Capri Holdings Limited Announces Third Quarter Fiscal 2024 Results
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240208378853/en/
(Photo: Business Wire)
Third Quarter Fiscal 2024 Highlights
- Revenue decreased 5.6% on a reported basis and 6.6% in constant currency
- Adjusted operating margin of 12.1%
-
Adjusted earnings per share of
$1.20
Third Quarter Fiscal 2024 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 Third Quarter Fiscal 2024 Results
-
Total revenue of
$1.43 billion decreased 5.6% compared to last year. On a constant currency basis, total revenue decreased 6.6%. Total company retail sales declined in the mid-single-digits with trends being impacted by softening luxury consumer demand primarily in theAmericas as well as by the Michael Kors Americas Ecommerce implementation issues discussed last quarter. In wholesale, revenue decreased in the low-teens driven by softer demand in theAmericas and EMEA. -
Gross profit was
$928 million and gross margin was 65.0%, compared to$1.01 billion and 66.5% in the prior year. Adjusted gross profit was$928 million and adjusted gross margin was 65.0%, compared to$1.00 billion and 66.3% in the prior year. Gross profit margin decreased relative to prior year primarily driven by lower full price sell throughs. -
Income from operations was
$122 million and operating margin was 8.5%, compared to$236 million and 15.6% in the prior year. Adjusted income from operations was$172 million and operating margin was 12.1%, compared to$256 million and 16.9% in the prior year. The decline in operating margin reflects lower gross margin, unfavorable channel mix, higher store related costs and expense deleverage on lower revenue. -
Net income was
$105 million , or$0.88 per diluted share, compared to$225 million , or$1.72 per diluted share, in the prior year. Adjusted net income was$142 million , or$1.20 per diluted share, compared to$240 million , or$1.84 per diluted share, in the prior year period. -
Net inventory as of
December 30, 2023 was$1.02 billion , a 14% decrease compared to the prior year reflecting the Company's ongoing diligent inventory management. Management expects inventory levels to remain below prior year in the fourth quarter of fiscal 2024. -
Cash flow from operating activities for the third quarter was an inflow of
$362 million , while free cash flow was an inflow of$313 million . -
Cash and equivalents totaled
$249 million , and total borrowings outstanding were$1.84 billion , resulting in net debt of$1.60 billion . During the third quarter, the company repaid approximately$313 million of debt. -
On an annual basis,
Capri Holdings continues to expect to generate strong free cash flow, in line with historical levels. As a result, the Company expects to significantly reduce net debt by the end of the fiscal year.
Versace Third Quarter Fiscal 2024 Results
-
Versace revenue of
$227 million decreased 8.8% on a reported basis and 10.8% on a constant currency basis. The decline was primarily driven by softening consumer demand in theAmericas and EMEA partially offset by increased revenue inAsia . Retail sales declined in the low-single-digits while wholesale revenue decreased double-digits. Revenue in theAmericas declined 14%, while revenue in EMEA decreased 13% and revenue inAsia increased 10%. Versace’s global database increased by 1.5 million new names, representing 25% growth over the last year. -
Versace operating loss was
$14 million and operating margin was (6.2)%, compared to operating income of$24 million and 9.6% in the prior year. The decline in operating margin rate was primarily due to unfavorable channel mix, higher store related costs and expense deleverage on lower revenue.
Jimmy Choo Third Quarter Fiscal 2024 Results
-
Jimmy Choo revenue of$166 million decreased 1.2% on a reported basis and 3.0% on a constant currency basis driven primarily by softening consumer demand, mainly in theAmericas , partially offset by increased revenue inAsia . Retail sales were approximately flat while wholesale revenue decreased mid-single-digits. Revenue in theAmericas declined 11%, while revenue in EMEA was flat and revenue inAsia increased 9%. Jimmy Choo’s global database increased by 0.7 million new names, representing 13% growth over the last year. -
Jimmy Choo operating income was$4 million and operating margin was 2.4%, compared to$18 million and 10.7% in the prior year. The decline in operating margin rate was primarily due to lower full price sell throughs, unfavorable channel mix and higher store related costs.
