Capri Holdings Limited Announces Fourth Quarter and Full Year Fiscal 2024 Results
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240529961065/en/
(Photo: Business Wire)
Fourth Quarter Fiscal 2024 Highlights
- Revenue decreased 8.4% on a reported basis and 7.9% in constant currency
- Adjusted operating margin of 6.4%
-
Adjusted earnings per share of
$0.42
Fourth 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 Fourth Quarter Fiscal 2024 Results
-
Total revenue of
$1.223 billion decreased 8.4% compared to last year. On a constant currency basis, total revenue decreased 7.9%. Total company retail sales declined in the mid-single-digits with trends being impacted by softening demand globally for fashion luxury goods. In wholesale, revenue decreased in the high-teens driven by softer demand in theAmericas and EMEA. -
Gross profit was
$767 million and gross margin was 62.7%, compared to$867 million and 64.9% in the prior year. Adjusted gross profit was$767 million and adjusted gross margin was 62.7%, compared to$863 million and 64.6% in the prior year. Gross profit margin decreased relative to prior year primarily driven by lower full price sell-throughs. -
Loss from operations was
$543 million and operating margin was (44.4)% compared to loss from operations of$40 million and operating margin of (3.0)% in the prior year primarily due to non-cash impairments. Adjusted income from operations was$78 million and operating margin was 6.4%, compared to$121 million and 9.1% in the prior year. The decline in adjusted operating margin primarily reflects lower gross margin and expense deleverage on lower revenue. -
Net loss was
$472 million , or$(4.03) per diluted share, compared to net loss of$34 million , or$(0.28) per diluted share, in the prior year, impacted by non-cash impairments. Adjusted net income was$50 million , or$0.42 per diluted share, compared to$121 million , or$0.97 per diluted share, in the prior year. -
Net inventory at
March 30, 2024 was$862 million , an 18.4% decrease compared to the prior year. -
Cash flow from operating activities for the fourth quarter was an inflow of
$44 million , while free cash flow was an outflow of$6 million . This result was well below our expectations reflecting lower operating results, higher working capital usage and higher cash taxes. -
For the full year cash flow from operating activities was an inflow of
$309 million , while free cash flow was an inflow of$120 million . This includes approximately$130 million of spending on transformation initiatives that are largely complete. It also includes the negative impact of over$200 million related to accounts payable, accrued expenses and prepaid expenses as well as higher cash taxes paid. -
Capri Holdings anticipates free cash flow to normalize in Fiscal 2025. -
Cash and cash equivalents totaled
$199 million , and total borrowings outstanding were$1.723 billion , resulting in net debt of$1.524 billion .
Versace Fourth Quarter Fiscal 2024 Results
-
Versace revenue of
$264 million decreased 3.6% on a reported basis and 2.9% on a constant currency basis driven primarily by softening demand globally for fashion luxury goods. Retail sales increased mid-single-digits while wholesale revenue decreased double-digits. Revenue in theAmericas declined 1%, while revenue in EMEA decreased 11% and revenue inAsia increased 6%. Versace’s global database increased by 1.9 million new consumers, representing 30% growth over the last year. -
Versace operating income was
$1 million and operating margin was 0.4% compared to an operating income of$14 million and operating margin of 5.1% 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 Fourth Quarter Fiscal 2024 Results
-
Jimmy Choo revenue of
$137 million decreased 9.3% on both a reported and constant currency basis driven primarily by softening demand globally for fashion luxury goods. Retail sales decreased low-single-digits while wholesale revenue decreased double-digits. Revenue in theAmericas declined 9%, while revenue in EMEA decreased 6% and revenue inAsia declined 14%. Jimmy Choo’s global database increased by 0.7 million new consumers, representing 12% growth over the last year. -
Jimmy Choo operating loss was
$8 million and operating margin was (5.8)%, compared to an operating loss of$7 million and operating margin of (4.6)% 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.
