TPR Tapestry Inc

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Maryland	001-16153	52-2242751
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

☐	Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	TPR	New York Stock Exchange

Item 8.01

Other Events.

Item 7.01.

Regulation FD Disclosure.

Item 9.01

Financial Statements and Exhibits.

(a)

Financial statements of businesses or funds acquired.

(b)

Pro forma financial information.

•

the unaudited pro forma condensed combined balance sheet as of September 30, 2023;

•

the unaudited pro forma condensed combined statement of operations for the three months ended September 30, 2023; and

•

the unaudited pro forma condensed combined statement of operations for the year ended July 1, 2023.

(d)

Exhibits.

Exhibit No.	Description
23.1	Consent of Ernst & Young LLP, independent registered public accounting firm with respect to Capri.
99.1	The historical audited consolidated financial statements of Capri as of April 1, 2023 and April 2, 2022 and for each of the fiscal years in the period ending April 1, 2023.
99.2	The historical unaudited consolidated financial statements of Capri as of July 1, 2023 and April 1, 2023 and for the three months ended July 1, 2023 and July 2, 2022.
99.3	The historical unaudited consolidated financial statements of Capri as of September 30, 2023 and April 1, 2023 and for the three and six months ended September 30, 2022 and October 1, 2022.
99.4	The unaudited pro forma condensed combined financial statements of the Company, including the unaudited pro forma condensed combined balance sheet as of September 30, 2023, the unaudited pro forma condensed combined statement of operations for the three months ended September 30, 2023 and the year ended July 1, 2023.
99.5	Unaudited supplemental non-GAAP pro forma condensed combined financial measures.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

Dated: November 9, 2023
	TAPESTRY, INC.
	By:	/s/ David E. Howard
		David E. Howard
		General Counsel and Secretary

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in Registration Statement No. 333-253071 on Form S-3 and Registration Statement Nos. 333-228281, 333-222915, 333-209393, 333-214562, 333-219241, 333-205331, 333-172699, 333-51706, 333-234576 and 333-250200 on Form S-8 of Tapestry, Inc. of our reports dated May 31, 2023, relating to the consolidated financial statements and the effectiveness of internal control over financial reporting of Capri Holdings Limited appearing in this Current Report on Form 8-K of Tapestry, Inc.

/s/ ERNST & YOUNG LLP

New York, New York

November 9, 2023

		Valuation of Goodwill and Indefinite-lived Intangible Assets
Description of the Matter		At April 1, 2023, the Company’s goodwill and indefinite-lived intangible assets, consisting of brand names, totaled $1.3 billion and $1.2 billion, respectively. As discussed in Note 2 to the consolidated financial statements, goodwill and indefinite-lived intangible assets are assessed for impairment on an annual basis, or whenever impairment indicators exist. As a result of the Company’s 2023 annual impairment test, the Company recorded a goodwill impairment charge of $82 million associated with its Jimmy Choo Retail and Wholesale reporting units. The Company also recognized an impairment charge of $24 million associated with the Jimmy Choo indefinite-lived retail brand name intangible asset.   Auditing the Company’s annual impairment assessments was complex and highly judgmental due to the significant estimation required in determining the fair value of the reporting units for goodwill and the fair value of indefinite-lived brand name intangible assets. In particular, the fair value estimates were sensitive to significant assumptions, such as changes in the discount rate, revenue growth rate, margin and royalty rates, which are affected by expectations about future market or economic conditions.

How We Addressed the Matter in Our Audit

We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill and indefinite-lived intangible assets impairment review process, including controls over management’s review of the significant assumptions described above.   To test the estimated fair value of the Company’s reporting units and indefinite-lived intangible assets, we performed audit procedures that included, among others, assessing the valuation methodologies and testing the significant assumptions discussed above and the completeness and accuracy of the underlying data used by the Company in its analyses. We compared the significant assumptions used by management to current industry and economic trends and evaluated whether changes to the Company’s business environment would affect the significant assumptions. For example, we compared the royalty rates used in estimating the fair value of certain indefinite-lived brand name intangible assets to current industry licensing agreements. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of the significant assumptions to evaluate the changes in the fair value of the reporting units and indefinite-lived brand name intangible assets that would result from changes in the assumptions. We also involved our internal valuation specialists to assist in our evaluation of the significant assumptions and methodologies used by the Company in developing the fair value estimates. In addition, we tested management’s reconciliation of the fair value of the reporting units to the market capitalization of the Company.

