Menu IR Search

Capri Holdings Limited Announces Third Quarter Fiscal 2020 Results

February 5, 2020

 Third Quarter Adjusted Earnings Per Share Exceed Expectations

LONDON--(BUSINESS WIRE)-- Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, today announced its financial results for the third quarter of fiscal 2020 ended December 28, 2019.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200205005244/en/

VERSACE (Photo: Business Wire) JIMMY CHOO (Photo: Business Wire) MICHAEL KORS (Photo: Business Wire)

VERSACE, JIMMY CHOO, MICHAEL KORS (Photo: Business Wire)

Third Quarter Fiscal 2020 Highlights

  • Third quarter revenue growth of 9.2%
  • Third quarter adjusted earnings per share of $1.66
  • Repaid approximately $300 million of debt in the third quarter, and approximately $500 million year-to-date

John D. Idol, the Company’s Chairman and Chief Executive Officer, said, "For the third quarter, we were pleased to deliver revenue and earnings per share above our expectations. Our revenue increase reflected the addition of Versace and growth from Jimmy Choo, while Michael Kors revenue was better than anticipated. The strategic initiatives for our recent acquisitions, Versace and Jimmy Choo, continue to gain traction, and we believe we are on the right path to position Michael Kors for future growth. Longer term, as we continue to execute against our strategies, we are confident in our ability to deliver multiple years of revenue and earnings growth."

Mr. Idol continued, “We are in the midst of a dynamic global health emergency related to the coronavirus. Our thoughts and prayers go out to the people of China, including our own employees located in this region, as well as all of those affected by the virus globally. We hope for a speedy and positive resolution to this crisis. The situation in China and the measures being taken to protect the population are having a material impact on our business. Given our current visibility, we now anticipate annual revenue of approximately $5.65 billion and adjusted earnings per share of $4.45 to $4.50. This estimate could materially change if the severity of the situation in China worsens."

Third Quarter Fiscal 2020 Results

Financial Results and non-GAAP Reconciliation

The Company’s results are reported in this press release in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and on an adjusted, non-GAAP basis. A reconciliation of GAAP to non-GAAP financial information is provided at the end of this press release.

Overview of Capri Holdings Third Quarter Fiscal 2020 Results:

  • Total revenue of $1.571 billion increased 9.2% compared to last year. On a constant currency basis, total revenue increased 9.6%.
  • Gross profit was $932 million and gross margin was 59.3%, compared to $873 million and 60.7% in the prior year. Adjusted gross profit was $934 million and adjusted gross margin was 59.5%, compared to $874 million and 60.8% in the prior year.
  • Income from operations was $205 million and operating margin was 13.0% compared to $290 million and 20.2% in the prior year. Adjusted income from operations was $264 million and operating margin was 16.8%, compared to $316 million and 22.0% in the prior year.
  • Net income was $210 million, or $1.38 per diluted share compared to $200 million, or $1.33 per diluted share in the prior year. Adjusted net income was $253 million, or $1.66 per diluted share, compared to $265 million or $1.76 per diluted share in the prior year.
  • Net inventory at December 28, 2019 was $960 million, a 25% increase compared to the prior year, primarily reflecting incremental Versace inventory. Michael Kors inventory declined 2% compared to the prior year.

Versace Third Quarter Fiscal 2020 Results:

  • Versace revenue was $195 million and comparable store sales increased in the mid single digits on a constant currency basis compared to stand-alone results from the prior year. Versace continued to deliver double digit comparable store sales growth in the Americas and EMEA.
  • Versace operating loss was $12 million and operating margin was (6.2)%. Adjusted operating loss was $10 million and adjusted operating margin was (5.1)%.

Jimmy Choo Third Quarter Fiscal 2020 Results:

  • Jimmy Choo revenue of $165 million increased 1.9% compared to the prior year on both a reported and constant currency basis. On a constant currency basis, comparable store sales were flat. Comparable store sales increased in the Americas and EMEA.
  • Jimmy Choo operating income was $9 million and operating margin was 5.5%, compared to operating income of $15 million and operating margin of 9.3% in the prior year. In the prior year, adjusted operating income was $16 million and adjusted operating margin was 9.9%.

