Capri Holdings Limited Announces First Quarter Fiscal 2025 Results
Capri Holdings (NYSE:CPRI) reported a 13.2% decrease in revenue for Q1 Fiscal 2025 compared to last year, totaling $1.07 billion. Adjusted operating margin stood at 1.5%, and adjusted earnings per share were $0.04. CEO John D. Idol acknowledged the disappointing results, attributing them to weak global demand for luxury goods. The company added 12.6 million new consumers across its brands. Despite challenges, Capri remains focused on its strategic initiatives and its pending acquisition by Tapestry, which faced an FTC lawsuit. Versace, Jimmy Choo, and Michael Kors all experienced revenue declines. Versace saw a 15.4% drop in revenue, Jimmy Choo's revenue fell by 5.5%, and Michael Kors' revenue decreased by 14.2%. Net loss was $14 million, compared to net income of $48 million the previous year. Cash flow from operations was $83 million, and net debt decreased to $1.50 billion.
Capri Holdings (NYSE:CPRI) ha registrato una decremento del 13,2% nei ricavi per il primo trimestre dell'esercizio fiscale 2025 rispetto allo scorso anno, per un totale di $1,07 miliardi. Il margine operativo rettificato si attesta all'1,5% e l'utile per azione rettificato è stato di $0,04. Il CEO John D. Idol ha riconosciuto i risultati deludenti, attribuendoli a una domanda globale debole per i beni di lusso. L'azienda ha aggiunto 12,6 milioni di nuovi consumatori nei suoi marchi. Nonostante le sfide, Capri rimane concentrata sulle sue iniziative strategiche e sulla sua acquisizione in attesa da parte di Tapestry, che ha affrontato una causa della FTC. Versace, Jimmy Choo e Michael Kors hanno tutti registrato un calo dei ricavi. Versace ha visto un calo del 15,4% nei ricavi, quelli di Jimmy Choo sono diminuiti del 5,5%, e i ricavi di Michael Kors sono scesi del 14,2%. La perdita netta è stata di $14 milioni, rispetto a un reddito netto di $48 milioni dell'anno precedente. Il flusso di cassa dalle operazioni è stato di $83 milioni e il debito netto è diminuito a $1,50 miliardi.
Capri Holdings (NYSE:CPRI) reportó una disminución del 13,2% en los ingresos para el primer trimestre del año fiscal 2025 en comparación con el año pasado, totalizando $1.07 mil millones. El margen operativo ajustado se situó en el 1,5%, y las ganancias por acción ajustadas fueron de $0,04. El CEO John D. Idol reconoció los resultados decepcionantes, atribuyéndolos a una débil demanda global de productos de lujo. La empresa añadió 12,6 millones de nuevos consumidores a sus marcas. A pesar de los desafíos, Capri sigue enfocada en sus iniciativas estratégicas y en su adquisición pendiente por parte de Tapestry, que enfrentó una demanda de la FTC. Versace, Jimmy Choo y Michael Kors experimentaron caídas en ingresos. Versace vio una bajada del 15,4% en los ingresos, los ingresos de Jimmy Choo cayeron un 5,5%, y los ingresos de Michael Kors disminuyeron un 14,2%. La pérdida neta fue de $14 millones, en comparación con un ingreso neto de $48 millones el año anterior. El flujo de efectivo de las operaciones fue de $83 millones y la deuda neta disminuyó a $1,50 mil millones.
카프리 홀딩스 (NYSE:CPRI)는 2025 회계연도 1분기 매출이 작년 대비 13.2% 감소했다고 보고했으며, 총 매출은 10억 7천만 달러에 달합니다. 조정된 운영 마진은 1.5%였으며, 조정된 주당 순익은 0.04달러였습니다. CEO 존 D. 아이돌은 실망스러운 결과를 인정하며 럭셔리 상품에 대한 글로벌 수요 약세 때문이라고 밝혔습니다. 회사는 1,260만 명의 신규 소비자를 각 브랜드에 추가했습니다. 도전 과제가 있지만, 카프리는 전략적 이니셔티브와 FTC 소송에 직면한 테이프스트리의 인수 건에 집중하고 있습니다. 베르사체, 지미 추, 마이클 코어스 모두 매출 감소를 경험했습니다. 베르사체는 매출이 15.4% 감소했으며, 지미 추의 매출은 5.5% 감소했고, 마이클 코어스의 매출은 14.2% 감소했습니다. 순손실은 1,400만 달러로, 작년 순이익 4,800만 달러와 비교됩니다. 운영에서 발생한 현금 흐름은 8,300만 달러였으며, 순부채는 15억 달러로 줄었습니다.
