempers conviction despite several bullish reversal signals.
DI+ at 21.53 shows a dip-and-reversal, which presents a bullish directional shift; DI- at 22.01 shows a peak-and-reversal that also converts to a bullish signal as DI- declines. Together, the directional indicators point toward a nascent bullish bias rather than a confirmed trend.
MACD sits at -0.08 with a signal line at 0.05; the MACD has dip-and-reversed toward higher readings but remains below the signal line, so momentum has started to recover without issuing a confirmed MACD crossover above the signal line.
MRO at -18.82 registers negative, indicating price sits below the model target and therefore presents upward potential; the MRO trend shows a dip-and-reversal, consistent with improving upward pressure on price.
RSI at 53.84 with a dip-and-reversal trend signals a neutral-to-leaning-bullish momentum band; RSI aligns with MACD and MRO in suggesting renewed buying interest without overbought stress.
Price at $20.99 trades above the 20-day average ($20.56), 50-day average ($20.39), and 200-day average ($19.66), which supports near-term bullish bias relative to moving averages. Ichimoku lines (Tenkan/Kijun at $20.79; Senkou A $19.57; Senkou B $19.20) place price above the cloud, reinforcing short-term upside potential.
Bollinger bands place the 1× upper band at $21.44; price sits below that boundary, indicating room to run inside the upper band before volatility-driven exhaustion. SuperTrend upper at $21.60 constitutes a nearby technical resistance level to watch for confirmation of momentum continuation.
Fundamental Analysis
Revenue at $797,000,000 shows YoY revenue growth of 80.27% and QoQ revenue growth of 28.31%, indicating strong top-line expansion over the last year and quarter. Gross margin sits at 62.99% with a slight YoY contraction of 2.46% and a QoQ expansion of 3.31%, supporting healthy gross profitability.
Operating income measures $17,000,000 with an operating (EBIT) margin of 2.13%. That operating margin exceeds the industry peer low of 1.424% but falls well below the industry peer mean of 12.752% and median of 16.84%, signaling profitability that lags most peers even after the Versace sale proceeds arrive. QoQ change in EBIT margin shows a -173.58% move and YoY change shows -425.15% when expressed on a percentage basis, reflecting strong quarter-to-quarter and year-over-year volatility in operating profitability.
EPS actual reached $0.48 versus an estimate of $0.12, producing an EPS surprise of 300%. That earnings beat offers near-term earnings credibility and supports the valuation narrative despite cash-flow weakness elsewhere.
Free cash flow shows a negative $21,000,000 and free cash flow yield of -0.96%, with free cash growth declining sharply; operating cash flow registered -$8,000,000 while end-period cash equals $210,000,000. Negative free cash generation creates execution risk for growth investments without sustained improvement.
Leverage and balance-sheet structure present material constraints: total debt $2,720,000,000 and net debt $1,542,000,000 contrast with total equity at negative $17,000,000, driving debt-to-assets at 49.74% (above the industry peer mean of 39.10%). Debt-to-EBITDA reads 57.87x and interest coverage approximates 1.7x, limiting financial flexibility until proceeds from the Versace sale materialize and get deployed.
Return on assets at 0.99% and return on invested capital at 0.81% remain low versus typical luxury peers; return on equity shows a negative -311.77% driven by negative book equity. Asset-turnover at 0.149 highlights a capital-light revenue conversion that trails the industry peer mean of 0.242.
