Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, today announced its financial results for the fourth quarter and full year fiscal 2020 ended March 28, 2020.
Fourth Quarter and Full Year Fiscal 2020 Highlights
John D. Idol, the Company's Chairman and Chief Executive Officer, said, "These are unprecedented times as the COVID-19 pandemic has dramatically impacted the entire world. My thoughts and prayers go out to all those who have been affected by the virus. As we manage through this evolving situation, our first priority is to help protect the health and safety of our employees, customers and communities. I want to thank our teams around the globe for the hard work and dedication they demonstrate every day, particularly now as we reopen stores and begin to return to our offices across the globe."
Mr. Idol continued, "I would also like to express my heartfelt condolences to the individuals, families and communities affected by the unjust and tragic deaths of George Floyd and Rayshard Brooks as well as the countless victims that have come before them. The systemic discrimination that has led us to this point is deplorable and untenable. At Capri, we stand against racism, discrimination and violence of any kind. As an organization and as individuals, we have an opportunity to positively impact the future. Capri Holdings is committed to listening, learning and taking the necessary actions to support long-term positive change for the Black community. While we foster an inclusive environment where employees of diverse backgrounds are welcomed, valued and celebrated, there is more work that we can do to increase diversity at all levels inside our company. We are working on significant initiatives to create change within Capri Holdings."
Mr. Idol concluded, "Looking at fiscal 2020, we were pleased with the progress of our strategic initiatives across the company. Prior to the impact of COVID-19, our earnings per share outlook was largely on track with our expectations. While we expect fiscal 2021 to be significantly impacted by the effects of the virus, we are encouraged as we reopen our stores globally with initial revenue exceeding our expectations. Capri Holdings has a portfolio of three iconic, founder-led fashion luxury houses that inspire passion and excitement in customers who value design innovation and exceptional quality. Looking ahead, we plan to continue to execute on our growth initiatives. We remain confident in the long-term opportunities for each of our unique luxury brands and believe Capri Holdings is poised to resume its growth trajectory in fiscal 2022."
Global Business Update
The company has begun to resume store operations globally in accordance with local government's reopening guidelines while following the health and safety protocols of local authorities and public health organizations. Currently, approximately 90% of the company's global retail fleet of stores are open.
During the first quarter of fiscal 2021, the company's global store base was closed for an average of approximately 55% of the period. Given the significant store closures, the gradual recovery in revenue as stores reopen as well as low wholesale shipments, the company expects first quarter fiscal 2021 revenues to decline approximately 70% compared to prior year. Due to the lower revenue and resulting deleverage, the company anticipates a significant loss per share in the first quarter.
Maintaining Financial Strength
In response to the global pandemic, the company quickly took the following actions to reduce expenses and maintain a strong liquidity position:
In addition, on June 25, 2020, the company amended its Revolving Credit and Term Loan Facility and entered into a new $230 million 364-day Revolving Credit Facility to further improve its financial flexibility and liquidity position. The amendment waives compliance with the leverage ratio covenant through the first quarter of fiscal 2022, adds security to the facility and applies a minimum liquidity covenant for the duration of the waiver period. Thereafter, the leverage ratio covenant under the Revolving Credit and Term Loan Facility will again apply, but the ratio will increase from 3.75x to 4.00x.
With the additional 364-day Revolving Credit Facility, Capri Holdings expects to end the first quarter of fiscal 2021 with approximately $1.1 billion of liquidity and total borrowings outstanding of $1.8 billion. This compares to $900 million of liquidity and $2.2 billion of total borrowings outstanding at the end of the fourth quarter of fiscal 2020. The company believes it has the financial resources to emerge from these unprecedented times a strong company.
Fourth Quarter Fiscal 2020 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 revenues compared to the same period in the prior year.
Overview of Capri Holdings Fourth Quarter Fiscal 2020 Results:
Versace Fourth Quarter Fiscal 2020 Results:
Jimmy Choo Fourth Quarter Fiscal 2020 Results:
Michael Kors Fourth Quarter Fiscal 2020 Results:
Non-GAAP Charges
In the fourth quarter of fiscal 2020, the company recorded the following charges that were excluded from its adjusted non-GAAP results. The majority were directly related to the COVID-19 pandemic.