		Impairment of Retail Store Long-Lived assets
Description of the Matter		As discussed in Note 2 to the consolidated financial statements, the Company evaluates its long-lived assets, which primarily include property, plant, and equipment and operating lease right-of-use assets at retail stores, for impairment whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. During the year ended April 1, 2023, the Company recognized an impairment charge of $36 million related to its long-lived assets.   Auditing the Company’s impairment assessment of retail store long-lived assets was complex and highly judgmental due to the significant estimation required in determining the future cash flows used to assess recoverability of each retail store long-lived asset group (undiscounted) and determining the fair value (discounted). The significant assumptions used include estimated future cash flows directly related to the future operation of the stores (including sales and expense growth rates) and the discount rate used to determine fair value. Significant assumptions used in determining the fair value of certain operating lease right-of-use assets include the current market rent and discount rate for the remaining lease term of the related stores. These assumptions are subjective in nature and are affected by expectations about future market or economic conditions.

How We Addressed the Matter in Our Audit

We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the retail store long-lived assets impairment process, including, determining the undiscounted future cash flows of the stores and the fair value of the long-lived assets (including those related to operating leases) for the stores that were deemed to be impaired. We also tested controls over management’s review of the significant assumptions described above.   Our testing of the Company’s impairment measurement included, among other procedures, evaluating the significant assumptions and operating data used to calculate the estimated future cash flows and to determine the fair value of the store long lived asset groups. For a sample of retail stores, we tested the completeness and accuracy of the data used by the Company in its analyses and we compared the significant assumptions used to determine the forecasted cash flows to historical results of the retail stores, current industry and economic trends and inquired of the Company’s executives to understand the business initiatives supporting the assumptions in the future cash flows. We involved our internal valuation specialists to assist in evaluating the fair value of certain operating lease right-of-use assets, which included assessing the estimated market rental rates of these leases by comparing them to rental rates for comparable leases and evaluating the applied discount rate.

		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

		Fiscal Years Ended
		April 1, 2023				April 2, 2022				March 27, 2021
Total revenue		$	5,619			$	5,654			$	4,060
Cost of goods sold			1,895				1,910				1,463
Gross profit			3,724				3,744				2,597
Selling, general and administrative expenses			2,708				2,533				2,018
Depreciation and amortization			179				193				212
Impairment of assets			142				73				316
Restructuring and other charges			16				42				32
Total operating expenses			3,045				2,841				2,578
Income from operations			679				903				19
Other income, net			(3	)			(2	)			(7	)
Interest expense (income), net			24				(18	)			43
Foreign currency loss (gain)			10				8				(20	)
Income before provision for income taxes			648				915				3
Provision for income taxes			29				92				66
Net income (loss)			619				823				(63	)
Less: Net income (loss) attributable to noncontrolling interest			3				1				(1	)
Net income (loss) attributable to Capri		$	616			$	822			$	(62	)
Weighted average ordinary shares outstanding:
Basic			132,532,009				149,724,675				150,453,568
Diluted			134,002,480				152,497,907				150,453,568
Net income (loss) per ordinary share attributable to Capri:
Basic		$	4.65			$	5.49			$	(0.41	)
Diluted		$	4.60			$	5.39			$	(0.41	)
Statements of Comprehensive Income (Loss):
Net income (loss)		$	619			$	823			$	(63	)
Foreign currency translation adjustments			(41	)			127				(15	)
Net (loss) gain on derivatives			(6	)			10				(4	)
Comprehensive income (loss)			572				960				(82	)
Less: Net income (loss) attributable to noncontrolling interest			3				1				(1	)
Less: Foreign currency translation adjustments attributable to noncontrolling interest			—				(1	)			—
Comprehensive income (loss) attributable to Capri		$	569			$	960			$	(81	)