Michael Kors Third Quarter Fiscal 2024 Results
-
Michael Kors revenue of$1.03 billion decreased 5.6% on a reported basis and 6.2% on a constant currency basis. The decline versus prior year was primarily attributable to softening consumer demand, mainly in theAmericas . Results were also impacted by the Michael Kors Americas Ecommerce implementation issues discussed last quarter. As anticipated, third quarter Ecommerce trends in theAmericas began to benefit from functional changes designed to improve the situation. The issues associated with the Ecommerce platform implementation are now largely resolved. Retail sales declined in the mid-single-digits while wholesale revenue decreased low-double-digits. Revenue in theAmericas declined 7%, while revenue in EMEA decreased 2% and revenue inAsia declined 2%. Michael Kors’ global database increased by 8.5 million new names, representing 12% growth over the last year. -
Michael Kors operating income was$219 million and operating margin was 21.2%, compared to$251 million and 22.9% 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
Given the pending merger transaction of
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
Forward-Looking Statements
This report 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 transaction with a wholly-owned subsidiary of Tapestry, Inc. (the "Merger"). These risks, uncertainties and other factors include the impact of the COVID-19 pandemic; changes in consumer traffic and retail trends; the timing, receipt and terms and conditions of any required governmental and regulatory approvals for the pending Merger that could delay or result in the termination of the pending Merger, the occurrence of any other event, change or other circumstances that could give rise to the termination of the merger agreement entered into in connection with the pending Merger, the risk that the parties to the merger agreement may not be able to satisfy the conditions to the pending Merger in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the pending Merger, the risk that any announcements relating to the pending Merger could have adverse effects on the market price of Capri's shares, the risk of any unexpected costs or expenses resulting from the pending Merger, the risk of any litigation relating to the pending Merger, the risk that the pending Merger and its announcement could have an adverse effect on the ability of Capri to retain customers and retain and hire key personnel and maintain relationships with customers, suppliers, employees, shareholders and other business relationships and on its operating results and business generally, and the risk the pending Merger could divert the attention of Capri’s management; as well as those risks that are outlined in Capri’s disclosure filings and materials, which you can find on http://www.capriholdings.com, such as its Form 10-K, Form 10-Q and Form 8-K reports that have been filed with 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 |
|
Nine Months Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|||||||
Total revenue |
|
$ |
1,427 |
|
|
$ |
1,512 |
|
|
$ |
3,947 |
|
$ |
4,284 |
|
Cost of goods sold |
|
|
499 |
|
|
|
507 |
|
|
|
1,375 |
|
|
1,427 |
|
Gross profit |
|
|
928 |
|
|
|
1,005 |
|
|
|
2,572 |
|
|
2,857 |
|
Total operating expenses |
|
|
806 |
|
|
|
769 |
|
|
|
2,270 |
|
|
2,138 |
|
Income from operations |
|
|
122 |
|
|
|
236 |
|
|
|
302 |
|
|
719 |
|
