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Capri Holdings Limited Announces Second Quarter Fiscal 2022 Results

November 3, 2021

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Q2 2022 Earnings Presentation

Revenue and Earnings Exceeded Expectations

Raised Full Year Adjusted Earnings Per Share Outlook

Authorized New $1 Billion Share Repurchase Program

LONDON--(BUSINESS WIRE)-- Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, today announced its financial results for the second quarter of Fiscal 2022 ended September 25, 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211103005463/en/

Second Quarter Fiscal 2022 Highlights

  • Revenue increased 17%, with better than anticipated results across all three luxury houses
  • Adjusted gross margin expanded 440 basis points versus prior year
  • Adjusted operating margin of 18.5%
  • Adjusted earnings per share of $1.53
  • Raised full year adjusted earnings per share outlook to $5.30

John D. Idol, the Company's Chairman and Chief Executive Officer, said, "We are pleased with our second quarter results with revenue, gross margin, operating margin and earnings per share all exceeding our expectations. This performance reflects the power of Versace, Jimmy Choo and Michael Kors as well as the execution of our strategic initiatives. Capri Holdings strong results are a testament to the dedication, resilience and agility of the entire team across the globe."

Mr. Idol continued, "We remain confident in the strength of our luxury houses and are pleased to be raising revenue and earnings guidance for the year. Our new outlook reflects both stronger revenue performance as well as greater than anticipated gross margin expansion driven by the execution of our strategic initiatives. The success of these initiatives is currently offsetting the COVID-19 related industry headwinds including supply chain delays and increased transportation costs. Looking forward as the world continues to recover from the impact of the global pandemic, we remain confident in the growth opportunities for Versace, Jimmy Choo and Michael Kors. As we execute on our strategic initiatives, Capri Holdings is positioned to deliver multiple years of revenue and earnings growth."

Second Quarter Fiscal 2022 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 ("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. Due to the current and ongoing impact of the COVID-19 pandemic, the Company will not be providing comparable store sales results. The Company believes the most comprehensive measure of performance in this environment is total revenues compared to the same period in the prior year.

Overview of Capri Holdings Second Quarter Fiscal 2022 Results:

  • Total revenue of $1.3 billion increased 17% compared to last year. On a constant currency basis, total revenue increased 15%.
  • Gross profit was $884 million and gross margin was 68.0%, compared to $710 million and 64.0% in the prior year. Adjusted gross profit was $879 million and adjusted gross margin was 67.6%, compared to $701 million and 63.2% in the prior year.
  • Income from operations was $195 million and operating margin was 15.0%, compared to $153 million and operating margin of 13.8% in the prior year. Adjusted income from operations was $241 million and operating margin was 18.5%, compared to $182 million and operating margin of 16.4% in the prior year.
  • Net income was $200 million, or $1.30 per diluted share, compared to $122 million, or $0.81 per share, in the prior year. Adjusted net income was $235 million, or $1.53 per diluted share, compared to $137 million or, $0.90 per diluted share, in the prior year.
  • Net inventory at September 25, 2021 was $866 million, a 6.9% decrease compared to the prior year.

Versace Second Quarter Fiscal 2022 Results:

  • Versace revenue of $282 million increased 45% compared to the prior year. On a constant currency basis, total revenue increased 43%.
  • Versace operating income was $55 million and operating margin was 19.5% compared to $20 million and operating margin of 10.3% in the prior year.

Jimmy Choo Second Quarter Fiscal 2022 Results:

  • Jimmy Choo revenue of $137 million increased 12% compared to the prior year. On a constant currency basis, total revenue increased 5%.
  • Jimmy Choo operating income was $1 million and operating margin was 0.7%, compared to break even in the prior year.

Michael Kors Second Quarter Fiscal 2022 Results:

  • Michael Kors revenue of $881 million increased 11% compared to the prior year. On a constant currency basis, total revenue increased 10%.
  • Michael Kors operating income was $220 million and operating margin was 25.0%, compared to $190 million and operating margin of 24.0% in the prior year.

