Capri Holdings Limited Announces Second Quarter Fiscal 2025 Results
Capri Holdings (NYSE:CPRI) announced its second quarter fiscal 2025 results, ending September 28, 2024. The company reported a 16.4% revenue decrease to $1.08 billion, with an adjusted operating margin of 3.0% and adjusted earnings per share of $0.65. CEO John D. Idol noted the impact of softening global demand for luxury goods. The company added 10.9 million new consumers across its brands, a 13% increase from last year. Despite the challenging environment, Capri is focused on long-term growth.
Key brand performances include:
- Versace: Revenue down 28.2%, operating loss of $3 million.
- Jimmy Choo: Revenue up 6.1%, operating loss of $5 million.
- Michael Kors: Revenue down 16.0%, operating income of $87 million.
Capri is appealing a District Court decision that enjoined its acquisition by Tapestry pending an FTC administrative proceeding.
Capri Holdings (NYSE:CPRI) ha annunciato i risultati del secondo trimestre fiscale 2025, chiuso il 28 settembre 2024. L'azienda ha riportato un calo del fatturato del 16,4%, con ricavi pari a $1,08 miliardi, un margine operativo rettificato del 3,0% e utili per azione rettificati di $0,65. Il CEO John D. Idol ha evidenziato l'impatto della diminuzione della domanda globale per beni di lusso. L'azienda ha acquisito 10,9 milioni di nuovi consumatori attraverso i suoi marchi, un aumento del 13% rispetto all'anno scorso. Nonostante l'ambiente difficile, Capri è concentrata sulla crescita a lungo termine.
Le performance chiave dei marchi includono:
- Versace: Fatturato in calo del 28,2%, perdita operativa di $3 milioni.
- Jimmy Choo: Fatturato in aumento del 6,1%, perdita operativa di $5 milioni.
- Michael Kors: Fatturato in calo del 16,0%, utile operativo di $87 milioni.
Capri sta appellandosi a una decisione del Tribunale Distrettuale che ha bloccato la sua acquisizione da parte di Tapestry in attesa di una procedura amministrativa dell'FTC.
Capri Holdings (NYSE:CPRI) anunció sus resultados del segundo trimestre fiscal 2025, finalizado el 28 de septiembre de 2024. La compañía reportó una disminución del 16.4% en los ingresos a $1.08 mil millones, con un margen operativo ajustado del 3.0% y ganancias por acción ajustadas de $0.65. El CEO John D. Idol señaló el impacto de la suavización de la demanda global de productos de lujo. La empresa incorporó 10.9 millones de nuevos consumidores en sus marcas, un aumento del 13% en comparación con el año pasado. A pesar del entorno desafiante, Capri se centra en el crecimiento a largo plazo.
Las actuaciones clave de las marcas incluyen:
- Versace: Ingresos disminuidos en un 28.2%, pérdida operativa de $3 millones.
- Jimmy Choo: Ingresos aumentados en un 6.1%, pérdida operativa de $5 millones.
- Michael Kors: Ingresos disminuidos en un 16.0%, ingreso operativo de $87 millones.
Capri está apelando una decisión del Tribunal de Distrito que impidió su adquisición por parte de Tapestry en espera de un procedimiento administrativo de la FTC.
카프리 홀딩스 (NYSE:CPRI)는 2025 회계연도 2분기 결과를 발표했으며, 이는 2024년 9월 28일로 끝납니다. 회사는 매출이 16.4% 감소하여 10억 8000만 달러에 도달했으며, 조정된 운영 마진은 3.0%이고 조정된 주당 순이익은 $0.65입니다. CEO 존 D. 아이돌은 럭셔리 상품에 대한 세계적인 수요 감소의 영향을 언급했습니다. 이 회사는 브랜드 전반에 걸쳐 1,090만 명의 새로운 소비자를 추가했으며, 이는 작년 대비 13% 증가한 수치입니다. 어려운 환경에도 불구하고 카프리는 장기적인 성장에 집중하고 있습니다.
주요 브랜드 성과는 다음과 같습니다:
- 베르사체: 매출이 28.2% 감소하고, 운영 손실은 300만 달러입니다.
- 지미 추: 매출이 6.1% 증가하고, 운영 손실은 500만 달러입니다.
- 마이클 코어스: 매출이 16.0% 감소하고, 운영 수익은 8700만 달러입니다.