Michael Kors Third Quarter Fiscal 2020 Results:

  • Michael Kors revenue of $1.211 billion decreased 5.1% compared to the prior year. On a constant currency basis, total revenue decreased 4.7%. On a constant currency basis, comparable store sales decreased in the low single digits.
  • Michael Kors operating income was $288 million and operating margin was 23.8%, compared to $320 million and 25.1% in the prior year.

Share Repurchase Program

During the third quarter, the Company repurchased approximately 2.7 million of the Company's ordinary shares for approximately $100 million in open market transactions. As of December 28, 2019 the remaining availability under the Company’s share repurchase program was $400 million.

Outlook

The following guidance is provided on an adjusted, non-GAAP basis.

Full Year Fiscal 2020 Outlook

During the fourth quarter of fiscal 2020, there has been an outbreak of coronavirus in China which the Company expects will materially impact its financial results. As of February 5, 2020, approximately 150 of the Company’s 225 stores in mainland China are closed. Additionally, most of the stores that remain open are operating with reduced hours and experiencing significant declines in customer traffic. While this global health emergency is expected to be temporary, the duration and intensity of the disruption is uncertain, including potential broader impact outside of China if travel and tourist traffic is further restricted and there is a resulting decline in Chinese tourist spending in other regions. Given the dynamic nature of these circumstances, the Company currently expects the situation in China to reduce revenue by approximately $100 million and earnings per share by $0.40 to $0.45 for the fourth quarter and full year. This estimate could materially change if the severity of the situation worsens, including potential broader impact on our business outside the region if outbound travel and tourist traffic is further restricted out of China and into other countries and regions. In addition, given the lower than normal visibility, the Company will not be providing brand comparable store sales guidance ranges in the fourth quarter.

For Capri Holdings, the Company expects the following.

  • Total revenue of approximately $5.65 billion
  • Operating margin of approximately 13.7%
  • Net interest expense in a range of $15 million to $20 million
  • Weighted average diluted shares outstanding of approximately 152 million
  • Effective tax rate of approximately 9.5%
  • Diluted earnings per share of $4.45 to $4.50

Fourth Quarter Fiscal 2020 Outlook

For Capri Holdings, the Company expects the following.

  • Total revenue of approximately $1.3 billion
  • Operating margin of approximately 9.0%
  • Net interest expense of approximately $0 million
  • Weighted average diluted shares outstanding of approximately 152 million
  • Effective tax rate of approximately 7%
  • Diluted earnings per share of $0.68 to $0.73

For Versace, the Company expects the following.

  • Revenue of approximately $210 million
  • Positive operating margin reflecting an additional month in the quarter, December, partially offset by increased investments to support growth initiatives

For Jimmy Choo, the Company expects the following.

  • Revenue of approximately $130 million
  • Operating margin improvement reflecting expense leverage and the normalization of strategic investments

For Michael Kors, the Company expects the following.

  • Revenue of approximately $950 million
  • Operating margin to be below prior year due to the impact of the situation in China, partially offset by cost reductions associated with the fleet optimization program

Conference Call Information

A conference call to discuss third quarter results is scheduled for today, February 5, 2020 at 8:30 a.m. ET. A live webcast of the conference call will be available on the Company’s website, www.capriholdings.com. In addition, a replay will be available shortly after the conclusion of the call and remain available until February 12, 2020. To access the telephone replay, listeners should dial 1-844-512-2921 or 1-412-317-6671 for international callers. The access code for the replay is 9391540. A replay of the webcast 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 U.S. GAAP. Additionally, this earnings release includes certain non-GAAP financial measures relating to certain one-time costs associated with the Jimmy Choo and Versace acquisitions, restructuring and non-cash impairment charges, transformation costs and ERP implementation costs. 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 Capri Holdings Limited

Capri Holdings Limited is a global fashion luxury group, consisting of iconic brands that are industry leaders in design, style and craftsmanship. Its brands cover the full spectrum of fashion luxury categories including women’s and men’s accessories, footwear and ready-to-wear as well as wearable technology, watches, jewelry, eyewear and a full line of fragrance products. The Company’s goal is to continue to extend the global reach of its brands while ensuring that they maintain their independence and exclusive DNA. Capri Holdings Limited is publicly listed on the New York Stock Exchange under the ticker CPRI.