Share Repurchase Program

During the second quarter, the Company repurchased approximately 1.8 million ordinary shares for approximately $100 million in open market transactions.

The Company’s Board of Directors approved a new share repurchase program of up to $1 billion of its outstanding ordinary shares, providing additional capacity to return cash to shareholders over the longer term. This new two-year program will replace the Company’s existing $500 million share repurchase program which had $250 million of availability remaining.

Outlook

The following guidance is provided on an adjusted, non-GAAP basis. Due to the ongoing dynamic nature of the COVID-19 pandemic, financial results could differ materially from the current outlook due to a number of external events which are not reflected in our guidance including any significant additional store closures or new government restrictions that could further impact traffic and sales trends as well as any greater supply chain disruptions that could further extend inventory delays or increase transportation expenses.

The Company also notes that Fiscal 2022 includes a 53rd week in its fiscal fourth quarter.

Fiscal Year 2022 Outlook

For Capri Holdings, the Company expects the following:

  • Total revenue of approximately $5.4 billion, including approximately $75 million associated with the 53rd week
  • Operating margin of approximately 18%
  • Net interest income of approximately $10 million
  • Effective tax rate of approximately 17%
  • Weighted average diluted shares outstanding of approximately 154 million
  • Diluted earnings per share of approximately $5.30

For Versace, the Company expects the following:

  • Total revenue of approximately $1.06 billion
  • Operating margin in the mid teens range

For Jimmy Choo, the Company expects the following:

  • Total revenue of approximately $575 million
  • Operating margin to be slightly negative

For Michael Kors, the Company expects the following:

  • Total revenue of approximately $3.765 billion
  • Operating margin in the mid 20% range

Third Quarter Fiscal 2022 Outlook

For Capri Holdings, the Company expects the following:

  • Total revenue of approximately $1.46 billion
  • Operating margin of approximately 20%
  • Diluted earnings per share of approximately $1.65

For Versace, the Company expects the following:

  • Total revenue of approximately $235 million
  • Operating margin in the low double digit range

For Jimmy Choo, the Company expects the following:

  • Total revenue of approximately $145 million
  • Operating margin in the negative mid single digit range

For Michael Kors, the Company expects the following:

  • Total revenue of approximately $1.08 billion
  • Operating margin in the high 20% range

Conference Call Information

A conference call to discusssecond quarter Fiscal 2022 results is scheduled for today, November 3, 2021 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 November 10, 2021. 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 13723952. A replay of the webcast will also be available within two hours of the conclusion of the call.

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 that exclude certain costs associated with COVID-19 related charges, long-lived asset impairments, ERP implementation costs, Capri transformation costs, restructuring and other charges. 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 these 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 herein, may be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “plans”, “believes”, “expects”, “intends”, “will”, “should”, “could”, “would”, “may”, “anticipates”, “might” or similar words or phrases, are forward-looking statements. 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 effect of the COVID-19 pandemic and its potential material and significant impact on the Company’s future financial and operational results if retail stores are forced to close again and the pandemic is prolonged, including that our estimates could materially differ if the severity of the COVID-19 situation worsens, or if there are further supply chain disruptions, including additional production delays and increased costs, the length and severity of such outbreak across the globe and the pace of recovery following the COVID-19 pandemic; levels of cash flow and future availability of credit; compliance with restrictive covenants under the Company’s credit agreement; the Company’s ability to integrate successfully and to achieve anticipated benefits of any acquisition and to successfully execute our growth strategies; the risk of disruptions to the Company’s businesses; risks associated with operating in international markets and our global sourcing activities; the risk of cybersecurity threats and privacy or data security breaches; 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); 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 such 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 and pandemics, disasters or catastrophes; political or economic instability in principal markets; adverse outcomes in litigation; and general, local and global economic, political, business and market conditions, as well as those risks set forth in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended March 27, 2021 (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

 

Six Months Ended

 

 

September 25,
2021

 

September 26,
2020

 

September 25,
2021

 

September 26,
2020

Total revenue

 

$

1,300

 

 

$

1,110

 

 

$

2,553

 

 

$

1,561

 

Cost of goods sold

 

416

 

 

