Achieved Highest Revenue, Gross Margin and
EPS Levels in the Company's History
Authorized New $1 Billion Share Repurchase
Program
http://www.capriholdings.com/4Q22Presentation
Capri Holdings Limited (NYSE:CPRI), a global fashion luxury
group, today announced its financial results for the fourth quarter
and full year fiscal 2022 ended April 2, 2022.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20220601005571/en/
Versace (Photo: Business Wire)
Fourth Quarter Fiscal 2022 Highlights
- Revenue increased 24.6%, with better than anticipated results
across all three luxury houses
- Adjusted gross margin expanded 20 basis points versus prior
year
- Adjusted operating margin expansion of 230 basis points to
14.2%
- Adjusted earnings per share of $1.02
John D. Idol, the Company’s Chairman and Chief Executive
Officer, said, "Looking back on fiscal 2022, I am proud of the
progress we made across all our luxury houses. Revenue and earnings
results significantly exceeded our original expectations. Capri
Holdings achieved the highest revenue, gross margin and earnings
per share in the company’s history. Additionally, we generated
strong free cash flow and returned $650 million to shareholders in
fiscal 2022. Our ability to deliver record results while navigating
the challenges of an unprecedented global pandemic is a testament
to the strength of our brands and the success of our strategic
growth initiatives. Most importantly, we would not have been able
to achieve these results if not for the hard work, dedication and
resiliency of our teams across the globe."
Mr. Idol continued, "Looking forward in fiscal 2023 we expect to
achieve another year of record revenue and earnings per share.
Longer term we are confident in our ability to resume double digit
revenue increases as we move beyond the impact of current macro
headwinds. The power of Versace, Jimmy Choo and Michael Kors as
well as the proven resilience of the luxury market reinforce our
optimism for the future and our ability to achieve $7 billion in
revenue and a 20% operating margin over time."
Fourth Quarter Fiscal 2022 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 the
United States (“U.S. GAAP”) and on an adjusted, non-GAAP basis. A
reconciliation of GAAP to non-GAAP financial information is
provided at the end of this press release. Due to the current and
ongoing impact of the COVID-19 pandemic, the Company will not be
providing comparable store sales results. The Company believes the
most comprehensive measure of performance in this environment is
total revenue compared to the same period in the prior year.
Overview of Capri Holdings Fourth Quarter Fiscal 2022
Results
The Company noted that fiscal year 2022 had 53 weeks versus 52
weeks in fiscal year 2021. As a result, the Company's results for
the fiscal 2022 fourth quarter and fiscal year ended April 2, 2022,
include approximately $70 million in sales related to the 53rd
week.
- Total revenue of $1.492 billion increased 24.6% compared to
last year. On a constant currency basis, total revenue increased
28.4%. On a 13-week basis, total revenue increased 18.8%.
- Gross profit was $956 million and gross margin was 64.1%,
compared to $737 million and 61.6% in the prior year. Adjusted
gross profit was $951 million and adjusted gross margin was 63.7%,
compared to $760 million and 63.5% in the prior year.
- Income from operations was $119 million and operating margin
was 8.0% compared to a loss of $139 million and operating margin of
(11.6)% in the prior year. Adjusted income from operations was $212
million and operating margin was 14.2%, compared to $143 million
and 11.9% in the prior year.
- Net income was $81 million, or $0.54 per diluted share,
compared to a net loss of $183 million, or $(1.21) per diluted
share, in the prior year. Adjusted net income was $152 million, or
$1.02 per diluted share, compared to $59 million, or $0.38 per
diluted share, in the prior year.
- Net inventory at April 2, 2022 was $1.096 billion, a 48.9%
increase compared to the prior year. This increase was in line with
management's expectations reflecting the Company's new programs to
receive seasonal merchandise earlier as well as hold more core
inventory.
Versace Fourth Quarter Fiscal 2022 Results
- Versace revenue of $315 million increased 34.0% compared to the
prior year. On a constant currency basis, total revenue increased
44.3%.
- Versace operating income was $50 million and operating margin
was 15.9% compared to an operating income of $29 million and
operating margin of 12.3% in the prior year.
Jimmy Choo Fourth Quarter Fiscal 2022 Results
- Jimmy Choo revenue of $156 million increased 25.8% compared to
the prior year. On a constant currency basis, total revenue
increased 29.1%.
