People shop in the Michael Kors store in the SoHo section of New York City, U.S. May 31, 2016. REUTERS/Brendan McDermid

(Reuters) -Capri Holdings on Tuesday topped revenue estimates for the second quarter, buoyed by improving demand for its brands, including Michael Kors as its turnaround efforts take root.

The company, which also announced a $1 billion share repurchase program, saw its shares rise about 5% in premarket trading.

Amid a broader retail slowdown, the owner of luxury handbags and footwear has been gaining from its turnaround plans, including lowering promotional activity, reducing global headcount and certain store closures.

Earlier this year, it also offloaded its struggling Versace label to Italy's Prada.

For the second quarter, Capri's revenue in its Michael Kors brand dipped 1.8% on a reported basis, improving from a 5.9% decline in the previous quarter. A year ago, the decline was 16% on a reported basis.

Capri reported quarterly revenue of $856 million, compared with estimates of $825.7 million, according to data compiled by LSEG.

It maintained its annual revenue and profit forecasts and expects third-quarter revenue to be between $975 million and $1 billion, compared with estimates of $1 billion.

The company - which imports the majority of products sold in the U.S. from Vietnam, Cambodia, Indonesia, Bangladesh and China - said in August it expects tariffs to increase costs by about $85 million in fiscal 2026.

The U.S. currently levies a 20% tariff on imports from Vietnam, while goods transshipped from third countries via Vietnam are subject to a 40% charge.

Capri posted a quarterly adjusted loss of 3 cents per share, compared with Wall Street estimates of a profit of 13 cents per share.

(Reporting by Juveria Tabassum and Anuja Bharat Mistry in Bengaluru; Editing by Vijay Kishore)