What Capri Holdings (CPRI)'s $1 Billion Buyback Means for Shareholders After Quarterly Loss

• Capri Holdings Limited announced second quarter 2025 earnings, released forward guidance for 2026, and authorized a US$1 billion share repurchase program over three years.
• The share buyback plan signals substantial management confidence amid reported declines in quarterly sales and a net loss compared to prior-year profit.
• We’ll now explore how Capri’s decision to return capital to shareholders with a major buyback may reshape its investment outlook.

We've found 15 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Capri Holdings Investment Narrative Recap

To see value in Capri Holdings today, investors need confidence that the company can reverse ongoing sales declines, reignite growth in core brands like Michael Kors and Jimmy Choo, and bring margins back in line despite operational and external headwinds. The new US$1 billion share repurchase plan over three years, though a sign of management’s commitment, does not materially change the central short-term catalyst, Capri’s ability to drive sustainable top-line expansion remains the focal point, while persistent revenue softness stands out as the core risk.

Among Capri’s recent announcements, the fourth quarter and full-year 2026 earnings guidance draws the most attention. The company’s forecast of full-year revenue in the range of US$3.375 billion to US$3.45 billion reflects management’s view of near-term business recovery and is a key figure for shareholders to watch as they weigh the buyback announcement against ongoing sales pressures and brand challenges.

However, investors should also recognize that, despite the planned buyback, Capri’s long-term growth story still hinges on overcoming continued brand fatigue and weak core retail trends ...

Read the full narrative on Capri Holdings (it's free!)

Capri Holdings' outlook anticipates $3.7 billion in revenue and $351.8 million in earnings by 2028. This reflects a 5.7% annual revenue decline but an earnings increase of $1.45 billion from current earnings of $-1.1 billion.

Uncover how Capri Holdings' forecasts yield a $26.17 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community place Capri’s worth between US$2 and US$59.73 per share. With ongoing revenue contraction as a key concern, the broad spread highlights sharply divided views on the company’s path forward, take a closer look at these differing perspectives.

Explore 4 other fair value estimates on Capri Holdings - why the stock might be worth over 2x more than the current price!

Build Your Own Capri Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Capri Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Capri Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Capri Holdings' overall financial health at a glance.

Ready For A Different Approach?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• Find companies with promising cash flow potential yet trading below their fair value.
• Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 37 best rare earth metal stocks of the very few that mine this essential strategic resource.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com