		Ordinary Shares								Additional Paid-in Capital				Treasury Shares								Accumulated Other Comprehensive Income (Loss)				Retained Earnings				Total Equity of Capri				Non-controlling Interests				Total Equity
		Shares				Amounts								Shares				Amounts
Balance as of March 28, 2020			217,320			$	—			$	1,085				(67,894	)		$	(3,325	)		$	75			$	4,332			$	2,167			$	1			$	2,168
Net loss			—				—				—				—				—				—				(62	)			(62	)			(1	)			(63	)
Other comprehensive loss			—				—				—				—				—				(19	)			—				(19	)			—				(19	)
Total comprehensive loss			—				—				—				—				—				—				—				(81	)			(1	)			(82	)
Vesting of restricted awards, net of forfeitures			1,456				—				—				—				—				—				—				—				—				—
Exercise of employee share options			447				—				3				—				—				—				—				3				—				3
Share based compensation expense			—				—				70				—				—				—				—				70				—				70
Repurchase of ordinary shares			—				—				—				(49	)			(1	)			—				—				(1	)			—				(1	)
Other			—				—				—				—				—				—				—				—				(1	)			(1	)
Balance as of March 27, 2021			219,223				—				1,158				(67,943	)			(3,326	)			56				4,270				2,158				(1	)			2,157
Net income			—				—				—				—				—				—				822				822				1				823
Other comprehensive income (loss)			—				—				—				—				—				138				—				138				(1	)			137
Total comprehensive income			—				—				—				—				—				—				—				960				—				960
Vesting of restricted awards, net of forfeitures			2,336				—				—				—				—				—				—				—				—				—
Exercise of employee share options			408				—				17				—				—				—				—				17				—				17
Share based compensation expense			—				—				85				—				—				—				—				85				—				85
Repurchase of ordinary shares			—				—				—				(11,218	)			(661	)			—				—				(661	)			—				(661	)
Balance at April 2, 2022			221,967				—				1,260				(79,161	)			(3,987	)			194				5,092				2,559				(1	)			2,558
Net income			—				—				—				—				—				—				616				616				3				619
Other comprehensive loss			—				—				—				—				—				(47	)			—				(47	)			—				(47	)
Total comprehensive income			—				—				—				—				—				—				—				569				3				572
Vesting of restricted awards, net of forfeitures			2,078				—				—				—				—				—				—				—				—				—
Exercise of employee share options			121				—				6				—				—				—				—				6				—				6
Share based compensation expense			—				—				78				—				—				—				—				78				—				78
Repurchase of ordinary shares			—				—				—				(27,658	)			(1,364	)			—				—				(1,364	)			—				(1,364	)
Other			—				—				—				—				—				—				—				—				(1	)			(1	)
Balance at April 1, 2023			224,166				—				1,344				(106,819	)		$	(5,351	)		$	147			$	5,708			$	1,848			$	1			$	1,849

		Fiscal Years Ended
		April 1, 2023				April 2, 2022				March 27, 2021
Cash flows from operating activities
Net income (loss)		$	619			$	823			$	(63	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			179				193				212
Share-based compensation expense			78				85				71
Impairment of assets			142				83				316
Deferred income taxes			(101	)			(57	)			(70	)
Changes to lease related balances, net			(99	)			(142	)			(112	)
Foreign currency losses (gains)			28				—				(15	)
Other non-cash charges			7				10				7
Change in assets and liabilities:
Receivables, net			50				(78	)			(52	)
Inventories, net			13				(386	)			145
Prepaid expenses and other current assets			(8	)			14				(31	)
Accounts payable			(100	)			69				50
Accrued expenses and other current liabilities			(9	)			30				153
Other long-term assets and liabilities			(28	)			60				13
Net cash provided by operating activities			771				704				624
Cash flows from investing activities
Capital expenditures			(226	)			(131	)			(111	)
Cash paid for asset/business acquisitions, net of cash acquired			—				—				(13	)
Settlement of net investment hedges			409				189				—
Net cash provided by (used in) investing activities			183				58				(124	)
Cash flows from financing activities
Debt borrowings			4,061				945				2,443
Debt repayments			(3,474	)			(1,132	)			(3,311	)
Debt issuance costs			(5	)			—				(4	)
Repurchase of ordinary shares			(1,364	)			(661	)			(1	)
Exercise of employee share options			6				17				3
Other financing activities			—				31				—
Net cash used in financing activities			(776	)			(800	)			(870	)
Effect of exchange rate changes on cash and cash equivalents			(94	)			(24	)			12
Net increase (decrease) in cash, cash equivalents and restricted cash			84				(62	)			(358	)
Beginning of period			172				234				592
End of period		$	256			$	172			$	234
Supplemental disclosures of cash flow information
Cash paid for interest		$	58			$	37			$	52
Cash paid for income taxes		$	133			$	43			$	45
Supplemental disclosure of non-cash investing and financing activities
Accrued capital expenditures		$	33			$	39			$	17