400

 

 

813

 

 

549

 

Gross profit

 

884

 

 

710

 

 

1,740

 

 

1,012

 

Total operating expenses

 

689

 

 

557

 

 

1,287

 

 

1,021

 

Income (loss) from operations

 

195

 

 

153

 

 

453

 

 

(9)

 

Other income, net

 

(2)

 

 

 

 

(2)

 

 

(1)

 

Interest (income) expense, net

 

(5)

 

 

12

 

 

(4)

 

 

29

 

Foreign currency loss (gain)

 

4

 

 

 

 

5

 

 

(3)

 

Income (loss) before (benefit) provision
for income taxes

 

198

 

 

141

 

 

454

 

 

(34)

 

(Benefit) provision for income taxes

 

(2)

 

 

20

 

 

35

 

 

25

 

Net income (loss)

 

200

 

 

121

 

 

419

 

 

(59)

 

Less: Net loss attributable to noncontrolling
interests

 

 

 

(1)

 

 

 

 

(1)

 

Net income (loss) attributable to Capri

 

$

200

 

 

$

122

 

 

$

419

 

 

$

(58)

 

Weighted average ordinary shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

151,859,760

 

 

150,492,275

 

 

151,604,916

 

 

150,024,293

 

Diluted

 

154,219,249

 

 

151,677,242

 

 

154,563,532

 

 

150,024,293

 

Net income (loss) per ordinary share:

 

 

 

 

 

 

 

 

Basic

 

$

1.31

 

 

$

0.81

 

 

$

2.76

 

 

$

(0.39)

 

Diluted

 

$

1.30

 

 

$

0.81

 

 

$

2.71

 

 

$

(0.39)

 

SCHEDULE 2

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

(Unaudited)

 

 

 

September 25,
2021

 

March 27,
2021

 

September 26,
2020

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

234

 

 

$

232

 

 

$

238

 

Receivables, net

 

358

 

 

373

 

 

344

 

Inventories, net

 

866

 

 

736

 

 

930

 

Prepaid expenses and other current assets

 

214

 

 

205

 

 

122

 

Total current assets

 

1,672

 

 

1,546

 

 

1,634

 

Property and equipment, net

 

454

 

 

485

 

 

530

 

Operating lease right-of-use assets

 

1,425

 

 

1,504

 

 

1,677

 

Intangible assets, net

 

1,956

 

 

1,992

 

 

2,024

 

Goodwill

 

1,488

 

 

1,498

 

 

1,539

 

Deferred tax assets

 

284

 

 

278

 

 

226

 

Other assets

 

214

 

 

178

 

 

173

 

Total assets

 

$

7,493

 

 

$

7,481

 

 

$

7,803

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

491

 

 

$

512

 

 

$

558

 

Accrued payroll and payroll related expenses

 

124

 

 

116

 

 

92

 

Accrued income taxes

 

128

 

 

126

 

 

39

 

Short-term operating lease liabilities

 

438

 

 

447

 

 

439

 

Short-term debt

 

40

 

 

123

 

 

200

 

Accrued expenses and other current liabilities

 

299

 

 

297

 

 

253

 

Total current liabilities

 

1,520

 

 

1,621

 

 

1,581

 

Long-term operating lease liabilities

 

1,549

 

 

1,657

 

 

1,772

 

Deferred tax liabilities

 

413

 

 

397

 

 

483

 

Long-term debt

 

1,104

 

 

1,219

 

 

1,581

 

Other long-term liabilities

 

307

 

 

430

 

 

187

 

Total liabilities

 

4,893

 

 

5,324

 

 

5,604

 

Commitments and contingencies

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

Ordinary shares, no par value; 650,000,000 shares authorized;
221,295,985 shares issued and 150,447,462 outstanding at
September 25, 2021; 219,222,937 shares issued and 151,280,011
outstanding at March 27, 2021 and 218,563,307 shares issued and
150,621,274 outstanding at September 26, 2020

 

 

 

 

 

 

Treasury shares, at cost (70,848,523 shares at September 25,
2021, 67,942,926 shares at March 27, 2021 and 67,942,033
shares at September 26, 2020)

