Here’s Why Capri Holdings Inc. (CPRI) Crashed on Wednesday

We recently compiled a list of the 10 Firms Defy Wednesday’s Broader Market Optimism. In this article, we are going to take a look at where Capri Holdings Inc. (NYSE:CPRI) stands against the other stocks.

Wall Street extended its winning streak on Wednesday, with all of its main indices closing in the green territory, as investors seemed to have already factored in the news of tariffs imposition alongside uncertainties surrounding the Artificial Intelligence industry.

The Dow Jones gained another 0.71 percent, the S&P 500 grew 0.39 percent, and the tech-heavy Nasdaq increased by 0.19 percent.

Ten companies, however, defied a broader market optimism, mostly due to disappointing earnings results. This article details the reasons behind the drop in their share prices and latest earnings performance.

To come up with Wednesday’s biggest losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A glamorous woman with a leather handbag enjoying a shopping experience in an upscale boutique.

Capri Holdings Inc. (NYSE:CPRI)

Luxury brands owner Capri Holdings Inc. dropped its share prices by 10.07 percent to close at $21.61 apiece as investor sentiment was weighed down by disappointing third-quarter earnings performance for fiscal year 2025.

In a statement posted on its website, Capri Holdings said it swung to a net loss of $547 million from a net income of $105 million in the same period a year earlier, driven by a non-cash impairment charge of $602 million. Total revenues for the same comparable period dropped by 11.6 percent, pulled down by lower retail and wholesale sales.

For the full fiscal year 2025, Capri Holdings said it expects revenues to settle at $4.4 billion, with a significant chunk expected to come from sales in Michael Kors at $3 billion, followed by Versace at $810 million, and Jimmy Choo at $600 million.

Meanwhile, revenue outlook for the fiscal year 2026 was expected to settle at $4.1 billion.

Overall CPRI ranks 4th on our list of Wednesday’s top losers. While we acknowledge the potential of CPRI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CPRI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.