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Three consumer goods stocks recently announced significant share repurchase authorizations, and all three now have buyback capacity equal to 5% or more of their market capitalization.
This allows them to add a tailwind to important per-share metrics, such as adjusted earnings per share (EPS), and signals confidence in their outlooks going forward. Let’s dive into the recent repurchase news surrounding Kroger (NYSE:KR), Lululemon Athletica (NASDAQ:LULU), and Etsy (NYSE:ETSY)
Kroger Boosts Capacity After Aggressive Buyback Spending in 2025
On Dec. 23, the $40 billion consumer staples stock Kroger added $2 billion to its buyback chest. This authorization builds upon its previous buyback program, providing the company with approximately $2.9 billion in total buyback capacity. This is a substantial figure, equal to around 7.2% of Kroger’s market capitalization.
Relative to its size, Kroger has been utilizing buybacks at a rate that few other companies can match. Overall, the firm has spent over $6 billion on buybacks during the last 12 months (LTM).
After issuing around $200 million worth of shares over the same period, the stock’s LTM buyback yield sits at approximately 14.4%.
This ranks among the top 10 highest LTM buyback yields in the S&P 500 Index.
Clearly, the company sees buybacks as a vital tool for returning capital to shareholders.
However, it is not the only tool the firm uses to accomplish this goal. Kroger also has a solid indicated dividend yield of approximately 2.2%, nearly double that of the 1.1% average yield offered by the S&P 500.
LULU’s Tough 2025 Leads to New CEO, New Buybacks
Next up is lululemon. The consumer discretionary stock has had a very difficult 2025, down approximately 45% year-to-date (YTD). In addition to releasing its latest earnings, the company made two huge announcements on Dec. 11.
First, lululemon stated that current CEO Calvin McDonald will step down. The company is now in the process of finding a new, permanent CEO to lead its next phase of growth.
Additionally, the firm approved a $1 billion buyback program, bringing its total buyback capacity to approximately $1.6 billion. This is equal to around 6.5% of the stock’s $24.5 billion market capitalization.
This new authorization gives the firm the option to continue buying back shares at a similar pace to that of recent periods.
The company’s LTM buyback spending amounts to approximately $1.3 billion.
While a CEO search and added buybacks could help reinvigorate investor confidence, markets will want to see much more. With one quarter left in its fiscal year 2025, the company is forecasting annual sales growth of 4%.
This would be weak growth compared to 10% last year and almost 19% the year before. While the expanded share repurchase authorization can help support per-share results, the market’s longer-term verdict will hinge on product momentum, execution, and the outcome of the CEO search.
After Post-Earnings Crash, ETSY Now Holds Massive Buyback Capacity
E-commerce and consumer discretionary stock Etsy was up nearly 43% in 2025 through Oct. 27. However, the company’s latest earnings report caused shares to fall around 10% on Oct. 29. Markets have continued selling, leaving Etsy up just 5.4% in 2025.
While headline numbers in the report were strong, with the firm beating estimates on both sales and adjusted EPS, Etsy called the outlook on consumer spending "uncertain" and issued uninspiring guidance, which led to the steep drop in share price.
Additionally, Etsy said that CEO Josh Silverman will step down, with Kruti Patel Goyal replacing him, further damaging investor confidence.
On Dec. 18, Etsy made a strong gesture to try and shore up this confidence, announcing a new $750 million buyback program.
Adding in over $200 million worth of remaining buyback capacity, the firm’s total buyback capacity now sits between $950 million and $1 billion. At the midpoint, this is equal to a whopping 17.7% of its $5.5 billion market capitalization. The company clearly stated its reasoning for this authorization, saying "we see value in our shares."
Keep an Eye on ETSY’s Repurchases
Across all three companies, the headline is straightforward: buyback capacity has increased enough to move the needle on share count and per-share metrics if management teams follow through.
Etsy’s huge buyback capacity stands out. Investors will be watching the company’s actual buyback spending over the next few quarters to gauge its true confidence. If its activity is strong in the near future, it could instill confidence in investors after a choppy period for ETSY stock. If activity is weak, the market may interpret the authorization as more signal than substance.