Capri Holdings Limited's Financial Strategy Analysis and Luxury Market Analysis Based on SWOT and Business Valuation

Abstract

Due to the great impact of COVID-19 on the world economy, the luxury market has also been affected, and luxury companies of all sizes have been affected to some extent. Besides, luxury companies of all sizes have been hit to some extent. Capri Holdings Limited is a luxury goods company that is made of Versace, Jimmy Choo, and Michael Kors. He re-entered the luxury market during the global outbreak of the pandemic. Only four years later, Capri's profit value successfully turned from negative to positive, which is enough to prove the feasibility of Capri's financial strategy. According to the financial statement provided by Capri Company, the financial status quo of Capri Company in 2022 is analyzed from four aspects: DOL, net profit, liquidity ratio, and capital turnover, so as to analyze whether its financial strategy is reasonably applied. What’s more, based on SWOT and enterprise valuation analysis, it determines Capri's position in the global luxury industry, and finally puts forward some suggestions for Capri's future healthy operation and development.