12 Best Apparel Stocks to Invest In

7. Capri Holdings Limited (NYSE:CPRI)

Number of Hedge Fund Holders: 47

Capri Holdings Limited (NYSE:CPRI) manages and operates globally popular luxury brands such as Jimmy Choo, Versace, Michael Kors, and others. The Versace segment includes luxury apparel, accessories, and footwear. Jimmy Choo’s segment covers luxury footwear, small leather goods, accessories, and handbags. The Michael Kors segment operates through four retail formats: lifestyle stores, e-commerce sites, collection stores, and outlet stores.

On November 14, the company announced the mutual termination of its merger agreement with Tapestry, Inc. After the termination, Capri Holdings Limited (NYSE:CPRI) is focusing on its future and is solidifying its long-term growth potential through its three luxury houses. Its portfolio of brands boasts strong customer loyalty and heritage, which positions it for long-term success.

Capri Holdings Limited (NYSE:CPRI) also has a solid distribution network to build upon. It has more than 1,200 directly operated luxury retail locations, along with an extensive wholesale network to reach consumers in areas where it doesn’t have its own stores. Management expects operational trends to improve throughout fiscal year 2026, positioning the company to return to growth in fiscal 2027 and beyond. It ranks seventh on our list of the best apparel stocks to buy now.

Greenlight Capital stated the following regarding Capri Holdings Limited (NYSE:CPRI) in its Q4 2024 investor letter:

“We increased our position in Capri Holdings Limited (NYSE:CPRI). When the court blocked CPRI’s sale, we suffered a moderate loss. Fortunately, the position was not large. While we expected the merger would go through and we were surprised by and disagreed with the court’s ruling, we recognized the downside risk if the deal broke. When we get an adverse result on an event like this, our instinct is to declare that our thesis has broken and take our loss. After evaluating this situation, however, we came to the opposite conclusion and added to our holdings. During the period when the merger was pending, CPRI’s results were simply awful. Before the proposed deal was announced, CPRI shares traded at about $35, and when the deal broke, the market took the lousy results into account and the shares fell to about $20. Our current thesis is that the interim results were so awful that they likely reflected management distraction, if not neglect. We also believe there is strategic potential for the company’s Versace and Jimmy Choo brands. It should not be difficult for management to re-engage and achieve at least somewhat less awful results. If that happens, the shares should stage a recovery.”