Valuation context: WMDST values the stock as under-valued. Market multiples present mixed signals: PE ratio at 38.21 and enterprise multiple at 101.58 reside above typical peer means, while price-to-book sits at -128.42 driven by negative book value. The valuation classification reflects discounted expectations for recovery given leverage and cash-flow gaps, offset by strong gross margins and the near-term capital event from the Versace divestiture.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-06 |
| NEXT REPORT DATE: | 2025-11-05 |
| CASH FLOW | Begin Period Cash Flow | $ 175.0 M |
| Operating Cash Flow | $ -8.00 M | |
| Capital Expenditures | $ -13.00 M | |
| Change In Working Capital | $ -45.00 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 35.0 M | |
| End Period Cash Flow | $ 210.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 797.0 M | |
| Forward Revenue | $ 243.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 295.0 M | |
| Depreciation | $ 23.0 M | |
| Depreciation and Amortization | $ 30.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 780.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 502.0 M | |
| EBITDA | $ 47.0 M | |
| EBIT | $ 17.0 M | |
| Operating Income | $ 17.0 M | |
| Interest Income | $ 18.0 M | |
| Interest Expense | — | |
| Net Interest Income | $ 18.0 M | |
| Income Before Tax | $ 40.0 M | |
| Tax Provision | $ -16.00 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 53.0 M | |
| Net Income From Continuing Operations | $ 56.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.12 | |
| EPS Actual | $ 0.48 | |
| EPS Difference | $ 0.36 | |
| EPS Surprise | 300.0 % | |
| Forward EPS | $ 0.55 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 5.5 B | |
| Intangible Assets | $ 799.0 M | |
| Net Tangible Assets | $ -816.00 M | |
| Total Current Assets | $ 1.6 B | |
| Cash and Short-Term Investments | $ 129.0 M | |
| Cash | $ 129.0 M | |
| Net Receivables | $ 203.0 M | |
| Inventory | $ 779.0 M | |
| Long-Term Investments | $ 1.8 B | |
| LIABILITIES | ||
| Accounts Payable | $ 403.0 M | |
| Short-Term Debt | $ 21.0 M | |
| Total Current Liabilities | $ 1.4 B | |
| Net Debt | $ 1.5 B | |
| Total Debt | $ 2.7 B | |
| Total Liabilities | $ 5.5 B | |
| EQUITY | ||
| Total Equity | $ -17.00 M | |
| Retained Earnings | $ 4.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ -0.14 | |
| Shares Outstanding | 119.041 M | |
| Revenue Per-Share | $ 6.70 | |
| VALUATION | Market Capitalization | $ 2.2 B |
| Enterprise Value | $ 4.8 B | |
| Enterprise Multiple | 101.579 | |
| Enterprise Multiple QoQ | -14.822 % | |
| Enterprise Multiple YoY | -6.364 % | |
| Enterprise Multiple IPRWA | CPRI: 101.579 high: 74.587 mean: 56.245 median: 52.602 low: -4.983 |
|
| EV/R | 5.99 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | -321.706 | |
| Asset To Liability | 0.998 | |
| Debt To Capital | 1.006 | |
| Debt To Assets | 0.497 | |
| Debt To Assets QoQ | 10711.957 % | |
| Debt To Assets YoY | 613.865 % | |
| Debt To Assets IPRWA | high: 0.754 CPRI: 0.497 median: 0.418 mean: 0.391 low: 0.065 |
|
| Debt To Equity | -160.0 | |
| Debt To Equity QoQ | -245423.52 % | |
| Debt To Equity YoY | -54902.028 % | |
| Debt To Equity IPRWA | high: 2.159 median: 1.288 mean: 1.14 low: 0.085 CPRI: -160.0 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | -128.424 | |
| Price To Book QoQ | -2326.507 % | |
| Price To Book YoY | -5056.334 % | |
| Price To Book IPRWA | high: 2.546 mean: 1.5 median: 1.388 low: 0.665 CPRI: -128.424 |
|
| Price To Earnings (P/E) | 38.209 | |
| Price To Earnings QoQ | -163.675 % | |
| Price To Earnings YoY | -95.6 % | |
| Price To Earnings IPRWA | high: 141.093 mean: 74.744 median: 73.456 CPRI: 38.209 low: -15.652 |
|
| PE/G Ratio | -0.348 | |
| Price To Sales (P/S) | 2.739 | |
| Price To Sales QoQ | 33.571 % | |
| Price To Sales YoY | -28.56 % | |
| Price To Sales IPRWA | high: 9.997 median: 9.997 mean: 7.834 CPRI: 2.739 low: 0.499 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 32.396 | |
| Forward PE/G | -0.295 | |
| Forward P/S | 8.951 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 6.813 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.149 | |
| Asset Turnover Ratio QoQ | -19.852 % | |
| Asset Turnover Ratio YoY | -6.958 % | |
| Asset Turnover Ratio IPRWA | high: 0.481 mean: 0.242 low: 0.232 median: 0.232 CPRI: 0.149 |
|
| Receivables Turnover | 3.201 | |