카프리는 Tapestry의 인수를 금지한 지방 법원의 결정을 항소하고 있으며, FTC의 행정 절차를 기다리고 있습니다.
Capri Holdings (NYSE:CPRI) a annoncé ses résultats du deuxième trimestre de l'exercice 2025, se terminant le 28 septembre 2024. L'entreprise a signalé une baisse des revenus de 16,4% à 1,08 milliard de dollars, avec une marge opérationnelle ajustée de 3,0% et un bénéfice par action ajusté de 0,65 $. Le PDG John D. Idol a souligné l'impact d'une demande mondiale en matière de luxe en diminution. La société a ajouté 10,9 millions de nouveaux consommateurs à ses marques, soit une augmentation de 13 % par rapport à l'année dernière. Malgré un environnement difficile, Capri reste concentrée sur la croissance à long terme.
Les performances clés des marques incluent :
- Versace : Revenu en baisse de 28,2 %, perte d'exploitation de 3 millions de dollars.
- Jimmy Choo : Revenu en hausse de 6,1 %, perte d'exploitation de 5 millions de dollars.
- Michael Kors : Revenu en baisse de 16,0 %, bénéfice d'exploitation de 87 millions de dollars.
Capri fait appel d'une décision du tribunal de district qui a interdit son acquisition par Tapestry dans l'attente d'une procédure administrative de la FTC.
Capri Holdings (NYSE:CPRI) hat seine Ergebnisse für das zweite Quartal des Geschäftsjahres 2025, das am 28. September 2024 endete, bekannt gegeben. Das Unternehmen berichtete von einem Rückgang des Umsatzes um 16,4% auf 1,08 Milliarden Dollar, mit einer bereinigten Betriebsspanne von 3,0% und bereinigten Ergebnissen je Aktie von 0,65 Dollar. CEO John D. Idol wies auf die Auswirkungen einer nachlassenden globalen Nachfrage nach Luxusgütern hin. Das Unternehmen gewann 10,9 Millionen neue Verbraucher in seinen Marken, was einem Anstieg von 13% im Vergleich zum Vorjahr entspricht. Trotz des herausfordernden Umfelds konzentriert sich Capri auf langfristiges Wachstum.
Die wichtigsten Markenleistungen umfassen:
- Versace: Umsatzrückgang um 28,2%, Betriebsverlust von 3 Millionen Dollar.
- Jimmy Choo: Umsatzsteigerung um 6,1%, Betriebsverlust von 5 Millionen Dollar.
- Michael Kors: Umsatzrückgang um 16,0%, Betriebseinkommen von 87 Millionen Dollar.
Capri legt Berufung gegen eine Entscheidung des Bezirksgerichts ein, die seine Übernahme durch Tapestry im Rahmen eines laufenden FTC-Verwaltungsverfahrens untersagt.
- Capri Holdings added 10.9 million new consumers, a 13% increase.
- Jimmy Choo revenue increased by 6.1%.
- Total revenue decreased by 16.4%.
- Adjusted earnings per share fell to $0.65 from $1.13.
- Gross profit margin declined by 10 basis points.
- Operating margin dropped to (3.5)% from 7.7%.
- Net income fell to $24 million from $90 million.
- Versace revenue decreased by 28.2%.
- Michael Kors revenue decreased by 16.0%.
Insights
The Q2 FY2025 results reveal significant challenges for Capri Holdings, with revenue declining -16.4% to
- Operating margin contracted sharply to
3.0% from12.2% - Versace revenue dropped
28.2% with operating margin turning negative - Michael Kors, the largest segment, saw revenue decline
16.0% with operating margin falling to11.8%
While inventory management improved with a
(Photo: Business Wire)
Second Quarter Fiscal 2025 Highlights
-
Revenue decreased
16.4% on a reported basis and16.4% in constant currency -
Adjusted operating margin of
3.0% -
Adjusted earnings per share of
$0.65
John D. Idol, the Company's Chairman and Chief Executive Officer, said, “Overall, we were disappointed with our second quarter results as performance continued to be impacted by softening demand globally for fashion luxury goods. Despite the challenging global retail environment, we remain focused on executing our strategic initiatives to deliver long-term sustainable growth across all three of our luxury houses.”