Michael Kors Fourth Quarter Fiscal 2024 Results
-
Michael Kors revenue of$822 million decreased 9.7% on a reported basis and 9.2% on a constant currency basis. The decline versus prior year was primarily attributable to softening demand globally for fashion luxury goods. Retail sales declined in the high-single-digits while wholesale revenue decreased double-digits. Revenue in theAmericas declined 9%, while revenue in EMEA decreased 7% and revenue inAsia declined 16%. Michael Kors’ global database increased by 9.0 million new consumers, representing 13% growth over the last year. -
Michael Kors operating income was$116 million and operating margin was 14.1%, compared to operating income of$147 million and operating margin of 16.2% 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
As previously stated, 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 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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share data) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Fiscal Years Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Total revenue |
|
$ |
1,223 |
|
|
$ |
1,335 |
|
|
$ |
5,170 |
|
|
$ |
5,619 |
|
Cost of goods sold |
|
|
456 |
|
|
|
468 |
|
|
|
1,831 |
|
|
|
1,895 |
|
Gross profit |
|
|
767 |
|
|
|
867 |
|
|
|
3,339 |
|
|
|
3,724 |
|
Total operating expenses |
|
|
1,310 |
|
|
|
907 |
|
|
|
3,580 |
|
|
|
3,045 |
|
(Loss) income from operations |
|
|
(543 |
) |
|
|
(40 |
) |
|
|
(241 |
) |
|
|
679 |
|
Other income, net |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
Interest (income) expense, net |
|
|
(6 |
) |
|
|
11 |
|
|
|
6 |
|
|
|
24 |
|
Foreign currency loss |
|
|
21 |
|
|
|
20 |
|
|
|
37 |
|
|
|
10 |
|
(Loss) income before (benefit) provision for income taxes |
|
|
(557 |
) |
|
|
(70 |
) |
|
|
(283 |
) |
|
|
648 |
|
(Benefit) provision for income taxes |
|
|
(85 |
) |
|
|
(37 |
) |
|
|
(54 |
) |
|
|
29 |
|
Net (loss) income |
|
|
(472 |
) |
|
|
(33 |
) |
|
|
(229 |
) |
|
|
619 |
|
Less: Net income attributable to noncontrolling interests |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
3 |
|
Net (loss) income attributable to Capri |
|
$ |
(472 |
) |
|
$ |
(34 |
) |
|
$ |
(229 |
) |
|
$ |
616 |
|
Weighted average ordinary shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
117,156,327 |
|
|
|
123,327,209 |
|
|
|
117,014,420 |
|
|
|
132,532,009 |
|
Diluted |
|
|
117,156,327 |
|
|
|
123,327,209 |
|
|
|
117,014,420 |
|
|
|
134,002,480 |
|
Net income (loss) per ordinary share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(4.03 |
) |
|
$ |
(0.28 |
) |
|
$ |
(1.96 |
) |
|
$ |
4.65 |
|
Diluted |
|
$ |
(4.03 |
) |
|
$ |
(0.28 |
) |
|
$ |
(1.96 |
) |
|
$ |
4.60 |
|
SCHEDULE 2
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except share data) (Unaudited) |
||||||||
|
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
199 |
|
|
$ |
249 |
|
Receivables, net |
|
|
332 |
|
|
|
369 |
|
Inventories, net |
|
|
862 |
|
|
|
1,057 |
|
Prepaid expenses and other current assets |
|
|
215 |
|
|
|
195 |
|
Total current assets |
|
|
1,608 |
|
|
|
1,870 |
|
Property and equipment, net |
|
|
579 |
|
|
|
552 |
|
Operating lease right-of-use assets |
|
|
1,438 |
|
|
|
1,330 |
|
Intangible assets, net |
|
|
1,394 |
|
|
|
1,728 |
|
|
|
|
1,106 |
|
|
|
1,293 |
|
Deferred tax assets |
|
|
352 |
|
|
|
296 |
|
Other assets |
|
|
212 |
|
|
|
226 |
|
Total assets |
|
$ |
6,689 |
|
|
$ |