Fiscal Year 2021 Outlook
Due to the lack of visibility surrounding the pandemic, macroeconomic fundamentals and tourism, the impacts on our financial and operating results cannot reasonably be estimated at this time. Therefore, the company is not providing guidance for its fiscal year 2021.
Conference Call Information
A conference call to discuss fourth quarter and full year fiscal 2020 results is scheduled for today, July 1, 2020 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 July 8, 2020. 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 6816825. 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.
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. 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 in this press release 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 effect of the COVID-19 pandemic and its potential material and significant impact on the Company's future financial and operational results if retail stores remain closed and the pandemic is prolonged, including that our estimates could materially differ if the severity of the COVID-19 situation worsens, the length and severity of such outbreak across the globe and the pace of recovery following 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; the risk of disruptions to the Company's businesses; 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; 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; political or economic instability in principal markets; adverse outcomes in litigation; and general, local and global economic, political, business and market conditions, as well as those risks set forth in the reports that the Company files from time to time with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended March 30, 2019 (File No. 001-35368) and Quarterly Report on Form 10-Q for the fiscal quarter ended December 28, 2019 (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
|
|||||||||||||||||||
|
|
Three Months Ended |
|
Fiscal Years Ended |
|||||||||||||||
|
|
March 28,
|
|
March 30,
|
|
March 28,
|
|
March 30,
|
|||||||||||
Total revenue |
|
$ |
1,192 |
|
|
|
$ |
1,344 |
|
|
$ |
5,551 |
|
|
|
$ |
5,238 |
|
|
Cost of goods sold |
|
561 |
|
|
|
551 |
|
|
2,280 |
|
|
|
2,058 |
|
|
||||
Gross profit |
|
631 |
|
|
|
793 |
|
|
3,271 |
|
|
|
3,180 |
|
|
||||
Total operating expenses |
|
1,167 |
|
|
|
753 |
|
|
3,463 |
|
|
|
2,445 |
|
|
||||
(Loss) income from operations |
|
(536 |
) |
|
|
40 |
|
|
(192 |
) |
|
|
735 |
|
|
||||
Other income, net |
|
(2 |
) |
|
|
? |
|
|
(6 |
) |
|
|
(4 |
) |
|
||||
Interest (income) expense, net |
|
(1 |
) |
|
|
17 |
|
|
18 |
|
|
|
38 |
|
|
||||
Foreign currency loss |
|
7 |
|
|
|
1 |
|
|
11 |
|
|
|
80 |
|
|
||||
(Loss) income before provision for income taxes |
|
(540 |
) |
|
|
22 |
|
|
(215 |
) |
|
|
621 |
|
|
||||
Provision for income taxes |
|
12 |
|
|
|
3 |
|
|
10 |
|
|
|
79 |
|
|
||||
Net (loss) income |
|
(552 |
) |
|
|
19 |
|
|
(225 |
) |
|
|
542 |
|
|
||||
Less: Net loss attributable to noncontrolling interests |
