Achieved Record First Quarter Revenue and
Adjusted Earnings Per Share
http://www.capriholdings.com/1Q23Presentation
Capri Holdings Limited (NYSE:CPRI), a global fashion luxury
group, today announced its financial results for the first quarter
of Fiscal 2023 ended July 2, 2022.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20220809005466/en/
Versace (Photo: Business Wire)
First Quarter Fiscal 2023 Highlights
- Revenue increased 8.5% on a reported basis and 15.2% in
constant currency, with better than anticipated results across all
three luxury houses
- Adjusted operating margin of 18.5%
- Adjusted earnings per share of $1.50
John D. Idol, the Company's Chairman and Chief Executive
Officer, said, "We are pleased with our first quarter performance
with revenue, gross margin, operating margin and earnings per share
all exceeding our expectations. Better than anticipated results
were driven by strong momentum across all three luxury houses
reflecting the power of our brands as they continue to deepen
consumer desire and engagement."
Mr. Idol continued, "Looking forward, we remain optimistic about
the long-term growth potential for Versace, Jimmy Choo and Michael
Kors. With our portfolio of iconic, founder-led fashion luxury
brands, Capri Holdings is positioned to deliver multiple years of
revenue and earnings growth."
First 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 the
United States ("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 revenues compared to the same period in the prior year.
Overview of Capri Holdings First Quarter Fiscal 2023
Results:
- Total revenue of $1.36 billion increased 8.5% compared to last
year. On a constant currency basis, total revenue increased
15.2%.
- Gross profit was $901 million and gross margin was 66.3%,
compared to $856 million and 68.3% in the prior year. Adjusted
gross profit was $900 million and adjusted gross margin was 66.2%,
compared to $853 million and 68.1% in the prior year.
- Income from operations was $231 million and operating margin
was 17.0%, compared to $258 million and 20.6% in the prior year.
Adjusted income from operations was $251 million and operating
margin was 18.5%, compared to $261 million and 20.8% in the prior
year.
- Net income was $201 million, or $1.40 per diluted share,
compared to $219 million, or $1.41 per diluted share, in the prior
year. Adjusted net income was $215 million, or $1.50 per diluted
share, compared to $221 million or, $1.42 per diluted share, in the
prior year.
- Net inventory on July 2, 2022 was $1.265 billion, a 66%
increase compared to the prior year. Relative to pre-COVID levels,
first quarter inventory increased 25%. Higher inventory was planned
reflecting the Company's new programs to receive seasonal
merchandise earlier as well as hold more core inventory.
Versace First Quarter Fiscal 2023 Results:
- Versace revenue of $275 million increased 14.6% compared to the
prior year. On a constant currency basis, total revenue increased
29.6%.
- Versace operating income was $52 million and operating margin
was 18.9%, compared to $48 million and 20.0% in the prior
year.
Jimmy Choo First Quarter Fiscal 2023 Results:
- Jimmy Choo revenue of $172 million increased 21.1% compared to
the prior year. On a constant currency basis, total revenue
increased 30.3%.
- Jimmy Choo operating income was $19 million and operating
margin was 11.0%, compared to $11 million and 7.7% in the prior
year.
Michael Kors First Quarter Fiscal 2023 Results:
- Michael Kors revenue of $913 million increased 4.8% compared to
the prior year. On a constant currency basis, total revenue
increased 8.7%.
- Michael Kors operating income was $222 million and operating
margin was 24.3%, compared to $240 million and 27.6% in the prior
year.
Share Repurchase Program
During the first quarter, the Company repurchased approximately
6.1 million ordinary shares for approximately $300 million in open
market transactions. As of July 2, 2022, the remaining availability
under the Company's share repurchase authorization was $700
million.
