Fourth Quarter Total Revenue Decreased 11.2%
Fourth Quarter Loss was ($0.17) Per Diluted Share (adjusted EPS of
$0.73 excluding impairment charges)
Announces New $1 Billion Stock Repurchase Program
LONDON--(BUSINESS WIRE)--
Michael Kors Holdings Limited (NYSE:KORS) (the “Company”), a global
luxury fashion brand, today announced its financial results for the
fiscal 2017 fourth quarter and fiscal year ended April 1, 2017.
For the fourth quarter ended April 1, 2017:
-
Total revenue decreased 11.2% to $1.06 billion from $1.20 billion in
the fourth quarter of fiscal 2016. On a constant currency basis, total
revenue decreased 10.6%. Fiscal year 2017 had 52 weeks versus 53 weeks
in fiscal year 2016. As a result, the Company’s results for the fiscal
2016 fourth quarter and fiscal year ended April 2, 2016, include
approximately $34 million in retail sales related to the 53rd week.
Comparable sales calculations exclude the 53rd week.
-
Retail net sales increased 0.5% to $575.3 million, driven primarily by
159 net new store openings since the end of the fourth quarter of
fiscal 2016, including 111 stores associated with the Company's
acquisition of the previously licensed operation in Greater China.
Comparable sales decreased 14.1%. On a constant currency basis, retail
net sales grew 1.1%, and comparable sales decreased 13.6%. Wholesale
net sales decreased 22.8% to $456.1 million and on a constant currency
basis, wholesale net sales decreased 22.3%. Licensing revenue
decreased 6.2% to $33.4 million.
-
Total revenue in the Americas decreased 18.0% to $721.0 million on a
reported basis, and decreased 18.3% on a constant currency basis.
European revenue decreased 15.3% to $215.2 million on a reported
basis, and declined 11.5% on a constant currency basis. Revenue in
Asia increased 96.3% to $128.6 million on a reported basis, and
increased 95.1% on a constant currency basis.
-
Gross profit decreased 11.1% to $619.7 million, and as a percentage of
total revenue was 58.2%. Foreign currency translation and transaction
unfavorably impacted gross profit margin by approximately 20 basis
points. This compares to gross margin of 58.2% in the fourth quarter
of fiscal 2016.
-
Loss from operations was $42.6 million, or (4.0)% of total revenue.
Excluding $193.8 million of non-cash impairment charges primarily
associated with underperforming full-price retail stores, income from
operations was $151.2 million, or 14.2% as a percentage of total
revenue. For the fourth quarter of fiscal 2016, operating income was
$244.1 million, or 20.4% as a percentage of total revenue, and
excluding $10.9 million of impairment charges was $255.0 million, or
21.3% as a percentage of total revenue.
-
Net loss attributable to MKHL was $26.8 million, or $0.17 per diluted
share, based on a 35.1% tax rate and 161.8 million weighted average
diluted shares outstanding. Excluding the aforementioned impairment
charges, net income was $118.0 million or $0.73 per diluted share. For
the fourth quarter of fiscal 2016, net income attributable to MKHL was
$177.0 million, or $0.98 per diluted share, based on a 28.2% tax rate
and 180.4 million weighted average diluted shares outstanding.
Excluding the impairment charges, fourth quarter fiscal 2016 net
income was $184.8 million or $1.02 per diluted share.
-
At April 1, 2017, the Company operated 827 retail stores, including
concessions, compared to 668 retail stores, including concessions, at
the end of the same prior-year period. The Company had 133 additional
retail stores, including concessions, operated through licensing
partners. Including licensed locations, there were 960 Michael Kors
stores worldwide at the end of the fourth quarter of fiscal 2017.
