Capri Holdings Limited Announces Second Quarter Fiscal 2023 Results
Achieved Record Second Quarter Earnings Per Share
Authorized New
http://www.capriholdings.com/2Q23Presentation
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Versace (Photo: Business Wire)
Second Quarter Fiscal 2023 Highlights
- Revenue increased 8.6% on a reported basis and 17.5% in constant currency
- Adjusted operating margin of 19.8%
-
Adjusted earnings per share of
$1.79
Second Quarter Fiscal 2023 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 2023 Results:
-
Total revenue of
$1.41 billion increased 8.6% compared to last year. On a constant currency basis, total revenue increased 17.5%. -
Gross profit was
$951 million and gross margin was 67.4%, compared to$884 million and 68.0% in the prior year. Adjusted gross profit was$948 million and adjusted gross margin was 67.1%, compared to$879 million and 67.6% in the prior year. -
Income from operations was
$252 million and operating margin was 17.8%, compared to$195 million and 15.0% in the prior year. Adjusted income from operations was$280 million and operating margin was 19.8%, compared to$241 million and 18.5% in the prior year. -
Net income was
$224 million , or$1.63 per diluted share, compared to$200 million , or$1.30 per diluted share, in the prior year. Adjusted net income was$245 million , or$1.79 per diluted share, compared to$235 million or,$1.53 per diluted share, in the prior year. -
Net inventory as of
October 1, 2022 was$1.180 billion , a 36% increase compared to the prior year. Relative to pre-COVID levels, second quarter inventory increased 10%. This represents a sequential improvement and management continues to expect inventory levels to moderate through the year.
Versace Second Quarter Fiscal 2023 Results:
-
Versace revenue of
$308 million increased 9.2% compared to the prior year. On a constant currency basis, total revenue increased 27.7%. -
Versace operating income was
$62 million and operating margin was 20.1%, compared to$55 million and 19.5% in the prior year.
Jimmy Choo Second Quarter Fiscal 2023 Results:
-
Jimmy Choo revenue of$142 million increased 3.6% compared to the prior year. On a constant currency basis, total revenue increased 15.3%. -
Jimmy Choo operating income was$8 million and operating margin was 5.6%, compared to$1 million and 0.7% in the prior year.
Michael Kors Second Quarter Fiscal 2023 Results:
-
Michael Kors revenue of$962 million increased 9.2% compared to the prior year. On a constant currency basis, total revenue increased 14.6%. -
Michael Kors operating income was$248 million and operating margin was 25.8%, compared to$220 million and 25.0% in the prior year.
Share Repurchase Program
During the second quarter, the Company repurchased approximately 7.1 million ordinary shares for approximately
On
Outlook
The following guidance is provided on an adjusted, non-GAAP basis. Financial results could differ materially from the current outlook due to a number of external events which are not reflected in our guidance, including the ongoing dynamic nature of the COVID-19 pandemic which could result in 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.
Fiscal Year 2023 Outlook
For
-
Total revenue of approximately
$5.7 billion - Gross margin expansion of 50 basis points
- Operating margin of approximately 18.3%
-
Net interest expense of approximately
$6 million - Effective tax rate of approximately 10%
- Weighted average diluted shares outstanding of approximately 136 million
-
Diluted earnings per share of approximately
$6.85 - Ending inventory to be below prior year
For Versace, the Company expects the following:
