Achieved Record Revenue at Versace and Jimmy
Choo in Fiscal 2023
Returned $1.35 Billion to Shareholders in
Fiscal 2023
https://www.capriholdings.com/4Q23Presentation
Capri Holdings Limited (NYSE:CPRI), a global fashion luxury
group, today announced its financial results for the fourth quarter
and full year fiscal 2023 ended April 1, 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230531005437/en/
(Photo: Business Wire)
Fourth Quarter Fiscal 2023 Highlights
- Revenue decreased 10.5% on a reported basis and 3.0% on a
52-week constant currency basis
- Adjusted gross margin expanded 90 basis points versus prior
year
- Adjusted operating margin of 9.1%
- Adjusted earnings per share of $0.97
John D. Idol, the Company’s Chairman and Chief Executive Officer
said, "Looking back on fiscal 2023, revenue increased
high-single-digits and earnings per share increased
mid-single-digits. These results were measured on a 52-week
constant currency basis. We achieved several milestones in fiscal
2023, including record revenue at Versace and Jimmy Choo as well as
mid-single-digit revenue growth at Michael Kors. Additionally, we
generated strong free cash flow and returned $1.35 billion to
shareholders. These results demonstrate the power of our business
model, the strength of our luxury houses and the execution of our
strategic initiatives."
Mr. Idol continued, "With Versace, Jimmy Choo and Michael Kors
we have three incredibly powerful brands to drive our future
growth. While we recognize that there are near-term uncertainties
in the Americas, we are encouraged by the strong trends in Asia and
continued growth in EMEA. Looking to fiscal 2024, we anticipate
revenue will increase low-single-digits and earnings per share will
increase mid-single-digits. Beyond fiscal 2024, we remain confident
in our ability to achieve our long-term goals over time due to the
resilience of the luxury industry, the strength of our three
powerful iconic brands and the talented group of employees
executing our strategic initiatives."
Fiscal 2023 Financial & Strategic Highlights (1)
- Drove high-single-digit revenue growth
- Achieved record revenue at Versace and Jimmy Choo, with
double digit growth at both houses
- Generated mid-single-digit revenue growth at Michael
Kors
- Accelerated growth of accessories across all houses,
with retail sales of women’s accessories increasing over 40% at
Versace, over 20% at Jimmy Choo and low-single-digits at Michael
Kors
- Continued to grow footwear across all brands, with
retail sales of women's footwear increasing low-double-digits at
Versace and Michael Kors and high-single-digits at Jimmy Choo
- Drove customer awareness and brand engagement, adding
12.6 million new names to our databases which represented the
largest increase in the Company’s history
- Returned $1.35 billion to shareholders through share
repurchases, reflecting strong balance sheet and free cash flow
generation
(1) Revenue growth rates on a 52-week constant currency
basis
Fourth 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 (“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.
Overview of Capri Holdings Fourth Quarter Fiscal 2023
Results
The Company noted that fiscal year 2022 had 53 weeks versus 52
weeks in fiscal year 2023. 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 revenue related to the 53rd
week.
- Total revenue of $1.335 billion decreased 10.5% compared to
last year. On a 13-week constant currency basis, total revenue
decreased 3.0%.
- Gross profit was $867 million and gross margin was 64.9%,
compared to $956 million and 64.1% in the prior year. Adjusted
gross profit was $863 million and adjusted gross margin was 64.6%,
compared to $951 million and 63.7% in the prior year.
- Loss from operations was $40 million and operating margin was
(3.0)% compared to income from operations of $119 million and
operating margin of 8.0% in the prior year. Adjusted income from
operations was $121 million and operating margin was 9.1%, compared
to $212 million and 14.2% in the prior year.
- Net loss was $34 million, or $(0.28) per diluted share,
compared to net income of $81 million, or $0.54 per diluted share,
in the prior year. Adjusted net income was $121 million, or $0.97
per diluted share, compared to $152 million, or $1.02 per diluted
share, in the prior year.
- Net inventory at April 1, 2023 was $1.057 billion, a 3.6%
decrease compared to the prior year.