- Jimmy Choo operating loss was $15 million and operating margin
was (9.6)%, compared to operating loss of $18 million and operating
margin of (14.5)% in the prior year.
Michael Kors Fourth Quarter Fiscal 2022 Results
- Michael Kors revenue of $1.021 billion increased 21.8% compared
to the prior year. On a constant currency basis, total revenue
increased 23.8%.
- Michael Kors operating income was $210 million and operating
margin was 20.6%, compared to operating income of $172 million and
operating margin of 20.5% in the prior year.
Share Repurchase Authorization
During the fourth quarter, the Company repurchased approximately
5.1 million ordinary shares for approximately $300 million in open
market transactions.
On June 1, 2022, the Company’s Board of Directors approved a new
share repurchase program of up to $1 billion of its outstanding
ordinary shares, providing additional capacity to return cash to
shareholders over the longer term. This new two-year program will
replace the Company’s existing $1 billion share repurchase program
which had $500 million of availability remaining.
Outlook
The following guidance is provided on an adjusted, non-GAAP
basis. Due to the ongoing dynamic nature of the COVID-19 pandemic,
financial results could differ materially from the current outlook
due to a number of external events which are not reflected in our
guidance, including any 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 Capri Holdings, the Company expects the following:
- Total revenue of approximately $5.95 billion, increasing
approximately 5% versus prior year on a reported basis and
approximately 10% in constant currency
- Gross margin approximately flat to fiscal year 2022, reflecting
benefits from strategic initiatives offset by higher transportation
and input costs
- Operating margin of approximately 18%
- Net interest income of approximately $35 million
- Effective tax rate of approximately 11%
- Weighted average diluted shares outstanding of approximately
144 million
- Diluted earnings per share of approximately $6.85
- Capital expenditures of approximately $300 million
For Versace, the Company expects the following:
- Total revenue of approximately $1.225 billion, increasing
approximately 13% on a reported basis and approximately 23% in
constant currency
- Operating margin of approximately 16%
For Jimmy Choo, the Company expects the following:
- Total revenue of approximately $650 million, increasing
approximately 6% on a reported basis and approximately 9% in
constant currency
- Operating margin of approximately 5%
For Michael Kors, the Company expects the following:
- Total revenue of approximately $4.075 billion, increasing
approximately 3% on a reported basis and approximately 6% in
constant currency
- Operating margin of approximately 24%
First Quarter Fiscal 2023 Outlook
For Capri Holdings, the Company expects the following:
- Total revenue of approximately $1.3 billion, increasing
approximately 4% versus prior year on a reported basis and
approximately 9% in constant currency
- Operating margin of approximately 16.5%
- Net interest income of approximately $9 million
- Effective tax rate of approximately 12%
- Weighted average diluted shares outstanding of approximately
146 million
- Diluted earnings per share of approximately $1.35
For Versace, the Company expects the following:
- Total revenue of approximately $265 million, increasing
approximately 11% on a reported basis and approximately 20% in
constant currency
- Operating margin in the low double digit range
For Jimmy Choo, the Company expects the following:
- Total revenue of approximately $155 million, increasing
approximately 9% on a reported basis and approximately 13% in
constant currency
- Operating margin in the mid single digit range
For Michael Kors, the Company expects the following:
- Total revenue of approximately $880 million, increasing
approximately 1% on a reported basis and approximately 5% in
constant currency
- Operating margin in the low to mid 20% range
Fiscal Year 2023 Quarterly Outlook
For Capri Holdings, the Company expects the following:
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Revenue
~$1.30B
~$1.425B
~$1.725B
~$1.50B
Adjusted Operating Margin
~16.5%
~17.0%
~23.5%
~14.5%
Adjusted EPS
~$1.35
~$1.60
~$2.55
~$1.35
Conference Call Information
A conference call to discuss fourth quarter and full year fiscal
2022 results is scheduled for today, June 1, 2022 at 8:30 a.m. ET.
A live webcast of the conference call will be available on the
Company’s website, www.capriholdings.com. In addition, a replay
will be available shortly after the conclusion of the call and
remain available until June 8, 2022. To access the telephone
replay, listeners should dial 1-844-512-2921 or 1-412-317-6671 for
international callers. The access code for the replay is 13729782.