7,295 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable |
|
$ |
352 |
|
|
$ |
475 |
|
Accrued payroll and payroll related expenses |
|
|
107 |
|
|
|
154 |
|
Accrued income taxes |
|
|
64 |
|
|
|
73 |
|
Short-term operating lease liabilities |
|
|
400 |
|
|
|
429 |
|
Short-term debt |
|
|
462 |
|
|
|
5 |
|
Accrued expenses and other current liabilities |
|
|
310 |
|
|
|
314 |
|
Total current liabilities |
|
|
1,695 |
|
|
|
1,450 |
|
Long-term operating lease liabilities |
|
|
1,452 |
|
|
|
1,348 |
|
Deferred tax liabilities |
|
|
362 |
|
|
|
508 |
|
Long-term debt |
|
|
1,261 |
|
|
|
1,822 |
|
Other long-term liabilities |
|
|
319 |
|
|
|
318 |
|
Total liabilities |
|
|
5,089 |
|
|
|
5,446 |
|
Commitments and contingencies |
|
|
|
|
||||
Shareholders’ equity |
|
|
|
|
||||
Ordinary shares, no par value; 650,000,000 shares authorized; 226,271,074 shares issued and 116,629,634 outstanding at |
|
|
— |
|
|
|
— |
|
|
|
|
(5,458 |
) |
|
|
(5,351 |
) |
Additional paid-in capital |
|
|
1,417 |
|
|
|
1,344 |
|
Accumulated other comprehensive income |
|
|
161 |
|
|
|
147 |
|
Retained earnings |
|
|
5,479 |
|
|
|
5,708 |
|
Total shareholders’ equity of Capri |
|
|
1,599 |
|
|
|
1,848 |
|
Noncontrolling interest |
|
|
1 |
|
|
|
1 |
|
Total shareholders’ equity |
|
|
1,600 |
|
|
|
1,849 |
|
Total liabilities and shareholders’ equity |
|
$ |
6,689 |
|
|
$ |
7,295 |
|
SCHEDULE 3
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED SEGMENT DATA ($ in millions) (Unaudited) |
||||||||||||||||||
|
|
Three Months Ended |
|
Fiscal Years Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||
Revenue by Segment and Region: |
|
|
|
|
|
|
|
|
||||||||||
Versace |
|
The |
|
$ |
87 |
|
|
$ |
88 |
|
|
$ |
338 |
|
|
$ |
408 |
|
|
|
EMEA |
|
|
105 |
|
|
|
118 |
|
|
|
444 |
|
|
|
468 |
|
|
|
|
|
|
72 |
|
|
|
68 |
|
|
|
248 |
|
|
|
230 |
|
Versace Revenue |
|
|
264 |
|
|
|
274 |
|
|
|
1,030 |
|
|
|
1,106 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Jimmy Choo |
|
The |
|
|
41 |
|
|
|
45 |
|
|
|
176 |
|
|
|
196 |
|
|
|
EMEA |
|
|
58 |
|
|
|
62 |
|
|
|
266 |
|
|
|
255 |
|
|
|
|
|
|
38 |
|
|
|
44 |
|
|
|
176 |
|
|
|
182 |
|
Jimmy Choo Revenue |
|
|
137 |
|
|
|
151 |
|
|
|
618 |
|
|
|
633 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
The |
|
|
519 |
|
|
|
571 |
|
|
|
2,298 |
|
|
|
2,616 |
|
|
|
EMEA |
|
|
189 |
|
|
|
203 |
|
|
|
791 |
|
|
|
819 |
|
|
|
|
|
|
114 |
|
|
|
136 |
|
|
|
433 |
|
|
|
445 |
|
Michael Kors Revenue |
|
|
822 |
|
|
|
910 |
|
|
|
3,522 |
|
|
|
3,880 |
|
||
|
|
|
|
|
|
|
|
|
||||||||||
Total Revenue |
|
$ |
1,223 |
|
|
$ |
1,335 |
|
|
$ |
5,170 |
|
|
$ |
5,619 |
|
||
|
|
|
|
|
|
|
|
|
||||||||||
(Loss) Income from Operations: |
|
|
|
|
|
|
|
|
||||||||||
Versace |
|
|
|
$ |
1 |
|
|
$ |
14 |
|
|
$ |
25 |
|
|
$ |
152 |
|
Jimmy Choo |
|
|
|
|
(8 |
) |
|
|
(7 |
) |
|
|
3 |
|
|
|
38 |
|
|
|
|
|
|
116 |
|
|
|
147 |
|
|
|
634 |
|
|
|
868 |
|
Total segment income from operations |
|
|
109 |
|
|
|
154 |
|
|
|
662 |
|
|
|
1,058 |
|
||
Less: Corporate expenses |
|
|
(65 |
) |
|
|
(62 |
) |
|
|
(275 |
) |
|
|
(233 |
) |
||
Restructuring and other charges |
|
|
(30 |
) |
|
|
(5 |
) |
|
|
(33 |
) |
|
|
(16 |
) |
||
Impairment of long-lived assets |
|
|
(549 |
) |
|
|
(130 |
) |
|
|
(575 |
) |
|
|
(142 |
) |
||
Merger related costs |
|
|
(8 |
) |
|
|
— |
|
|
|
(20 |
) |
|
|
— |
|
||
Impact of war in |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
||
COVID-19 related charges |
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