Versace Fourth Quarter Fiscal 2023 Results
- Versace revenue of $274 million decreased 13.0% compared to the
prior year. On a constant currency basis, total revenue decreased
8.6%.
- Versace operating income was $14 million and operating margin
was 5.1% compared to an operating income of $50 million and
operating margin of 15.9% in the prior year.
Jimmy Choo Fourth Quarter Fiscal 2023 Results
- Jimmy Choo revenue of $151 million decreased 3.2% compared to
the prior year. On a 13-week constant currency basis, total revenue
increased 5.6%.
- Jimmy Choo operating loss was $7 million and operating margin
was (4.6)%, compared to $15 million and operating margin of (9.6)%
in the prior year.
Michael Kors Fourth Quarter Fiscal 2023 Results
- Michael Kors revenue of $910 million decreased 10.9% compared
to the prior year. On a 13-week constant currency basis, total
revenue decreased 2.2%.
- Michael Kors operating income was $147 million and operating
margin was 16.2%, compared to operating income of $210 million and
operating margin of 20.6% in the prior year.
Share Repurchase Authorization
During the fourth quarter, the Company repurchased approximately
8.5 million ordinary shares for approximately $400 million in open
market transactions. As of April 1, 2023 the remaining availability
under the Company's share repurchase program was $400 million.
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 factors which are not reflected
in our guidance, including changes in global macroeconomic
conditions, greater than anticipated inflationary pressures,
further considerable fluctuations in foreign currency exchange
rates, COVID-19 variants and other COVID related disruptions.
Fiscal Year 2024 Outlook
For Capri Holdings, the Company expects the following:
- Total revenue of approximately $5.7 billion
- Modest gross margin expansion
- Operating margin of approximately 16.5%
- Net interest expense of approximately $20 million
- Effective tax rate of approximately 15%
- Weighted average diluted shares outstanding of approximately
122 million
- Diluted earnings per share of approximately $6.40
- Capital expenditures of approximately $260 million
For Versace, the Company expects the following:
- Total revenue of approximately $1.2 billion
- Operating margin in the mid-teens range
For Jimmy Choo, the Company expects the following:
- Total revenue of approximately $700 million
- Operating margin in the high-single-digit range
For Michael Kors, the Company expects the following:
- Total revenue of approximately $3.8 billion
- Operating margin in the low-20% range
First Quarter Fiscal 2024 Outlook
For Capri Holdings, the Company expects the following:
- Total revenue of approximately $1.2 billion
- Operating margin of approximately 8.5%
- Net interest expense of approximately $4 million
- Effective tax rate of approximately 15%
- Weighted average diluted shares outstanding of approximately
120 million
- Diluted earnings per share of approximately $0.70
For Versace, the Company expects the following:
- Total revenue of approximately $245 million
- Operating margin of break-even
For Jimmy Choo, the Company expects the following:
- Total revenue of approximately $180 million
- Operating margin in the high-single-digit range
For Michael Kors, the Company expects the following:
- Total revenue of approximately $775 million
- Operating margin in the mid-teens range
Fiscal Year 2024 Outlook
For Capri Holdings, the Company expects the following:
First Half
Second Half
Fiscal Year 2024
Revenue
~$2.6B
~$3.1B
~$5.7B
Adjusted Operating Margin
~13.0%
~19.5%
~16.5%
Adjusted EPS
~$2.50
~$3.90
~$6.40
Conference Call Information
A conference call to discuss fourth quarter and full year fiscal
2023 results is scheduled for today, May 31, 2023 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 7, 2023. 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 13736113.
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 2023 earnings
highlights presentation is posted on the company's website.
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 is a global fashion luxury group consisting of
iconic, founder-led brands Versace, Jimmy Choo and Michael Kors.