A replay of the webcast will also be available within two hours of
the conclusion of the call and will remain on the website for 90
days. Additionally, a fourth quarter fiscal 2022 earnings
highlights presentation is posted on the company's website.
Investor Meeting
The Company will host an Investor Meeting on Wednesday, July 20,
2022. Additional details about the event will be included in a
subsequent announcement.
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 U.S. GAAP. Additionally, this earnings release includes
certain non-GAAP financial measures that exclude certain costs
associated with COVID-19 related charges, long-lived asset
impairments, ERP implementation costs, Capri transformation costs,
restructuring and other charges, charitable donations and the war
in Ukraine. The Company uses non-GAAP financial measures, among
other things, to evaluate its operating performance and in order to
represent the manner in which the Company conducts and views its
business. The Company believes that excluding these items helps its
management and investors compare operating performance based on its
ongoing operations. While the Company considers the non-GAAP
measures to be useful supplemental measures in analyzing its
results, they are not intended to replace, nor act as a substitute
for, any amounts presented in its consolidated financial statements
prepared in conformity with U.S. GAAP and may be different from
non-GAAP measures reported by other companies.
About Capri Holdings Limited
Capri Holdings Limited is a global fashion luxury group,
consisting of iconic brands that are industry leaders in design,
style and craftsmanship. Its brands cover the full spectrum of
fashion luxury categories including women’s and men’s accessories,
footwear and ready-to-wear as well as wearable technology, watches,
jewelry, eyewear and a full line of fragrance products. The
Company’s goal is to continue to extend the global reach of its
brands while ensuring that they maintain their independence and
exclusive DNA. 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 Holdings Limited (the
“Company”) 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. These forward-looking statements are
not guarantees of future financial performance. 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. These risks, uncertainties and other
factors include the impact of the COVID-19 pandemic, levels of cash
flow and future availability of credit, compliance with restrictive
covenants under the Company’s credit agreement, the Company’s
ability to integrate successfully and to achieve anticipated
benefits of any acquisition and to successfully execute our growth
strategies; the risk of disruptions to the Company’s businesses;
risks associated with operating in international markets and our
global sourcing activities, including disruptions or delays in
manufacturing or shipments; the risk of cybersecurity threats and
privacy of data security breaches; the negative effects of events
on the market price of the Company’s ordinary shares and its
operating results; significant transaction costs; unknown
liabilities; the risk of litigation and/or regulatory actions
related to the Company’s businesses; fluctuations in demand for the
Company’s products; levels of indebtedness (including the
indebtedness incurred in connection with acquisitions); the timing
and scope of future share buybacks, which may be made in open
market or privately negotiated transactions, and are subject to
market conditions, applicable legal requirements, trading
restrictions under the Company’s insider trading policy and other
relevant factors, and which share repurchases may be suspended or
discontinued at any time, the level of other investing activities
and uses of cash; changes in consumer traffic and retail trends;
high consumer debt levels, recession and inflationary pressures;
loss of market share and industry competition; fluctuations in the
capital markets; fluctuations in interest and exchange rates; the
occurrence of unforeseen epidemics and pandemics, disasters or
catastrophes; extreme weather conditions and natural disasters;
political or economic instability in principal markets; adverse
outcomes in litigation; and general, local and global economic,
political, business and market conditions including acts of war and
other geopolitical conflicts; as well as those risks set forth in
the Company’s filings with the U.S. Securities and Exchange
Commission (the “SEC”), including the Company’s Annual Report on
Form 10-K for the fiscal year ended March 27, 2021 (File No.
001-35368). Any forward-looking statement in this press release
speaks only as of the date made and the Company disclaims any
obligation to update or revise any forward-looking or other
statements contained herein other than in accordance with legal and
regulatory obligations.