|
(1 |
) |
|
|
? |
|
|
(2 |
) |
|
|
(1 |
) |
|
||||
Net (loss) income attributable to Capri |
|
$ |
(551 |
) |
|
|
$ |
19 |
|
|
$ |
(223 |
) |
|
|
$ |
543 |
|
|
Weighted average ordinary shares outstanding: |
|
|
|
|
|
|
|
|
|||||||||||
Basic |
|
149,380,121 |
|
|
|
150,801,608 |
|
|
150,714,598 |
|
|
|
149,765,468 |
|
|
||||
Diluted |
|
149,380,121 |
|
|
|
152,083,632 |
|
|
150,714,598 |
|
|
|
151,614,350 |
|
|
||||
Net (loss) income per ordinary share: |
|
|
|
|
|
|
|
|
|||||||||||
Basic |
|
$ |
(3.69 |
) |
|
|
$ |
0.13 |
|
|
$ |
(1.48 |
) |
|
|
$ |
3.62 |
|
|
Diluted |
|
$ |
(3.69 |
) |
|
|
$ |
0.13 |
|
|
$ |
(1.48 |
) |
|
|
$ |
3.58 |
|
|
SCHEDULE 2 |
||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
|
||||||||||
|
|
March 28,
|
|
March 30,
|
||||||
Assets |
|
|
|
|
||||||
Current assets |
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
592 |
|
|
|
$ |
172 |
|
|
Receivables, net |
|
308 |
|
|
|
383 |
|
|
||
Inventories, net |
|
827 |
|
|
|
953 |
|
|
||
Prepaid expenses and other current assets |
|
167 |
|
|
|
221 |
|
|
||
Total current assets |
|
1,894 |
|
|
|
1,729 |
|
|
||
Property and equipment, net |
|
561 |
|
|
|
615 |
|
|
||
Operating lease right-of-use assets |
|
1,625 |
|
|
|
? |
|
|
||
Intangible assets, net |
|
1,986 |
|
|
|
2,293 |
|
|
||
Goodwill |
|
1,488 |
|
|
|
1,659 |
|
|
||
Deferred tax assets |
|
225 |
|
|
|
112 |
|
|
||
Other assets |
|
167 |
|
|
|
242 |
|
|
||
Total assets |
|
$ |
7,946 |
|
|
|
$ |
6,650 |
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
||||||
Current liabilities |
|
|
|
|
||||||
Accounts payable |
|
$ |
428 |
|
|
|
$ |
371 |
|
|
Accrued payroll and payroll related expenses |
|
93 |
|
|
|
133 |
|
|
||
Accrued income taxes |
|
42 |
|
|
|
34 |
|
|
||
Current operating lease liabilities |
|
430 |
|
|
|
? |
|
|
||
Short-term debt |
|
167 |
|
|
|
630 |
|
|
||
Accrued expenses and other current liabilities |
|
241 |
|
|
|
374 |
|
|
||
Total current liabilities |
|
1,401 |
|
|
|
1,542 |
|
|
||
Long-term operating lease liabilities |
|
1,758 |
|
|
|
? |
|
|
||
Deferred rent |
|
? |
|
|
|
132 |
|
|
||
Deferred tax liabilities |
|
465 |
|
|
|
438 |
|
|
||
Long-term debt |
|
2,012 |
|
|
|
1,936 |
|
|
||
Other long-term liabilities |
|
142 |
|
|
|
166 |
|
|
||
Total liabilities |
|
5,778 |
|
|
|
4,214 |
|
|
||
Commitments and contingencies |
|
|
|
|
||||||
Redeemable noncontrolling interest |
|
? |
|
|
|
4 |
|
|
||
Shareholders' equity |
|
|
|
|
||||||
Ordinary shares, no par value; 650,000,000 shares authorized; 217,320,010 shares issued and 149,425,612 outstanding at March 28, 2020; 216,050,939 shares issued and 150,932,306 outstanding at March 30, 2019 |
|
? |
|
|
|
? |
|
|
||
Treasury shares, at cost 67,894,398 shares at March 28, 2020 and 65,118,633 shares at March 30, 2019 |
|
(3,325 |
) |
|
|
(3,223 |
) |
|
||
Additional paid-in capital |
|
1,085 |
|
|
|
1,011 |
|
|
||
Accumulated other comprehensive income (loss) |
|
75 |
|
|
|
(66 |
) |
|
||
Retained earnings |