-
Total revenue of approximately
$1.15 billion - Operating margin of approximately 16%
For
-
Total revenue of approximately
$640 million - Operating margin of approximately 5%
For
-
Total revenue of approximately
$3.91 billion - Operating margin of approximately 25%
Third Quarter Fiscal 2023 Outlook
For
-
Total revenue of approximately
$1.53 billion - Operating margin of approximately 20.5%
-
Net interest expense of approximately
$6 million - Effective tax rate of approximately 5%
- Weighted average diluted shares outstanding of approximately 133 million
-
Diluted earnings per share of approximately
$2.20
For Versace, the Company expects the following:
-
Total revenue of approximately
$240 million - Operating margin in the high single digit range
For
-
Total revenue of approximately
$180 million - Operating margin in the high single digit range
For
-
Total revenue of approximately
$1.11 billion - Operating margin in mid-to-high 20% range
Fiscal Year 2023 Quarterly Outlook
For
|
Third Quarter |
|
Fourth Quarter |
|
FY2023 |
|
Revenue |
|
|
|
|
|
|
Adjusted Operating Margin |
~20.5% |
|
~14.0% |
|
~18.3% |
|
Adjusted EPS |
|
|
|
|
|
Conference Call Information
A conference call to discuss second quarter Fiscal 2023 results is scheduled for today,
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 should be considered a supplement to and not in lieu of our operating performance measures calculated in accordance with
About
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
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 |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Total revenue |
|
$ |
1,412 |
|
|
$ |
1,300 |
|
|
$ |
2,772 |
|
|
$ |
2,553 |
|
Cost of goods sold |
|
|
461 |
|
|
|
416 |
|
|
|
920 |
|
|
|
813 |
|
Gross profit |
|
|
951 |
|
|
|
884 |
|
|
|
1,852 |
|
|
|
1,740 |
|
Total operating expenses |
|
|
699 |
|
|
|
689 |
|
|
|
1,369 |
|
|
|
1,287 |
|
Income from operations |
|
|
252 |
|
|
|
195 |
|
|
|
483 |
|
|
|
453 |
|
Other income, net |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
Interest expense (income), net |
|
|
5 |
|
|
|
(5 |
) |
|
|
1 |
|
|
|
(4 |
) |
Foreign currency (gain) loss |
|
|
(11 |
) |
|
|
4 |
|
|
|
(7 |
) |
|
|
5 |
|
Income before income taxes |
|
|
259 |
|
|
|
198 |
|
|
|
490 |
|
|
|
454 |
|
Provision (benefit) for income taxes |
|
|
35 |
|
|
|
(2 |
) |
|
|
63 |
|
|
|
35 |
|
Net income |
|
|
224 |
|
|
|
200 |
|
|
|
427 |
|
|
|
419 |
|
Less: Net income attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
Net income attributable to Capri |
|
$ |
224 |
|
|
$ |
200 |
|
|
$ |
425 |
|
|
$ |
419 |
|
Weighted average ordinary shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
136,037,449 |
|
|
|
151,859,760 |
|
|
|
138,975,518 |
|
|
|
151,604,916 |
|
Diluted |
|
|
137,051,575 |
|
|
|
154,219,249 |
|
|
|
140,392,780 |
|
|
|
154,563,532 |
|
Net income per ordinary share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.64 |
|
|
$ |
1.31 |
|
|
$ |
3.06 |
|
|
$ |
2.76 |
|
Diluted |
|
$ |
1.63 |
|
|
$ |
1.30 |
|
|
$ |
3.03 |
|
|
$ |
2.71 |
|
SCHEDULE 2 |
||||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||||||
(In millions, except share data) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
|
|
|
|
||||||
Assets |
|
|
|
|
|
|
||||||
Current assets |
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
215 |
|
|
$ |
169 |
|
|
$ |
234 |
|
Receivables, net |
|
|
441 |
|
|
|
434 |
|
|
|
358 |
|
Inventories, net |
|
|
1,180 |
|
|
|
1,096 |
|
|
|
866 |
|
Prepaid expenses and other current assets |
|
|
249 |
|
|
|
192 |
|
|
|
214 |
|
Total current assets |
|
|
2,085 |
|
|
|
1,891 |
|
|