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
April 2, 2022
March 27, 2021
April 2, 2022
March 27, 2021
Total revenue
$
1,492
$
1,197
$
5,654
$
4,060
Cost of goods sold
536
460
1,910
1,463
Gross profit
956
737
3,744
2,597
Total operating expenses
837
876
2,841
2,578
Income (loss) from operations
119
(139
)
903
19
Other income, net
—
(3
)
(2
)
(7
)
Interest (income) expense, net
(7
)
4
(18
)
43
Foreign currency loss (gain)
7
(4
)
8
(20
)
Income (loss) before provision for income
taxes
119
(136
)
915
3
Provision for income taxes
38
46
92
66
Net income (loss)
81
(182
)
823
(63
)
Less: Net income (loss) attributable to
noncontrolling interests
—
1
1
(1
)
Net income (loss) attributable to
Capri
$
81
$
(183
)
$
822
$
(62
)
Weighted average ordinary shares
outstanding:
Basic
146,239,474
151,104,434
149,724,675
150,453,568
Diluted
148,757,360
151,104,434
152,497,907
150,453,568
Net income (loss) per ordinary share:
Basic
$
0.55
$
(1.21
)
$
5.49
$
(0.41
)
Diluted
$
0.54
$
(1.21
)
$
5.39
$
(0.41
)
SCHEDULE 2
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In millions, except share
data)
(Unaudited)
April 2, 2022
March 27, 2021
Assets
Current assets
Cash and cash equivalents
$
169
$
232
Receivables, net
434
373
Inventories, net
1,096
736
Prepaid expenses and other current
assets
192
205
Total current assets
1,891
1,546
Property and equipment, net
476
485
Operating lease right-of-use assets
1,358
1,504
Intangible assets, net
1,847
1,992
Goodwill
1,418
1,498
Deferred tax assets
240
278
Other assets
250
178
Total assets
$
7,480
$
7,481
Liabilities and Shareholders’
Equity
Current liabilities
Accounts payable
$
555
$
512
Accrued payroll and payroll related
expenses
165
116
Accrued income taxes
52
126
Short-term operating lease liabilities
414
447
Short-term debt
29
123
Accrued expenses and other current
liabilities
351
297
Total current liabilities
1,566
1,621
Long-term operating lease liabilities
1,467
1,657
Deferred tax liabilities
432
397
Long-term debt
1,131
1,219
Other long-term liabilities
326
430
Total liabilities
4,922
5,324
Commitments and contingencies
Shareholders’ equity
Ordinary shares, no par value; 650,000,000
shares authorized; 221,967,599 shares issued and 142,806,269
outstanding at April 2, 2022; 219,222,937 shares issued and
151,280,011 outstanding at March 27, 2021
—
—
Treasury shares, at cost (79,161,330
shares at April 2, 2022 and 67,942,926 shares at March 27,
2021)
(3,987
)
(3,326
)
Additional paid-in capital
1,260
1,158
Accumulated other comprehensive income
194
56
Retained earnings
5,092
4,270
Total shareholders’ equity of Capri
2,559
2,158
Noncontrolling interest
(1
)
(1
)
Total shareholders’ equity
2,558
2,157
Total liabilities and shareholders’
equity
$
7,480
$
7,481
SCHEDULE 3
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
CONSOLIDATED SEGMENT
DATA
($ in millions)
(Unaudited)
Three Months Ended
Fiscal Years Ended
April 2, 2022
March 27, 2021
April 2, 2022
March 27, 2021
Revenue by Segment and Region:
Versace
The Americas
$
125
$
69
$
408
$
201
EMEA
121
93
425
276
Asia
69
73
255
241
Versace Revenue
315
235
1,088
718
Jimmy Choo
The Americas
48
31
175
102
EMEA
54
44
229
146
Asia
54
49
209
170
Jimmy Choo Revenue
156
124
613
418
Michael Kors
The Americas
667
548
2,627
1,869
EMEA
219
160
835
607
Asia
135
130
491
448
Michael Kors Revenue
1,021
838
3,953
2,924
Total Revenue
$
1,492
$
1,197
$
5,654
$
4,060
Income (Loss) from Operations:
Versace
$
50
$
29
$
185
$
21
Jimmy Choo
(15
)
(18
)
13
(55
)
Michael Kors
210
172
1,005
595
Total segment income from operations
245
183
1,203
561
Less: Corporate expenses
(67
)
(62
)
(190
)
(152
)