Capri Holdings (NYSE:CPRI) a annoncé une baisse de 13,2% de ses revenus pour le premier trimestre de l'exercice fiscal 2025 par rapport à l'année précédente, totalisant 1,07 milliard de dollars. La marge opérationnelle ajustée était de 1,5%, et le bénéfice par action ajusté était de 0,04 USD. Le PDG John D. Idol a reconnu ces résultats décevants, les attribuant à une demande mondiale faible pour les produits de luxe. La société a ajouté 12,6 millions de nouveaux consommateurs à ses marques. Malgré les défis, Capri reste concentré sur ses initiatives stratégiques et sur son acquisition en attente par Tapestry, qui a été confrontée à une action en justice de la FTC. Versace, Jimmy Choo et Michael Kors ont tous connu une baisse de leurs revenus. Versace a enregistré une baisse de 15,4% de ses revenus, ceux de Jimmy Choo ont chuté de 5,5%, et ceux de Michael Kors ont diminué de 14,2%. La perte nette était de 14 millions de dollars, contre un bénéfice net de 48 millions de dollars l'année précédente. Le flux de trésorerie des opérations était de 83 millions de dollars, et la dette nette a diminué à 1,50 milliard de dollars.
Capri Holdings (NYSE:CPRI) berichtete über einen Rückgang von 13,2% bei den Einnahmen im ersten Quartal des Geschäftsjahres 2025 im Vergleich zum Vorjahr, mit einem Gesamtbetrag von 1,07 Milliarden US-Dollar. Die bereinigte operative Marge lag bei 1,5% und der bereinigte Gewinn pro Aktie betrug 0,04 USD. CEO John D. Idol erkannte die enttäuschenden Ergebnisse an und führte sie auf schwache globale Nachfrage nach Luxusgütern zurück. Das Unternehmen fügte 12,6 Millionen neue Verbraucher über seine Marken hinzu. Trotz der Herausforderungen bleibt Capri auf seine strategischen Initiativen und die bevorstehende Übernahme durch Tapestry fokussiert, die sich einer FTC-Klage gegenübersieht. Versace, Jimmy Choo und Michael Kors verzeichneten alle Einnahmerückgänge. Versace hatte einen Rückgang von 15,4% bei den Einnahmen, die Einnahmen von Jimmy Choo fielen um 5,5% und die Einnahmen von Michael Kors sanken um 14,2%. Der Nettoverlust betrug 14 Millionen USD, im Vergleich zu einem Nettogewinn von 48 Millionen USD im Vorjahr. Der Cashflow aus der Betriebstätigkeit betrug 83 Millionen USD, und die Nettoverschuldung sank auf 1,50 Milliarden USD.
- Added 12.6 million new consumers, 15% growth YoY
- Adjusted EPS of $0.04
- 13.2% decrease in revenue YoY
- Net loss of $14 million
- Versace revenue decreased by 15.4%
- Jimmy Choo revenue decreased by 5.5%
- Michael Kors revenue decreased by 14.2%
- Gross profit margin decreased to 64.6% from 66.1%
- Operating margin fell to -0.7% from 6.5%
- Net debt stands at $1.50 billion
Insights
Capri Holdings' Q1 FY2025 results paint a concerning picture for the luxury fashion conglomerate. The
The
While the addition of 12.6 million new consumers across brands is positive, it hasn't translated to revenue growth, indicating potential customer acquisition issues or reduced spending per customer. The pending Tapestry acquisition adds uncertainty, especially with the FTC lawsuit potentially complicating the process.
The luxury fashion market is facing a significant slowdown, as evidenced by Capri Holdings' results. The company's performance varies across regions, with the Americas showing relative resilience (only
The disconnect between consumer growth (
The wholesale channel's underperformance compared to retail suggests changing distribution dynamics, possibly due to retailer caution or a shift in consumer purchasing habits. Luxury brands may need to reassess their channel strategies to adapt to these evolving market conditions.
The FTC's lawsuit to block Capri Holdings' acquisition by Tapestry introduces significant legal and regulatory uncertainty. This development could have far-reaching implications for consolidation within the luxury fashion industry. The company's statement about "vigorously defending" the case alongside Tapestry suggests a protracted legal battle ahead.
This situation raises important questions about antitrust considerations in the luxury goods market. The FTC's concerns likely revolve around market concentration and potential impacts on competition. The outcome of this case could set precedents for future M&A activity in the sector.
Investors should be aware of potential risks and delays associated with the pending acquisition. If the deal falls through, it could impact Capri's strategic direction and stock valuation. Conversely, a successful defense against the FTC could pave the way for increased consolidation in the industry, potentially reshaping the competitive landscape.
(Photo: Business Wire)
First Quarter Fiscal 2025 Highlights
-
Revenue decreased
13.2% on a reported basis and12.1% in constant currency -
Adjusted operating margin of
1.5% -
Adjusted earnings per share of
$0.04
John D. Idol, the Company's Chairman and Chief Executive Officer, said, "Overall, we were disappointed with our first quarter results as performance continued to be impacted by softening demand globally for fashion luxury goods. We are continuing to manage our operating expenses and inventory levels carefully in light of the challenging global retail environment. Looking forward, we remain focused on executing our strategic initiatives to deliver long-term sustainable growth across each of our luxury houses."
Mr. Idol continued, "Versace, Jimmy Choo and Michael Kors continued to resonate with consumers as evidenced by the 12.6 million new consumers added across our databases, representing
Mr. Idol concluded, “Last August Capri Holdings announced that we entered into a definitive agreement to be acquired by Tapestry. In April, the FTC filed a lawsuit to block the proposed transaction. As we previously stated, Capri intends to vigorously defend this case alongside Tapestry and we look forward to the successful completion of the pending acquisition. This combination will deliver value to our shareholders as well as provide new opportunities for our dedicated employees around the world as Capri Holdings becomes part of a larger and more diversified company. By joining with Tapestry, our brands will have greater resources and capabilities to accelerate the expansion of their global reach while preserving their unique DNA.”
First Quarter Fiscal 2025 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
Overview of Capri Holdings First Quarter Fiscal 2025 Results
-
Total revenue of
decreased$1.07 billion 13.2% compared to last year. On a constant currency basis, total revenue decreased12.1% . Total company retail sales declined low-double-digits with trends being impacted by softening demand globally for fashion luxury goods. In wholesale, revenue decreased high-teens driven by softer demand globally. -
Gross profit was
and gross margin was$689 million 64.6% , compared to and$812 million 66.1% in the prior year. Gross profit margin decreased relative to prior year primarily driven by lower full price sell-throughs. -
Loss from operations was
and operating margin was (0.7)%, compared to income from operations of$8 million and operating margin of$80 million 6.5% in the prior year. Adjusted income from operations was and adjusted operating margin was$16 million 1.5% , compared to and$111 million 9.0% in the prior year. The decline in operating margin reflects lower gross margin and expense deleverage on lower revenue. -
Net loss was
, or$14 million per diluted share, compared to net income of$(0.11) , or$48 million per diluted share, in the prior year. Adjusted net income was$0.41 , or$4 million per diluted share, compared to$0.04 , or$88 million per diluted share, in the prior year period.$0.74 -
Net inventory as of June 29, 2024 was
, a$902 million 23% decrease compared to the prior year reflecting the Company's ongoing diligent inventory management. -
Cash flow from operating activities for the first quarter was an inflow of
, while free cash flow was an inflow of$83 million versus an outflow of$40 million last year.$10 million -
Cash and cash equivalents totaled
, and total borrowings outstanding were$213 million , resulting in net debt of$1.71 billion versus$1.50 billion last year.$1.70 billion
Versace First Quarter Fiscal 2025 Results
-
Versace revenue of
decreased$219 million 15.4% on a reported basis and14.3% on a constant currency basis compared to prior year. The decline was primarily driven by softening demand globally for fashion luxury goods. Retail sales decreased high-single-digits while wholesale revenue decreased double-digits. Revenue in theAmericas declined15% , while revenue in EMEA decreased22% and revenue inAsia declined3% . Versace’s global database increased by 1.3 million new consumers, representing20% growth over the last year. -
Versace operating loss was
and operating margin was (7.8)%, compared to operating income of$17 million and operating margin of$3 million 1.2% in the prior year. The decline in operating margin rate was primarily due to lower full price sell-throughs and expense deleverage on lower revenue.
