Capri Holdings (CPRI) has terminated its merger agreement with Tapestry, refocusing on its core brands: Michael Kors, Versace, and Jimmy Choo. Citi maintains a "Neutral" rating with a target price of $21, citing a slightly favorable risk/reward at the current price of $20.36. The company is addressing past strategic missteps, such as aggressive pricing at Kors and a narrow focus on high-end products at Versace, which led to sales declines. Management anticipates sequential sales improvement in the second half of the fiscal year, despite ongoing gross margin pressure and SG&A deleverage. Citi notes, "We believe the CPRI brands have long-term value, but will take time to fix," and suggests potential brand sales could be on the horizon, though current valuations may not match past acquisition prices.