9 |
|
|||
Total (Loss) Income from Operations |
|
$ |
(543 |
) |
|
$ |
(40 |
) |
|
$ |
(241 |
) |
|
$ |
679 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Margin: |
|
|
|
|
|
|
|
|
||||||||||
Versace |
|
|
|
|
0.4 |
% |
|
|
5.1 |
% |
|
|
2.4 |
% |
|
|
13.7 |
% |
Jimmy Choo |
|
|
|
|
(5.8 |
)% |
|
|
(4.6 |
)% |
|
|
0.5 |
% |
|
|
6.0 |
% |
|
|
|
|
|
14.1 |
% |
|
|
16.2 |
% |
|
|
18.0 |
% |
|
|
22.4 |
% |
Capri |
|
|
|
|
(44.4 |
)% |
|
|
(3.0 |
)% |
|
|
(4.7 |
)% |
|
|
12.1 |
% |
SCHEDULE 4
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES SUPPLEMENTAL RETAIL STORE INFORMATION (Unaudited) |
||||||||
|
|
As of |
||||||
Retail Store Information: |
|
|
|
|
||||
Versace |
|
236 |
|
|
223 |
|
||
Jimmy Choo |
|
|
234 |
|
|
237 |
||
|
|
|
769 |
|
|
|
812 |
|
Total number of retail stores |
|
|
1,239 |
|
|
|
1,272 |
|
SCHEDULE 5
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES CONSTANT CURRENCY DATA (In millions) (Unaudited) |
||||||||||||||
|
|
Three Months Ended |
|
% Change |
||||||||||
|
|
|
|
|
|
As Reported |
|
Constant Currency |
||||||
Total revenue: |
|
|
|
|
|
|
|
|
||||||
Versace |
|
$ |
264 |
|
|
$ |
274 |
|
|
(3.6 |
)% |
|
(2.9 |
)% |
Jimmy Choo |
|
|
137 |
|
|
151 |
|
(9.3 |
)% |
|
(9.3 |
)% |
||
|
|
|
822 |
|
|
|
910 |
|
|
(9.7 |
)% |
|
(9.2 |
)% |
Total revenue |
|
$ |
1,223 |
|
|
$ |
1,335 |
|
|
(8.4 |
)% |
|
(7.9 |
)% |
|
|
Fiscal Years Ended |
|
% Change |
||||||||||
|
|
|
|
|
|
As Reported |
|
Constant Currency |
||||||
Total revenue: |
|
|
|
|
|
|
|
|
||||||
Versace |
|
$ |
1,030 |
|
|
$ |
1,106 |
|
|
(6.9 |
)% |
|
(7.9 |
)% |
Jimmy Choo |
|
|
618 |
|
|
633 |
|
(2.4 |
)% |
|
(3.0 |
)% |
||
|
|
|
3,522 |
|
|
|
3,880 |
|
|
(9.2 |
)% |
|
(9.5 |
)% |
Total revenue |
|
$ |
5,170 |
|
|
$ |
5,619 |
|
|
(8.0 |
)% |
|
(8.4 |
)% |
SCHEDULE 6
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except share and per share data) (Unaudited) |
||||||||||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||
|
|
As Reported |
|
Impairment of Assets(1) |
|
Restructuring and Other Charges (2) |
|
ERP Implementation (3) |
|
Capri Transformation(4) |
|
Merger Costs |
|
As Adjusted |
||||||||||||||
Gross profit |
|
$ |
767 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating expenses |
|
$ |
1,310 |
|
|
$ |
(549 |
) |
|
$ |
(30 |
) |
|
$ |
(5 |
) |
|
$ |
(29 |
) |
|
$ |
(8 |
) |
|
$ |
689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total (loss) income from operations |
|
$ |
(543 |
) |
|
$ |
549 |
|
|
$ |
30 |
|
|
$ |
5 |
|
|
$ |
29 |
|
|
$ |
8 |
|
|
$ |
78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign currency loss |
|
$ |
21 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Loss) income before (benefit) provision for income taxes |
|
$ |
(557 |
) |
|
$ |
549 |
|
|
$ |
30 |
|
|
$ |
5 |
|
|
$ |
29 |
|
|
$ |
8 |
|
|
$ |
64 |
|
(Benefit) provision for income taxes |
|
$ |
(85 |
) |
|
$ |
86 |
|
|
$ |
7 |
|
|
$ |
1 |
|
|
$ |
4 |
|
|
$ |
1 |
|
|
$ |
14 |
|
Net (loss) income attributable to Capri |
|
$ |
(472 |
) |
|
$ |
463 |
|
|
$ |
23 |
|
|
$ |
4 |
|
|
$ |
25 |
|
|
$ |
7 |
|
|
$ |
50 |
|
Weighted average diluted ordinary shares outstanding |
|
|
117,156,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
118,221,490 |
|
||||||||||
Diluted net (loss) income per ordinary share - Capri |
|
$ |
(4.03 |
) |
|
$ |
3.93 |
|
|
$ |
0.20 |
|
|
$ |
0.04 |
|
|
$ |
0.22 |
|
|
$ |
0.06 |
|
|
$ |
0.42 |
|
____________________ | ||
(1) |
|
