Capri Holdings Reports Major Financial Turnaround, Completes Versace Sale, and Initiates $1B Share Repurchase Program
CPRI is trading near its 52-week low of $16.22 (13% above the low) on elevated volume (3.4× avg).
Summary
Capri Holdings reported a strong financial rebound in Fiscal 2026, driven by the completed Versace sale and significant debt reduction, alongside the launch of a new $1 billion share repurchase program.
Key Events · Earnings and Guidance · CPRI
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Significant Financial Turnaround
Net income attributable to Capri swung from a $1.18 billion loss in Fiscal 2025 to a $137 million profit in Fiscal 2026, reflecting a major financial recovery.
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Versace Divestiture Completed
The sale of the Versace business was completed on December 2, 2025, for gross cash proceeds of $1.395 billion, resulting in a $45 million gain on sale.
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Substantial Debt Reduction
Long-term debt decreased significantly from $1.466 billion in Fiscal 2025 to $343 million in Fiscal 2026, primarily due to the proceeds from the Versace sale.
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New $1 Billion Share Repurchase Program
The Board approved a new three-year share repurchase program of up to $1.0 billion, with $79 million in shares already repurchased during Fiscal 2026.
Analysis · CPRI · Manufacturing
This annual report details a significant financial recovery for Capri Holdings, with the company swinging from a substantial net loss to a profit. The completion of the Versace divestiture has been instrumental in this turnaround, enabling a dramatic reduction in long-term debt and strengthening the balance sheet. The initiation of a new $1 billion share repurchase program signals management's confidence and commitment to returning capital to shareholders. The absence of new major impairment charges, following significant write-downs in prior years, suggests a stabilization of asset values. These combined factors indicate a strategic repositioning and improved financial health, which are highly positive for the investment thesis.
At the time of this filing, CPRI was trading at $18.27 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.2B. The 52-week trading range was $16.22 to $28.27. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.