 

(3,486)

 

 

(3,326)

 

 

(3,326)

 

Additional paid-in capital

 

1,225

 

 

1,158

 

 

1,126

 

Accumulated other comprehensive income

 

174

 

 

56

 

 

125

 

Retained earnings

 

4,689

 

 

4,270

 

 

4,274

 

Total shareholders’ equity of Capri

 

2,602

 

 

2,158

 

 

2,199

 

Noncontrolling interest

 

(2)

 

 

(1)

 

 

 

Total shareholders’ equity

 

2,600

 

 

2,157

 

 

2,199

 

Total liabilities and shareholders’ equity

 

$

7,493

 

 

$

7,481

 

 

$

7,803

 

 

 

 

 

 

 

 

SCHEDULE 3

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED SEGMENT DATA

($ in millions)

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

September 25,
2021

 

September 26,
2020

 

September 25,
2021

 

September 26,
2020

Revenue by Segment and Region:

 

 

 

 

 

 

 

 

Versace

 

The Americas

 

$

107

 

 

$

60

 

 

$

194

 

 

$

75

 

 

 

EMEA

 

118

 

 

80

 

 

205

 

 

107

 

 

 

Asia

 

57

 

 

55

 

 

123

 

 

106

 

Versace Revenue

 

282

 

 

195

 

 

522

 

 

288

 

 

 

 

 

 

 

 

 

 

 

 

Jimmy Choo

 

The Americas

 

38

 

 

33

 

 

76

 

 

39

 

 

 

EMEA

 

56

 

 

46

 

 

106

 

 

62

 

 

 

Asia

 

43

 

 

43

 

 

97

 

 

72

 

Jimmy Choo Revenue

 

137

 

 

122

 

 

279

 

 

173

 

 

 

 

 

 

 

 

 

 

 

 

Michael Kors

 

The Americas

 

556

 

 

494

 

 

1,146

 

 

650

 

 

 

EMEA

 

214

 

 

185

 

 

379

 

 

264

 

 

 

Asia

 

111

 

 

114

 

 

227

 

 

186

 

Michael Kors Revenue

 

881

 

 

793

 

 

1,752

 

 

1,100

 

 

 

 

 

 

 

 

 

 

Total Revenue

 

$

1,300

 

 

$

1,110

 

 

$

2,553

 

 

$

1,561

 

 

 

 

 

 

 

 

 

 

Income (loss) from Operations:

 

 

 

 

 

 

 

 

Versace

 

 

 

$

55

 

 

$

20

 

 

$

103

 

 

$

(21)

 

Jimmy Choo

 

 

 

1

 

 

 

 

12

 

 

(29)

 

Michael Kors

 

 

 

220

 

 

190

 

 

460

 

 

142

 

Total segment income from operations

 

276

 

 

210

 

 

575

 

 

92

 

Less: Corporate expenses

 

(45)

 

 

(30)

 

 

(86)

 

 

(61)

 

Restructuring and other charges

 

(8)

 

 

(9)

 

 

(11)

 

 

(17)

 

Impairment of assets

 

(33)

 

 

(20)

 

 

(33)

 

 

(20)

 

COVID-19 related charges

5

 

 

2

 

 

8

 

 

(3)

 

Total Income (loss) from Operations

 

$

195

 

 

$

153

 

 

$

453

 

 

$

(9)

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin:

 

 

 

 

 

 

 

 

 

 

Versace

 

 

 

19.5

%

 

10.3

%

 

19.7

%

 

(7.3)

%

Jimmy Choo

 

 

 

0.7

%

 

%

 

4.3

%

 

(16.8)

%

Michael Kors

 

 

 

25.0

%

 

24.0

%

 

26.3

%

 

12.9

%

Capri Operating Margin

 

 

 

15.0

%

 

13.8

%

 

17.7

%

 

(0.6)

%

SCHEDULE 4

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

SUPPLEMENTAL RETAIL STORE INFORMATION

(Unaudited)

 

 

 

 

 

As of

Retail Store Information:

 

September 25,
2021

 