Our commitment to glamorous style and craftsmanship is at the heart
of each of our luxury brands. We have built our reputation on
designing exceptional, innovative products that cover the full
spectrum of fashion luxury categories. Our strength lies in the
unique DNA and heritage of each of our brands, the diversity and
passion of our people and our dedication to the clients and
communities we serve. 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 changes in consumer traffic and retail trends; high
consumer debt levels, recession and inflationary pressures; loss of
market share and industry competition; 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; 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
Fiscal Years Ended
April 1, 2023
April 2, 2022
April 1, 2023
April 2, 2022
Total revenue
$
1,335
$
1,492
$
5,619
$
5,654
Cost of goods sold
468
536
1,895
1,910
Gross profit
867
956
3,724
3,744
Total operating expenses
907
837
3,045
2,841
(Loss) income from operations
(40
)
119
679
903
Other income, net
(1
)
—
(3
)
(2
)
Interest expense (income), net
11
(7
)
24
(18
)
Foreign currency loss
20
7
10
8
(Loss) income before provision for income
taxes
(70
)
119
648
915
(Benefit) provision for income taxes
(37
)
38
29
92
Net (loss) income
(33
)
81
619
823
Less: Net income attributable to
noncontrolling interests
1
—
3
1
Net (loss) income attributable to
Capri
$
(34
)
$
81
$
616
$
822
Weighted average ordinary shares
outstanding:
Basic
123,327,209
146,239,474
132,532,009
149,724,675
Diluted
123,327,209
148,757,360
134,002,480
152,497,907
Net income (loss) per ordinary share:
Basic
$
(0.28
)
$
0.55
$
4.65
$
5.49
Diluted
$
(0.28
)
$
0.54
$
4.60
$
5.39
SCHEDULE 2
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In millions, except share
data)
(Unaudited)
April 1, 2023
April 2, 2022
Assets
Current assets
Cash and cash equivalents
$
249
$
169
Receivables, net
369
434
Inventories, net
1,057
1,096
Prepaid expenses and other current
assets
195
192
Total current assets
1,870
1,891
Property and equipment, net
552
476
Operating lease right-of-use assets
1,330
1,358
Intangible assets, net
1,728
1,847
Goodwill
1,293
1,418
Deferred tax assets
296
240
Other assets
226
250
Total assets
$
7,295
$
7,480
Liabilities and Shareholders’
Equity
Current liabilities
Accounts payable
$
475
$
555
Accrued payroll and payroll related
expenses
154
165
Accrued income taxes
73
52
Short-term operating lease liabilities
429
414
Short-term debt
5
29
Accrued expenses and other current
liabilities
314
351
Total current liabilities
1,450
1,566
Long-term operating lease liabilities
1,348
1,467
Deferred tax liabilities
508
432
Long-term debt
1,822
1,131
Other long-term liabilities
318
326
Total liabilities
5,446
4,922
Commitments and contingencies
Shareholders’ equity
Ordinary shares, no par value; 650,000,000
shares authorized; 224,166,250 shares issued and 117,347,045
outstanding at April 1, 2023; 221,967,599 shares issued and
142,806,269 outstanding at April 2, 2022
—
—
Treasury shares, at cost (106,819,205
shares at April 1, 2023 and 79,161,330 shares at April 2, 2022)
(5,351
)
(3,987
)
Additional paid-in capital
1,344
1,260
Accumulated other comprehensive income
147
194
Retained earnings
5,708
5,092
Total shareholders’ equity of Capri
1,848
2,559
Noncontrolling interest
1
(1
)
Total shareholders’ equity
1,849
2,558
Total liabilities and shareholders’
equity
$
7,295
$
7,480
SCHEDULE 3
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
CONSOLIDATED SEGMENT
DATA
($ in millions)
(Unaudited)
Three Months Ended
Fiscal Years Ended
April 1, 2023
April 2, 2022
April 1, 2023
April 2, 2022
Revenue by Segment and Region:
Versace
The Americas
$
88
$
125
$
408
$
408
EMEA
118
121
468
425
Asia
68
69
230
255
Versace Revenue
274
315
1,106
1,088
Jimmy Choo
The Americas
45
48
196
175
EMEA
62
54
255
229
Asia
44
54
182
209
Jimmy Choo Revenue
151
156
633
613
Michael Kors
The Americas
571
667
2,616
2,627
EMEA
203
219
819
835
Asia
136
135
445
491
Michael Kors Revenue
910
1,021
3,880
3,953
Total Revenue
$
1,335
$
1,492
$