Other income, net |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
(2 |
) |
Interest expense, net |
|
|
1 |
|
|
|
12 |
|
|
|
12 |
|
|
13 |
|
Foreign currency (gain) loss |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
16 |
|
|
(10 |
) |
Income before income taxes |
|
|
123 |
|
|
|
228 |
|
|
|
274 |
|
|
718 |
|
Provision for income taxes |
|
|
18 |
|
|
|
3 |
|
|
|
31 |
|
|
66 |
|
Net income |
|
|
105 |
|
|
|
225 |
|
|
|
243 |
|
|
652 |
|
Less: Net income attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
2 |
|
Net income attributable to Capri |
|
$ |
105 |
|
|
$ |
225 |
|
|
$ |
243 |
|
$ |
650 |
|
Weighted average ordinary shares outstanding: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
|
116,795,382 |
|
|
|
128,849,793 |
|
|
|
116,967,118 |
|
|
135,600,276 |
|
Diluted |
|
|
118,163,528 |
|
|
|
130,364,919 |
|
|
|
118,003,245 |
|
|
137,050,159 |
|
Net income per ordinary share: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
0.89 |
|
|
$ |
1.74 |
|
|
$ |
2.07 |
|
$ |
4.79 |
|
Diluted |
|
$ |
0.88 |
|
|
$ |
1.72 |
|
|
$ |
2.06 |
|
$ |
4.74 |
|
SCHEDULE 2 |
||||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||||||
(In millions, except share data) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
|
|
|
|
||||||
Assets |
|
|
|
|
|
|
||||||
Current assets |
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
249 |
|
|
$ |
249 |
|
|
$ |
281 |
|
Receivables, net |
|
|
339 |
|
|
|
369 |
|
|
|
372 |
|
Inventories, net |
|
|
1,020 |
|
|
|
1,057 |
|
|
|
1,188 |
|
Prepaid expenses and other current assets |
|
|
310 |
|
|
|
195 |
|
|
|
243 |
|
Total current assets |
|
|
1,918 |
|
|
|
1,870 |
|
|
|
2,084 |
|
Property and equipment, net |
|
|
560 |
|
|
|
552 |
|
|
|
546 |
|
Operating lease right-of-use assets |
|
|
1,485 |
|
|
|
1,330 |
|
|
|
1,369 |
|
Intangible assets, net |
|
|
1,727 |
|
|
|
1,728 |
|
|
|
1,743 |
|
|
|
|
1,319 |
|
|
|
1,293 |
|
|
|
1,358 |
|
Deferred tax assets |
|
|
371 |
|
|
|
296 |
|
|
|
247 |
|
Other assets |
|
|
237 |
|
|
|
226 |
|
|
|
207 |
|
Total assets |
|
$ |
7,617 |
|
|
$ |
7,295 |
|
|
$ |
7,554 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
||||||
Current liabilities |
|
|
|
|
|
|
||||||
Accounts payable |
|
$ |
370 |
|
|
$ |
475 |
|
|
$ |
519 |
|
Accrued payroll and payroll related expenses |
|
|
105 |
|
|
|
154 |
|
|
|
131 |
|
Accrued income taxes |
|
|
74 |
|
|
|
73 |
|
|
|
65 |
|
Short-term operating lease liabilities |
|
|
408 |
|
|
|
429 |
|
|
|
412 |
|
Short-term debt |
|
|
461 |
|
|
|
5 |
|
|
|
19 |
|
Accrued expenses and other current liabilities |
|
|
397 |
|
|
|
314 |
|
|
|
413 |
|
Total current liabilities |
|
|
1,815 |
|
|
|
1,450 |
|
|
|
1,559 |
|
Long-term operating lease liabilities |
|
|
1,459 |
|
|
|
1,348 |
|
|
|
1,392 |
|
Deferred tax liabilities |
|
|
519 |
|
|
|
508 |
|
|
|
531 |
|
Long-term debt |
|
|
1,383 |
|
|
|
1,822 |
|
|
|
1,521 |
|
Other long-term liabilities |
|
|
506 |
|
|
|
318 |
|
|
|
328 |
|
Total liabilities |
|
|
5,682 |
|
|
|
5,446 |
|
|
|
5,331 |
|
Commitments and contingencies |
|
|
|
|
|
|
||||||
Shareholders’ equity |
|
|
|
|
|
|
||||||
Ordinary shares, no par value; 650,000,000 shares authorized; 225,904,103 shares issued and 116,262,663 outstanding at |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
(5,458 |
) |
|
|
(5,351 |
) |
|
|
(4,951 |
) |
Additional paid-in capital |
|
|
1,410 |
|
|
|
1,344 |
|
|
|
1,327 |
|
Accumulated other comprehensive income |
|
|
31 |
|
|
|
147 |
|
|
|
105 |
|
Retained earnings |
|
|
5,951 |
|