Mr. Idol continued, “Versace, Jimmy Choo and Michael Kors continued to resonate with consumers as evidenced by the 10.9 million new consumers added across our databases, representing
Mr. Idol concluded, “In August 2023 Capri Holdings announced that we entered into a definitive agreement to be acquired by Tapestry. The District Court recently granted the FTC’s motion for a preliminary injunction to enjoin the transaction pending the FTC’s in-house administrative proceeding. We are disappointed with the decision, and consistent with our obligations under the merger agreement, Tapestry and Capri have jointly filed a notice of appeal.”
Second 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 Second Quarter Fiscal 2025 Results
-
Total revenue of
decreased$1.08 billion 16.4% on both a reported and constant currency basis compared to last year. Total company retail sales declined high-single-digits with trends being impacted by softening demand globally for fashion luxury goods. In wholesale, revenue decreased double-digits driven by softer demand globally. -
Gross profit was
and gross margin was$694 million 64.3% , compared to and$832 million 64.4% in the prior year. Gross profit margin declined 10 basis points with favorable channel mix offset by lower full price sell-throughs. -
Loss from operations was
and operating margin was (3.5)%, compared to income from operations of$38 million and operating margin of$100 million 7.7% in the prior year. Adjusted income from operations was and adjusted operating margin was$32 million 3.0% , compared to and$157 million 12.2% in the prior year. The decline in operating margin primarily reflects expense deleverage on lower revenue. -
Net income was
, or$24 million per diluted share, compared to net income of$0.20 , or$90 million per diluted share, in the prior year. Adjusted net income was$0.77 , or$77 million per diluted share, compared to$0.65 , or$133 million per diluted share, in the prior year period.$1.13 -
Net inventory as of September 28, 2024 was
, a$984 million 10% decrease compared to the prior year. -
Cash flow from operating activities for the second quarter was an inflow of
, while free cash flow was an inflow of$50 million versus an outflow of$23 million last year.$177 million -
Cash and cash equivalents totaled
, and total borrowings outstanding were$182 million , resulting in net debt of$1.71 billion versus$1.53 billion last year.$1.86 billion
Versace Second Quarter Fiscal 2025 Results
-
Versace revenue of
decreased$201 million 28.2% on both a reported basis and constant currency basis compared to prior year. Retail sales decreased high-teens while wholesale revenue decreased double-digits. Revenue in theAmericas declined33% , while revenue in EMEA decreased28% and revenue inAsia declined20% . Versace’s global database increased by 1.1 million new consumers, representing16% growth over the last year. -
Versace operating loss was
and operating margin was (1.5)%, compared to operating income of$3 million and operating margin of$35 million 12.5% in the prior year. The decline in operating margin rate was primarily due to expense deleverage on lower revenue.
Jimmy Choo Second Quarter Fiscal 2025 Results
-
Jimmy Choo revenue of
increased$140 million 6.1% on a reported basis and5.3% on a constant currency basis compared to prior year. Retail sales decreased low-single-digits while wholesale revenue increased double-digits. Revenue in theAmericas declined8% , while revenue in EMEA increased25% and revenue inAsia decreased8% . Jimmy Choo’s global database increased by 0.7 million new consumers, representing13% growth over the last year. -
Jimmy Choo operating loss was
and operating margin was (3.6)%, compared to operating loss of$5 million and operating margin of (6.8)% in the prior year. The improvement in operating margin rate was primarily due to expense leverage on higher revenue compared to the prior year.$9 million
Michael Kors Second Quarter Fiscal 2025 Results
-
Michael Kors revenue of
decreased$738 million 16.0% on a reported basis and15.9% on a constant currency basis compared to prior year. Retail sales decreased mid-single-digits while wholesale revenue declined double-digits. Revenue in theAmericas decreased12% , while revenue in EMEA declined15% and revenue inAsia decreased43% . Michael Kors’ global database increased by 9 million new consumers, representing12% growth over the last year. -
Michael Kors operating income was
and operating margin was$87 million 11.8% , compared to and$169 million 19.2% in the prior year. The decline in operating margin rate was primarily related to expense deleverage on lower revenue.