John D. Idol, the Company’s Chairman and Chief Executive Officer, said,
“Fiscal 2017 was a challenging year, as we continued to operate in a
difficult retail environment with elevated promotional levels. In
addition, our product and store experience did not sufficiently engage
and excite consumers. We acknowledge that we need to take further steps
to elevate the level of fashion innovation in our accessories
assortments and enhance our store experience in order to deepen consumer
desire and demand for our products. Looking ahead, as we expand the
fashion innovation in our accessories assortments, right-size our store
fleet and elevate our store experience, fiscal 2018 will be a transition
year in which we establish a new baseline before returning to long-term
growth. We have a strong brand, led by Michael Kors, with a history of
fashion innovation and leadership, a global footprint with stores
positioned in the best locations around the world and the marketing
expertise to effectively convey our fashion stories."
For the fiscal year ended April 1, 2017:
-
Total revenue decreased 4.6% to $4.49 billion from $4.71 billion in
fiscal 2016. On a constant currency basis, total revenue decreased
4.4%.
-
Retail net sales increased 7.4% to $2.57 billion. Comparable sales
decreased 8.3%. On a constant currency basis, retail net sales grew
7.8%, and comparable sales decreased 8.1%. Wholesale net sales
decreased 17.2% to $1.78 billion and on a constant currency basis,
wholesale net sales decreased 17.0%. Licensing revenue decreased 15.9%
to $145.8 million.
-
Gross profit decreased 4.9% to $2.66 billion, and as a percentage of
total revenue was 59.2%. Foreign currency translation and transaction
unfavorably impacted gross profit margin by approximately 60 basis
points. This compares to 59.4% in the same period in fiscal 2016.
-
Income from operations was $689.9 million and as a percentage of total
revenue was 15.4%. Excluding $210.5 million associated with non-cash
impairment charges primarily associated with underperforming
full-price retail stores and transaction costs related to the
acquisition of the Greater China business, income from operations was
$900.4 million, or 20.0% of total revenue. For fiscal 2016, income
from operations was $1,175.1 million, or 24.9% as a percentage of
total revenue, and excluding $10.9 million of impairment charges was
$1,186.0 million, or 25.2% as a percentage of total revenue.
-
Net income attributable to MKHL was $552.5 million, or $3.29 per
diluted share, based on a tax rate of 19.9% 168.1 million weighted
average diluted shares outstanding. Excluding transaction costs and
impairment charges, net income was $712.1 million or $4.24 per diluted
share. For fiscal 2016, net income attributable to MKHL was $839.1
million, or $4.44 per diluted share, based on a tax rate of 28.5% and
189.1 million weighted average diluted shares outstanding. Excluding
impairment charges, net income was $846.9 million or $4.48 per diluted
share.
Retail Fleet Optimization
In the fourth quarter of fiscal 2017 the Company recorded impairment
charges of $193.8 million primarily related to underperforming lifestyle
stores. In addition, the Company announced today that it intends to
improve the profitability of its store fleet by closing between 100 and
125 of its full-price retail stores over the next 2 years. Over this
time period, the Company expects to incur approximately $100 - $125
million of one-time costs associated with store closures. Collectively,
the Company ultimately anticipates ongoing annual savings of $60 million
as a result of store closures and the lower depreciation and
amortization associated with these impairment charges.
Share Repurchase Program
During the fourth quarter, the Company repurchased 6,641,815 of the
Company's ordinary shares for approximately $250.0 million in open
market transactions. As of April 1, 2017, the Company had fully utilized
the previously authorized amount under the share repurchase program. On
May 25, 2017, the Company's Board of Directors authorized a new $1
billion share repurchase program. Share repurchases may be made in open
market or privately negotiated transactions, subject to market
conditions, applicable legal requirements, trading restrictions under
the Company’s insider trading policy, and other relevant factors. The
program may be suspended or discontinued at any time.
Outlook
For the first quarter of fiscal 2018, the Company expects total revenue
to be between $910 million and $930 million, and a comparable sales
decrease in the high-single digit range. Operating margin is expected to
be approximately 13.0%. Diluted earnings per share are expected to be in
the range of $0.60 - $0.64, based on 160.0 million weighted average
diluted shares outstanding and a tax rate of approximately 19%.