Restructuring and other charges
(17
)
(14
)
(42
)
(32
)
Impairment of long-lived assets
(40
)
(206
)
(73
)
(316
)
Impact of war in Ukraine
(9
)
—
(9
)
—
COVID-19 related charges
7
(40
)
14
(42
)
Total Income (Loss) from
Operations
$
119
$
(139
)
$
903
$
19
Operating Margin:
Versace
15.9
%
12.3
%
17.0
%
2.9
%
Jimmy Choo
(9.6
)%
(14.5
)%
2.1
%
(13.2
)%
Michael Kors
20.6
%
20.5
%
25.4
%
20.3
%
Capri Operating Margin
8.0
%
(11.6
)%
16.0
%
0.5
%
SCHEDULE 4
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
SUPPLEMENTAL RETAIL STORE
INFORMATION
(Unaudited)
As of
Retail Store Information:
April 2, 2022
March 27, 2021
Versace
209
210
Jimmy Choo
237
227
Michael Kors
825
820
Total number of retail stores
1,271
1,257
SCHEDULE 5
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
CONSTANT CURRENCY DATA
(In millions)
(Unaudited)
Three Months Ended
% Change
April 2, 2022
March 27, 2021
As Reported
Constant Currency
Total revenue:
Versace
$
315
235
34.0
%
44.3
%
Jimmy Choo
156
124
25.8
%
29.1
%
Michael Kors
1,021
838
21.8
%
23.8
%
Total revenue
$
1,492
$
1,197
24.6
%
28.4
%
Fiscal Years Ended
% Change
April 2, 2022
March 27, 2021
As Reported
Constant Currency
Total revenue:
Versace
$
1,088
$
718
51.5
%
52.8
%
Jimmy Choo
613
418
46.7
%
40.4
%
Michael Kors
3,953
2,924
35.2
%
34.9
%
Total revenue
$
5,654
$
4,060
39.3
%
38.6
%
SCHEDULE 6
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In millions, except share and
per share data)
(Unaudited)
Three Months Ended April 2,
2022
As Reported
Impairment Charges
Restructuring
and Other Charges (1)
Charitable Donations
COVID-19 Related Charges
ERP Implementation
Capri Transformation
War in Ukraine
As Adjusted
Gross profit
$
956
$
—
$
—
$
—
$
(7
)
$
—
$
—
$
2
$
951
Operating expenses
$
837
$
(40
)
$
(17
)
$
(10
)
$
—
$
(8
)
$
(16
)
$
(7
)
$
739
Total income from operations
$
119
$
40
$
17
$
10
$
(7
)
$
8
$
16
$
9
$
212
Income before provision for income
taxes
$
119
$
40
$
17
$
10
$
(7
)
$
8
$
16
$
9
$
212
Provision for income taxes
$
38
$
8
$
6
$
—
$
6
$
2
$
—
$
—
$
60
Net income attributable to Capri
$
81
$
32
$
11
$
10
$
(13
)
$
6
$
16
$
9
$
152
Diluted net income per ordinary share -
Capri
$
0.54
$
0.22
$
0.07
$
0.07
$
(0.09
)
$
0.04
$
0.11
$
0.06
$
1.02
______________________
(1)
Includes store closure costs which have
been incorporated into the Capri Retail Store Optimization Program,
other restructuring initiatives and other costs recorded in
connection with the acquisition of Gianni Versace S.r.l.
SCHEDULE 7
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In millions, except share and
per share data)
(Unaudited)
Fiscal Year Ended April 2,
2022
As Reported
Impairment Charges
Restructuring and Other Charges
(1)
Charitable Donations
COVID-19 Related Charges
ERP Implementation
Capri Transformation
War in Ukraine
As Adjusted
Gross profit
$
3,744
$
—
$
—
$
—
$
(16
)
$
—
$
—
$
2
$
3,730
Operating expenses
$
2,841
$
(73
)
$
(42
)
$
(10
)
$
(2
)
$
(19
)
$
(31
)
$
(7
)
$
2,657
Total income from operations
$
903
$
73
$
42
$
10
$
(14
)
$
19
$
31
$
9
$
1,073
Income before provision for income
taxes
$
915
$
73
$
42
$
10
$
(14
)
$
19
$
31
$
9
$
1,085
Provision for income taxes
$
92
$
16
$
8
$
—
$
6
$
6
$
9
$
—
$
137
Net income attributable to Capri
$
822
$
57
$
34
$
10
$
(20
)
$
13
$
22
$
9
$
947
Diluted net income per ordinary share -
Capri
$
5.39
$
0.37
$
0.22
$
0.07
$
(0.13
)
$
0.09
$
0.14
$
0.06
$
6.21
______________________
(1)
Includes store closure costs which have
been incorporated into the Capri Retail Store Optimization Program,
other restructuring initiatives, and other costs recorded in
connection with the acquisition of Gianni Versace S.r.l.