Forward Looking Statements

This press release contains statements which are, or may be deemed to be, “forward-looking statements.” Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Capri Holdings Limited (the “Company”) about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. All statements other than statements of historical facts included in this press release may be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets”, “plans”, “believes”, “expects”, “aims”, “intends”, “will”, “should”, “could”, “would”, “may”, “anticipates”, “estimates”, “synergy”, “cost-saving”, “projects”, “goal”, “strategy”, “budget”, “forecast” or “might” or, words or terms of similar substance or the negative thereof, are forward-looking statements. Forward-looking statements include statements relating to future capital expenditures, expenses, revenues, earnings, economic performance, indebtedness, financial condition, share buybacks, dividend policy, losses and future prospects of the Company, business and management strategies and the expansion and growth of the Company’s operations, and benefits from any acquisition. These forward-looking statements are not guarantees of future financial performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions, which could cause actual results to differ materially from those projected or implied in any forward-looking statements. These risks, uncertainties and other factors include the Company’s ability to integrate successfully and to achieve anticipated benefits of any acquisition; the risk of disruptions to the Company’s businesses; the negative effects of events on the market price of the Company’s ordinary shares and its operating results; significant transaction costs; unknown liabilities; the risk of litigation and/or regulatory actions related to the Company’s businesses; fluctuations in demand for the Company’s products; levels of indebtedness (including the indebtedness incurred in connection with acquisitions); future availability of credit; the timing and scope of future share buybacks, which may be made in open market or privately negotiated transactions, and are subject to market conditions, applicable legal requirements, trading restrictions under the Company’s insider trading policy and other relevant factors, and which share repurchases may be suspended or discontinued at any time, the level of other investing activities and uses of cash; changes in consumer traffic and retail trends; loss of market share and industry competition; fluctuations in the capital markets; fluctuations in interest and exchange rates; the occurrence of unforeseen epidemics (including the outbreak of the coronavirus and its potential impact on our future financial results), disasters or catastrophes; political or economic instability in principal markets (including the continuing business disruption in Hong Kong); adverse outcomes in litigation; and general, local and global economic, political, business and market conditions, as well as those risks set forth in the reports that the Company files from time to time with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended March 30, 2019 (File No. 001-35368). Any forward-looking statement in this press release speaks only as of the date made and the Company disclaims any obligation to update or revise any forward-looking or other statements contained herein other than in accordance with legal and regulatory obligations.

SCHEDULE 1

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share and per share data)

(Unaudited)

 

 

Three Months Ended

 

Nine Months Ended

 

 

December 28,
2019

 

December 29,
2018

 

December 28,
2019

 

December 29,
2018

Total revenue

 

$

1,571

 

 

$

1,438

 

 

$

4,359

 

 

$

3,894

 

Cost of goods sold

 

639

 

 

565

 

 

1,719

 

 

1,507

 

Gross profit

 

932

 

 

873

 

 

2,640

 

 

2,387

 

Total operating expenses

 

727

 

 

583

 

 

2,296

 

 

1,692

 

Income from operations

 

205

 

 

290

 

 

344

 

 

695

 

Other income, net

 

(1)

 

 

(2)

 

 

(4)

 

 

(4)

 

Interest expense, net

 

3

 

 

7

 

 

19

 

 

21

 

Foreign currency (gain) loss

 

(2)

 

 

43

 

 

4

 

 

79

 

Income before provision for income taxes

 

205

 

 

242

 

 

325

 

 

599

 

(Benefit from) provision for income taxes

 

(4)

 

 

42

 

 

(2)

 

 

76

 

Net income

 

209

 

 

200

 

 

327

 

 

523

 

Less: Net loss attributable to noncontrolling interests

 

(1)

 

 

 

 

(1)

 

 

(1)

 

Net income attributable to Capri

 

$

210

 

 

$

200

 

 

$

328

 

 

$

524

 

Weighted average ordinary shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

150,826,196

 

 

149,183,049

 

 

151,159,423

 

 

149,420,087

 

Diluted

 

152,154,372

 

 

150,268,424

 

 

152,354,936

 

 

151,457,921

 

Net income per ordinary share:

 

 

 

 

 

 