For fiscal 2018, the Company expects total revenue to be approximately
$4.25 billion and for comparable sales to decrease in the high-single
digit range. Operating margin is expected to be approximately 16.0%. For
the full-year fiscal 2018, diluted earnings per share are expected to be
in the range of $3.57 - $3.67, based on 155.0 million weighted average
diluted shares outstanding and a tax rate of approximately 18%.
Conference Call Information
A conference call to discuss fourth quarter results is scheduled for
today, May 31, 2017, from 8:00 a.m. to 9:00 a.m. ET. A live webcast of
the conference call will be available in the investor relations section
of the Company’s website, www.michaelkors.com.
In addition, a replay of the call will be available shortly after the
conclusion of the call and remain available until June 7, 2017. To
access the telephone replay, listeners should dial (844) 512-2921 or
(412) 317-6671 for international callers. The access code for the replay
is 3097032. A replay of the web cast will also be available within two
hours of the conclusion of the call and will remain on the website for
90 days.
Use of Non-GAAP Financial Measures
Constant currency effects are non-GAAP financial measures, which are
provided to supplement our reported operating results to facilitate
comparisons of our operating results and trends in our business,
excluding the effects of foreign currency rate fluctuations. Because we
are a global Company, foreign currency exchange rates may have a
significant effect on our reported results. We calculate constant
currency measures and the related foreign currency impacts by
translating the current-year’s reported amounts into comparable amounts
using prior year’s foreign exchange rates for each currency. All
constant currency performance measures discussed below should be
considered a supplement to and not in lieu of our operating performance
measures calculated in accordance with accounting principles generally
accepted in the United States (“U.S. GAAP.”)
Additionally, this earnings release includes certain non-GAAP financial
measures relating to impairment charges and certain one-time costs
associated with the acquisition of the Greater China licensee. The
Company uses non-GAAP financial measures, among other things, to
evaluate its operating performance and in order to represent the manner
in which the Company conducts and views its business. The Company
believes that excluding non-recurring items helps its management and
investors compare operating performance based on its ongoing operations.
While the Company considers the non-GAAP measures to be useful
supplemental measures in analyzing its results, they are not intended to
replace, nor act as a substitute for, any amounts presented in its
consolidated financial statements prepared in conformity with U.S. GAAP
and may be different from non-GAAP measures reported by other companies.
About Michael Kors
Michael Kors is a world-renowned, award-winning designer of luxury
accessories and ready-to-wear. His namesake company, established in
1981, currently produces a range of products under Michael Kors
Collection, MICHAEL Michael Kors and Michael Kors Mens, including
accessories, footwear, watches, jewelry, ready-to-wear and a full line
of fragrance products. Michael Kors stores are operated, either directly
or through licensing partners, in some of the most prestigious cities in
the world, including New York, Beverly Hills, Chicago, London, Milan,
Paris, Munich, Istanbul, Dubai, Seoul, Tokyo and Hong Kong.
Forward Looking Statements
This press release contains forward-looking statements. You should
not place undue reliance on such statements because they are subject to
numerous uncertainties and factors relating to the Company’s operations
and business environment, all of which are difficult to predict and many
of which are beyond the Company’s control. Forward-looking statements
include information concerning the Company’s possible or assumed future
results of operations, including descriptions of its business strategy.
These statements often include words such as “may,” “will,” “should,”
“believe,” “expect,” “seek,” “anticipate,” “intend,” “plan,” “estimate”
or similar expressions. The forward-looking statements contained in this
press release are based on assumptions that the Company has made in
light of management’s experience in the industry as well as its
perceptions of historical trends, current conditions, expected future
developments and other factors that it believes are appropriate under
the circumstances. You should understand that these statements are not
guarantees of performance or results. They involve known and unknown
risks, uncertainties and assumptions. Although the Company believes that
these forward-looking statements are based on reasonable assumptions,
you should be aware that many factors could affect its actual financial
results or results of operations and could cause actual results to
differ materially from those in these forward-looking statements. These
factors include, but are not limited to, the Company’s ability to
successfully execute its business and transformation strategies, the
Company’s ability to achieve the anticipated cost savings, efficiencies
and other benefits related to its retail fleet optimization, the
Company’s ability to control costs, the seasonal and quarterly
fluctuations in the Company’s sales or operating results and such other
risks factors that are more fully discussed in the “Risk Factors”
section and elsewhere in the Company’s Annual Report on Form 10-K for
the fiscal year ended April 2, 2016(File No. 001-35368), filed on June
1, 2016 with the U.S. Securities and Exchange Commission.