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 $5.85 billion
- Gross margin approximately flat to fiscal 2022
- Operating margin of approximately 18%
- Net interest income of approximately $10 million
- Effective tax rate of approximately 10%
- Weighted average diluted shares outstanding of approximately
140 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 $1.175 billion
- Operating margin of approximately 16%
For Jimmy Choo, the Company expects the following:
- Total revenue of approximately $650 million
- Operating margin of approximately 5%
For Michael Kors, the Company expects the following:
- Total revenue of approximately $4.025 billion
- Operating margin of approximately 24%
Second Quarter Fiscal 2023 Outlook
For Capri Holdings, the Company expects the following:
- Total revenue of approximately $1.4 billion
- Operating margin of approximately 17%
- Net interest income of approximately $3 million
- Effective tax rate of approximately 11%
- Weighted average diluted shares outstanding of approximately
139 million
- Diluted earnings per share of approximately $1.55
For Versace, the Company expects the following:
- Total revenue of approximately $300 million
- Operating margin in the mid teens
For Jimmy Choo, the Company expects the following:
- Total revenue of approximately $140 million
- Operating margin slightly positive
For Michael Kors, the Company expects the following:
- Total revenue of approximately $960 million
- Operating margin in the low-to-mid 20% range
Fiscal Year 2023 Quarterly Outlook
For Capri Holdings, the Company expects the following:
Second Quarter
Third Quarter
Fourth Quarter
FY2023
Revenue
~$1.40B
~$1.65B
~$1.44B
~$5.85B
Adjusted Operating Margin
~17%
~22%
~14%
~18%
Adjusted EPS
~$1.55
~$2.45
~$1.35
~$6.85
Conference Call Information
A conference call to discuss first quarter Fiscal 2023 results
is scheduled for today, August 9, 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 August 16, 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 13731647.
A replay of the webcast will also be available within two hours of
the conclusion of the call.
Use of Non-GAAP Financial Measures
Constant currency effects are non-GAAP financial measures, which
are provided to supplement our reported operating results to
facilitate comparisons of our operating results and trends in our
business, excluding the effects of foreign currency rate
fluctuations. Because we are a global company, foreign currency
exchange rates may have a significant effect on our reported
results. We calculate constant currency measures and the related
foreign currency impacts by translating the current year’s reported
amounts into comparable amounts using prior year’s foreign exchange
rates for each currency. All constant currency performance measures
discussed 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, ERP implementation costs, Capri
transformation costs, restructuring and other charges. 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 Versace, Jimmy Choo and Michael Kors
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 April 2, 2022 (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
July 2, 2022
June 26, 2021
Total revenue
$
1,360
$
1,253
Cost of goods sold
459
397
Gross profit
901
856
Total operating expenses
670
598
Income from operations
231
258
Interest (income) expense, net
(4
)
1
Foreign currency loss
4
1
Income before income taxes
231
256
Provision for income taxes
28
37
Net income
203
219
Less: Net income attributable to
noncontrolling interests
2
—
Net income attributable to Capri
$
201
$
219
Weighted average ordinary shares
outstanding:
Basic
141,913,586
151,312,103
Diluted
143,733,984
154,890,483
Net income per ordinary share:
Basic
$
1.42
$
1.45
Diluted
$
1.40
$
1.41
SCHEDULE 2
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In millions, except share
data)
(Unaudited)
July 2, 2022
April 2, 2022
June 26, 2021
Assets
Current assets
Cash and cash equivalents
$
221
$
169
$
356
Receivables, net
394
434
382
Inventories, net
1,265
1,096
760
Prepaid expenses and other current
assets
201
192
209
Total current assets
2,081
1,891
1,707
Property and equipment, net
466
476
472
Operating lease right-of-use assets
1,388
1,358
1,468
Intangible assets, net
1,739
1,847
1,996
Goodwill
1,336
1,418
1,512
Deferred tax assets
231
240
281
Other assets
369
250
188
Total assets
$
7,610
$
7,480
$
7,624
Liabilities and Shareholders’
Equity
Current liabilities
Accounts payable
$
540
$
555
$
464
Accrued payroll and payroll related
expenses
123
165
131
Accrued income taxes
136
52
101
Short-term operating lease liabilities
399
414
442
Short-term debt
37
29
127