 

 

Basic

 

$

1.39

 

 

$

1.34

 

 

$

2.17

 

 

$

3.50

 

Diluted

 

$

1.38

 

 

$

1.33

 

 

$

2.15

 

 

$

3.46

 

SCHEDULE 2

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

(Unaudited)

 

 

December 28,
2019

 

March 30,
2019

 

December 29,
2018

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

237

 

 

$

172

 

 

$

265

 

Receivables, net

 

321

 

 

383

 

 

291

 

Inventories, net

 

960

 

 

953

 

 

765

 

Prepaid expenses and other current assets

 

263

 

 

221

 

 

2,119

 

Total current assets

 

1,781

 

 

1,729

 

 

3,440

 

Property and equipment, net

 

596

 

 

615

 

 

544

 

Operating lease right-of-use assets

 

1,665

 

 

 

 

 

Intangible assets, net

 

2,225

 

 

2,293

 

 

1,133

 

Goodwill

 

1,681

 

 

1,659

 

 

780

 

Deferred tax assets

 

165

 

 

112

 

 

47

 

Other assets

 

212

 

 

242

 

 

85

 

Total assets

 

$

8,325

 

 

$

6,650

 

 

$

6,029

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

375

 

 

$

371

 

 

$

329

 

Accrued payroll and payroll related expenses

 

110

 

 

133

 

 

99

 

Accrued income taxes

 

30

 

 

34

 

 

23

 

Current operating lease liabilities

 

406

 

 

 

 

 

Short-term debt

 

1,031

 

 

630

 

 

579

 

Accrued expenses and other current liabilities

 

353

 

 

374

 

 

357

 

Total current liabilities

 

2,305

 

 

1,542

 

 

1,387

 

Long-term operating lease liabilities

 

1,751

 

 

 

 

 

Deferred rent

 

 

 

132

 

 

131

 

Deferred tax liabilities

 

440

 

 

438

 

 

182

 

Long-term debt

 

1,085

 

 

1,936

 

 

1,955

 

Other long-term liabilities

 

133

 

 

166

 

 

107

 

Total liabilities

 

5,714

 

 

4,214

 

 

3,762

 

Commitments and contingencies

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

 

4

 

 

 

Shareholders’ equity

 

 

 

 

 

 

Ordinary shares, no par value; 650,000,000 shares authorized;
216,906,643 shares issued and 149,012,245 outstanding at
December 28, 2019; 216,050,939 shares issued and 150,932,306

outstanding at March 30, 2019, and 213,432,129 shares issued and

148,313,496 outstanding at December 29, 2018

 

 

 

 

 

 

Treasury shares, at cost 67,894,398 shares at December 28, 2019;

65,118,633 shares at March 30, 2019; and 65,118,633 shares at

December 29, 2018)

 

(3,325)

 

 

(3,223)

 

 

(3,223)

 

Additional paid-in capital

 

1,080

 

 

1,011

 

 

892

 

Accumulated other comprehensive loss

 

(29)

 

 

(66)

 

 

(93)

 

Retained earnings

 

4,883

 

 

4,707

 

 

4,688

 

Total shareholders’ equity of Capri

 

2,609

 

 

2,429

 

 

2,264

 

Noncontrolling interest

 

2

 

 

3

 

 

3

 

Total shareholders’ equity

 

2,611

 

 

2,432

 

 

2,267

 

Total liabilities and shareholders’ equity

 

$

8,325

 

 

$

6,650

 

 

$

6,029

 

 

SCHEDULE 3

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED SEGMENT DATA

($ in millions)

(Unaudited)

 

 

Three Months Ended

 

Nine Months Ended

 

 

December 28,
2019

 

December 29,
2018

 

December 28,
2019

 

December 29,
2018

Revenue by Segment and Region:

 

 

 

 

 

 

 

 

Versace

 

The Americas

 

$

41

 

 

$

 

 

$

133

 

 

$

 

 

 

EMEA

 

98

 

 

 

 

311

 

 

 

 

 

Asia

 

56

 

 

 

 

186

 

 

 

Versace Revenue

 

195

 

 

 

 

630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jimmy Choo

 

The Americas

 

34

 

 

29

 

 

85

 

 

75

 

 