SCHEDULE 1
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MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share data)
(Unaudited)
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Three Months Ended
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Fiscal Years Ended
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April 1, 2017
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April 2, 2016
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April 1, 2017
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April 2, 2016
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Net sales
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$
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1,031.4
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$
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1,163.1
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$
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4,347.9
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$
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4,538.8
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Licensing revenue
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33.4
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35.6
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145.8
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173.3
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Total revenue
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1,064.8
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1,198.7
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4,493.7
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4,712.1
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Cost of goods sold
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445.1
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501.5
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1,832.3
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1,914.9
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Gross profit
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619.7
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697.2
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2,661.4
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2,797.2
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Total operating expenses
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662.3
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453.1
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1,971.5
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1,622.1
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(Loss) income from operations
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(42.6
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)
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244.1
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689.9
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1,175.1
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Other loss, net
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(0.7
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)
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(4.5
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)
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(5.4
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)
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(3.7
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)
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Interest (income) expense, net
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(1.0
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)
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0.6
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4.1
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1.7
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Foreign currency loss
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0.4
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2.5
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2.6
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4.8
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(Loss) income before provision for income taxes
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(41.3
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)
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245.5
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688.6
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1,172.3
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(Benefit) provision for income taxes
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(14.5
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)
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69.2
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137.1
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334.6
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Net (loss) income
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$
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(26.8
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)
