Capri Holdings Ltd (CPRI) saw its stock soar 8.69% in pre-market trading on Tuesday, following the release of its second-quarter fiscal 2026 results and the announcement of a significant share repurchase program. The luxury fashion group, which owns brands such as Michael Kors, Versace, and Jimmy Choo, delivered a mixed bag of financial results but managed to exceed analyst expectations in key areas.

The company reported Q2 revenue of $856 million, surpassing the IBES estimate of $824.6 million. This performance came despite a 2.5% year-over-year decline in reported revenue and a 4.2% decrease in constant currency. Capri's adjusted operating income for the quarter stood at $20 million, significantly beating the IBES estimate of $10.7 million. However, the company posted an adjusted loss per share of $0.03, falling short of the IBES estimate of $0.13 earnings per share.

In a move that likely contributed to the stock's pre-market rally, Capri Holdings announced a $1 billion share repurchase program. This substantial buyback plan signals management's confidence in the company's long-term prospects and its commitment to enhancing shareholder value. Additionally, Capri provided guidance for the third quarter, projecting revenue between $975 million to $1.0 billion, and set a full fiscal year 2026 revenue target of approximately $3.4 billion with an operating income of around $100 million. While the company faces challenges, including incremental tariffs on imports from several countries, investors seem encouraged by the overall financial picture and the aggressive share repurchase initiative.