|
1,672 |
|
Property and equipment, net |
|
|
470 |
|
|
|
476 |
|
|
|
454 |
|
Operating lease right-of-use assets |
|
|
1,333 |
|
|
|
1,358 |
|
|
|
1,425 |
|
Intangible assets, net |
|
|
1,634 |
|
|
|
1,847 |
|
|
|
1,956 |
|
|
|
|
1,256 |
|
|
|
1,418 |
|
|
|
1,488 |
|
Deferred tax assets |
|
|
228 |
|
|
|
240 |
|
|
|
284 |
|
Other assets |
|
|
196 |
|
|
|
250 |
|
|
|
214 |
|
Total assets |
|
$ |
7,202 |
|
|
$ |
7,480 |
|
|
$ |
7,493 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
||||||
Current liabilities |
|
|
|
|
|
|
||||||
Accounts payable |
|
$ |
370 |
|
|
$ |
555 |
|
|
$ |
491 |
|
Accrued payroll and payroll related expenses |
|
|
117 |
|
|
|
165 |
|
|
|
124 |
|
Accrued income taxes |
|
|
68 |
|
|
|
52 |
|
|
|
128 |
|
Short-term operating lease liabilities |
|
|
396 |
|
|
|
414 |
|
|
|
438 |
|
Short-term debt |
|
|
15 |
|
|
|
29 |
|
|
|
40 |
|
Accrued expenses and other current liabilities |
|
|
312 |
|
|
|
351 |
|
|
|
299 |
|
Total current liabilities |
|
|
1,278 |
|
|
|
1,566 |
|
|
|
1,520 |
|
Long-term operating lease liabilities |
|
|
1,387 |
|
|
|
1,467 |
|
|
|
1,549 |
|
Deferred tax liabilities |
|
|
513 |
|
|
|
432 |
|
|
|
413 |
|
Long-term debt |
|
|
1,585 |
|
|
|
1,131 |
|
|
|
1,104 |
|
Other long-term liabilities |
|
|
296 |
|
|
|
326 |
|
|
|
307 |
|
Total liabilities |
|
|
5,059 |
|
|
|
4,922 |
|
|
|
4,893 |
|
Commitments and contingencies |
|
|
|
|
|
|
||||||
Shareholders’ equity |
|
|
|
|
|
|
||||||
Ordinary shares, no par value; 650,000,000 shares authorized; 223,706,873 shares issued and 131,088,991 outstanding at |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
(4,650 |
) |
|
|
(3,987 |
) |
|
|
(3,486 |
) |
Additional paid-in capital |
|
|
1,311 |
|
|
|
1,260 |
|
|
|
1,225 |
|
Accumulated other comprehensive (loss) income |
|
|
(35 |
) |
|
|
194 |
|
|
|
174 |
|
Retained earnings |
|
|
5,517 |
|
|
|
5,092 |
|
|
|
4,689 |
|
Total shareholders’ equity of Capri |
|
|
2,143 |
|
|
|
2,559 |
|
|
|
2,602 |
|
Noncontrolling interest |
|
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
Total shareholders’ equity |
|
|
2,143 |
|
|
|
2,558 |
|
|
|
2,600 |
|
Total liabilities and shareholders’ equity |
|
$ |
7,202 |
|
|
$ |
7,480 |
|
|
$ |
7,493 |
|
SCHEDULE 3 |
||||||||||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||||||||||
CONSOLIDATED SEGMENT DATA |
||||||||||||||||||
($ in millions) |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||
Revenue by Segment and Region: |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Versace |
|
The |
|
$ |
120 |
|
|
$ |
107 |
|
|
$ |
235 |
|
|
$ |
194 |
|
|
|
EMEA |
|
|
130 |
|
|
|
118 |
|
|
|
237 |
|
|
|
205 |
|
|
|
|
|
|
58 |
|
|
|
57 |
|
|
|
111 |
|
|
|
123 |
|
Versace Revenue |
|
|
308 |
|
|
|
282 |
|
|
|
583 |
|
|
|
522 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
The |
|
|
43 |
|
|
|
38 |
|
|
|
97 |
|
|
|
76 |
|
|
|
EMEA |
|
|
57 |
|
|
|
56 |
|
|
|
123 |
|
|
|
106 |
|
|
|
|
|
|
42 |
|
|
|
43 |
|
|
|
94 |
|
|
|
97 |
|
Jimmy Choo Revenue |
|
|
142 |
|
|
|
137 |
|
|
|
314 |
|
|
|
279 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
The |
|
|
643 |
|
|
|
556 |
|
|
|
1,268 |
|
|
|
1,146 |
|
|
|
EMEA |
|
|
213 |
|
|
|
214 |
|
|
|
404 |
|
|
|
379 |
|
|
|
|
|
|
106 |
|
|
|
111 |
|
|
|
203 |
|
|
|
227 |
|
Michael Kors Revenue |
|
|
962 |
|
|
|
881 |
|
|
|
1,875 |
|
|
|
1,752 |
|
||
|
|
|
|
|
|
|
|
|
||||||||||
Total Revenue |
|
$ |
1,412 |
|
|
$ |
1,300 |
|
|
$ |
2,772 |
|
|
$ |
2,553 |
|
||
|
|
|
|
|
|
|
|
|
||||||||||
Income from Operations: |
|
|
|
|
|
|
|
|
||||||||||
Versace |
|
|
|
$ |
62 |
|
|
$ |
55 |
|
|
$ |
114 |
|
|
$ |
103 |
|
|
|
|
|
|
8 |
|
|
|
1 |
|
|
|
27 |
|