 

EMEA

 

85

 

 

90

 

 

228

 

 

248

 

 

 

Asia

 

46

 

 

43

 

 

135

 

 

128

 

Jimmy Choo Revenue

 

165

 

 

162

 

 

448

 

 

451

 

 

 

 

 

 

 

 

 

 

 

 

Michael Kors

 

The Americas

 

834

 

 

898

 

 

2,222

 

 

2,363

 

 

 

EMEA

 

239

 

 

244

 

 

652

 

 

677

 

 

 

Asia

 

138

 

 

134

 

 

407

 

 

403

 

Michael Kors Revenue

 

1,211

 

 

1,276

 

 

3,281

 

 

3,443

 

 

 

 

 

 

 

 

 

 

Total Revenue

 

$

1,571

 

 

$

1,438

 

 

$

4,359

 

 

$

3,894

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Operations:

 

 

 

 

 

 

 

 

Versace

 

 

 

$

(12)

 

 

$

 

 

$

(6)

 

 

$

 

Jimmy Choo

 

 

 

9

 

 

15

 

 

10

 

 

28

 

Michael Kors

 

 

 

288

 

 

320

 

 

711

 

 

798

 

Total segment income from operations

 

285

 

 

335

 

 

715

 

 

826

 

Less: Corporate expenses

 

(46)

 

 

(20)

 

 

(114)

 

 

(65)

 

Restructuring and other charges

 

(15)

 

 

(19)

 

 

(37)

 

 

(49)

 

Impairment of long-lived assets

 

(19)

 

 

(6)

 

 

(220)

 

 

(17)

 

Total Income from Operations

 

$

205

 

 

$

290

 

 

$

344

 

 

$

695

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin:

 

 

 

 

 

 

 

 

 

 

Versace

 

 

 

(6.2)

%

 

%

 

(1.0)

%

 

%

Jimmy Choo

 

 

 

5.5

%

 

9.3

%

 

2.2

%

 

6.2

%

Michael Kors

 

 

 

23.8

%

 

25.1

%

 

21.7

%

 

23.2

%

Capri Operating Margin

 

 

 

13.0

%

 

20.2

%

 

7.9

%

 

17.8

%

SCHEDULE 4

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

SUPPLEMENTAL RETAIL STORE INFORMATION

(Unaudited)

 

 

 

 

As of

Retail Store Information:

 

December 28, 2019

 

December 29, 2018

Versace

 

208

 

 

 

Jimmy Choo

 

223

 

 

206

 

Michael Kors

 

846

 

 

870

 

Total number of retail stores

 

 

 

1,277

 

 

1,076

 

SCHEDULE 5

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSTANT CURRENCY DATA

(In millions)

(Unaudited)

 

 

Three Months Ended

 

% Change

 

 

December 28,
2019

 

December 29,
2018

 

As
Reported

 

Constant
Currency

Total revenue:

 

 

 

 

 

 

 

 

Versace

 

$

195

 

 

$

 

 

NM

 

NM

Jimmy Choo

 

165

 

 

162

 

 

1.9

%

 

1.9

%

Michael Kors

 

1,211

 

 

1,276

 

 

(5.1)

%

 

(4.7)

%

Total revenue

 

$

1,571

 

 

$

1,438

 

 

9.2

%

 

9.6

%

 

 

Nine Months Ended

 

% Change

 

 

December 28,
2019

 

December 29,
2018

 

As
Reported

 

Constant
Currency

Total revenue:

 

 

 

 

 

 

 

 

Versace

 

$

630

 

 

$

 

 

NM

 

NM

Jimmy Choo

 

448

 

 

451

 

 

(0.7)

%

 

0.9

%

Michael Kors

 

3,281

 

 

3,443

 

 

(4.7)

%

 

(3.7)

%

Total revenue

 

$

4,359

 

 

$

3,894

 

 

11.9

%

 

13.0

%

___________________

NM Not meaningful

SCHEDULE 6

NON-GAAP RECONCILIATIONS OF REPORTED TO ADJUSTED MEASURES,

EXCLUDING LONG-LIVED ASSET IMPAIRMENTS, RESTRUCTURING AND OTHER CHARGES,

INVENTORY STEP-UP RELATED TO VERSACE ACQUISITION, ERP IMPLEMENTATION COSTS AND

CAPRI TRANSFORMATION COSTS

(In millions, except share and per share data)