September 26,
2020

Versace

 

211

 

 

206

 

Jimmy Choo

 

237

 

 

227

 

Michael Kors

 

823

 

 

828

 

Total number of retail stores

 

 

 

1,271

 

 

1,261

 

SCHEDULE 5

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSTANT CURRENCY DATA

(In millions)

(Unaudited)

 

 

 

Three Months Ended

 

% Change

 

 

September 25,
2021

 

September 26,
2020

 

As

Reported

 

Constant

Currency

Total Revenue:

 

 

 

 

 

 

 

 

Versace

 

$

282

 

 

$

195

 

 

44.6

%

 

42.6

%

Jimmy Choo

 

137

 

 

122

 

 

12.3

%

 

4.9

%

Michael Kors

 

881

 

 

793

 

 

11.1

%

 

9.8

%

Total Revenue

 

$

1,300

 

 

$

1,110

 

 

17.1

%

 

15.0

%

 

 

Six Months Ended

 

% Change

 

 

September 25,
2021

 

September 26,
2020

 

As

Reported

 

Constant

Currency

Total Revenue:

 

 

 

 

 

 

 

 

Versace

 

$

522

 

 

$

288

 

 

81.3

%

 

72.6

%

Jimmy Choo

 

279

 

 

173

 

 

61.3

%

 

46.8

%

Michael Kors

 

1,752

 

 

1,100

 

 

59.3

%

 

56.0

%

Total Revenue

 

$

2,553

 

 

$

1,561

 

 

63.5

%

 

58.0

%

 

 

 

 

 

 

 

 

 

SCHEDULE 6

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended September 25, 2021

 

 

As

Reported

 

Impairment
Charges

 

Restructuring
and Other
Charges (1)

 

COVID-19
Related
Charges

 

ERP
Implementation

 

Capri
Transformation

 

As

Adjusted

Gross profit

 

$

884

 

 

$

 

 

$

 

 

$

(5)

 

 

$

 

 

$

 

 

$

879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

689

 

 

$

(33)

 

 

$

(8)

 

 

$

 

 

$

(5)

 

 

$

(5)

 

 

$

638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income (loss) from operations

 

$

195

 

 

$

33

 

 

$

8

 

 

$

(5)

 

 

$

5

 

 

$

5

 

 

$

241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before (benefit) provision for
income taxes

 

$

198

 

 

$

33

 

 

$

8

 

 

$

(5)

 

 

$

5

 

 

$

5

 

 

$

244

 

(Benefit) provision for income taxes

 

$

(2)

 

 

$

8

 

 

$

 

 

$

 

 

$

2

 

 

$

1

 

 

$

9

 

Net income (loss) attributable to Capri

 

$

200

 

 

$

25

 

 

$

8

 

 

$

(5)

 

 

$

3

 

 

$

4

 

 

$

235

 

Diluted net income (loss) per ordinary share
- Capri

 

$

1.30

 

 

$

0.16

 

 

$

0.05

 

 

$

(0.03)

 

 

$

0.02

 

 

$

0.03

 

 

$

1.53

 

______________________

  1. Includes store closure costs which have been incorporated into the Capri Retail Store Optimization Program, 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

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

 

 

 

Six Months Ended September 25, 2021

 

 

As

Reported

 

Impairment
Charges

 

Restructuring
and Other
Charges(1)

 

COVID-19
Related
Charges

 

ERP
Implementation

 

Capri
Transformation

 

As

Adjusted

Gross profit

 

$

1,740

 

 

$

 

 

$

 

 

$

(8)

 

 

$

 

 

$

 

 

$

1,732

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

1,287

 

 

$

(33)

 

 

$

(11)

 

 

$

 

 

$

(8)

 

 

$

(5)

 

 

$

1,230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income (loss) from operations

 

$

453

 

 

$

33

 

 

$

11

 

 

$

(8)

 

 

$

8

 

 

$

5

 

 

$

502

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before provision (benefit) for
income taxes

 

$

454

 

 

$

33

 

 

$

11

 

 

$

(8)

 

 

$

8

 

 

$

5

 

