Capri Holdings Limited (CPRI) saw its stock rise by 3.96% to close at $20.48 on November 22, 2024, up from the previous day's close of $19.70. The stock opened at its previous close and reached an intraday high of $20.56, with trading volume at 2,664,372 shares, which is 64.30% of its average daily volume. The positive movement in Capri's stock price is attributed to the company's strategic shift in pricing, as it adjusts to a slowdown in demand due to rapid price inflation. Capri, which owns brands like Michael Kors, has acknowledged that it elevated price points too quickly over the past two years, necessitating deeper promotions to drive sales. This adjustment aims to make its products more accessible to aspirational luxury consumers, contributing to the positive sentiment around the stock.
The broader luxury sector is also experiencing a pricing reality check, with companies like Mulberry and Burberry making similar adjustments. Capri's move to lower average prices and broaden assortments to target aspirational luxury consumers aligns with industry trends, as highlighted in recent analyses. This strategic pivot is seen as a response to the weakened value proposition in the luxury market, which has been impacted by rampant price inflation.