(Unaudited)

 

 

Three Months Ended December 28, 2019

 

 

As
Reported

 

Impairment
Charges

 

Restructuring
and Other
Charges(1)

 

Inventory
Step-up Adjustment

 

ERP
Implementation

 

Capri Transformation

 

As
Adjusted

Gross profit

 

$

932

 

 

$

 

 

$

 

 

$

2

 

 

$

 

 

$

 

 

$

934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

727

 

 

$

(19)

 

 

$

(15)

 

 

$

 

 

$

(12)

 

 

$

(11)

 

 

$

670

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Versace operating (loss) income

 

$

(12)

 

 

$

 

 

$

 

 

$

2

 

 

$

 

 

$

 

 

$

(10)

 

Total income from operations

 

$

205

 

 

$

19

 

 

$

15

 

 

$

2

 

 

$

12

 

 

$

11

 

 

$

264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$

205

 

 

$

19

 

 

$

15

 

 

$

2

 

 

$

12

 

 

$

11

 

 

$

264

 

(Benefit from) provision for income taxes

 

$

(4)

 

 

$

7

 

 

$

3

 

 

$

 

 

$

3

 

 

$

3

 

 

$

12

 

Net income attributable to Capri

 

$

210

 

 

$

12

 

 

$

12

 

 

$

2

 

 

$

9

 

 

$

8

 

 

$

253

 

Diluted net income per ordinary share - Capri

 

$

1.38

 

 

$

0.08

 

 

$

0.08

 

 

$

0.01

 

 

$

0.06

 

 

$

0.05

 

 

$

1.66

 

______________________

  1. Includes store closure costs recorded in connection with the Michael Kors Retail Fleet Optimization Plan and other restructuring initiatives, and other costs recorded in connection with the acquisitions of Gianni Versace S.r.l. and Jimmy Choo Group Limited.

     

SCHEDULE 7

NON-GAAP RECONCILIATIONS OF REPORTED TO ADJUSTED MEASURES,

EXCLUDING LONG-LIVED ASSET IMPAIRMENTS, RESTRUCTURING AND OTHER CHARGES,

INVENTORY STEP-UP RELATED TO VERSACE ACQUISITION, ERP IMPLEMENTATION COSTS

CAPRI TRANSFORMATION COSTS AND FOREIGN CURRENCY EFFECTS RELATED TO VERSACE

(In millions, except share and per share data)

(Unaudited)

 

 

Nine Months Ended December 28, 2019

 

 

As
Reported

 

Impairment
Charges

 

Restructuring
and Other
Charges(1)

 

Inventory
Step-up
Adjustment

 

ERP
Implementation

 

Capri Transformation

 

Acquisition
Foreign
Currency
Effects

 

As
Adjusted

Gross profit

 

$

2,640

 

 

$

 

 

$

 

 

$

13

 

 

$

 

 

$

 

 

$

 

 

$

2,653

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

2,296

 

 

$

(220)

 

 

$

(37)

 

 

$

 

 

$

(29)

 

 

$

(13)

 

 

$

 

 

$

1,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Versace operating income

 

$

(6)

 

 

$

 

 

$

 

 

$

13

 

 

$

 

 

$

 

 

$

 

 

$

7

 

Total income from operations

 

$

344

 

 

$

220

 

 

$

37

 

 

$

13

 

 

$

29

 

 

$

13

 

 

$

 

 

$

656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency loss

 

$

4

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

(1)

 

 

$

3

 

Income before provision for income taxes

 

$

325

 

 

$

220

 

 

$

37

 

 

$

13

 

 

$

29

 

 

$

13

 

 

$

1

 

 

$

638

 

(Benefit from) provision for income taxes

 

$

(2)

 

 

$

44

 

 

$

8

 

 

$

3

 

 

$

7

 

 

$

4

 

 

$

 

 

$

64

 

Net income attributable to Capri

 

$

328

 

 

$

176

 

 

$

29

 

 

$

10

 

 

$

22

 

 

$

9

 

 

$

1

 

 

$

575

 

Diluted net income per ordinary share - Capri

 

$

2.15

 

 

$

1.16

 

 

$

0.19

 

 

$

0.06

 

 

$

0.14

 

 

$

0.06

 

 

$

0.01

 

 

$

3.77

 

______________________

  1. Includes store closure costs recorded in connection with the Michael Kors Retail Fleet Optimization Plan and other restructuring initiatives, and other costs recorded in connection with the acquisitions of Gianni Versace S.r.l. and Jimmy Choo Group Limited.