| Receivables Turnover Ratio QoQ | -15.109 % | |
| Receivables Turnover Ratio YoY | 2.893 % | |
| Receivables Turnover Ratio IPRWA | high: 7.57 median: 4.016 mean: 3.523 CPRI: 3.201 low: 1.543 |
|
| Inventory Turnover | 0.358 | |
| Inventory Turnover Ratio QoQ | -21.973 % | |
| Inventory Turnover Ratio YoY | -16.464 % | |
| Inventory Turnover Ratio IPRWA | high: 1.219 mean: 0.482 median: 0.439 low: 0.377 CPRI: 0.358 |
|
| Days Sales Outstanding (DSO) | 28.508 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 114.338 | |
| Cash Conversion Cycle Days QoQ | 14.681 % | |
| Cash Conversion Cycle Days YoY | -11.358 % | |
| Cash Conversion Cycle Days IPRWA | high: 271.719 mean: 125.158 median: 119.348 CPRI: 114.338 low: 61.77 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 3.321 | |
| CapEx To Revenue | -0.016 | |
| CapEx To Depreciation | -0.565 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.6 B | |
| Net Invested Capital | $ 1.7 B | |
| Invested Capital | $ 1.7 B | |
| Net Tangible Assets | $ -816.00 M | |
| Net Working Capital | $ 240.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.092 | |
| Current Ratio | 1.172 | |
| Current Ratio QoQ | 2.906 % | |
| Current Ratio YoY | 23.947 % | |
| Current Ratio IPRWA | high: 2.846 median: 1.837 mean: 1.747 CPRI: 1.172 low: 0.348 |
|
| Quick Ratio | 0.615 | |
| Quick Ratio QoQ | 25.962 % | |
| Quick Ratio YoY | 48.602 % | |
| Quick Ratio IPRWA | high: 1.7 median: 1.302 mean: 1.19 CPRI: 0.615 low: 0.192 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 57.872 | |
| Cost Of Debt | 0.271 % | |
| Interest Coverage Ratio | 1.7 | |
| Interest Coverage Ratio QoQ | -156.667 % | |
| Interest Coverage Ratio YoY | -197.143 % | |
| Interest Coverage Ratio IPRWA | high: 25.174 median: 25.174 mean: 20.654 CPRI: 1.7 low: -5.58 |
|
| Operating Cash Flow Ratio | 0.131 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 100.285 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.911 % | |
| Revenue Growth | -22.995 % | |
| Revenue Growth QoQ | 28.306 % | |
| Revenue Growth YoY | 80.268 % | |
| Revenue Growth IPRWA | high: 35.478 % median: 1.284 % mean: 1.157 % low: -5.532 % CPRI: -22.995 % |
|
| Earnings Growth | -109.796 % | |
| Earnings Growth QoQ | -34.123 % | |
| Earnings Growth YoY | 21.354 % | |
| Earnings Growth IPRWA | high: 66.079 % median: 66.079 % mean: 41.178 % CPRI: -109.796 % low: -400.0 % |
|
| MARGINS | ||
| Gross Margin | 62.986 % | |
| Gross Margin QoQ | 3.313 % | |
| Gross Margin YoY | -2.459 % | |
| Gross Margin IPRWA | high: 72.265 % median: 72.265 % mean: 66.274 % CPRI: 62.986 % low: 15.365 % |
|
| EBIT Margin | 2.133 % | |
| EBIT Margin QoQ | -173.577 % | |
| EBIT Margin YoY | -425.152 % | |
| EBIT Margin IPRWA | high: 16.84 % median: 16.84 % mean: 12.752 % CPRI: 2.133 % low: 1.424 % |
|
| Return On Sales (ROS) | 2.133 % | |
| Return On Sales QoQ | -173.577 % | |
| Return On Sales YoY | -425.152 % | |
| Return On Sales IPRWA | high: 17.038 % median: 17.038 % mean: 12.906 % CPRI: 2.133 % low: 1.424 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -21.00 M | |
| Free Cash Flow Yield | -0.962 % | |
| Free Cash Flow Yield QoQ | -89.139 % | |
| Free Cash Flow Yield YoY | -198.364 % | |
| Free Cash Flow Yield IPRWA | high: 7.836 % median: -0.065 % mean: -0.12 % CPRI: -0.962 % low: -16.635 % |
|
| Free Cash Growth | -88.83 % | |
| Free Cash Growth QoQ | -47.007 % | |
| Free Cash Growth YoY | -88.413 % | |
| Free Cash Growth IPRWA | high: -66.977 % CPRI: -88.83 % median: -126.478 % mean: -129.547 % low: -270.587 % |
|
| Free Cash To Net Income | -0.396 | |
| Cash Flow Margin | 22.961 % | |
| Cash Flow To Earnings | 3.453 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 0.992 % | |
| Return On Assets QoQ | -108.55 % | |
| Return On Assets YoY | -572.381 % | |
| Return On Assets IPRWA | high: 2.979 % median: 2.979 % mean: 2.208 % CPRI: 0.992 % low: -0.33 % |
|
| Return On Capital Employed (ROCE) | 0.418 % | |
| Return On Equity (ROE) | -3.118 | |
| Return On Equity QoQ | 77.875 % | |
| Return On Equity YoY | 35048.253 % | |
| Return On Equity IPRWA | high: 0.088 median: 0.088 mean: 0.064 low: -0.015 CPRI: -3.118 |
|
| DuPont ROE | 30.199 % | |
| Return On Invested Capital (ROIC) | 0.812 % | |
| Return On Invested Capital QoQ | -102.652 % | |
| Return On Invested Capital YoY | -136.413 % | |
| Return On Invested Capital IPRWA | high: 5.527 % median: 5.527 % mean: 4.209 % CPRI: 0.812 % low: 0.446 % |
|