		Balance Beginning of Year				Amounts Charged to Revenue				Write-offs Against Reserves				Balance at Year End
Total Sales Reserves:
Fiscal Year Ended April 1, 2023		$	92			$	400			$	(397	)		$	95
Fiscal Year Ended April 2, 2022			98				333				(339	)			92
Fiscal Year Ended March 27, 2021			166				313				(381	)			98

		Fiscal Years Ended
		April 1, 2023				April 2, 2022
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents		$	249			$	169
Restricted cash included within prepaid expenses and other current assets			7				3
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows		$	256			$	172

		Fiscal Years Ended
		April 1, 2023				April 2, 2022				March 27, 2021
Numerator:
Net income (loss) attributable to Capri		$	616			$	822			$	(62	)
Denominator:
Basic weighted average shares			132,532,009				149,724,675				150,453,568
Weighted average dilutive share equivalents:
Share options, restricted stock units, and performance restricted stock units			1,470,471				2,773,232				—
Diluted weighted average shares			134,002,480				152,497,907				150,453,568
Basic net income (loss) per share (1)		$	4.65			$	5.49			$	(0.41	)
Diluted net income (loss) per share (1)		$	4.60			$	5.39			$	(0.41	)

		Contractually Guaranteed Minimum Fees
Fiscal 2024		$	33
Fiscal 2025			33
Fiscal 2026			30
Fiscal 2027			25
Fiscal 2028			18
Fiscal 2029 and thereafter			29
Total		$	168

		Fiscal Years Ended
		April 1, 2023				April 2, 2022				March 27, 2021
Versace revenue - the Americas		$	408			$	408			$	201
Versace revenue - EMEA			468				425				276
Versace revenue - Asia			230				255				241
Total Versace revenue			1,106				1,088				718
Jimmy Choo revenue - the Americas			196				175				102
Jimmy Choo revenue - EMEA			255				229				146
Jimmy Choo revenue - Asia			182				209				170
Total Jimmy Choo revenue			633				613				418
Michael Kors revenue - the Americas			2,616				2,627				1,869
Michael Kors revenue - EMEA			819				835				607
Michael Kors revenue - Asia			445				491				448
Total Michael Kors revenue			3,880				3,953				2,924
Total revenue - the Americas			3,220				3,210				2,172
Total revenue - EMEA			1,542				1,489				1,029
Total revenue - Asia			857				955				859
Total revenue		$	5,619			$	5,654			$	4,060

		Balance Sheet Location		April 1, 2023				April 2, 2022
Assets
Operating leases		Operating lease right-of-use assets		$	1,330			$	1,358
Liabilities
Current:
Operating leases		Short-term portion of operating lease liabilities		$	429			$	414
Non-current:
Operating leases		Long-term portion of operating lease liabilities		$	1,348			$	1,467

		Consolidated Statement of Operations and Comprehensive Income (Loss) Location		April 1, 2023				April 2, 2022
Operating lease cost		Selling, general and administrative expenses		$	405			$	410
Variable lease cost (1)		Selling, general and administrative expenses			170				135
Short-term lease cost		Selling, general and administrative expenses			8				16
Sublease income		Selling, general and administrative expenses			(9	)			(3	)
Sublease income (2)		Restructuring and other charges			—				(5	)
Total lease cost, net				$	574			$	553