     

SCHEDULE 8

NON-GAAP RECONCILIATIONS OF REPORTED TO ADJUSTED MEASURES,

EXCLUDING LONG-LIVED ASSET IMPAIRMENTS,

RESTRUCTURING AND OTHER CHARGES, AND

INVENTORY STEP-UP RELATED TO JIMMY CHOO ACQUISITION

(In millions, except share and per share data)

(Unaudited)

 

 

Three Months Ended December 29, 2018

 

 

As Reported

 

Impairment
Charges

 

Restructuring
and Other
Charges(1)

 

Inventory
Step-up
Adjustment

 

Acquisition
Price
Derivative
Contract

 

As Adjusted

Gross profit

 

$

873

 

 

$

 

 

$

 

 

$

1

 

 

$

 

 

$

874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

$

583

 

 

$

(6)

 

 

$

(19)

 

 

$

 

 

$

 

 

$

558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jimmy Choo operating income

 

$

15

 

 

$

 

 

$

 

 

$

1

 

 

$

 

 

$

16

 

Total income from operations

 

$

290

 

 

$

6

 

 

$

19

 

 

$

1

 

 

$

 

 

$

316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency loss

 

$

43

 

 

$

 

 

$

 

 

$

 

 

$

(42)

 

 

$

1

 

Income before provision for income taxes

 

$

242

 

 

$

6

 

 

$

19

 

 

$

1

 

 

$

42

 

 

$

310

 

Provision for income taxes

 

$

42

 

 

$

1

 

 

$

3

 

 

$

 

 

$

(1)

 

 

$

45

 

Net income attributable to Capri

 

$

200

 

 

$

5

 

 

$

16

 

 

$

1

 

 

$

43

 

 

$

265

 

Diluted net income per ordinary share -

Capri

 

$

1.33

 

 

$

0.03

 

 

$

0.11

 

 

$

 

 

$

0.29

 

 

$

1.76

 

______________________

  1. Includes store closure costs recorded in connection with the Michael Kors Retail Fleet Optimization Plan, as well as transaction and transition costs recorded in connection with the acquisition of Jimmy Choo Group Limited.

     

SCHEDULE 9

NON-GAAP RECONCILIATIONS OF REPORTED TO ADJUSTED MEASURES,

EXCLUDING LONG-LIVED ASSET IMPAIRMENTS, RESTRUCTURING AND OTHER CHARGES,

INVENTORY STEP-UP RELATED TO JIMMY CHOO ACQUISITION, AND

DERIVATIVE CONTRACT RELATED TO AGREEMENT TO ACQUIRE VERSACE

(In millions, except share and per share data)

(Unaudited)

 

 

Nine Months Ended December 29, 2018

 

 

As Reported

 

Impairment Charges

 

Restructuring
and Other
Charges(1)

 

Inventory
Step-up
Adjustment

 

Acquisition
Price
Derivative
Contract

 

As Adjusted

Gross profit

 

$

2,387

 

 

$

 

 

$

 

 

$

6

 

 

$

 

 

$

2,393

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

$

1,692

 

 

$

(17)

 

 

$

(49)

 

 

$

 

 

$

 

 

$

1,626

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jimmy Choo operating income

 

$

28

 

 

$

 

 

$

 

 

$

6

 

 

$

 

 

$

34

 

Total income from operations

 

$

695

 

 

$

17

 

 

$

49

 

 

$

6

 

 

$

 

 

$

767

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency loss

 

$

79

 

 

$

 

 

$

 

 

$

 

 

$

(72)

 

 

$

7

 

Income before provision for income taxes

 

$

599

 

 

$

17

 

 

$

49

 

 

$

6

 

 

$

72

 

 

$

743

 

Provision for income taxes

 

$

76

 