5,619
$
5,654
(Loss) Income from Operations:
Versace
$
14
$
50
$
152
$
185
Jimmy Choo
(7
)
(15
)
38
13
Michael Kors
147
210
868
1,005
Total segment income from operations
154
245
1,058
1,203
Less: Corporate expenses
(62
)
(67
)
(233
)
(190
)
Restructuring and other charges
(5
)
(17
)
(16
)
(42
)
Impairment of long-lived assets
(130
)
(40
)
(142
)
(73
)
Impact of war in Ukraine
—
(9
)
3
(9
)
COVID-19 related charges
3
7
9
14
Total (Loss) Income from
Operations
$
(40
)
$
119
$
679
$
903
Operating Margin:
Versace
5.1
%
15.9
%
13.7
%
17.0
%
Jimmy Choo
(4.6
)%
(9.6
)%
6.0
%
2.1
%
Michael Kors
16.2
%
20.6
%
22.4
%
25.4
%
Capri
(3.0
)%
8.0
%
12.1
%
16.0
%
SCHEDULE 4
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
SUPPLEMENTAL RETAIL STORE
INFORMATION
(Unaudited)
As of
Retail Store Information:
April 1, 2023
April 2, 2022
Versace
223
209
Jimmy Choo
237
237
Michael Kors
812
825
Total number of retail stores
1,272
1,271
SCHEDULE 5
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
CONSTANT CURRENCY DATA
(In millions)
(Unaudited)
Three Months Ended
% Change
April 1, 2023
April 2, 2022
As
Reported
Constant
Currency
Total revenue:
Versace
$
274
$
315
(13.0
)%
(8.6
)%
Jimmy Choo
151
156
(3.2
)%
0.6
%
Michael Kors
910
1,021
(10.9
)%
(8.3
)%
Total revenue
$
1,335
$
1,492
(10.5
)%
(7.5
)%
Fiscal Years Ended
% Change
April 1, 2023
April 2, 2022
As
Reported
Constant
Currency
Total revenue:
Versace
$
1,106
$
1,088
1.7
%
13.8
%
Jimmy Choo
633
613
3.3
%
11.4
%
Michael Kors
3,880
3,953
(1.8
)%
2.0
%
Total revenue
$
5,619
$
5,654
(0.6
)%
5.3
%
SCHEDULE 6
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In millions, except share and
per share data)
(Unaudited)
Three Months Ended April 1,
2023
As
Reported
Impairment of Assets
Restructuring and Other Charges
(1)
COVID-19 Related Charges
ERP Implementation (2)
Capri Transformation(3)
War in Ukraine
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 Gianni Versace S.r.l. The foreign currency exchange
loss represents a charge recognized in conjunction with
restructuring activities to rationalize certain legal entities
within our structure.
(2)
Represents a multi-year ERP
implementation which includes accounting, finance and wholesale and
retail inventory solutions in order to create standardized finance
IT applications across our organization. This ERP implementation
will continue through Fiscal 2026 and we expect expenditures up to
$170 million over the next three fiscal years.
(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. Over
the next three fiscal years, we expect expenditures up to $220
million related to these efforts.
SCHEDULE 7
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In millions, except share and
per share data)
(Unaudited)
Fiscal Year Ended April 1,
2023
As
Reported
Impairment of Assets
Restructuring and Other Charges
(1)
COVID-19 Related Charges
ERP Implementation (2)
Capri Transformation(3)
War in Ukraine
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 Gianni Versace S.r.l. The foreign currency exchange
loss represents a charge recognized in conjunction with
restructuring activities to rationalize certain legal entities
within our structure.
(2)
Represents a multi-year ERP
implementation which includes accounting, finance and wholesale and
retail inventory solutions in order to create standardized finance
IT applications across our organization. This ERP implementation
will continue through Fiscal 2026 and we expect expenditures up to
$170 million over the next three fiscal years.
(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. Over
the next three fiscal years, we expect expenditures up to $220
million related to these efforts.
SCHEDULE 8
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 of Assets
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 9
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 of Assets
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230531005437/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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