		April 1, 2023				April 2, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases		$	501			$	543
Non-cash transactions:
Lease assets obtained in exchange for new lease liabilities			344				332
Rent concessions due to COVID-19			14				15

		April 1, 2023				April 2, 2022
Operating leases:
Weighted average remaining lease term (years)			5.9				6.0
Weighted average discount rate			3.3	%			3.1	%

		April 1, 2023
Fiscal 2024		$	473
Fiscal 2025			384
Fiscal 2026			297
Fiscal 2027			212
Fiscal 2028			169
Thereafter			427
Total lease payments			1,962
Less: interest			(185	)
Total lease liabilities		$	1,777

		April 1, 2023
Fiscal 2024		$	8
Fiscal 2025			7
Fiscal 2026			5
Fiscal 2027			4
Fiscal 2028			4
Thereafter			8
Total sublease income		$	36

		April 1, 2023				April 2, 2022
Trade receivables (1)		$	412			$	461
Receivables due from licensees			14				17
			426				478
Less: allowances			(57	)			(44	)
Total receivables, net		$	369			$	434

		April 1, 2023				April 2, 2022
Leasehold improvements		$	577			$	575
Computer equipment and software			237				212
Furniture and fixtures			216				218
Equipment			106				81
Building			48				48
In-store shops			44				47
Land			18				19
Total property and equipment, gross			1,246				1,200
Less: accumulated depreciation and amortization			(784	)			(790	)
Subtotal			462				410
Construction-in-progress			90				66
Total property and equipment, net		$	552			$	476

		April 1, 2023												April 2, 2022
		Gross Carrying Amount				Accumulated Amortization/Impairment				Net Carrying Amount				Gross Carrying Amount				Accumulated Amortization/Impairment				Net Carry Amount
Definite-lived intangible assets:
Reacquired rights		$	400			$	109			$	291			$	400			$	94			$	306
Trademarks			23				23				—				23				22				1
Customer relationships			397				136				261				414				112				302
Total definite-lived intangible assets			820				268				552				837				228				609
Indefinite-lived intangible assets:
Jimmy Choo brand (1)			550				273				277				570				249				321
Versace brand (2)			899				—				899				917				—				917
Total indefinite-lived intangible assets			1,449				273				1,176				1,487				249				1,238
Total intangible assets, excluding goodwill		$	2,269			$	541			$	1,728			$	2,324			$	477			$	1,847

Fiscal 2024		$	44
Fiscal 2025			44
Fiscal 2026			44
Fiscal 2027			44
Fiscal 2028			43
Fiscal 2029 and thereafter			333
Total		$	552

		Versace				Jimmy Choo				Michael Kors				Total
Balance at March 27, 2021		$	933			$	445			$	120			$	1,498
Foreign currency translation			(59	)			(21	)			—				(80	)
Balance at April 2, 2022			874				424				120				1,418
Impairment charges(1)			—				(82	)			—				(82	)
Foreign currency translation			(17	)			(26	)			—				(43	)
Balance at April 1, 2023		$	857			$	316			$	120			$	1,293

		April 1, 2023				April 2, 2022
Prepaid taxes		$	105			$	86
Prepaid contracts			22				15
Interest receivable related to hedges			10				13
Other accounts receivables			10				17
Other			48				61
Total prepaid expenses and other current assets		$	195			$	192

		April 1, 2023				April 2, 2022
Return liabilities		$	54			$	52
Accrued capital expenditures			33				39
Other taxes payable			32				61
Accrued advertising and marketing			26				21
Accrued rent (1)			18				20
Advance royalties			18				7
Accrued interest			16				10
Gift and retail store credits			14				17
Professional services			14				15
Accrued litigation			12				13
Accrued purchases and samples			8				11
Charitable donations (2)			—				10
Other			69				75
Total accrued expenses and other current liabilities		$	314			$	351