Asset impairment charges primarily relate to the impairment of the Jimmy Choo Retail and Wholesale reporting units goodwill and Versace and Jimmy Choo brand intangible assets, as well as the impairment of certain operating lease right-of-use assets. |
(2) |
|
Amounts impacting operating expenses primarily relate to Global Optimization Plan costs, equity awards associated with the acquisition of |
(3) |
|
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. |
(4) |
|
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, in Fiscal 2025. |
SCHEDULE 7
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except share and per share data) (Unaudited) |
||||||||||||||||||||||||||||
|
|
Fiscal Year Ended |
||||||||||||||||||||||||||
|
|
As Reported |
|
Impairment of Assets(1) |
|
Restructuring and Other Charges (2) |
|
ERP Implementation (3) |
|
Capri Transformation(4) |
|
Merger Costs |
|
As Adjusted |
||||||||||||||
Gross profit |
|
$ |
3,339 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating expenses |
|
$ |
3,580 |
|
|
$ |
(575 |
) |
|
$ |
(33 |
) |
|
$ |
(18 |
) |
|
$ |
(113 |
) |
|
$ |
(20 |
) |
|
$ |
2,821 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total (loss) income from operations |
|
$ |
(241 |
) |
|
$ |
575 |
|
|
$ |
33 |
|
|
$ |
18 |
|
|
$ |
113 |
|
|
$ |
20 |
|
|
$ |
518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign currency loss |
|
$ |
37 |
|
|
$ |
— |
|
|
$ |
(17 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Loss) income before (benefit) provision for income taxes |
|
$ |
(283 |
) |
|
$ |
575 |
|
|
$ |
50 |
|
|
$ |
18 |
|
|
$ |
113 |
|
|
$ |
20 |
|
|
$ |
493 |
|
(Benefit) provision for income taxes |
|
$ |
(54 |
) |
|
$ |
92 |
|
|
$ |
11 |
|
|
$ |
4 |
|
|
$ |
23 |
|
|
$ |
4 |
|
|
$ |
80 |
|
Net (loss) income attributable to Capri |
|
$ |
(229 |
) |
|
$ |
483 |
|
|
$ |
39 |
|
|
$ |
14 |
|
|
$ |
90 |
|
|
$ |
16 |
|
|
$ |
413 |
|
Weighted average diluted ordinary shares outstanding |
|
|
117,014,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
118,057,806 |
|
||||||||||
Diluted net (loss) income per ordinary share - Capri |
|
$ |
(1.96 |
) |
|
$ |
4.10 |
|
|
$ |
0.33 |
|
|
$ |
0.12 |
|
|
$ |
0.77 |
|
|
$ |
0.14 |
|
|
$ |
3.50 |
|
____________________ | ||
(1) |
|
Asset impairment charges primarily relate to the impairment of the Jimmy Choo Retail and Wholesale reporting units goodwill and Versace and Jimmy Choo brand intangible assets, as well as the impairment of certain operating lease right-of-use assets. |
(2) |
|
Amounts impacting operating expenses primarily relate to Global Optimization Plan costs, equity awards associated with the acquisition of |
(3) |
|
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. |
(4) |
|
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, in Fiscal 2025. |
SCHEDULE 8
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except share and per share data) (Unaudited) |
||||||||||||||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||||
|
|
As Reported |
|
Impairment of Assets |
|
Restructuring and Other Charges (1) |
|
COVID-19 Related Charges |
|
ERP Implementation(2) |
|
Capri Transformation(3) |
|
War in |
|
As Adjusted |
||||||||||||||||
Gross profit |
|
$ |
867 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(3 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(1 |
) |
|
$ |
863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operating expenses |
|
$ |
907 |
|
|
$ |
(130 |
) |
|
$ |
(5 |
) |
|