Outlook and Conference Call
As previously stated, given the proposed merger transaction with a wholly owned subsidiary of Tapestry, Inc. (the “Merger”), and the pending appeal of the District Court's decision to grant the FTC's motion for a preliminary injunction with regards to the transaction, 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 proposed 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
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 28,
|
|
September 30,
|
|
September 28,
|
|
September 30,
|
|||||||
Total revenue |
|
$ |
1,079 |
|
|
$ |
1,291 |
|
|
$ |
2,146 |
|
|
$ |
2,520 |
Cost of goods sold |
|
|
385 |
|
|
|
459 |
|
|
|
763 |
|
|
|
876 |
Gross profit |
|
|
694 |
|
|
|
832 |
|
|
|
1,383 |
|
|
|
1,644 |
Total operating expenses |
|
|
732 |
|
|
|
732 |
|
|
|
1,429 |
|
|
|
1,464 |
(Loss) income from operations |
|
|
(38 |
) |
|
|
100 |
|
|
|
(46 |
) |
|
|
180 |
Other income, net |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
Interest (income) expense, net |
|
|
(10 |
) |
|
|
3 |
|
|
|
(14 |
) |
|
|
11 |
Foreign currency (gain) loss |
|
|
(17 |
) |
|
|
(3 |
) |
|
|
(12 |
) |
|
|
18 |
(Loss) income before income taxes |
|
|
(11 |
) |
|
|
101 |
|
|
|
(20 |
) |
|
|
151 |
(Benefit) provision for income taxes |
|
|
(34 |
) |
|
|
11 |
|
|
|
(31 |
) |
|
|
13 |
Net income |
|
|
23 |
|
|
|
90 |
|
|
|
11 |
|
|
|
138 |
Less: Net (loss) income attributable to noncontrolling interest |
|
|
(1 |
) |
|
|
— |
|
|
|
1 |
|
|
|
— |
Net income attributable to Capri |
|
$ |
24 |
|
|
$ |
90 |
|
|
$ |
10 |
|
|
$ |
138 |
Weighted average ordinary shares outstanding: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
|
118,467,372 |
|
|
|
116,674,030 |
|
|
|
117,953,855 |
|
|
|
117,052,986 |
Diluted |
|
|
118,777,723 |
|
|
|
117,563,573 |
|
|
|
118,517,098 |
|
|
|
117,923,103 |
Net income per ordinary share: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
0.20 |
|
|
$ |
0.77 |
|
|
$ |
0.09 |
|
|
$ |
1.18 |
Diluted |
|
$ |
0.20 |
|
|
$ |
0.77 |
|
|
$ |
0.09 |
|
|
$ |
1.17 |
SCHEDULE 2 |
||||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||||||
(In millions, except share data) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
September 28,
|
|
March 30,
|
|
September 30,
|
||||||
Assets |
|
|
|
|
|
|
||||||
Current assets |
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
182 |
|
|
$ |
199 |
|
|
$ |
238 |
|
Receivables, net |
|
|
298 |
|
|
|
332 |
|
|
|
383 |
|
Inventories, net |
|
|
984 |
|
|
|
862 |
|
|
|
1,099 |
|
Prepaid expenses and other current assets |
|
|
203 |
|
|
|
215 |
|
|
|
270 |
|
Total current assets |
|
|
1,667 |
|
|
|
1,608 |
|
|
|
1,990 |
|
Property and equipment, net |
|
|
565 |
|
|
|
579 |
|
|
|
542 |
|
Operating lease right-of-use assets |
|
|
1,375 |
|
|
|
1,438 |
|
|
|
1,307 |
|
Intangible assets, net |
|
|
1,418 |
|
|
|
1,394 |
|
|
|
1,676 |
|
Goodwill |
|
|
1,153 |
|
|
|
1,106 |
|
|
|
1,268 |
|
Deferred tax assets |
|
|
410 |
|
|
|
352 |
|
|
|
308 |
|
Other assets |
|
|
204 |
|
|
|
212 |
|
|
|
255 |
|
Total assets |
|
$ |
6,792 |
|
|
$ |
6,689 |
|
|
$ |
7,346 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
||||||
Current liabilities |
|
|
|