|
|
12 |
|
|
|
|
|
|
248 |
|
|
|
220 |
|
|
|
470 |
|
|
|
460 |
|
Total segment income from operations |
|
|
318 |
|
|
|
276 |
|
|
|
611 |
|
|
|
575 |
|
||
Less: Corporate expenses |
|
|
(55 |
) |
|
|
(45 |
) |
|
|
(115 |
) |
|
|
(86 |
) |
||
Impairment of assets |
|
|
(11 |
) |
|
|
(33 |
) |
|
|
(11 |
) |
|
|
(33 |
) |
||
Restructuring and other charges |
|
|
(3 |
) |
|
|
(8 |
) |
|
|
(6 |
) |
|
|
(11 |
) |
||
COVID-19 related charges |
|
3 |
|
|
|
5 |
|
|
|
4 |
|
|
|
8 |
|
|||
Total Income from Operations |
|
$ |
252 |
|
|
$ |
195 |
|
|
$ |
483 |
|
|
$ |
453 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Margin: |
|
|
|
|
|
|
|
|
|
|
||||||||
Versace |
|
|
|
|
20.1 |
% |
|
|
19.5 |
% |
|
|
19.6 |
% |
|
|
19.7 |
% |
|
|
|
|
|
5.6 |
% |
|
|
0.7 |
% |
|
|
8.6 |
% |
|
|
4.3 |
% |
|
|
|
|
|
25.8 |
% |
|
|
25.0 |
% |
|
|
25.1 |
% |
|
|
26.3 |
% |
Capri Operating Margin |
|
|
|
|
17.8 |
% |
|
|
15.0 |
% |
|
|
17.4 |
% |
|
|
17.7 |
% |
SCHEDULE 4 |
||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES |
||||
SUPPLEMENTAL RETAIL STORE INFORMATION |
||||
(Unaudited) |
||||
|
As of |
|||
Retail Store Information: |
|
|
||
Versace |
217 |
211 |
||
|
238 |
237 |
||
|
821 |
823 |
||
Total number of retail stores |
1,276 |
1,271 |
SCHEDULE 5 |
||||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||||
CONSTANT CURRENCY DATA |
||||||||||||
(In millions) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
Three Months Ended |
|
% Change |
||||||||
|
|
|
|
|
|
As
|
|
Constant
|
||||
Total Revenue: |
|
|
|
|
|
|
|
|
||||
Versace |
|
$ |
308 |
|
$ |
282 |
|
9.2 |
% |
|
27.7 |
% |
|
|
|
142 |
|
|
137 |
|
3.6 |
% |
|
15.3 |
% |
|
|
|
962 |
|
|
881 |
|
9.2 |
% |
|
14.6 |
% |
Total Revenue |
|
$ |
1,412 |
|
$ |
1,300 |
|
8.6 |
% |
|
17.5 |
% |
|
|
Six Months Ended |
|
% Change |
||||||||
|
|
|
|
|
|
As
|
|
Constant
|
||||
Total Revenue: |
|
|
|
|
|
|
|
|
||||
Versace |
|
$ |
583 |
|
$ |
522 |
|
11.7 |
% |
|
28.5 |
% |
|
|
|
314 |
|
|
279 |
|
12.5 |
% |
|
22.9 |
% |
|
|
|
1,875 |
|
|
1,752 |
|
7.0 |
% |
|
11.7 |
% |
Total Revenue |
|
$ |
2,772 |
|
$ |
2,553 |
|
8.6 |
% |
|
16.4 |
% |
SCHEDULE 6 |
||||||||||||||||||||||||||
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
|
|
As
|
||||||||||||
Gross profit |
|
$ |
951 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(3 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses |
|
$ |
699 |
|
$ |
(11 |
) |
|
$ |
(3 |
) |
|
$ |
— |
|
|
$ |
(7 |
) |
|
$ |
(10 |
) |
|
$ |
668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total income from operations |
|
$ |
252 |
|
$ |
11 |
|
|
$ |
3 |
|
|
$ |
(3 |
) |
|
$ |
7 |
|
|
$ |
10 |
|
|
$ |
280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income before provision for income taxes |
|
$ |
259 |
|
$ |
11 |
|
|
$ |
3 |
|
|
$ |
(3 |
) |
|
$ |
7 |
|
|
$ |
10 |
|
|
$ |
287 |
Provision for income taxes |
|
$ |
35 |
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
(1 |
) |
|
$ |
2 |
|
|
$ |
3 |
|
|
$ |
42 |
Net income attributable to Capri |
|
$ |
224 |
|
$ |
9 |
|
|
$ |
2 |
|
|
$ |
(2 |
) |
|
$ |
5 |
|
|
$ |
7 |
|
|
$ |
245 |
Diluted net income per ordinary share - Capri |
|
$ |
1.63 |
|
$ |
0.07 |
|
|
$ |
0.01 |
|
|
$ |
(0.01 |
) |
|
$ |
0.04 |
|
|
$ |
0.05 |
|
|
$ |
1.79 |
_____________________ | ||
(1) |
Primarily Includes other charges recorded in connection with the acquisition of |
SCHEDULE 7 |
||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||
|
|
Six Months Ended |
||||||||||||||||||||||||
|
|
As
|
|
Impairment
|
|
Restructuring
|
|
COVID-19
|
|
ERP
|
|
Capri
|
|
As
|
||||||||||||
Gross profit |
|
$ |