$ |
— |
|
|
$ |
(5 |
) |
|
$ |
(24 |
) |
|
$ |
(1 |
) |
|
$ |
742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total (loss) income from operations |
|
$ |
(40 |
) |
|
$ |
130 |
|
|
$ |
5 |
|
|
$ |
(3 |
) |
|
$ |
5 |
|
|
$ |
24 |
|
|
$ |
— |
|
|
$ |
121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign currency loss (gain) |
|
$ |
20 |
|
|
$ |
— |
|
|
$ |
(14 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(Loss) income before provision for income taxes |
|
$ |
(70 |
) |
|
$ |
130 |
|
|
$ |
19 |
|
|
$ |
(3 |
) |
|
$ |
5 |
|
|
$ |
24 |
|
|
$ |
— |
|
|
$ |
105 |
|
(Benefit) for income taxes |
|
$ |
(37 |
) |
|
$ |
12 |
|
|
$ |
5 |
|
|
$ |
(1 |
) |
|
$ |
1 |
|
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
(17 |
) |
Net (loss) income attributable to Capri |
|
$ |
(34 |
) |
|
$ |
118 |
|
|
$ |
14 |
|
|
$ |
(2 |
) |
|
$ |
4 |
|
|
$ |
21 |
|
|
$ |
— |
|
|
$ |
121 |
|
Weighted average diluted ordinary shares outstanding |
|
|
123,327,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
124,859,442 |
|
||||||||||||
Diluted net (loss) income per ordinary share - Capri |
|
$ |
(0.28 |
) |
|
$ |
0.95 |
|
|
$ |
0.11 |
|
|
$ |
(0.02 |
) |
|
$ |
0.04 |
|
|
$ |
0.17 |
|
|
$ |
— |
|
|
$ |
0.97 |
|
____________________ | ||
(1) |
|
Amounts impacting operating expenses primarily includes charges recorded in connection 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. |
(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 share and per share data) (Unaudited) |
|||||||||||||||||||||||||||||||
|
|
Fiscal Year Ended |
|||||||||||||||||||||||||||||
|
|
As Reported |
|
Impairment of Assets |
|
Restructuring and Other Charges(1) |
|
COVID-19 Related Charges |
|
ERP Implementation(2) |
|
Capri Transformation(3) |
|
War in |
|
As Adjusted |
|||||||||||||||
Gross profit |
|
$ |
3,724 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(9 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(1 |
) |
|
$ |
3,714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating expenses |
|
$ |
3,045 |
|
$ |
(142 |
) |
|
$ |
(16 |
) |
|
$ |
— |
|
|
$ |
(25 |
) |
|
$ |
(58 |
) |
|
$ |
2 |
|
|
$ |
2,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total income from operations |
|
$ |
679 |
|
$ |
142 |
|
|
$ |
16 |
|
|
$ |
(9 |
) |
|
$ |
25 |
|
|
$ |
58 |
|
|
$ |
(3 |
) |
|
$ |
908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Foreign currency loss (gain) |
|
$ |
10 |
|
$ |
— |
|
|
$ |
(14 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income before provision for income taxes |
|
$ |
648 |
|
$ |
142 |
|
|
$ |
30 |
|
|
$ |
(9 |
) |
|
$ |
25 |
|
|
$ |
58 |
|
|
$ |
(3 |
) |
|
$ |
891 |
|
Provision for income taxes |
|
$ |
29 |
|
$ |
14 |
|
|
$ |
8 |
|
|
$ |
(2 |
) |
|
$ |
6 |
|
|
$ |
13 |
|
|
$ |
(1 |
) |
|
$ |
67 |
|
Net income attributable to Capri |
|
$ |
616 |
|
$ |
128 |
|
|
$ |
22 |
|
|
$ |
(7 |
) |
|
$ |
19 |
|
|
$ |
45 |
|
|
$ |
(2 |
) |
|
$ |
821 |
|
Diluted net income per ordinary share - Capri |
|
$ |
4.60 |
|
$ |
0.96 |
|
|
$ |
0.16 |
|
|
$ |
(0.05 |
) |
|
$ |
0.13 |
|
|
$ |
0.34 |
|
|
$ |
(0.01 |
) |
|
$ |
6.13 |
|
____________________ | ||
(1) |
|
Amounts impacting operating expenses primarily includes charges recorded in connection 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. |
(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/20240529961065/en/
Investor Relations:
+1 (201) 514-8234
Jennifer.Davis@CapriHoldings.com
Media:
Press@CapriHoldings.com
Source: