Capri Holdings Limited (CPRI) Cash Flow Statement

The 2026Q4 quarter shows operating cash flow of -$65.0M against a small net loss, while the 2026Q3 quarter produced $202.0M of operating cash flow on $116.0M of net income, largely from a $173.0M working capital inflow. This pattern suggests reported profitability is not translating consistently into cash, and investors should monitor whether these inflows reverse in coming quarters. The large negative earnings figures in 2025Q3 and 2025Q4 alongside strong positive operating cash flow further indicate that non-cash charges or one-time items are distorting the net income line.

Free cash flow of $36.0M in 2027Q2 and $48.0M in 2027Q1 represents a recovery from the -$83.0M outflow in 2026Q4, yet these figures sit on a sharply reduced revenue base. The trajectory suggests the business is generating modest positive cash again, but the magnitude does not yet support the earlier peak levels. Investors should treat the recent recovery as tentative until it proves durable across additional quarters.

Repurchase activity of $149.9M in the latest quarter and $54.0M in 2027Q1 exceeds the free cash flow generated in those periods, implying the buybacks were funded from the balance sheet or prior cash generation. This allocation appears inconsistent with a business whose revenue declined 21.8% in the most recent reported comparison. Investors should monitor whether repurchases continue at this pace given the strained balance sheet signal.

Low capital intensity may reflect a deliberate pullback in store investment amid revenue contraction, which could support near-term cash generation. However, depreciation and amortization of $29.0M to $31.0M per quarter in recent periods exceeds capital spending in most quarters, suggesting the asset base may be shrinking. Investors should assess whether underinvestment could weaken brand productivity over a longer horizon.