|
|
5,708 |
|
|
|
5,742 |
|
Total shareholders’ equity of Capri |
|
|
1,934 |
|
|
|
1,848 |
|
|
|
2,223 |
|
Noncontrolling interest |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
Total shareholders’ equity |
|
|
1,935 |
|
|
|
1,849 |
|
|
|
2,223 |
|
Total liabilities and shareholders’ equity |
|
$ |
7,617 |
|
|
$ |
7,295 |
|
|
$ |
7,554 |
|
|
|
|
|
|
|
|
SCHEDULE 3 |
||||||||||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||||||||||
CONSOLIDATED SEGMENT DATA |
||||||||||||||||||
($ in millions) |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||
Revenue by Segment and Region: |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Versace |
|
The |
|
$ |
73 |
|
|
$ |
85 |
|
|
$ |
251 |
|
|
$ |
320 |
|
|
|
EMEA |
|
|
98 |
|
|
|
113 |
|
|
|
339 |
|
|
|
350 |
|
|
|
|
|
|
56 |
|
|
|
51 |
|
|
|
176 |
|
|
|
162 |
|
Versace Revenue |
|
|
227 |
|
|
|
249 |
|
|
|
766 |
|
|
|
832 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
The |
|
|
48 |
|
|
|
54 |
|
|
|
135 |
|
|
|
151 |
|
|
|
EMEA |
|
|
70 |
|
|
|
70 |
|
|
|
208 |
|
|
|
193 |
|
|
|
|
|
|
48 |
|
|
|
44 |
|
|
|
138 |
|
|
|
138 |
|
Jimmy Choo Revenue |
|
|
166 |
|
|
|
168 |
|
|
|
481 |
|
|
|
482 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
The |
|
|
722 |
|
|
|
777 |
|
|
|
1,779 |
|
|
|
2,045 |
|
|
|
EMEA |
|
|
208 |
|
|
|
212 |
|
|
|
602 |
|
|
|
616 |
|
|
|
|
|
|
104 |
|
|
|
106 |
|
|
|
319 |
|
|
|
309 |
|
Michael Kors Revenue |
|
|
1,034 |
|
|
|
1,095 |
|
|
|
2,700 |
|
|
|
2,970 |
|
||
|
|
|
|
|
|
|
|
|
||||||||||
Total Revenue |
|
$ |
1,427 |
|
|
$ |
1,512 |
|
|
$ |
3,947 |
|
|
$ |
4,284 |
|
||
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from Operations: |
|
|
|
|
|
|
|
|
||||||||||
Versace |
|
|
|
$ |
(14 |
) |
|
$ |
24 |
|
|
$ |
24 |
|
|
$ |
138 |
|
|
|
|
|
|
4 |
|
|
|
18 |
|
|
|
11 |
|
|
|
45 |
|
|
|
|
|
|
219 |
|
|
|
251 |
|
|
|
518 |
|
|
|
721 |
|
Total segment income from operations |
|
|
209 |
|
|
|
293 |
|
|
|
553 |
|
|
|
904 |
|
||
Less: Corporate expenses |
|
|
(68 |
) |
|
|
(56 |
) |
|
|
(210 |
) |
|
|
(171 |
) |
||
Impairment of assets |
|
|
(6 |
) |
|
|
(1 |
) |
|
|
(26 |
) |
|
|
(12 |
) |
||
Merger related costs |
|
(8 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
— |
|
|||
Restructuring and other expense |
|
|
(5 |
) |
|
|
(5 |
) |
|
|
(3 |
) |
|
|
(11 |
) |
||
COVID-19 related charges |
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
6 |
|
|||
Impact of war in |
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
|||
Total Income from Operations |
|
$ |
122 |
|
|
$ |
236 |
|
|
$ |
302 |
|
|
$ |
719 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Margin: |
|
|
|
|
|
|
|
|
|
|
||||||||
Versace |
|
|
|
|
(6.2 |
)% |
|
|
9.6 |
% |
|
|
3.1 |
% |
|
|
16.6 |
% |
|
|
|
|
|
2.4 |
% |
|
|
10.7 |
% |
|
|
2.3 |
% |
|
|
9.3 |
% |
|
|
|
|
|
21.2 |
% |
|
|
22.9 |
% |
|
|
19.2 |
% |
|
|
24.3 |
% |
Capri |
|
|
|
|
8.5 |
% |
|
|
15.6 |
% |
|
|
7.7 |
% |
|
|
16.8 |
% |
SCHEDULE 4 |
||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES |
||||
SUPPLEMENTAL RETAIL STORE INFORMATION |
||||
(Unaudited) |
||||
|
|
As of |
||
Retail Store Information: |
|
|
|
|
Versace |
233 |
|
225 |
|
|
237 |
|
242 |
|
|
800 |
|
827 |
|
Total number of retail stores |
|
1,270 |
|
1,294 |
SCHEDULE 5 |
||||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||||
CONSTANT CURRENCY DATA |
||||||||||||
(In millions) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
Three Months Ended |
|
% Change |
||||||||
|
|
|
|
|
|