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$
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176.3
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$
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551.5
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$
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837.7
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Less: Net loss attributable to noncontrolling interest
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—
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(0.7
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)
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(1.0
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)
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(1.4
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)
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Net (loss) income attributable to MKHL
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$
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(26.8
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)
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$
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177.0
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$
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552.5
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$
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839.1
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Weighted average ordinary shares outstanding:
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Basic
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159,944,132
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177,814,521
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165,986,733
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186,293,295
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Diluted
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161,827,486
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180,439,102
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168,123,813
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189,054,289
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Net (loss) income per ordinary share:
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Basic
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$
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(0.17
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)
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$
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1.00
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$
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3.33
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$
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4.50
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Diluted
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$
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(0.17
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)
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$
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0.98
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$
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3.29
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$
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4.44
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SCHEDULE 2
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MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)
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April 1, 2017
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April 2, 2016
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Assets
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Current assets
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Cash and cash equivalents
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$
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227.7
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$
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702.0
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Receivables, net
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265.8
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307.9
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Inventories
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549.3
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546.8
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Prepaid expenses and other current assets
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121.9
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113.1
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Total current assets
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1,164.7
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1,669.8
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Property and equipment, net
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591.5
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758.2
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Intangible assets, net
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418.1
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67.4
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Goodwill
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119.7
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23.2
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Deferred tax assets
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73.3
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24.5
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Other assets
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42.3
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23.7
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Total assets
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$
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2,409.6
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$
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2,566.8
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Liabilities and Shareholders’ Equity
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Current liabilities
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Accounts payable
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$
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176.3
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$
|
131.4
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Accrued payroll and payroll related expenses
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61.1
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59.7
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Accrued income taxes
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60.3
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51.6
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Short-term debt
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133.1
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—
|
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Accrued expenses and other current liabilities
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135.0
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192.8
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Total current liabilities
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565.8
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435.5
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Deferred rent
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137.8
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|
106.4
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Deferred tax liabilities
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80.0
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3.5
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Long-term debt
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—
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2.3
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Other long-term liabilities
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31.0
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19.6
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Total liabilities
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814.6
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567.3
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Commitments and contingencies
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Shareholders’ equity
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Ordinary shares, no par value; 650,000,000 shares authorized;
209,332,493 shares issued and 155,833,304 outstanding at
April 1, 2017; 208,084,175 shares issued and 176,441,891
outstanding at April 2, 2016
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—
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—
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Treasury shares, at cost (53,499,189 shares at April 1, 2017 and
31,642,284 shares at April 2, 2016)
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(2,654.9
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(1,650.1
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Additional paid-in capital
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767.8
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718.9
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Accumulated other comprehensive loss
|
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(80.6
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)
|
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(80.9
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Retained earnings
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3,560.3
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|
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3,007.8
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Total shareholders’ equity of MKHL
|
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|
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1,592.6
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|
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1,995.7
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Noncontrolling interest