|
|
|
||||||
Accounts payable |
|
$ |
472 |
|
|
$ |
352 |
|
|
$ |
355 |
|
Accrued payroll and payroll related expenses |
|
|
108 |
|
|
|
107 |
|
|
|
95 |
|
Accrued income taxes |
|
|
37 |
|
|
|
64 |
|
|
|
82 |
|
Short-term operating lease liabilities |
|
|
377 |
|
|
|
400 |
|
|
|
406 |
|
Short-term debt |
|
|
471 |
|
|
|
462 |
|
|
|
15 |
|
Accrued expenses and other current liabilities |
|
|
325 |
|
|
|
310 |
|
|
|
291 |
|
Total current liabilities |
|
|
1,790 |
|
|
|
1,695 |
|
|
|
1,244 |
|
Long-term operating lease liabilities |
|
|
1,387 |
|
|
|
1,452 |
|
|
|
1,291 |
|
Deferred tax liabilities |
|
|
356 |
|
|
|
362 |
|
|
|
508 |
|
Long-term debt |
|
|
1,237 |
|
|
|
1,261 |
|
|
|
2,079 |
|
Other long-term liabilities |
|
|
536 |
|
|
|
319 |
|
|
|
312 |
|
Total liabilities |
|
|
5,306 |
|
|
|
5,089 |
|
|
|
5,434 |
|
Commitments and contingencies |
|
|
|
|
|
|
||||||
Shareholders’ equity |
|
|
|
|
|
|
||||||
Ordinary shares, no par value; 650,000,000 shares authorized; 227,571,175 shares issued and 117,824,265 outstanding at September 28, 2024; 226,271,074 shares issued and 116,629,634 outstanding at March 30, 2024 and 225,768,777 shares issued and 116,140,358 outstanding at September 30, 2023 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Treasury shares, at cost (109,746,910 shares at September 28, 2024, 109,641,440 shares at March 30, 2024 and 109,628,419 shares at September 30, 2023) |
|
|
(5,462 |
) |
|
|
(5,458 |
) |
|
|
(5,457 |
) |
Additional paid-in capital |
|
|
1,454 |
|
|
|
1,417 |
|
|
|
1,392 |
|
Accumulated other comprehensive income |
|
|
3 |
|
|
|
161 |
|
|
|
130 |
|
Retained earnings |
|
|
5,489 |
|
|
|
5,479 |
|
|
|
5,846 |
|
Total shareholders’ equity of Capri |
|
|
1,484 |
|
|
|
1,599 |
|
|
|
1,911 |
|
Noncontrolling interest |
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
Total shareholders’ equity |
|
|
1,486 |
|
|
|
1,600 |
|
|
|
1,912 |
|
Total liabilities and shareholders’ equity |
|
$ |
6,792 |
|
|
$ |
6,689 |
|
|
$ |
7,346 |
|
SCHEDULE 3 |
||||||||||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||||||||||
CONSOLIDATED SEGMENT DATA |
||||||||||||||||||
($ in millions) |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
|
September 28,
|
|
September 30,
|
|
September 28,
|
|
September 30,
|
||||||||||
Revenue by Segment and Region: |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Versace |
|
The |
|
$ |
64 |
|
|
$ |
96 |
|
|
$ |
134 |
|
|
$ |
178 |
|
|
|
EMEA |
|
|
90 |
|
|
|
125 |
|
|
|
180 |
|
|
|
241 |
|
|
|
|
|
|
47 |
|
|
|
59 |
|
|
|
106 |
|
|
|
120 |
|
Versace Revenue |
|
|
201 |
|
|
|
280 |
|
|
|
420 |
|
|
|
539 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Jimmy Choo |
|
The |
|
|
35 |
|
|
|
38 |
|
|
|
87 |
|
|
|
87 |
|
|
|
EMEA |
|
|
71 |
|
|
|
57 |
|
|
|
148 |
|
|
|
138 |
|
|
|
|
|
|
34 |
|
|
|
37 |
|
|
|
78 |
|
|
|
90 |
|
Jimmy Choo Revenue |
|
|
140 |
|
|
|
132 |
|
|
|
313 |
|
|
|
315 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Michael Kors |
|
The |
|
|
492 |
|
|
|
556 |
|
|
|
943 |
|
|
|
1,057 |
|
|
|
EMEA |
|
|
187 |
|
|
|
219 |
|
|
|
325 |
|
|
|
394 |
|
|
|
|
|
|
59 |
|
|
|
104 |
|
|
|
145 |
|
|
|
215 |
|
Michael Kors Revenue |