As Reported |
|
Constant Currency |
||||
Total Revenue: |
|
|
|
|
|
|
|
|
||||
Versace |
|
$ |
227 |
|
$ |
249 |
|
(8.8 |
)% |
|
(10.8 |
)% |
|
|
|
166 |
|
|
168 |
|
(1.2 |
)% |
|
(3.0 |
)% |
|
|
|
1,034 |
|
|
1,095 |
|
(5.6 |
)% |
|
(6.2 |
)% |
Total Revenue |
|
$ |
1,427 |
|
$ |
1,512 |
|
(5.6 |
)% |
|
(6.6 |
)% |
|
|
Nine Months Ended |
|
% Change |
||||||||
|
|
|
|
|
|
As Reported |
|
Constant Currency |
||||
Total Revenue: |
|
|
|
|
|
|
|
|
||||
Versace |
|
$ |
766 |
|
$ |
832 |
|
(7.9 |
)% |
|
(9.5 |
)% |
|
|
|
481 |
|
|
482 |
|
(0.2 |
)% |
|
(1.2 |
)% |
|
|
|
2,700 |
|
|
2,970 |
|
(9.1 |
)% |
|
(9.5 |
)% |
Total Revenue |
|
$ |
3,947 |
|
$ |
4,284 |
|
(7.9 |
)% |
|
(8.6 |
)% |
SCHEDULE 6 |
||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||
|
|
As
|
|
Impairment
|
|
Restructuring
|
|
ERP
|
|
Capri
|
|
Merger
|
|
As
|
||||||||||||
Gross profit |
|
$ |
928 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses |
|
$ |
806 |
|
$ |
(6 |
) |
|
$ |
(5 |
) |
|
$ |
(4 |
) |
|
$ |
(27 |
) |
|
$ |
(8 |
) |
|
$ |
756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total income from operations |
|
$ |
122 |
|
$ |
6 |
|
|
$ |
5 |
|
|
$ |
4 |
|
|
$ |
27 |
|
|
$ |
8 |
|
|
$ |
172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income before provision for income taxes |
|
$ |
123 |
|
$ |
6 |
|
|
$ |
5 |
|
|
$ |
4 |
|
|
$ |
27 |
|
|
$ |
8 |
|
|
$ |
173 |
Provision for income taxes |
|
$ |
18 |
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
7 |
|
|
$ |
2 |
|
|
$ |
31 |
Net income attributable to Capri |
|
$ |
105 |
|
$ |
4 |
|
|
$ |
4 |
|
|
$ |
3 |
|
|
$ |
20 |
|
|
$ |
6 |
|
|
$ |
142 |
Diluted net income per ordinary share - Capri |
|
$ |
0.88 |
|
$ |
0.03 |
|
|
$ |
0.04 |
|
|
$ |
0.03 |
|
|
$ |
0.17 |
|
|
$ |
0.05 |
|
|
$ |
1.20 |
______________________ |
||
(1) |
Amounts impacting operating expenses primarily relate to equity awards associated with the acquisition of |
|
(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. This ERP implementation will continue through Fiscal 2026 and we expect expenditures up to |
|
(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. Through Fiscal 2026, we expect expenditures up to |
SCHEDULE 7 |
|||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||||||||||||
(In millions, except per share data) |
|||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||
|
|
Nine Months Ended |
|||||||||||||||||||||||||
|
|
As
|
|
Impairment
|
|
Restructuring
|
|
ERP
|
|
Capri
|
|
Merger
|
|
As
|
|||||||||||||
Gross profit |
|
$ |
2,572 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses |
|
$ |
2,270 |
|
$ |
(26 |
) |
|
$ |
(3 |
) |
|
$ |
(13 |
) |
|
$ |
(84 |
) |
|
$ |
(12 |
) |
|
$ |
2,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total income from operations |
|
$ |
302 |
|
$ |
26 |
|
|
$ |
3 |
|
|
$ |
13 |
|
|
$ |
84 |
|
|
$ |
12 |
|
|
$ |
440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Foreign currency loss (gain) |
|
$ |
16 |
|
$ |
— |
|
|
$ |
(17 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income before provision for income taxes |
|
$ |
274 |
|
$ |
26 |
|
|
$ |
20 |
|
|
$ |
13 |
|
|
$ |
84 |
|
|
$ |
12 |
|
|
$ |
429 |
|
Provision for income taxes |
|
$ |
31 |
|
$ |
6 |
|
|
$ |
4 |
|
|
$ |
3 |
|
|
$ |
19 |
|
|
$ |
3 |
|
|
$ |
66 |
|
Net income attributable to Capri |
|
$ |
243 |
|
$ |
20 |
|
|
$ |
16 |
|
|
$ |
10 |
|
|
$ |
65 |
|
|
$ |
9 |
|
|
$ |
363 |
|
Diluted net income per ordinary share - Capri |
|
$ |
2.06 |
|
$ |
0.17 |
|