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2.4
|
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|
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3.8
|
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Total shareholders’ equity
|
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1,595.0
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|
|
1,999.5
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Total liabilities and shareholders’ equity
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$
|
2,409.6
|
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$
|
2,566.8
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SCHEDULE 3
|
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MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED SEGMENT DATA
($ in millions)
(Unaudited)
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Three Months Ended
|
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|
Fiscal Years Ended
|
|
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|
|
April 1, 2017
|
|
|
April 2, 2016
|
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|
April 1, 2017
|
|
|
April 2, 2016
|
Revenue by Segment and Region:
|
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Retail net sales:
|
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|
The Americas
|
|
|
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$
|
351.7
|
|
|
|
$
|
407.9
|
|
|
|
$
|
1,713.7
|
|
|
|
$
|
1,779.0
|
|
|
|
|
Europe
|
|
|
|
106.5
|
|
|
|
125.9
|
|
|
|
507.7
|
|
|
|
509.6
|
|
|
|
|
Asia
|
|
|
|
117.1
|
|
|
|
38.8
|
|
|
|
350.7
|
|
|
|
106.3
|
|
Total Retail Net Sales
|
|
|
|
575.3
|
|
|
|
572.6
|
|
|
|
2,572.1
|
|
|
|
2,394.9
|
|
Wholesale net sales:
|
|
|
The Americas
|
|
|
|
353.3
|
|
|
|
453.3
|
|
|
|
1,340.9
|
|
|
|
1,628.6
|
|
|
|
|
Europe
|
|
|
|
91.3
|
|
|
|
110.5
|
|
|
|
376.5
|
|
|
|
406.4
|
|
|
|
|
Asia
|
|
|
|
11.5
|
|
|
|
26.7
|
|
|
|
58.4
|
|
|
|
108.9
|
|
Total Wholesale Net Sales
|
|
|
|
456.1
|
|
|
|
590.5
|
|
|
|
1,775.8
|
|
|
|
2,143.9
|
|
Licensing revenue:
|
|
|
The Americas
|
|
|
|
16.0
|
|
|
|
17.9
|
|
|
|
86.1
|
|
|
|
99.0
|
|
|
|
|
Europe
|
|
|
|
17.4
|
|
|
|
17.7
|
|
|
|
59.7
|
|
|
|
74.3
|
|
Total Licensing Revenue
|
|
|
|
33.4
|
|
|
|
35.6
|
|
|
|
145.8
|
|
|
|
173.3
|
|
Total Revenue
|
|
|
|
$
|
1,064.8
|
|
|
|
$
|
1,198.7
|
|
|
|
$
|
4,493.7
|
|
|
|
$
|
4,712.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
|
|
|
$
|
(154.6
|
)
|
|
|
$
|
67.7
|
|
|
|
$
|
159.8
|
|
|
|
$
|
501.4
|
|
Wholesale
|
|
|
|
|
|
|
100.9
|
|
|
|
160.7
|
|
|
|
468.1
|
|
|
|
584.1
|
|
Licensing
|
|
|
|
|
|
|
11.1
|
|
|
|
15.7
|
|
|
|
62.0
|
|
|
|
89.6
|
|
Total (Loss) Income from Operations
|
|
|
|
$
|
(42.6
|
)
|
|
|
$
|
244.1
|
|
|
|
$
|
689.9
|
|
|
|
$
|
1,175.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
|
|
|
(26.9
|
)%
|
|
|
11.8
|
%
|
|
|
6.2
|
%
|
|
|
20.9
|
%
|
Wholesale
|
|
|
|
|
|
|
22.1
|
%
|
|
|
27.2
|
%
|
|
|
26.4
|
%
|
|
|
27.2
|
%
|
Licensing
|
|
|
|
|
|
|
33.2
|
%
|
|
|
44.1
|
%
|
|
|
42.5
|
%
|
|
|
51.7
|
%
|
Total Operating Margin
|
|
|
|
|
|
|
(4.0
|
)%
|
|
|
20.4
|
%
|
|
|
15.4
|
%
|
|
|
24.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 1, 2017
|
|
|
April 2, 2016
|
Store Count and Square Footage by Region:
|
|
|
|
Store Count
|
|
|
Square Footage
|
|
|
Store Count
|
|
|
Square Footage
|
The Americas
|
|
|
|
398
|
|
|
|
1,280,168
|
|
|
|
390
|
|
|
|
1,180,785
|
|
Europe
|
|
|
|
201
|
|
|
|
541,627
|
|
|
|
177
|
|
|
|
458,114
|
|
Asia
|
|
|
|
228
|
|
|
|
436,164
|
|
|
|
101
|
|
|
|
138,451
|
|
Total
|
|
|
|
827
|
|
|
|
2,257,959
|
|
|
|
668
|
|
|
|
1,777,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE 4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES
CONSTANT CURRENCY DATA
(In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
% Change
|
|
|
|
|
|
April 1, 2017
|
|
|
April 2, 2016
|
|
|
As
Reported
|
|
|
Constant
Currency
|
Retail net sales
|
|
|
|
$
|
575.3
|
|
|
|
$
|
572.6
|
|
|
|
0.5
|
%
|
|
|
1.1
|
%
|
Wholesale net sales
|
|
|
|
456.1
|
|
|
|
590.5
|
|
|
|
(22.8
|
)%
|
|
|
(22.3
|
)%
|
Licensing revenue
|
|
|
|
33.4
|
|
|
|
35.6
|
|
|
|
(6.2
|
)%
|
|
|
(6.2
|
)%
|
Total revenue
|
|
|
|
$
|
1,064.8
|
|
|
|
$
|
1,198.7
|
|
|
|
(11.2
|
)%
|
|
|
(10.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended
|
|
|
% Change
|
|
|
|
|
|
April 1, 2017
|
|
|
April 2, 2016
|
|
|
As
Reported
|
|
|
Constant
Currency
|
Retail net sales
|
|
|
|
$
|
2,572.1
|
|
|
|
$
|
2,394.9
|
|
|
|
7.4
|
%
|
|
|
7.8
|
%
|
Wholesale net sales
|
|
|
|
1,775.8
|
|
|
|
2,143.9
|
|
|
|
(17.2
|
)%
|
|
|
(17.0
|
)%
|
Licensing revenue
|
|
|
|
145.8
|
|
|
|
173.3
|
|
|
|
(15.9
|
)%
|
|
|
(15.9
|
)%
|
Total revenue
|
|
|
|
$
|
4,493.7
|
|
|
|
$
|
4,712.1
|
|
|
|
(4.6
|
)%
|
|
|
(4.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE 5
|
|
|
|
|
|
|
|
|
|
GAAP TO NON-GAAP RECONCILIATION OF REPORTED TO ADJUSTED
MEASURES,
EXCLUDING LONG-LIVED ASSET IMPAIRMENTS
(In millions, except share and per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 1, 2017
|
|
|
|
|
As Reported
|
|
Impairment Charges
|
|
|
As Adjusted
|
Total revenue
|
|
|
|
$1,064.8
|
|
$
|
—
|
|
|
|
$
|
1,064.8
|
|
Operating expenses
|
|
|
|
$662.3
|
|
$
|
(193.8
|
)
|
|
|
$
|
468.5
|
|
Operating expenses as percentage of total revenue