|
|
738 |
|
|
|
879 |
|
|
|
1,413 |
|
|
|
1,666 |
|
||
|
|
|
|
|
|
|
|
|
||||||||||
Total Revenue |
|
$ |
1,079 |
|
|
$ |
1,291 |
|
|
$ |
2,146 |
|
|
$ |
2,520 |
|
||
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from Operations: |
|
|
|
|
|
|
|
|
||||||||||
Versace |
|
|
|
$ |
(3 |
) |
|
$ |
35 |
|
|
$ |
(20 |
) |
|
$ |
38 |
|
Jimmy Choo |
|
|
|
|
(5 |
) |
|
|
(9 |
) |
|
|
(1 |
) |
|
|
7 |
|
Michael Kors |
|
|
|
|
87 |
|
|
|
169 |
|
|
|
162 |
|
|
|
299 |
|
Total segment income from operations |
|
|
79 |
|
|
|
195 |
|
|
|
141 |
|
|
|
344 |
|
||
Less: Corporate expenses |
|
|
(63 |
) |
|
|
(71 |
) |
|
|
(127 |
) |
|
|
(142 |
) |
||
Impairment of assets |
|
|
(43 |
) |
|
|
(20 |
) |
|
|
(43 |
) |
|
|
(20 |
) |
||
Merger related costs |
|
(10 |
) |
|
|
(4 |
) |
|
|
(15 |
) |
|
|
(4 |
) |
|||
Restructuring and other (expense) income |
|
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
2 |
|
||
Total (Loss) Income from Operations |
|
$ |
(38 |
) |
|
$ |
100 |
|
|
$ |
(46 |
) |
|
$ |
180 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Margin: |
|
|
|
|
|
|
|
|
|
|
||||||||
Versace |
|
|
|
|
(1.5 |
)% |
|
|
12.5 |
% |
|
|
(4.8 |
)% |
|
|
7.1 |
% |
Jimmy Choo |
|
|
|
|
(3.6 |
)% |
|
|
(6.8 |
)% |
|
|
(0.3 |
)% |
|
|
2.2 |
% |
Michael Kors |
|
|
|
|
11.8 |
% |
|
|
19.2 |
% |
|
|
11.5 |
% |
|
|
17.9 |
% |
Capri |
|
|
|
|
(3.5 |
)% |
|
|
7.7 |
% |
|
|
(2.1 |
)% |
|
|
7.1 |
% |
SCHEDULE 4 | ||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES |
||||
SUPPLEMENTAL RETAIL STORE INFORMATION |
||||
(Unaudited) |
||||
|
|
As of |
||
Retail Store Information: |
|
September 28,
|
|
September 30,
|
Versace |
|
236 |
|
230 |
Jimmy Choo |
|
226 |
|
237 |
Michael Kors |
|
755 |
|
802 |
Total number of retail stores |
|
1,217 |
|
1,269 |
SCHEDULE 5 |
||||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||||
CONSTANT CURRENCY DATA |
||||||||||||
(In millions) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
Three Months Ended |
|
% Change |
||||||||
|
|
September 28,
|
|
September 30,
|
|
As Reported |
|
Constant Currency |
||||
Total Revenue: |
|
|
|
|
|
|
|
|
||||
Versace |
|
$ |
201 |
|
$ |
280 |
|
(28.2 |
)% |
|
(28.2 |
)% |
Jimmy Choo |
|
|
140 |
|
|
132 |
|
6.1 |
% |
|
5.3 |
% |
Michael Kors |
|
|
738 |
|
|
879 |
|
(16.0 |
)% |
|
(15.9 |
)% |
Total Revenue |
|
$ |
1,079 |
|
$ |
1,291 |
|
(16.4 |
)% |
|
(16.4 |
)% |
|
|
Six Months Ended |
|
% Change |
||||||||
|
|
September 28,
|
|
September 30,
|
|
As Reported |
|
Constant Currency |
||||
Total Revenue: |
|
|
|
|
|
|
|
|
||||
Versace |
|
$ |
420 |
|
$ |
539 |
|
(22.1 |
)% |
|
(21.5 |
)% |
Jimmy Choo |
|
|
313 |
|
|
315 |
|
(0.6 |
)% |
|
— |
% |
Michael Kors |
|
|
1,413 |
|
|
1,666 |
|
(15.2 |
)% |
|
(14.7 |
)% |
Total Revenue |
|
$ |
2,146 |
|
$ |
2,520 |
|
(14.8 |
)% |
|
(14.3 |
)% |
SCHEDULE 6 |
||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||
|
|
Three Months Ended September 28, 2024 |
||||||||||||||||||||||||||
|
|
As Reported |
|
Impairment Charges |
|
Restructuring and Other Charges (1) |
|
ERP Implementation(2) |
|
Capri Transformation (3) |
|
Merger Related Costs |
|
As Adjusted |
||||||||||||||
Gross profit |
|
$ |