		Fair value at April 1, 2023, using:												Fair value at April 2, 2022, using:
		Quoted prices in active markets for identical assets (Level 1)				Significant other observable inputs (Level 2)				Significant unobservable inputs (Level 3)				Quoted prices in active markets for identical assets (Level 1)				Significant other observable inputs (Level 2)				Significant unobservable inputs (Level 3)
Derivative assets:
Forward foreign currency exchange contracts		$	—			$	—			$	—			$	—			$	4			$	—
Net investment hedges			—				1				—				—				44				—
Undesignated derivative contracts			—				—				—				—				4				—
Total derivative assets		$	—			$	1			$	—			$	—			$	52			$	—
Derivative liabilities:
Forward foreign currency exchange contracts		$	—			$	—			$	—			$	—			$	—			$	—
Net investment hedges			—				36				—				—				37				—
Fair value hedges			—				3				—				—				—				—
Total derivative liabilities		$	—			$	39			$	—			$	—			$	37			$	—

		April 1, 2023								April 2, 2022
		Carrying Value				Estimated Fair Value				Carrying Value				Estimated Fair Value
Revolving Credit Facilities		$	874			$	874			$	175			$	175
Versace Term Loan		$	487			$	481			$	—			$	—
Senior Notes due 2024		$	449			$	435			$	448			$	451
2018 Term Loan		$	—			$	—			$	495			$	490

		Carrying Value Prior to Impairment				Fair Value				Impairment Charge (1)
Fiscal 2023:
Goodwill		$	681			$	599			$	82
Operating Lease Right-of-Use Assets			100				67				33
Brands			224				200				24
Property and Equipment			4				1				3
Total		$	1,009			$	867			$	142
Fiscal 2022:
Operating Lease Right-of-Use Assets		$	209			$	133			$	76
Property and Equipment			12				5				7
Total		$	221			$	138			$	83
Fiscal 2021:
Operating Lease Right-of-Use Assets		$	326			$	191			$	135
Goodwill			319				225				94
Brands			407				338				69
Property and Equipment			30				7				23
Total		$	1,082			$	761			$	321

										Fair Values
		Notional Amounts								Assets										Liabilities
		April 1, 2023				April 2, 2022				April 1, 2023					April 2, 2022					April 1, 2023					April 2, 2022
Designated forward foreign currency exchange contracts		$	—			$	119			$	—				$	4	(1	)		$	—				$	—
Designated net investment hedges			1,378				4,194				1	(2	)			44	(2	)			36	(3	)			37
Designated fair value hedges			1,084				—				—					—					3	(3	)			—
Total designated hedges			2,462				4,313				1					48					39					37
Undesignated derivative contracts (4)			—				38				—					4					—					—
Total		$	2,462			$	4,351			$	1				$	52				$	39				$	37

		Forward Currency Exchange Contracts								Net Investment Hedges								Fair Value Hedges
		April 1, 2023				April 2, 2022				April 1, 2023				April 2, 2022				April 1, 2023				April 2, 2022
Assets subject to master netting arrangements		$	—			$	8			$	1			$	44			$	—			$	—
Liabilities subject to master netting arrangements		$	—			$	—			$	36			$	37			$	3			$	—
Derivative assets, net		$	—			$	8			$	1			$	42			$	—			$	—
Derivative liabilities, net		$	—			$	—			$	36			$	35			$	3			$	—

		Fiscal Year Ended April 1, 2023				Fiscal Year Ended April 2, 2022				Fiscal Year Ended March 27, 2021
		Pre-Tax Gains/(Losses) Recognized in OCI				Pre-Tax Gains Recognized in OCI				Pre-Tax (Losses) Recognized in OCI
Designated forward foreign currency exchange contracts		$	8			$	11			$	(2	)
Designated net investment hedges		$	338			$	435			$	(263	)
Designated fair value hedges		$	(6	)		$	—			$	—
Designated interest rate swaps		$	—			$	—			$	(1	)

		Fiscal Year Ended
		Pre-Tax (Gains) Losses Reclassified from Accumulated OCI											Location of (Gains) Losses Recognized
		April 1, 2023				April 2, 2022				March 27, 2021
Designated forward foreign currency exchange contracts		$	(14	)		$	1			$	(2	)	Cost of goods sold