|
|
|
|
|
62.2
|
%
|
|
|
(18.2
|
)%
|
|
|
|
44.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Total (loss) income from operations
|
|
|
|
$
|
(42.6
|
)
|
|
$
|
193.8
|
|
|
|
$
|
151.2
|
|
Total operating margin
|
|
|
|
|
(4.0
|
)%
|
|
|
18.2
|
%
|
|
|
|
14.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to MKHL
|
|
|
|
$
|
(26.8
|
)
|
|
$
|
144.8
|
|
|
|
$
|
118.0
|
|
Weighted average diluted ordinary shares outstanding
|
|
|
|
161,827,486
|
|
|
—
|
|
|
|
|
161,827,486
|
|
Diluted net (loss) income per ordinary share attributable to MKHL
|
|
|
|
|
(0.17
|
)
|
|
|
0.90
|
|
|
|
|
0.73
|
|
|
|
|
|
|
|
|
|
|
|
Segment information:
|
|
|
|
|
|
|
|
|
|
Retail net sales
|
|
|
|
$575.3
|
|
$
|
—
|
|
|
|
$
|
575.3
|
|
Retail operating income
|
|
|
|
$
|
(154.6
|
)
|
|
$
|
193.8
|
|
|
|
$
|
39.2
|
|
Retail operating margin
|
|
|
|
|
(26.9
|
)%
|
|
|
33.7
|
%
|
|
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 2, 2016
|
|
|
|
|
As Reported
|
|
Impairment Charges
|
|
|
As Adjusted
|
Total revenue
|
|
|
|
$
|
1,198.7
|
|
|
$
|
—
|
|
|
|
$
|
1,198.7
|
|
Operating expenses
|
|
|
|
$
|
453.1
|
|
|
$
|
(10.9
|
)
|
|
|
$
|
442.2
|
|
Operating expenses as percentage of total revenue
|
|
|
|
|
37.8
|
%
|
|
|
(0.9
|
)%
|
|
|
|
36.9
|
%
|
|
|
|
|
|
|
|
|
|
|
Total income from operations
|
|
|
|
$
|
244.1
|
|
|
$
|
10.9
|
|
|
|
$
|
255.0
|
|
Total operating margin
|
|
|
|
|
20.4
|
%
|
|
|
0.9
|
%
|
|
|
|
21.3
|
%
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to MKHL
|
|
|
|
$
|
177.0
|
|
|
$
|
7.8
|
|
|
|
$
|
184.8
|
|
Weighted average diluted ordinary shares outstanding
|
|
|
|
|
180,439,102
|
|
|
|
—
|
|
|
|
|
180,439,102
|
|
Diluted net income per ordinary share attributable to MKHL
|
|
|
|
$
|
0.98
|
|
|
$
|
0.04
|
|
|
|
$
|
1.02
|
|
|
|
|
|
|
|
|
|
|
|
Segment information:
|
|
|
|
|
|
|
|
|
|
Retail net sales
|
|
|
|
$
|
572.6
|
|
|
$
|
—
|
|
|
|
$
|
572.6
|
|
Retail operating income
|
|
|
|
$
|
67.7
|
|
|
$
|
8.6
|
|
|
|
$
|
76.3
|
|
Retail operating margin
|
|
|
|
|
11.8
|
%
|
|
|
1.5
|
%
|
|
|
|
13.3
|
%
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE 6
|
|
|
|
|
|
|
|
|
|
GAAP TO NON-GAAP RECONCILIATION OF REPORTED TO ADJUSTED
MEASURES,
EXCLUDING LONG-LIVED ASSET IMPAIRMENTS AND TRANSACTION COSTS
RELATED TO ACQUISITION OF THE GREATER CHINA BUSINESS (In
millions, except share and per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended April 1, 2017
|
|
|
|
|
As Reported
|
|
|
Impairment Charges
|
|
|
Transaction Costs Related to Greater China Acquisition
|
|
|
As Adjusted
|
Total revenue
|
|
|
|
$
|
4,493.7
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
4,493.7
|
|
Operating expenses
|
|
|
|
$
|
1,971.5
|
|
|
|
$
|
(199.2
|
)
|
|
|
$
|
(11.3
|
)
|
|
|
$
|
1,761.0
|
|
Operating expenses as percentage of total revenue
|
|
|
|
|
43.9
|
%
|
|
|
|
(4.4
|
)%
|
|
|
|
(0.3
|
)%
|
|
|
|
39.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income from operations
|
|
|
|
$
|
689.9
|
|
|
|
$
|
199.2
|
|
|
|
$
|
11.3
|
|
|
|
$
|
900.4
|
|
Total operating margin
|
|
|
|
|
15.4
|
%
|
|
|
|
4.4
|
%
|
|
|
|
0.2
|
%
|
|
|
|
20.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to MKHL
|
|
|
|
$
|
552.5
|
|
|
|
$
|
148.3
|
|
|
|
$
|
11.3
|
|
|
|
$
|
712.1
|
|
Weighted average diluted ordinary shares outstanding
|
|
|
|
|
168,123,813
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
168,123,813
|
|
Diluted net income per ordinary share attributable to MKHL
|
|
|
|
$
|
3.29
|
|
|
|
$
|
0.88
|
|
|
|
$
|
0.07
|
|
|
|
$
|
4.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail net sales
|
|
|
|
$
|
2,572.1
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
2,572.1
|
|
Retail operating income
|
|
|
|
$
|
159.8
|
|
|
|
$
|
198.7
|
|
|
|
$
|
11.3
|
|
|
|
$
|
369.8
|
|
Retail operating margin
|
|
|
|
|
6.2
|
%
|
|
|
|
7.7
|
%
|
|
|
|
0.5
|
%
|
|
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended April 2, 2016
|
|
|
|
|
|
|
|
As Reported
|
|
|
Impairment Charges
|
|
|
As Adjusted
|
Total revenue
|
|
|
|
|
|
|
$
|
4,712.1
|
|
|
|
$
|
—
|
|
|
|
$
|
4,712.1
|
|
Operating expenses
|
|
|
|
|
|
|
$
|
1,622.1
|
|
|
|
$
|
(10.9
|
)
|
|
|
$
|
1,611.2
|
|
Operating expenses as percentage of total revenue
|
|
|
|
|
|
|
|
34.4
|
%
|
|
|
|
(0.2
|
)%
|
|
|
|
34.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income from operations
|
|
|
|
|
|
|
$
|
1,175.1
|
|
|
|
$
|
10.9
|
|
|
|
$
|
1,186.0
|
|
Total operating margin
|
|
|
|
|
|
|
|
24.9
|
%
|
|
|
|
0.3
|
%
|
|
|
|
25.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to MKHL
|
|
|
|
|
|
|
$
|
839.1
|
|
|
|
$
|
7.8
|
|
|
|
$
|
846.9
|
|
Weighted average diluted ordinary shares outstanding
|
|
|
|
|
|
|
|
189,054,289
|
|
|
|
|
—
|
|
|
|
|
189,054,289
|
|
Diluted net income per ordinary share attributable to MKHL
|
|
|
|
|
|
|
$
|
4.44
|
|
|
|
$
|
0.04
|
|
|
|
$
|
4.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail net sales
|
|
|
|
|
|
|
$
|
2,394.9
|
|
|
|
$
|
—
|
|
|
|
$
|
2,394.9
|
|
Retail operating income
|
|
|
|
|
|
|
$
|
501.4
|
|
|
|
$
|
8.6
|
|
|
|
$
|
510.0
|
|
Retail operating margin
|
|
|
|
|
|
|
|
20.9
|
%
|
|
|
|
0.4
|
%
|
|
|
|
21.3
|
%
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170531005548/en/
Source: Michael Kors Holdings Limited