694 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating expenses |
|
$ |
732 |
|
|
$ |
(43 |
) |
|
$ |
(1 |
) |
|
$ |
(4 |
) |
|
$ |
(12 |
) |
|
$ |
(10 |
) |
|
$ |
662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total (loss) income from operations |
|
$ |
(38 |
) |
|
$ |
43 |
|
|
$ |
1 |
|
|
$ |
4 |
|
|
$ |
12 |
|
|
$ |
10 |
|
|
$ |
32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Loss) income before benefit for income taxes |
|
$ |
(11 |
) |
|
$ |
43 |
|
|
$ |
1 |
|
|
$ |
4 |
|
|
$ |
12 |
|
|
$ |
10 |
|
|
$ |
59 |
|
(Benefit) provision for income taxes |
|
$ |
(34 |
) |
|
$ |
10 |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
(17 |
) |
Net income attributable to Capri |
|
$ |
24 |
|
|
$ |
33 |
|
|
$ |
1 |
|
|
$ |
3 |
|
|
$ |
9 |
|
|
$ |
7 |
|
|
$ |
77 |
|
Diluted net income per ordinary share - Capri |
|
$ |
0.20 |
|
|
$ |
0.28 |
|
|
$ |
0.01 |
|
|
$ |
0.02 |
|
|
$ |
0.08 |
|
|
$ |
0.06 |
|
|
$ |
0.65 |
|
______________________ |
||
(1) |
Amounts impacting operating expenses primarily relate to Global Optimization Plan lease termination and other 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 operational and IT projects were paused and we will reassess this program, along with related timing, during Fiscal 2025. |
SCHEDULE 7 |
||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||
|
|
Six Months Ended September 28, 2024 |
||||||||||||||||||||||||||
|
|
As Reported |
|
Impairment Charges |
|
Restructuring and Other Expense (1) |
|
ERP Implementation (2) |
|
Capri Transformation (3) |
|
Merger Related Costs |
|
As Adjusted |
||||||||||||||
Gross profit |
|
$ |
1,383 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating expenses |
|
$ |
1,429 |
|
|
$ |
(43 |
) |
|
$ |
(2 |
) |
|
$ |
(8 |
) |
|
$ |
(26 |
) |
|
$ |
(15 |
) |
|
$ |
1,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total (loss) income from operations |
|
$ |
(46 |
) |
|
$ |
43 |
|
|
$ |
2 |
|
|
$ |
8 |
|
|
$ |
26 |
|
|
$ |
15 |
|
|
$ |
48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Loss) income before benefit for income taxes |
|
$ |
(20 |
) |
|
$ |
43 |
|
|
$ |
2 |
|
|
$ |
8 |
|
|
$ |
26 |
|
|
$ |
15 |
|
|
$ |
74 |
|
(Benefit) provision for income taxes |
|
$ |
(31 |
) |
|
$ |
10 |
|
|
$ |
— |
|
|
$ |
2 |
|
|
$ |
7 |
|
|
$ |
4 |
|
|
$ |
(8 |
) |
Net income attributable to Capri |
|
$ |
10 |
|
|
$ |
33 |
|
|
$ |
2 |
|
|
$ |
6 |
|
|
$ |
19 |
|
|
$ |
11 |
|
|
$ |
81 |
|
Diluted net income per ordinary share - Capri |
|
$ |
0.09 |
|
|
$ |
0.28 |
|
|
$ |
0.02 |
|
|
$ |
0.05 |
|
|
$ |
0.16 |
|
|
$ |
0.09 |
|
|
$ |
0.69 |
|
______________________ |
||
(1) |
Amounts impacting operating expenses primarily relate to Global Optimization Plan 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 operational and IT projects were paused and we will reassess this program, along with related timing, during Fiscal 2025. |
SCHEDULE 8 |
|||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||||||||||||
(In millions, except per share data) |
|||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||
|
|
Three Months Ended September 30, 2023 |
|||||||||||||||||||||||||
|
|
As Reported |
|
Impairment Charges |