|
4,332 |
|
|
|
4,707 |
|
|
||
Total shareholders' equity of Capri |
|
2,167 |
|
|
|
2,429 |
|
|
||
Noncontrolling interest |
|
1 |
|
|
|
3 |
|
|
||
Total shareholders' equity |
|
2,168 |
|
|
|
2,432 |
|
|
||
Total liabilities and shareholders' equity |
|
$ |
7,946 |
|
|
|
$ |
6,650 |
|
|
SCHEDULE 3 |
||||||||||||||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
|
||||||||||||||||||||||
|
|
Three Months Ended |
|
Fiscal Years Ended |
||||||||||||||||||
|
|
March 28,
|
|
March 30,
|
|
March 28,
|
|
March 30,
|
||||||||||||||
Revenue by Segment and Region: |
|
|
|
|
|
|
|
|
||||||||||||||
Versace |
|
The Americas |
|
$ |
53 |
|
|
|
$ |
22 |
|
|
|
$ |
186 |
|
|
|
$ |
22 |
|
|
|
|
EMEA |
|
109 |
|
|
|
66 |
|
|
|
420 |
|
|
|
66 |
|
|
||||
|
|
Asia |
|
51 |
|
|
|
49 |
|
|
|
237 |
|
|
|
49 |
|
|
||||
Versace Revenue |
|
213 |
|
|
|
137 |
|
|
|
843 |
|
|
|
137 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Jimmy Choo |
|
The Americas |
|
22 |
|
|
|
21 |
|
|
|
107 |
|
|
|
96 |
|
|
||||
|
|
EMEA |
|
54 |
|
|
|
73 |
|
|
|
282 |
|
|
|
321 |
|
|
||||
|
|
Asia |
|
31 |
|
|
|
45 |
|
|
|
166 |
|
|
|
173 |
|
|
||||
Jimmy Choo Revenue |
|
107 |
|
|
|
139 |
|
|
|
555 |
|
|
|
590 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Michael Kors |
|
The Americas |
|
600 |
|
|
|
701 |
|
|
|
2,822 |
|
|
|
3,064 |
|
|
||||
|
|
EMEA |
|
169 |
|
|
|
215 |
|
|
|
821 |
|
|
|
892 |
|
|
||||
|
|
Asia |
|
103 |
|
|
|
152 |
|
|
|
510 |
|
|
|
555 |
|
|
||||
Michael Kors Revenue |
|
872 |
|
|
|
1,068 |
|
|
|
4,153 |
|
|
|
4,511 |
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenue |
|
$ |
1,192 |
|
|
|
$ |
1,344 |
|
|
|
$ |
5,551 |
|
|
|
$ |
5,238 |
|
|
||
|
|
|
|
|
|
|
|
|
||||||||||||||
(Loss) Income from Operations: |
|
|
|
|
|
|
|
|
||||||||||||||
Versace |
|
|
|
$ |
(2 |
) |
|
|
$ |
(11 |
) |
|
|
$ |
(8 |
) |
|
|
$ |
(11 |
) |
|
Jimmy Choo |
|
|
|
(23 |
) |
|
|
(8 |
) |
|
|
(13 |
) |
|
|
20 |
|
|
||||
Michael Kors |
|
|
|
139 |
|
|
|
166 |
|
|
|
850 |
|
|
|
964 |
|
|
||||
Total segment income from operations |
|
114 |
|
|
|
147 |
|
|
|
829 |
|
|
|
973 |
|
|
||||||
Less: Corporate expenses |
|
(38 |
) |
|
|
(28 |
) |
|
|
(152 |
) |
|
|
(93 |
) |
|
||||||
Restructuring and other charges |
|
(5 |
) |
|
|
(75 |
) |
|
|
(42 |
) |
|
|
(124 |
) |
|
||||||
Impairment of long-lived assets |
|
(488 |
) |
|
|
(4 |
) |
|
|
(708 |
) |
|
|
(21 |
) |
|
||||||
COVID-19 related charges |
(119 |
) |
|
|
? |
|
|
|
(119 |
) |
|
|
? |
|
|
|||||||
Total (Loss) Income from Operations |
|
$ |
(536 |
) |
|
|
$ |
40 |
|
|
|
$ |
(192 |
) |
|
|
$ |
735 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Margin: |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Versace |
|
|
|
(0.9 |
) |
% |
|
(8.0 |
) |
% |
|
(0.9 |
) |
% |
|
(8.0 |
) |
% |
||||
Jimmy Choo |
|
|
|
(21.5 |
) |
% |
|
(5.8 |
) |
% |
|
(2.3 |
) |
% |
|
3.4 |
|
% |
||||
Michael Kors |
|
|
|
15.9 |
|
% |
|
15.5 |
|
% |
|
20.5 |
|
% |
|
21.4 |
|
% |
||||
Capri Operating Margin |
|
|
|
(45.0 |
) |
% |