		Foreign Currency Translation Income (Loss) (1)				Net Gain (Loss) on Derivatives (2)				Other Comprehensive Income (Loss) Attributable to Capri
Balance at March 28, 2020		$	72			$	3			$	75
Other comprehensive loss before reclassifications			(15	)			(2	)			(17	)
Less: amounts reclassified from AOCI to earnings			—				2				2
Other comprehensive loss, net of tax			(15	)			(4	)			(19	)
Balance at March 27, 2021			57				(1	)			56
Other comprehensive income before reclassifications			127				10				137
Less: amounts reclassified from AOCI to earnings			—				(1	)			(1	)
Other comprehensive income, net of tax			127				11				138
Balance at April 2, 2022			184				10				194
Other comprehensive (loss) income before reclassifications			(41	)			8				(33	)
Less: amounts reclassified from AOCI to earnings			—				14				14
Other comprehensive loss, net of tax			(41	)			(6	)			(47	)
Balance at April 1, 2023		$	143			$	4			$	147

		Number of Options				Weighted Average Exercise price				Weighted Average Remaining Contractual Life (years)				Aggregate Intrinsic Value (in millions)
Outstanding at April 2, 2022			355,448			$	57.54
Granted			—			$	—
Exercised			(120,873	)		$	46.13
Canceled/forfeited			(4,900	)		$	67.52
Outstanding at April 1, 2023			229,675			$	63.33				1.84			$	0.1
Vested or expected to vest at April 1, 2023			229,675			$	63.33				1.84
Vested and exercisable at April 1, 2023			229,675			$	63.33				1.84			$	0.1

		Service-based								Performance-based
		Number of Restricted Stock Units				Weighted Average Grant Date Fair Value				Number of Restricted Stock Units				Weighted Average Grant Date Fair Value
Unvested at April 2, 2022			3,827,700			$	38.65				210,192			$	34.25
Granted			1,790,501			$	48.31				152,921			$	47.41
Change due to performance conditions, net			—			$	—				—			$	—
Vested			(2,015,072	)		$	39.81				(197,874	)		$	33.86
Canceled/forfeited			(421,203	)		$	45.50				—			$	—
Unvested at April 1, 2023			3,181,926			$	42.44				165,239			$	46.90

		Fiscal Years Ended
		April 1, 2023				April 2, 2022				March 27, 2021
Share-based compensation expense		$	78			$	85			$	70
Tax benefits related to share-based compensation expense		$	8			$	14			$	12

		Fiscal Years Ended
		April 1, 2023				April 2, 2022				March 27, 2021
United States		$	85			$	247			$	(56	)
Non-United States			563				668				59
Total income before provision for income taxes		$	648			$	915			$	3

		Fiscal Years Ended
		April 1, 2023										April 2, 2022								March 27, 2021
		Amount					%(1)					Amount					%(1)			Amount					%(1)
Provision for income taxes at the U.K. statutory tax rate		$	123				19.0	%				$	174				19.0	%			1				19.0	%
Effects of global financing arrangements (2)			(78	)			(12.1	)%					(61	)			(6.7	)%			(24	)			(953.4	)%
Effect of changes in valuation allowances on deferred tax assets			(37	)			(5.8	)%					(67	)			(7.3	)%			24				955.7	%
Liability for uncertain tax positions			(3	)			(0.4	)%					91				9.9	%			11				414.2	%
Differences in tax effects on foreign income			(1	)			(0.2	)%					10				1.1	%			13				522.4	%
Non-deductible goodwill impairment			15				2.4	%	(3	)			—				—	%			18				700.2	%	(3	)
State and local income taxes, net of federal benefit			10				1.5	%					12				1.3	%			5				201.5	%
Share based compensation			6				0.9	%					3				0.4	%			6				247.7	%
Withholding tax			3				0.5	%					5				0.6	%			4				165.0	%
Brand tax basis step-up			—				—	%					(46	)			(5.0	)%			—				—	%
CARES Act tax loss carryback			—				—	%					(43	)			(4.6	)%			—				—	%
Tax rate change impact on deferred items			—				—	%					21				2.1	%			9				351.3	%
Other (4)			(9	)			(1.3	)%					(7	)			(0.7	)%			(1	)			(33.1	)%
Effective tax rate		$	29				4.5	%				$	92				10.1	%		$	66				2,590.5	%

		Fiscal Years Ended
		April 1, 2023						April 2, 2022
Deferred tax assets
Operating lease liabilities		$	442					$	465
Net operating loss carryforwards			115						108
Accrued interest			70						20
Depreciation			61						53
Sales allowances			38						34
Inventories			21						26
Stock compensation			6						7
Payroll related accruals			3						3
Other			29						46
Total deferred tax assets			785						762
Valuation allowance			(52	)	(1	)			(92	)	(2	)
Net deferred tax assets			733						670
Deferred tax liabilities
Goodwill and intangibles			(420	)					(449	)	(3	)
Operating lease right-of-use-assets			(339	)					(340	)
Derivative financial instruments			(186	)					(73	)
Total deferred tax liabilities			(945	)					(862	)
Net deferred tax liabilities		$	(212	)				$	(192	)

		Fiscal Years Ended
		April 1, 2023						April 2, 2022						March 27, 2021
Unrecognized tax benefits beginning balance		$	221					$	107					$	99
Additions related to prior period tax positions			12		(1	)			105		(1	)			12
Additions related to current period tax positions			14		(2	)			29						9
Decreases related to audit settlements			(2	)					(13	)					(6	)
Decreases in prior period positions due to lapses in statute of limitations			(3	)					(3	)					(4	)
Decreases related to prior period tax positions			(42	)	(3	)			(4	)					(3	)
Unrecognized tax benefits ending balance		$	200					$	221					$	107

		Fiscal Years Ended
		April 1, 2023				April 2, 2022				March 27, 2021
Total revenue:
Versace		$	1,106			$	1,088			$	718
Jimmy Choo			633				613				418
Michael Kors			3,880				3,953				2,924
Total revenue		$	5,619			$	5,654			$	4,060
Income (loss) from operations:
Versace		$	152			$	185			$	21
Jimmy Choo			38				13				(55	)
Michael Kors			868				1,005				595
Total segment income from operations			1,058				1,203				561
Less:  Corporate expenses			(233	)			(190	)			(152	)
Impairment of assets (1)			(142	)			(73	)			(316	)
COVID-19 related charges (2)			9				14				(42	)
Impact of war in Ukraine (3)			3				(9	)			—
Restructuring and other charges			(16	)			(42	)			(32	)
Total income from operations		$	679			$	903			$	19

		Fiscal Years Ended
		April 1, 2023				April 2, 2022				March 27, 2021
Depreciation and amortization:
Versace		$	51			$	52			$	54
Jimmy Choo			29				31				31
Michael Kors			95				110				127
Corporate			4				—				—
Total depreciation and amortization		$	179			$	193			$	212

		Fiscal Years Ended
		April 1, 2023				April 2, 2022				March 27, 2021
Revenue:
The Americas (1)		$	3,220			$	3,210			$	2,172
EMEA			1,542				1,489				1,029
Asia			857				955				859
Total revenue		$	5,619			$	5,654			$	4,060

		As of
		April 1, 2023				April 2, 2022				March 27, 2021
Long-lived assets:
The Americas (1)		$	882			$	908			$	1,001
EMEA			2,129				2,156				2,384
Asia			599				617				596
Total long-lived assets		$	3,610			$	3,681			$	3,981

		Fiscal Years Ended
		April 1, 2023				% of Total				April 2, 2022				% of Total				March 27, 2021				% of Total
Accessories		$	2,826				50.3	%		$	2,901				51.3	%		$	2,158				53.2	%
Footwear			1,217				21.7	%			1,208				21.4	%			796				19.6	%
Apparel			1,107				19.7	%			1,027				18.2	%			720				17.7	%
Licensed product			222				4.0	%			241				4.3	%			185				4.6	%
Licensing revenue			211				3.8	%			212				3.7	%			155				3.8	%
Other			36				0.5	%			65				1.1	%			46				1.1	%
Total revenue		$	5,619							$	5,654							$	4,060