 

$

503

 

Provision (benefit) for income taxes

 

$

35

 

 

$

8

 

 

$

1

 

 

$

(1)

 

 

$

3

 

 

$

1

 

 

$

47

 

Net income (loss) attributable to Capri

 

$

419

 

 

$

25

 

 

$

10

 

 

$

(7)

 

 

$

5

 

 

$

4

 

 

$

456

 

Diluted net income (loss) per ordinary share
- Capri

 

$

2.71

 

 

$

0.16

 

 

$

0.06

 

 

$

(0.04)

 

 

$

0.03

 

 

$

0.03

 

 

$

2.95

 

______________________

  1. Includes store closure costs which have been incorporated into the Capri Retail Store Optimization Program, 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

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended September 26, 2020

 

 

 

As Reported

 

Impairment
Charges

 

Restructuring and
Other Charges (1)

 

COVID-19
Related Charges

 

Capri
Transformation

 

As Adjusted

Gross profit

 

$

710

 

 

$

 

 

$

 

 

$

(9)

 

 

$

 

 

$

701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

557

 

 

$

(20)

 

 

$

(9)

 

 

$

(7)

 

 

$

(2)

 

 

$

519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income (loss) from operations

 

$

153

 

 

20

 

 

9

 

 

$

(2)

 

 

$

2

 

 

$

182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before provision for income
taxes

 

$

141

 

 

$

20

 

 

$

9

 

 

$

(2)

 

 

$

2

 

 

$

170

 

Provision for income taxes

 

$

20

 

 

$

9

 

 

$

4

 

 

$

 

 

$

1

 

 

$

34

 

Net income (loss) attributable to Capri

 

$

122

 

 

$

11

 

 

$

5

 

 

$

(2)

 

 

$

1

 

 

$

137

 

Diluted net income (loss) per ordinary share
- Capri

 

$

0.81

 

 

$

0.07

 

 

$

0.03

 

 

$

(0.02)

 

 

$

0.01

 

 

$

0.90

 

______________________

  1. Includes store closure costs which have been incorporated into the Capri Retail Store Optimization Program and other costs recorded in connection with the acquisitions of Gianni Versace S.r.l. and Jimmy Choo Group Limited.

     

SCHEDULE 9

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

 

 

 

Six Months Ended September 26, 2020

 

 

As Reported

 

Impairment
Charges

 

Restructuring
and Other
Charges(1)

 

COVID-19
Related
Charges

 

Capri

Transformation

 

ERP

Implementation

 

As Adjusted

Gross profit

 

$

1,012

 

 

$

 

 

$

 

 

$

(8)

 

 

$

 

 

$

 

 

$

1,004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

$

1,021

 

 

$

(20)

 

 

$

(17)

 

 

$

(11)

 

 

$

(2)

 

 

$

(2)

 

 

$

969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total (loss) income from operations

 

$

(9)

 

 

$

20

 

 

$

17

 

 

$

3

 

 

$

2

 

 

$

2

 

 

$

35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before provision (benefit) for
income taxes

 

$

(34)

 

 

$

20

 

 

$

17

 

 

$

3

 

 

$

2

 

 

$

2

 

 

$

10

 

Provision (benefit) for income taxes

 

$

25

 

 

$

9

 

 

$

(1)

 

 

$

(3)

 

 

$

1

 

 

$

(1)

 

 

$

30

 

Net (loss) income attributable to Capri

 

$

(58)

 

 

$

11

 

 

$

18

 

 

$

6

 

 

$

1

 

 

$

3

 

 

$

(19)

 

Diluted net (loss) income per ordinary share
- Capri

 

$

(0.39)

 

 

$

0.07

 

 

$

0.12

 

 

$

0.04

 

 

$

0.01

 

 

$

0.02

 

 

$

(0.13)

 

______________________

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

 

Investor Relations:
Jennifer Davis
+1 (201) 514-8234
Jennifer.Davis@CapriHoldings.com

Media:
Dinesh Kandiah
+1 (917) 934-2427
Press@CapriHoldings.com

Source: Capri Holdings Limited

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