|
3.0 |
|
% |
|
(3.5 |
) |
% |
|
14.0 |
|
% |
||||
SCHEDULE 4 |
||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
|
||||||||
|
|
|
|
As of |
||||
Retail Store Information: |
|
March 28, 2020 |
|
March 30, 2019 |
||||
Versace |
|
206 |
|
|
188 |
|
||
Jimmy Choo |
|
226 |
|
|
208 |
|
||
Michael Kors |
|
839 |
|
|
853 |
|
||
Total number of retail stores |
|
|
|
1,271 |
|
|
1,249 |
|
SCHEDULE 5 |
|||||||||||||||||||||||||||||
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
|
|||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
% Change |
|||||||||||||||||||||||||
|
|
March 28,
|
|
March 30,
|
|
As
|
|
Constant
|
|||||||||||||||||||||
Total revenue: |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Versace |
|
$ |
213 |
|
|
$ |
137 |
|
|
55.5 |
% |
|
NM |
||||||||||||||||
Jimmy Choo |
|
107 |
|
|
139 |
|
|
(23.0) |
% |
|
(24.5) |
% |
|||||||||||||||||
Michael Kors |
|
872 |
|
|
1,068 |
|
|
(18.4) |
% |
|
(17.7) |
% |
|||||||||||||||||
Total revenue |
|
$ |
1,192 |
|
|
$ |
1,344 |
|
|
(11.3) |
% |
|
(11.0) |
% |
|||||||||||||||
|
|
Fiscal Years Ended |
|
% Change |
|
||||||||||||||||||||||||
|
|
March 28,
|
|
March 30,
|
|
As
|
|
Constant
|
|
||||||||||||||||||||
Total revenue: |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Versace |
|
$ |
843 |
|
|
$ |
137 |
|
|
NM |
|
NM |
|
||||||||||||||||
Jimmy Choo |
|
555 |
|
|
590 |
|
|
(5.9) |
% |
|
(5.1) |
% |
|
||||||||||||||||
Michael Kors |
|
4,153 |
|
|
4,511 |
|
|
(7.9) |
% |
|
(7.0) |
% |
|
||||||||||||||||
Total revenue |
|
$ |
5,551 |
|
|
$ |
5,238 |
|
|
6.0 |
% |
|
6.8 |
% |
|
||||||||||||||
___________________
NM Not meaningful
SCHEDULE 6 |
||||||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
||||||||||||||||||||||||||||||||||
|
|
Three Months Ended March 28, 2020 |
||||||||||||||||||||||||||||||||
|
|
As
|
|
Impairment
|
|
Restructuring
|
|
COVID-19
|
|
ERP
|
|
Capri
|
|
As
|
||||||||||||||||||||
Gross profit |
|
$ |
631 |
|
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
92 |
|
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Operating expenses |
|
$ |
1,167 |
|
|
|
$ |
(488 |
) |
|
|
$ |
(5 |
) |
|
|
$ |
(27 |
) |
|
|
$ |
(12 |
) |
|
|
$ |
(11 |
) |
|
|
$ |
624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total (loss) income from operations |
|
$ |
(536 |
) |
|
|
$ |
488 |
|
|
|
$ |
5 |
|
|
|
$ |
119 |
|
|
|
$ |
12 |
|
|
|
$ |
11 |
|
|
|
$ |
99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
(Loss) income before provision for income taxes |
|
$ |
(540 |
) |
|
|
$ |
488 |
|
|
|
$ |
5 |
|
|
|
$ |
119 |
|
|
|
$ |
12 |
|
|
|
$ |
11 |
|
|
|
$ |
95 |
|
Provision for (benefit from) income taxes |
|
$ |
12 |
|
|
|
$ |
48 |
|
|
|
$ |
(1 |
) |
|
|
$ |
16 |
|
|
|
$ |
3 |
|
|
|
$ |
2 |
|
|
|
$ |
80 |
|
Net (loss) income attributable to Capri |
|
$ |
(551 |
) |
|
|
$ |
440 |
|
|
|
$ |
6 |
|
|
|
$ |
103 |
|
|
|
$ |
9 |
|
|
|
$ |
9 |
|
|
|
$ |
16 |
|
Weighted average diluted ordinary shares outstanding |
|
149,380,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