1,852 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(4 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses |
|
$ |
1,369 |
|
$ |
(11 |
) |
|
$ |
(6 |
) |
|
$ |
— |
|
|
$ |
(16 |
) |
|
$ |
(19 |
) |
|
$ |
1,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total income from operations |
|
$ |
483 |
|
$ |
11 |
|
|
$ |
6 |
|
|
$ |
(4 |
) |
|
$ |
16 |
|
|
$ |
19 |
|
|
$ |
531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income before provision for income taxes |
|
$ |
490 |
|
$ |
11 |
|
|
$ |
6 |
|
|
$ |
(4 |
) |
|
$ |
16 |
|
|
$ |
19 |
|
|
$ |
538 |
Provision for income taxes |
|
$ |
63 |
|
$ |
2 |
|
|
$ |
2 |
|
|
$ |
(1 |
) |
|
$ |
4 |
|
|
$ |
6 |
|
|
$ |
76 |
Net income attributable to Capri |
|
$ |
425 |
|
$ |
9 |
|
|
$ |
4 |
|
|
$ |
(3 |
) |
|
$ |
12 |
|
|
$ |
13 |
|
|
$ |
460 |
Diluted net income per ordinary share - Capri |
|
$ |
3.03 |
|
$ |
0.06 |
|
|
$ |
0.03 |
|
|
$ |
(0.02 |
) |
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
3.28 |
_____________________ | ||
(1) |
Primarily Includes other charges recorded in connection with the acquisition of |
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
|
|
As
|
|||||||||||||
Gross profit |
|
$ |
884 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(5 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses |
|
$ |
689 |
|
|
$ |
(33 |
) |
|
$ |
(8 |
) |
|
$ |
— |
|
|
$ |
(5 |
) |
|
$ |
(5 |
) |
|
$ |
638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total income from operations |
|
$ |
195 |
|
|
|
33 |
|
|
$ |
8 |
|
|
$ |
(5 |
) |
|
$ |
5 |
|
|
$ |
5 |
|
|
$ |
241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income before provision for income taxes |
|
$ |
198 |
|
|
$ |
33 |
|
|
$ |
8 |
|
|
$ |
(5 |
) |
|
$ |
5 |
|
|
$ |
5 |
|
|
$ |
244 |
(Benefit) provision for income taxes |
|
$ |
(2 |
) |
|
$ |
8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
9 |
Net income attributable to Capri |
|
$ |
200 |
|
|
$ |
25 |
|
|
$ |
8 |
|
|
$ |
(5 |
) |
|
$ |
3 |
|
|
$ |
4 |
|
|
$ |
235 |
Diluted net income 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 and other charges recorded in connection with the acquisition of |
SCHEDULE 9 |
||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||
|
|
Six Months Ended |
||||||||||||||||||||||||
|
|
As
|
|
Impairment
|
|
Restructuring
|
|
COVID-19
|
|
ERP
|
|
Capri
|
|
As
|
||||||||||||
Gross profit |
|
$ |
1,740 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(8 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses |
|
$ |
1,287 |
|
$ |
(33 |
) |
|
$ |
(11 |
) |
|
$ |
— |
|
|
$ |
(8 |
) |
|
$ |
(5 |
) |
|
$ |
1,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total income from operations |
|
$ |
453 |
|
$ |
33 |
|
|
$ |
11 |
|
|
$ |
(8 |
) |
|
$ |
8 |
|
|
$ |
5 |
|
|
$ |
502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income before provision for income taxes |
|
$ |
454 |
|
$ |
33 |
|
|
$ |
11 |
|
|
$ |
(8 |
) |
|
$ |
8 |
|
|
$ |
5 |
|
|
$ |
503 |
Provision for income taxes |
|
$ |
35 |
|
$ |
8 |
|
|
$ |
1 |
|
|
$ |
(1 |
) |
|
$ |
3 |
|
|
$ |
1 |
|
|
$ |
47 |
Net income attributable to Capri |
|
$ |
419 |
|
$ |
25 |
|
|
$ |
10 |
|
|
$ |
(7 |
) |
|
$ |
5 |
|
|
$ |
4 |
|
|
$ |
456 |
Diluted net income per ordinary share - Capri |
|
$ |
2.71 |
|
$ |
0.16 |
|
|
$ |
0.06 |
|
|
$ |
(0.04 |
) |
|
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
2.95 |
_____________________ | ||
(1) |
Includes store closure costs recorded in connection with the Capri Retail Store Optimization Program and other charges recorded in connection with the acquisition of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221109005361/en/
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