Accrued expenses and other current
liabilities
379
351
297
Total current liabilities
1,614
1,566
1,562
Long-term operating lease liabilities
1,465
1,467
1,594
Deferred tax liabilities
476
432
443
Long-term debt
1,382
1,131
1,206
Other long-term liabilities
295
326
369
Total liabilities
5,232
4,922
5,174
Commitments and contingencies
Shareholders’ equity
Ordinary shares, no par value; 650,000,000
shares authorized; 223,503,792 shares issued and 137,956,977
outstanding at July 2, 2022; 221,967,599 shares issued and
142,806,269 outstanding at April 2, 2022 and 220,973,560 shares
issued and 151,942,484 outstanding at June 26, 2021
—
—
—
Treasury shares, at cost (85,546,815
shares at July 2, 2022, 79,161,330 shares at April 2, 2022 and
69,031,076 shares at June 26, 2021)
(4,299
)
(3,987
)
(3,385
)
Additional paid-in capital
1,294
1,260
1,201
Accumulated other comprehensive income
89
194
147
Retained earnings
5,293
5,092
4,489
Total shareholders’ equity of Capri
2,377
2,559
2,452
Noncontrolling interest
1
(1
)
(2
)
Total shareholders’ equity
2,378
2,558
2,450
Total liabilities and shareholders’
equity
$
7,610
$
7,480
$
7,624
SCHEDULE 3
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
CONSOLIDATED SEGMENT
DATA
($ in millions)
(Unaudited)
Three Months Ended
July 2, 2022
June 26, 2021
Revenue by Segment and Region:
Versace
The Americas
$
115
$
87
EMEA
107
87
Asia
53
66
Versace Revenue
275
240
Jimmy Choo
The Americas
54
38
EMEA
66
50
Asia
52
54
Jimmy Choo Revenue
172
142
Michael Kors
The Americas
625
590
EMEA
191
165
Asia
97
116
Michael Kors Revenue
913
871
Total Revenue
$
1,360
$
1,253
Income from Operations:
Versace
$
52
$
48
Jimmy Choo
19
11
Michael Kors
222
240
Total segment income from operations
293
299
Less: Corporate expenses
(60
)
(41
)
Restructuring and other charges
(3
)
(3
)
COVID-19 related charges
1
3
Total Income from Operations
$
231
$
258
Operating Margin:
Versace
18.9
%
20.0
%
Jimmy Choo
11.0
%
7.7
%
Michael Kors
24.3
%
27.6
%
Capri Operating Margin
17.0
%
20.6
%
SCHEDULE 4
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
SUPPLEMENTAL RETAIL STORE
INFORMATION
(Unaudited)
As of
Retail Store Information:
July 2, 2022
June 26, 2021
Versace
208
208
Jimmy Choo
236
233
Michael Kors
821
820
Total number of retail stores
1,265
1,261
SCHEDULE 5
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
CONSTANT CURRENCY DATA
(In millions)
(Unaudited)
Three Months Ended
% Change
July 2, 2022
June 26, 2021
As
Reported
Constant
Currency
Total Revenue:
Versace
$
275
$
240
14.6
%
29.6
%
Jimmy Choo
172
142
21.1
%
30.3
%
Michael Kors
913
871
4.8
%
8.7
%
Total Revenue
$
1,360
$
1,253
8.5
%
15.2
%
SCHEDULE 6
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In millions, except per share
data)
(Unaudited)
Three Months Ended July 2,
2022
As
Reported
Restructuring and Other Charges
(1)
COVID-19 Related Charges
ERP Implementation
Capri Transformation
As
Adjusted
Gross profit
$
901
$
—
$
(1
)
$
—
$
—
$
900
Operating expenses
$
670
$
(3
)
$
—
$
(9
)
$
(9
)
$
649
Total income from operations
$
231
$
3
$
(1
)
$
9
$
9
$
251
Income before provision for income
taxes
$
231
$
3
$
(1
)
$
9
$
9
$
251
Provision for income taxes
$
28
$
1
$
—
$
2
$
3
$
34
Net income attributable to Capri
$
201
$
2
$
(1
)
$
7
$
6
$
215
Diluted net income per ordinary share -
Capri
$
1.40
$
0.01
$
—
$
0.05
$
0.04
$
1.50
_________________________
(1)
Primarily Includes other costs recorded in
connection with the acquisitions of Gianni Versace S.r.l and costs
related to other restructuring initiatives.
SCHEDULE 7
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In millions, except per share
data)
(Unaudited)
Three Months Ended June 26,
2021
As Reported
Restructuring and Other Charges
(1)
COVID-19 Related Charges
ERP Implementation
As Adjusted
Gross profit
$
856
$
—
$
(3
)
$
—
$
853
Operating expenses
$
598
$
(3
)
$
—
$
(3
)
$
592
Total income from operations
$
258
$
3
$
(3
)
$
3
$
261
Income before provision for income
taxes
$
256
$
3
$
(3
)
$
3
$
259
Provision for income taxes
$
37
$
1
$
(1
)
$
1
$
38
Net income attributable to Capri
$
219
$
2
$
(2
)
$
2
$
221
Diluted net income per ordinary share -
Capri
$
1.41
$
0.01
$
(0.01
)
$
0.01
$
1.42
________________________
(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 acquisitions of Gianni Versace S.r.l. and Jimmy
Choo Group Limited.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220809005466/en/
Investor Relations: Jennifer Davis +1 (201) 514-8234
Jennifer.Davis@CapriHoldings.com
Media: Dinesh Kandiah +1 (917) 934-2427
Press@CapriHoldings.com
Capri (NYSE:CPRI)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Capri (NYSE:CPRI)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024