Billionaire Glenn Russell Dubin’s 10 Stock Picks with Huge Upside Potential

4. Capri Holdings Limited (NYSE:CPRI) 

Number of Hedge Fund Holders: 42

Upside Potential: 80.19%

Through its Versace, Jimmy Choo, and Michael Kors divisions, Capri Holdings Limited (NYSE:CPRI) is a multinational fashion conglomerate that creates, sells, and distributes high-end clothing, accessories, and footwear. Its brands, spanning ready-to-wear, handbags, footwear, and fragrances, are positioned in the premium and luxury segments and sold through retail stores, wholesale partners, and online channels. With a substantial presence in North America, Europe, and Asia, the company is a global operator.

Capri Holdings Limited (NYSE:CPRI) reported $1.3 billion in revenue for the quarter ended December 28, 2024 (Q3 FY2025), which was 12% lower than the previous year. Earnings per share were $0.45, which fell short of forecasts. Due to $23 million in foreign exchange losses, net income was $54 million, and the operating margin fell to 6% from 12.1% the year before. Net debt was $1.12 billion, and inventory was down 13% to $892 million.

To bring Michael Kors’ global network down to 650 outlets, Capri Holdings Limited (NYSE:CPRI) shuttered more than 100 stores this year and aims to close another 70. The company also implemented significant cost-cutting measures, targeting an additional $150 million in savings for FY2026 after reducing expenses by over $100 million this year. For FY2026, projections include revenue of approximately $4.1 billion and operating income of $150 million, supported by a $200 million reduction in operating expenses and a slight gross margin improvement.

With revenue growth anticipated to restart in fiscal 2027 and operating margins predicted to improve steadily, these measures laid the groundwork for a gradual recovery. Given its robust portfolio of brands and well-defined strategic plan, Capri Holdings Limited (NYSE:CPRI) is a standout candidate for retail stock with significant upside potential. Long-term value generation may be supported by ongoing enhancements to the price structure, retail optimization, and product mix. Capri Holdings Limited (NYSE:CPRI) made up 0.19% of Glenn Russell Dubin’s stock portfolio at the end of Q4 2024.