Jimmy Choo First Quarter Fiscal 2025 Results
-
Jimmy Choo revenue of
decreased$173 million 5.5% on a reported basis and3.8% on a constant currency basis compared to prior year driven primarily by softening demand globally for fashion luxury goods. Retail sales decreased mid-single-digits while wholesale revenue decreased low-single-digits. Revenue in theAmericas increased6% , while revenue in EMEA decreased5% and revenue inAsia declined17% . Jimmy Choo’s global database increased by 0.7 million new consumers, representing13% growth over the last year. -
Jimmy Choo operating income was
and operating margin was$4 million 2.3% , compared to and$16 million 8.7% in the prior year. The decline in operating margin rate was primarily due to higher store related costs and expense deleverage on lower revenue.
Michael Kors First Quarter Fiscal 2025 Results
-
Michael Kors revenue of
decreased$675 million 14.2% on a reported basis and13.3% on a constant currency basis compared to prior year. The decline was primarily attributable to softening demand globally for fashion luxury goods. Retail sales declined low-teens while wholesale revenue decreased high-teens. Revenue in theAmericas declined10% , while revenue in EMEA decreased21% and revenue inAsia declined23% . Michael Kors’ global database increased by 10.6 million new consumers, representing15% growth over the last year. -
Michael Kors operating income was
and operating margin was$75 million 11.1% , compared to and$130 million 16.5% in the prior year. The decline in operating margin rate was primarily related to lower full price sell-throughs and expense deleverage on lower revenue.
Outlook and Conference Call
As previously stated, given the pending merger transaction with a wholly owned subsidiary of Tapestry, Inc. (the "Merger"), the Company is not providing financial guidance or hosting a conference 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
About Capri Holdings Limited
Capri Holdings is a global fashion luxury group consisting of iconic, founder-led brands Versace, Jimmy Choo and Michael Kors. Our commitment to glamorous style and craftsmanship is at the heart of each of our luxury brands. We have built our reputation on designing exceptional, innovative products that cover the full spectrum of fashion luxury categories. Our strength lies in the unique DNA and heritage of each of our brands, the diversity and passion of our people and our dedication to the clients and communities we serve. 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 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. 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, including regarding the pending Merger. These risks, uncertainties and other factors include but are not limited to, our ability to respond to changing fashion, consumer traffic and retail trends; fluctuations in demand for our products; high consumer debt levels, recession and inflationary pressures; loss of market share and increased competition; reductions in our wholesale channel; the impact of the COVID-19 pandemic, or other unforeseen epidemics, pandemics, disasters or catastrophes; levels of cash flow and future availability of credit; Capri’s ability to successfully execute its growth strategies; departure of key employees or failure to attract and retain highly qualified personnel; risks associated with operating in international markets and global sourcing activities, including disruptions or delays in manufacturing or shipments; the risk of cybersecurity threats and privacy or data security breaches; extreme weather conditions and natural disasters; general economic, political, business or market conditions; acts of war and other geopolitical conflicts; the outcome of the