150,623,391 |
|
|||||||||||||||||
Diluted (loss) net income per ordinary share - Capri |
|
$ |
(3.69 |
) |
|
|
$ |
2.95 |
|
|
|
$ |
0.04 |
|
|
|
$ |
0.69 |
|
|
|
$ |
0.06 |
|
|
|
$ |
0.06 |
|
|
|
$ |
0.11 |
|
______________________
SCHEDULE 7 |
|||||||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
Fiscal Year Ended March 28, 2020 |
|||||||||||||||||||||||||||||||||||||||||
|
|
As
|
|
Impairment
|
|
Restructuring
|
|
Inventory
|
|
ERP
|
|
Capri
|
|
Acquisition
|
|
COVID-19
|
|
As
|
|||||||||||||||||||||||||
Gross profit |
|
$ |
3,271 |
|
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
13 |
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
92 |
|
|
|
$ |
3,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Operating expenses |
|
$ |
3,463 |
|
|
|
$ |
(708 |
) |
|
|
$ |
(42 |
) |
|
|
$ |
? |
|
|
$ |
(41 |
) |
|
|
$ |
(24 |
) |
|
|
$ |
? |
|
|
|
$ |
(27 |
) |
|
|
$ |
2,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Versace operating (loss) income |
|
$ |
(8 |
) |
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
13 |
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
5 |
|
Total (loss) income from operations |
|
$ |
(192 |
) |
|
|
$ |
708 |
|
|
|
$ |
42 |
|
|
|
$ |
13 |
|
|
$ |
41 |
|
|
|
$ |
24 |
|
|
|
$ |
? |
|
|
|
$ |
119 |
|
|
|
$ |
755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Foreign currency loss |
|
$ |
11 |
|
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
? |
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
(1 |
) |
|
|
$ |
? |
|
|
|
$ |
10 |
|
(Loss ) income before provision for income taxes |
|
$ |
(215 |
) |
|
|
$ |
708 |
|
|
|
$ |
42 |
|
|
|
$ |
13 |
|
|
$ |
41 |
|
|
|
$ |
24 |
|
|
|
$ |
1 |
|
|
|
$ |
119 |
|
|
|
$ |
733 |
|
Provision for income taxes |
|
$ |
10 |
|
|
|
$ |
92 |
|
|
|
$ |
7 |
|
|
|
$ |
3 |
|
|
$ |
10 |
|
|
|
$ |
6 |
|
|
|
$ |
? |
|
|
|
$ |
16 |
|
|
|
$ |
144 |
|
Net (loss) income attributable to Capri |
|
$ |
(223 |
) |
|
|
$ |
616 |
|
|
|
$ |
35 |
|
|
|
$ |
10 |
|
|
$ |
31 |
|
|
|
$ |
18 |
|
|
|
$ |
1 |
|
|
|
$ |
103 |
|
|
|
$ |
591 |
|
Weighted average diluted ordinary shares outstanding |
|
150,714,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
151,922,050 |
|
||||||||||||||||||||||
Diluted net (loss) income per ordinary share - Capri |
|
$ |
(1.48 |
) |
|
|
$ |
4.05 |
|
|
|
$ |
0.23 |
|
|
|
$ |
0.07 |
|
|
$ |
0.21 |
|
|
|
$ |
0.12 |
|
|
|
$ |
0.01 |
|
|
|
$ |
0.68 |
|
|
|
$ |
3.89 |
|
______________________
SCHEDULE 8 |
|||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|||||||||||||||||||||||||||||
|
|
Three Months Ended March 30, 2019 |
|||||||||||||||||||||||||||
|
|
As Reported |
|
Impairment
|
|
Restructuring
|
|
Inventory
|
|
ERP
|
|
As Adjusted |
|||||||||||||||||
Gross profit |
|
$ |
793 |
|
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
5 |
|
|
$ |
? |
|
|
|
$ |
798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Versace operating expense |
|
$ |
98 |
|
|
|
$ |
? |
|
|
|
$ |
(3 |
) |
|
|
$ |
? |
|
|
