Capri Holdings Reports Strong Q3 Turnaround, $1.26B Debt Reduction, and Approves New $1.0B Share Repurchase Program
Summary
Capri Holdings reported a strong Q3 performance, driven by the completed Versace sale which facilitated a significant debt reduction. The company also announced a new $1.0 billion share repurchase program, underscoring its improved financial health and commitment to shareholder returns.
Key Events
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Strong Q3 Financial Performance
The company reported a net income of $116 million for the three months ended December 27, 2025, a significant turnaround from a net loss of $547 million in the prior year period. Diluted EPS reached $0.96, compared to a loss of $4.61 previously.
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Substantial Debt Reduction
Total debt decreased by $1.262 billion, from $1.496 billion as of March 29, 2025, to $234 million as of December 27, 2025. This reduction was primarily funded by the proceeds from the Versace divestiture, resulting in a net debt of approximately $80 million.
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New $1.0 Billion Share Repurchase Program Approved
The Board of Directors approved a new three-year share repurchase program of up to $1.0 billion, expected to commence in Fiscal 2027. This represents a significant capital return initiative for shareholders.
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Versace Divestiture Completed
The sale of the Versace business was completed on December 2, 2025, yielding net cash proceeds of approximately $1.365 billion and a preliminary gain on sale of $45 million.
Analysis
This 10-Q filing provides comprehensive details following the company's 8-K announcement on the same day, confirming a significant financial turnaround and strategic capital allocation. The completion of the Versace sale has enabled a substantial reduction in total debt, dramatically improving the company's balance sheet. The approval of a new $1.0 billion share repurchase program signals strong confidence in future performance and a commitment to enhancing shareholder value. While the headline Q3 results and debt reduction were previously indicated, this full report offers critical context and a new, material capital return initiative that will likely be viewed very positively by investors.
At the time of this filing, CPRI was trading at $20.17 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $11.86 to $28.27. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.