 

$

3

 

 

$

7

 

 

$

1

 

 

$

(1)

 

 

$

86

 

Net income attributable to Capri

 

$

524

 

 

$

14

 

 

$

42

 

 

$

5

 

 

$

73

 

 

$

658

 

Diluted net income per ordinary share -

Capri

 

$

3.46

 

 

$

0.09

 

 

$

0.28

 

 

$

0.03

 

 

$

0.49

 

 

$

4.35

 

______________________

  1. Includes store closure costs recorded in connection with the Retail Fleet Optimization Plan and other restructuring initiatives, transition costs recorded in connection with the acquisition of Jimmy Choo Group Limited and transaction and transition costs recorded in connection with the Company’s agreement to acquire Gianni Versace S.p.A.

 

Investor Relations:
Jennifer Davis
(201) 514-8234
Jennifer.Davis@CapriHoldings.com

Media:
Dinesh Kandiah
(917) 934-2427
Press@CapriHoldings.com

Source: Capri Holdings Limited

Sign Up for Investor Emails

Email Address *
Mailing Lists *





 
Enter the code shown above.

Thumb Download

Investor Relations Contact

Jennifer Davis, VP of Investor Relations
+1 201 514 8234 | Email

 

Please note that you are now entering a website directly or indirectly maintained by a third party (the "External Site") and that you do so at your own risk.

Neither Capri Holdings Limited nor its affiliates, subsidiaries, officers, directors or agents (collectively, "Capri" or the "Company") have any control over (a) the External Site or any linked websites accessible through any External Site, or (b) any data or other content contained, or accessible, therein or in or through any such linked websites. The link to the External Site is provided for convenience purposes only. The information and other content on the External Site is not meant to modify, qualify, supplement or amend information disclosed by or on behalf of the Company under corporate, securities or other legislation in any jurisdiction, and should not be used to make investment decisions involving the Company's securities.

By clicking "Accept" below you acknowledge and agree that neither Capri nor the third party provider of the External Site, Virtua Research, Inc. ("Virtua"), is responsible, or accepts or assumes any responsibility or liability whatsoever for, the content, the data contained in or accessible on or through, or the technical operation of the External Site. Capri and Virtua are not liable to you for, and take no responsibility for, third party pricing data provided for informational purposes and certain ratio results formulated from the provided third party pricing data. Further, by entering the External Site, you also acknowledge and agree that you completely and irrevocably forever waive, and release Capri from, any and all rights and claims against Capri and Virtua and further acknowledge and agree that in no event shall Capri or Virtua, its officers, employees, directors and agents be liable for any (i) direct or indirect, consequential, incidental, special, compensatory, punitive or other damages, (ii) damages for loss of income, loss of business profits, business interruption, loss of data or business information, loss of or damage to property, (iii) claims of third parties, or (iv) other pecuniary loss, arising out of or related to this disclaimer or the External Site or any linked websites.

By entering the External Site, you further acknowledge and agree that the disclaimer of warranties and limitations of liability set out in this disclaimer shall apply regardless of the causes, circumstances or form of action giving rise to the loss, damage, claim or liability, even if such loss, damage, claim or liability is based upon breach of contract (including, without limitation, a claim of fundamental breach or breach of a fundamental term), tort (including, without limitation, negligence), strict liability or any other legal or equitable theory, and even if Capri and Virtua are advised of the possibility of the loss, damage, claim or liability. The waiver and release specifically includes, without limitation, any and all rights and claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute(s).

If in any jurisdiction, any part of this disclaimer is determined to be unenforceable by a court of competent jurisdiction, such part of this disclaimer shall be restricted or eliminated to the minimum extent necessary to comply with such determination and the remaining disclaimer shall otherwise remain in full force and effect.

Please note the information presented is given as at the date and the time of its original release. Changes in such historical information may occur due to adjustments in accounting and reporting standards & procedures.

Non-GAAP Information

In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP financial measures. These amounts are not in accordance with, or an alternative to, GAAP. The Company uses non-GAAP financial measures to, among other things, evaluate its operating performance and in order to represent the manner in which the Company conducts and views its business. Please see the Company’s SEC filings for more information concerning the Company’s use of non-GAAP financial measures. 

script