SCHEDULE 8
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In millions, except share and
per share data)
(Unaudited)
Three Months Ended March 27,
2021
As Reported
Impairment Charges (1)
Restructuring and Other Charges
(2)
Charitable Donations
COVID-19 Related Charges
Capri Transformation
As Adjusted
Gross profit
$
737
$
—
$
—
$
—
$
23
$
—
$
760
Operating expenses
$
876
$
(206
)
$
(14
)
$
(20
)
$
(17
)
$
(2
)
$
617
Total (loss) income from operations
$
(139
)
$
206
$
14
$
20
$
40
$
2
$
143
(Loss) income before provision for income
taxes
$
(136
)
$
206
$
14
$
20
$
40
$
2
$
146
Provision for income taxes
$
46
$
23
$
6
$
5
$
6
$
—
$
86
Net (loss) income attributable to
Capri
$
(183
)
$
183
$
8
$
15
$
34
$
2
$
59
Diluted net (loss) income per ordinary
share - Capri
$
(1.21
)
$
1.19
$
0.06
$
0.10
$
0.22
$
0.02
$
0.38
______________________
(1)
Includes impairment charges of $94 million
related to goodwill associated with the Jimmy Choo wholesale and
licensing reporting units, $69 million related to the Jimmy Choo
brand indefinite-lived intangible assets. These impairment charges
were primarily related to higher discount rates in the current year
driven by a change in market factors as well as a shift in expected
revenue and earnings mix to the retail segment. This amount also
includes $43 million primarily related to operating lease
right-of-use assets and fixed assets of our retail store
locations.
(2)
Includes store closure costs which have
been incorporated into the Capri Retail Store Optimization Program,
other restructuring initiatives and other costs recorded in
connection with the acquisitions of Gianni Versace S.r.l and Jimmy
Choo Group Limited.
SCHEDULE 9
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In millions, except share and
per share data)
(Unaudited)
Fiscal Year Ended March 27,
2021
As Reported
Impairment Charges (1)
Restructuring and Other Charges
(2)
Charitable Donations
COVID-19 Related Charges
ERP Implementation
Capri Transformation
As Adjusted
Gross profit
$
2,597
$
—
$
—
$
—
$
10
$
—
$
—
$
2,607
Operating expenses
$
2,578
$
(316
)
$
(32
)
$
(20
)
$
(32
)
$
(2
)
$
(4
)
$
2,172
Total income from operations
$
19
$
316
$
32
$
20
$
42
$
2
$
4
$
435
Income before provision for income
taxes
$
3
$
316
$
32
$
20
$
42
$
2
$
4
$
419
Provision for income taxes
$
66
$
51
$
4
$
5
$
4
$
(1
)
$
1
$
130
Net (loss) income attributable to
Capri
$
(62
)
$
265
$
28
$
15
$
38
$
3
$
3
$
290
Diluted net (loss) income per ordinary
share - Capri
$
(0.41
)
$
1.74
$
0.18
$
0.10
$
0.25
$
0.02
$
0.02
$
1.90
______________________
(1)
Includes impairment charges of $153
million primarily related to operating lease right-of-use assets
and fixed assets of our retail store locations. This amount also
includes $94 million related to goodwill associated with the Jimmy
Choo wholesale and licensing reporting units and $69 million
related to the Jimmy Choo brand indefinite-lived intangible assets.
The Jimmy Choo impairment charges were primarily related to higher
discount rates in the current year driven by a change in market
factors as well as a shift in expected revenue and earnings mix to
the retail segment.
(2)
Includes store closure costs which have
been incorporated into the Capri Retail Store Optimization Program,
other restructuring initiatives and other costs recorded in
connection with the acquisitions of Gianni Versace S.r.l and Jimmy
Choo Group Limited.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220601005571/en/
Investor Relations: Jennifer Davis +1 (201) 514-8234
Jennifer.Davis@CapriHoldings.com
Media: Dinesh Kandiah +1 (917) 934-2427
Press@CapriHoldings.com
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