$ |
? |
|
|
|
$ |
95 |
|
|
Total operating expenses |
|
$ |
753 |
|
|
|
$ |
(4 |
) |
|
|
$ |
(75 |
) |
|
|
$ |
? |
|
|
$ |
(1 |
) |
|
|
$ |
673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Versace operating loss |
|
$ |
(11 |
) |
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
5 |
|
|
$ |
? |
|
|
|
$ |
(6 |
) |
|
Total income from operations |
|
$ |
40 |
|
|
|
$ |
4 |
|
|
|
$ |
75 |
|
|
|
$ |
5 |
|
|
$ |
1 |
|
|
|
$ |
125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Income before provision for income taxes |
|
$ |
22 |
|
|
|
$ |
4 |
|
|
|
$ |
75 |
|
|
|
$ |
5 |
|
|
$ |
1 |
|
|
|
$ |
107 |
|
|
Provision for income taxes |
|
$ |
3 |
|
|
|
$ |
1 |
|
|
|
$ |
7 |
|
|
|
$ |
1 |
|
|
$ |
? |
|
|
|
$ |
12 |
|
|
Net income attributable to Capri |
|
$ |
19 |
|
|
|
$ |
3 |
|
|
|
$ |
68 |
|
|
|
$ |
4 |
|
|
$ |
1 |
|
|
|
$ |
95 |
|
|
Diluted net income per ordinary share - Capri |
|
$ |
0.13 |
|
|
|
$ |
0.02 |
|
|
|
$ |
0.44 |
|
|
|
$ |
0.03 |
|
|
$ |
0.01 |
|
|
|
$ |
0.63 |
|
|
______________________
SCHEDULE 9 |
||||||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
||||||||||||||||||||||||||||||||||
|
|
Fiscal Year Ended March 30, 2019 |
||||||||||||||||||||||||||||||||
|
|
As
|
|
Impairment
|
|
Restructuring
|
|
Inventory
|
|
Acquisition
|
|
ERP
|
|
As
|
||||||||||||||||||||
Gross profit |
|
$ |
3,180 |
|
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
11 |
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
3,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total operating expenses |
|
$ |
2,445 |
|
|
|
$ |
(21 |
) |
|
|
$ |
(124 |
) |
|
|
$ |
? |
|
|
$ |
? |
|
|
|
$ |
(1 |
) |
|
|
$ |
2,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Versace operating loss |
|
$ |
(11 |
) |
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
5 |
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
(6 |
) |
|
Jimmy Choo operating income |
|
$ |
20 |
|
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
6 |
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
26 |
|
|
Total income from operations |
|
$ |
735 |
|
|
|
$ |
21 |
|
|
|
$ |
124 |
|
|
|
$ |
11 |
|
|
$ |
? |
|
|
|
$ |
1 |
|
|
|
$ |
892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Foreign currency loss |
|
$ |
80 |
|
|
|
$ |
? |
|
|
|
$ |
? |
|
|
|
$ |
? |
|
|
$ |
(72 |
) |
|
|
$ |
? |
|
|
|
$ |
8 |
|
|
Income before provision for income taxes |
|
$ |
621 |
|
|
|
$ |
21 |
|
|
|
$ |
124 |
|
|
|
$ |
11 |
|
|
$ |
72 |
|
|
|
$ |
1 |
|
|
|
$ |
850 |
|
|
Provision for income taxes |
|
$ |
79 |
|
|
|
$ |
4 |
|
|
|
$ |
14 |
|
|
|
$ |
2 |
|
|
$ |
(1 |
) |
|
|
$ |
? |
|
|
|
$ |
98 |
|
|
Net income attributable to Capri |
|
$ |
543 |
|
|
|
$ |
17 |
|
|
|
$ |
110 |
|
|
|
$ |
9 |
|
|
$ |
73 |
|
|
|
$ |
1 |
|
|
|
$ |
753 |
|
|
Diluted net income per ordinary share - Capri |
|
$ |
3.58 |
|
|
|
$ |
0.11 |
|
|
|
$ |
0.73 |
|
|
|
$ |
0.06 |
|
|
$ |
0.48 |
|
|
|
$ |
0.01 |
|
|
|
$ |
4.97 |
|
|
______________________
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