|
Restructuring and Other Charges (1) |
|
ERP Implementation (2) |
|
Capri Transformation (3) |
|
Merger Related Costs |
|
As Adjusted |
|||||||||||||
Gross profit |
|
$ |
832 |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses |
|
$ |
732 |
|
|
$ |
(20 |
) |
|
$ |
— |
|
$ |
(4 |
) |
|
$ |
(29 |
) |
|
$ |
(4 |
) |
|
$ |
675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total income from operations |
|
$ |
100 |
|
|
|
20 |
|
|
$ |
— |
|
$ |
4 |
|
|
$ |
29 |
|
|
$ |
4 |
|
|
$ |
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Foreign currency gain |
|
$ |
(3 |
) |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income before provision for income taxes |
|
$ |
101 |
|
|
$ |
20 |
|
|
$ |
— |
|
$ |
4 |
|
|
$ |
29 |
|
|
$ |
4 |
|
|
$ |
158 |
|
Provision for income taxes |
|
$ |
11 |
|
|
$ |
4 |
|
|
$ |
— |
|
$ |
1 |
|
|
$ |
8 |
|
|
$ |
1 |
|
|
$ |
25 |
|
Net income attributable to Capri |
|
$ |
90 |
|
|
$ |
16 |
|
|
$ |
— |
|
$ |
3 |
|
|
$ |
21 |
|
|
$ |
3 |
|
|
$ |
133 |
|
Diluted net income per ordinary share - Capri |
|
$ |
0.77 |
|
|
$ |
0.13 |
|
|
$ |
— |
|
$ |
0.03 |
|
|
$ |
0.18 |
|
|
$ |
0.02 |
|
|
$ |
1.13 |
|
______________________ | ||
(1) |
Amounts impacting operating expenses primarily include a gain related to the termination of certain leases offset by expenses related to equity awards associated with the acquisition of Gianni Versace S.r.l. |
|
(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. |
SCHEDULE 9 |
||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||
|
|
Six Months Ended September 30, 2023 |
||||||||||||||||||||||||
|
|
As Reported |
|
Impairment Charges |
|
Restructuring and Other Charges (1) |
|
ERP Implementation (2) |
|
Capri Transformation (3) |
|
Merger Related Costs |
|
As Adjusted |
||||||||||||
Gross profit |
|
$ |
1,644 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses |
|
$ |
1,464 |
|
$ |
(20 |
) |
|
$ |
2 |
|
|
$ |
(9 |
) |
|
$ |
(57 |
) |
|
$ |
(4 |
) |
|
$ |
1,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total income from operations |
|
$ |
180 |
|
$ |
20 |
|
|
$ |
(2 |
) |
|
$ |
9 |
|
|
$ |
57 |
|
|
$ |
4 |
|
|
$ |
268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency loss |
|
$ |
18 |
|
$ |
— |
|
|
$ |
(17 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income before provision for income taxes |
|
$ |
151 |
|
$ |
20 |
|
|
$ |
15 |
|
|
$ |
9 |
|
|
$ |
57 |
|
|
$ |
4 |
|
|
$ |
256 |
Provision for income taxes |
|
$ |
13 |
|
$ |
4 |
|
|
$ |
3 |
|
|
$ |
2 |
|
|
$ |
12 |
|
|
$ |
1 |
|
|
$ |
35 |
Net income attributable to Capri |
|
$ |
138 |
|
$ |
16 |
|
|
$ |
12 |
|
|
$ |
7 |
|
|
$ |
45 |
|
|
$ |
3 |
|
|
$ |
221 |
Diluted net income per ordinary share - Capri |
|
$ |
1.17 |
|
$ |
0.14 |
|
|
$ |
0.10 |
|
|
$ |
0.06 |
|
|
$ |
0.38 |
|
|
$ |
0.02 |
|
|
$ |
1.87 |
______________________ | ||
(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.. 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/20241107559622/en/
Investor Relations:
Jennifer Davis
+1 (201) 514-8234
Jennifer.Davis@CapriHoldings.com
Media:
Press@CapriHoldings.com
Source: Capri Holdings Limited
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