SCHEDULE 1 | ||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
|
||||||||
|
|
Three Months Ended |
||||||
|
|
June 29,
|
|
July 1,
|
||||
Total revenue |
|
$ |
1,067 |
|
|
$ |
1,229 |
|
Cost of goods sold |
|
|
378 |
|
|
|
417 |
|
Gross profit |
|
|
689 |
|
|
|
812 |
|
Total operating expenses |
|
|
697 |
|
|
|
732 |
|
(Loss) income from operations |
|
|
(8 |
) |
|
|
80 |
|
Other expense, net |
|
|
— |
|
|
|
1 |
|
Interest (income) expense, net |
|
|
(4 |
) |
|
|
8 |
|
Foreign currency loss |
|
|
5 |
|
|
|
21 |
|
(Loss) income before income taxes |
|
|
(9 |
) |
|
|
50 |
|
Provision for income taxes |
|
|
3 |
|
|
|
2 |
|
Net (loss) income |
|
|
(12 |
) |
|
|
48 |
|
Less: Net income attributable to noncontrolling interest |
|
|
2 |
|
|
|
— |
|
Net (loss) income attributable to Capri |
|
$ |
(14 |
) |
|
$ |
48 |
|
Weighted average ordinary shares outstanding: |
|
|
|
|
||||
Basic |
|
|
117,440,282 |
|
|
|
117,431,941 |
|
Diluted |
|
|
117,440,282 |
|
|
|
118,282,633 |
|
Net (loss) income per ordinary share: |
|
|
|
|
||||
Basic |
|
$ |
(0.11 |
) |
|
$ |
0.41 |
|
Diluted |
|
$ |
(0.11 |
) |
|
$ |
0.41 |
SCHEDULE 2 |
||||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
|
||||||||||||
|
|
June 29,
|
|
March 30,
|
|
July 1,
|
||||||
Assets |
|
|
|
|
|
|
||||||
Current assets |
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
213 |
|
|
$ |
199 |
|
|
$ |
238 |
|
Receivables, net |
|
|
292 |
|
|
|
332 |
|
|
|
300 |
|
Inventories, net |
|
|
902 |
|
|
|
862 |
|
|
|
1,166 |
|
Prepaid expenses and other current assets |
|
|
197 |
|
|
|
215 |
|
|
|
216 |
|
Total current assets |
|
|
1,604 |
|
|
|
1,608 |
|
|
|
1,920 |
|
Property and equipment, net |
|
|
573 |
|
|
|
579 |
|
|
|
551 |
|
Operating lease right-of-use assets |
|
|
1,385 |
|
|
|
1,438 |
|
|
|
1,359 |
|
Intangible assets, net |
|
|
1,378 |
|
|
|
1,394 |
|
|
|
1,737 |
|
Goodwill |
|
|
1,108 |
|
|
|
1,106 |
|
|
|
1,308 |
|
Deferred tax assets |
|
|
351 |
|
|
|
352 |
|
|
|
312 |
|
Other assets |
|
|
218 |
|
|
|
212 |
|
|
|
222 |
|
Total assets |
|
$ |
6,617 |
|
|
$ |
6,689 |
|
|
$ |
7,409 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
||||||
Current liabilities |
|
|
|
|
|
|
||||||
Accounts payable |
|
$ |
416 |
|
|
$ |
352 |
|
|
$ |
476 |
|
Accrued payroll and payroll related expenses |
|
|
105 |
|
|
|
107 |
|
|
|
121 |
|
Accrued income taxes |
|
|
45 |
|
|
|
64 |
|
|
|
82 |
|
Short-term operating lease liabilities |
|
|
374 |
|
|
|
400 |
|
|
|
416 |
|
Short-term debt |
|
|
461 |
|
|
|
462 |
|
|
|
13 |
|
Accrued expenses and other current liabilities |
|
|
296 |
|
|
|
310 |
|
|
|
340 |
|
Total current liabilities |
|
|
1,697 |
|
|
|
1,695 |
|
|
|
1,448 |
|
Long-term operating lease liabilities |
|
|
1,391 |
|
|
|
1,452 |
|
|
|
1,354 |
|
Deferred tax liabilities |
|
|
361 |
|
|
|
362 |
|
|
|
505 |
|
Long-term debt |
|
|
1,252 |
|
|
|
1,261 |
|
|
|
1,924 |
|
Other long-term liabilities |
|
|
334 |
|
|
|
319 |
|
|
|
366 |
|
Total liabilities |
|
|
5,035 |
|
|
|
5,089 |
|
|
|
5,597 |
|
Commitments and contingencies |
|
|
|
|
|
|
||||||
Shareholders’ equity |
|
|
|
|
|
|
||||||
Ordinary shares, no par value; 650,000,000 shares authorized; 227,517,072 shares issued and 117,781,894 outstanding at June 29, 2024; 226,271,074 shares issued and 116,629,634 outstanding at March 30, 2024 and 225,684,542 shares issued and 116,064,396 outstanding at July 1, 2023 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Treasury shares, at cost (109,735,178 shares at June 29, 2024, 109,641,440 shares at March 30, 2024 and 109,620,146 shares at July 1, 2023) |
|
|
(5,461 |
) |
|
|
(5,458 |
) |
|
|
(5,457 |
) |
Additional paid-in capital |
|
|
1,443 |
|
|
|
1,417 |
|
|
|
1,375 |
|
Accumulated other comprehensive income |
|
|
132 |
|
|
|
161 |
|
|
|
137 |
|
Retained earnings |
|
|
5,465 |
|
|
|
5,479 |
|
|
|
5,756 |
|
Total shareholders’ equity of Capri |
|
|
1,579 |
|
|
|
1,599 |
|
|
|
1,811 |
|
Noncontrolling interest |
|
|
3 |
|
|
|
1 |
|
|
|
1 |
|
Total shareholders’ equity |
|
|
1,582 |
|
|
|
1,600 |
|
|
|
1,812 |
|
Total liabilities and shareholders’ equity |
|
$ |
6,617 |
|
|
$ |
6,689 |
|
|
$ |
7,409 |
|
SCHEDULE 3 |
||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
|
||||||||||
|
|
Three Months Ended |
||||||||
|
|
June 29,
|
|
July 1,
|
||||||
Revenue by Segment and Region: |
|
|
|
|
||||||
|
|
|
|
|
|
|
||||
Versace |
|
The |
|
$ |
70 |
|
|
$ |
82 |
|
|
|
EMEA |
|
|
90 |
|
|
|
116 |
|
|
|
|
|
|
59 |
|
|
|
61 |
|
Versace Revenue |
|
|
219 |
|
|
|
259 |
|
||
|
|
|
|
|
|
|
||||
Jimmy Choo |
|
The |
|
|
52 |
|
|
|
49 |
|
|
|
EMEA |
|
|
77 |
|
|
|
81 |
|
|
|
|
|
|
44 |
|
|
|
53 |
|
Jimmy Choo Revenue |
|
|
173 |
|
|
|
183 |
|
||
|
|
|
|
|
|
|
||||
Michael Kors |
|
The |
|
|
451 |
|
|
|
501 |
|
|
|
EMEA |
|
|
138 |
|
|
|
175 |
|
|
|
|
|
|
86 |
|
|
|
111 |
|
Michael Kors Revenue |
|
|
675 |
|
|
|
787 |
|
||
|
|
|
|
|
||||||
Total Revenue |
|
$ |
1,067 |
|
|
$ |
1,229 |
|
||
|
|
|
|
|
||||||
Income (loss) from Operations: |
|
|
|
|
||||||
Versace |
|
|
|
$ |
(17 |
) |
|
$ |
3 |
|
Jimmy Choo |
|
|
|
|
4 |
|
|
|
16 |
|
Michael Kors |
|
|
|
|
75 |
|
|
|
130 |
|
Total segment income from operations |
|
|
62 |
|
|
|
149 |
|
||
Less: Corporate expenses |
|
|
(64 |
) |
|
|
(71 |
) |
||
Merger related costs |
|
(5 |
) |
|
|
— |
|
|||
Restructuring and other (expense) income |
|
|
(1 |
) |
|
|
2 |
|
||
Total (Loss) Income from Operations |
|
$ |
(8 |
) |
|
$ |
80 |
|
||
|
|
|
|
|
|
|
||||
Operating Margin: |
|
|
|
|
|
|
||||
Versace |
|
|
|
|
(7.8 |
)% |
|
|
1.2 |
% |
Jimmy Choo |
|
|
|
|
2.3 |
% |
|
|
8.7 |
% |
Michael Kors |
|
|
|
|
11.1 |
% |
|
|
16.5 |
% |
Capri |
|
|
|
|
(0.7 |
)% |
|
|
6.5 |
% |
SCHEDULE 4 |
||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
|
||||||
|
|
|
|
As of |
||
Retail Store Information: |
|
June 29,
|
|
July 1,
|
||
Versace |
|
239 |
|
224 |
||
Jimmy Choo |
|
227 |
|
237 |
||
Michael Kors |
|
764 |
|
810 |
||
Total number of retail stores |
|
|
|
1,230 |
|
1,271 |
SCHEDULE 5 |
||||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
|
||||||||||||
|
|
Three Months Ended |
|
% Change |
||||||||
|
|
June 29,
|
|
July 1,
|
|
As
|
|
Constant
|
||||
Total Revenue: |
|
|
|
|
|
|
|
|
||||
Versace |
|
$ |
219 |
|
$ |
259 |
|
(15.4 |
)% |
|
(14.3 |
)% |
Jimmy Choo |
|
|
173 |
|
|
183 |
|
(5.5 |
)% |
|
(3.8 |
)% |
Michael Kors |
|
|
675 |
|
|
787 |
|
(14.2 |
)% |
|
(13.3 |
)% |
Total Revenue |
|
$ |
1,067 |
|
$ |
1,229 |
|
(13.2 |
)% |
|
(12.1 |
)% |
SCHEDULE 6 |
||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
||||||||||||||||||||||||
|
|
Three Months Ended June 29, 2024 |
||||||||||||||||||||||
|
|
As
|
|
Restructuring
|
|
ERP
|
|
Capri
|
|
Merger
|
|
As
|
||||||||||||
Gross profit |
|
$ |
689 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses |
|
$ |
697 |
|
|
$ |
(1 |
) |
|
$ |
(4 |
) |
|
$ |
(14 |
) |
|
$ |
(5 |
) |
|
$ |
673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total (loss) income from operations |
|
$ |
(8 |
) |
|
$ |
1 |
|
|
$ |
4 |
|
|
$ |
14 |
|
|
$ |
5 |
|
|
$ |
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Loss) income before provision for income taxes |
|
$ |
(9 |
) |
|
$ |
1 |
|
|
$ |
4 |
|
|
$ |
14 |
|
|
$ |
5 |
|
|
$ |
15 |
|
Provision for income taxes |
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
4 |
|
|
$ |
1 |
|
|
$ |
9 |
|
Net (loss) income attributable to Capri |
|
$ |
(14 |
) |
|
$ |
1 |
|
|
$ |
3 |
|
|
$ |
10 |
|
|
$ |
4 |
|
|
$ |
4 |
|
Diluted net (loss) income per ordinary share - Capri |
|
$ |
(0.11 |
) |
|
$ |
0.01 |
|
|
$ |
0.03 |
|
|
$ |
0.08 |
|
|
$ |
0.03 |
|
|
$ |
0.04 |
______________________ |
|
(1) |
Amounts impacting operating expenses primarily relate to Global Optimization Plan costs of lease termination and store closure costs. |
(2) |
Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. |
(3) |
The Capri transformation program represents a multi-year, multi-project initiative extending through Fiscal 2026 intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure. During Fiscal 2024, the remaining transformation projects were paused due to the pending Merger and we will reassess this program, along with related timing, during Fiscal 2025. |
SCHEDULE 7 |
||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
||||||||||||||||||||
|
|
Three Months Ended July 1, 2023 |
||||||||||||||||||
|
|
As Reported |
|
Restructuring and
|
|
ERP
|
|
Capri
|
|
As Adjusted |
||||||||||
Gross profit |
|
$ |
812 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
812 |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses |
|
$ |
732 |
|
$ |
2 |
|
|
$ |
(5 |
) |
|
$ |
(28 |
) |
|
$ |
701 |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total income from operations |
|
$ |
80 |
|
$ |
(2 |
) |
|
$ |
5 |
|
|
$ |
28 |
|
|
$ |
111 |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency loss |
|
$ |
21 |
|
$ |
(17 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4 |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before provision for income taxes |
|
$ |
50 |
|
$ |
15 |
|
|
$ |
5 |
|
|
$ |
28 |
|
|
$ |
98 |
||
Provision for income taxes |
|
$ |
2 |
|
$ |
3 |
|
|
$ |
1 |
|
|
$ |
4 |
|
|
$ |
10 |
||
Net income attributable to Capri |
|
$ |
48 |
|
$ |
12 |
|
|
$ |
4 |
|
|
$ |
24 |
|
|
$ |
88 |
||
Diluted net income per ordinary share - Capri |
|
$ |
0.41 |
|
$ |
0.10 |
|
|
$ |
0.03 |
|
|
$ |
0.20 |
|
|
$ |
0.74 |
______________________ |
|
(1) |
Amounts impacting operating expenses primarily includes a gain on the sale of a long-lived corporate asset, partially offset by expenses related to equity awards associated with the acquisition of Gianni Versace S.r.l. and severance expenses. The foreign currency exchange loss represents a charge recognized in conjunction with restructuring activities to rationalize certain legal entities within our structure. |
(2) |
Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. |
(3) |
The Capri transformation program represents a multi-year, multi-project initiative extending through Fiscal 2026 intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808746293/en/
Investor Relations:
Jennifer Davis
+1 (201) 514-8234
Jennifer.Davis@CapriHoldings.com
Media:
Press@CapriHoldings.com
Source: Capri Holdings Limited
FAQ
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