|
$ |
0.14 |
|
|
$ |
0.08 |
|
|
$ |
0.55 |
|
|
$ |
0.08 |
|
|
$ |
3.08 |
|
______________________ |
||
(1) |
Amounts impacting operating expenses primarily relate to equity awards associated with the acquisition of |
|
(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. This ERP implementation will continue through Fiscal 2026 and we expect expenditures up to |
|
(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. Through Fiscal 2026, we expect expenditures up to |
SCHEDULE 8 |
||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||
|
|
As
|
|
Impairment
|
|
Restructuring
|
|
COVID-19
|
|
ERP
|
|
Capri
|
|
War in
|
|
As
|
||||||||||||||
Gross profit |
|
$ |
1,005 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(2 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating expenses |
|
$ |
769 |
|
$ |
(1 |
) |
|
$ |
(5 |
) |
|
$ |
— |
|
|
$ |
(4 |
) |
|
$ |
(15 |
) |
|
$ |
3 |
|
|
$ |
747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total income from operations |
|
$ |
236 |
|
|
1 |
|
|
$ |
5 |
|
|
$ |
(2 |
) |
|
$ |
4 |
|
|
$ |
15 |
|
|
$ |
(3 |
) |
|
$ |
256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income before provision for income taxes |
|
$ |
228 |
|
$ |
1 |
|
|
$ |
5 |
|
|
$ |
(2 |
) |
|
$ |
4 |
|
|
$ |
15 |
|
|
$ |
(3 |
) |
|
$ |
248 |
Provision for income taxes |
|
$ |
3 |
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
4 |
|
|
$ |
(1 |
) |
|
$ |
8 |
Net income attributable to Capri |
|
$ |
225 |
|
$ |
1 |
|
|
$ |
4 |
|
|
$ |
(2 |
) |
|
$ |
3 |
|
|
$ |
11 |
|
|
$ |
(2 |
) |
|
$ |
240 |
Diluted net income per ordinary share - Capri |
|
$ |
1.72 |
|
$ |
0.01 |
|
|
$ |
0.03 |
|
|
$ |
(0.02 |
) |
|
$ |
0.02 |
|
|
$ |
0.09 |
|
|
$ |
(0.01 |
) |
|
$ |
1.84 |
______________________ |
||
(1) |
Primarily includes expenses related to equity award associated with the acquisition of |
SCHEDULE 9 |
||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||
|
|
Nine Months Ended |
||||||||||||||||||||||||||||
|
|
As
|
|
Impairment
|
|
Restructuring
|
|
COVID-19
|
|
ERP
|
|
Capri
|
|
War in
|
|
As
|
||||||||||||||
Gross profit |
|
$ |
2,857 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(6 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating expenses |
|
$ |
2,138 |
|
$ |
(12 |
) |
|
$ |
(11 |
) |
|
$ |
— |
|
|
$ |
(20 |
) |
|
$ |
(34 |
) |
|
$ |
3 |
|
|
$ |
2,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total income from operations |
|
$ |
719 |
|
$ |
12 |
|
|
$ |
11 |
|
|
$ |
(6 |
) |
|
$ |
20 |
|
|
$ |
34 |
|
|
$ |
(3 |
) |
|
$ |
787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income before provision for income taxes |
|
$ |
718 |
|
$ |
12 |
|
|
$ |
11 |
|
|
$ |
(6 |
) |
|
$ |
20 |
|
|
$ |
34 |
|
|
$ |
(3 |
) |
|
$ |
786 |
Provision for income taxes |
|
$ |
66 |
|
$ |
2 |
|
|
$ |
3 |
|
|
$ |
(1 |
) |
|
$ |
5 |
|
|
$ |
10 |
|
|
$ |
(1 |
) |
|
$ |
84 |
Net income attributable to Capri |
|
$ |
650 |
|
$ |
10 |
|
|
$ |
8 |
|
|
$ |
(5 |
) |
|
$ |
15 |
|
|
$ |
24 |
|
|
$ |
(2 |
) |
|
$ |
700 |
Diluted net income per ordinary share - Capri |
|
$ |
4.74 |
|
$ |
0.07 |
|
|
$ |
0.06 |
|
|
$ |
(0.04 |
) |
|
$ |
0.11 |
|
|
$ |
0.18 |
|
|
$ |
(0.01 |
) |
|
$ |
5.11 |
______________________ |
||
(1) |
Primarily Includes expenses related to equity award associated with the acquisition of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240208378853/en/
Investor Relations:
+1 (201) 514-8234
Jennifer.Davis@CapriHoldings.com
Media:
Press@CapriHoldings.com
Source: