Capri Holdings Limited (NYSE:CPRI), a global fashion luxury
group, today announced its financial results for the fourth quarter
and full year fiscal 2024 ended March 30, 2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240529961065/en/
(Photo: Business Wire)
Fourth Quarter Fiscal 2024 Highlights
- Revenue decreased 8.4% on a reported basis and 7.9% in constant
currency
- Adjusted operating margin of 6.4%
- Adjusted earnings per share of $0.42
John D. Idol, the Company’s Chairman and Chief Executive Officer
said, "Overall, we were disappointed with our results as
performance in the fourth quarter continued to be impacted by
softening demand globally for fashion luxury goods. In our retail
channel, sales trends improved sequentially in the Americas and
EMEA while trends slowed in Asia. In our wholesale channel, sales
remained challenged."
Mr. Idol continued, "Versace, Jimmy Choo and Michael Kors
continued to resonate with consumers as evidenced by the 11.6
million new consumers added across our databases, representing 14%
growth versus last year. This reflects the strong brand equity and
enduring value of our three iconic houses. Looking forward, we
remain focused on executing our strategic initiatives to deliver
long-term sustainable growth across each of our luxury houses."
Mr. Idol concluded, “Last August Capri Holdings announced that
we entered into a definitive agreement to be acquired by Tapestry.
In April, the FTC filed an unprecedented lawsuit to block the
proposed transaction. We strongly disagree with the FTC's decision
and firmly believe in the merits of this acquisition. The market
realities, which the government’s challenge ignores, overwhelmingly
demonstrate that this transaction will not limit, reduce, or
constrain competition. Tapestry and Capri operate in the fiercely
competitive and highly fragmented global fashion luxury industry.
Consumers have hundreds of handbag choices at every price point
across all channels, and barriers to entry are low. As we
previously stated, Capri intends to vigorously defend this case in
court alongside Tapestry and we look forward to the successful
completion of the pending acquisition. This combination will
deliver value to our shareholders as well as provide new
opportunities for our dedicated employees around the world as Capri
Holdings becomes part of a larger and more diversified company. By
joining with Tapestry, our brands will have greater resources and
capabilities to accelerate the expansion of their global reach
while preserving their unique DNA.”
Fourth Quarter Fiscal 2024 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 2024
Results
- Total revenue of $1.223 billion decreased 8.4% compared to last
year. On a constant currency basis, total revenue decreased 7.9%.
Total company retail sales declined in the mid-single-digits with
trends being impacted by softening demand globally for fashion
luxury goods. In wholesale, revenue decreased in the high-teens
driven by softer demand in the Americas and EMEA.
- Gross profit was $767 million and gross margin was 62.7%,
compared to $867 million and 64.9% in the prior year. Adjusted
gross profit was $767 million and adjusted gross margin was 62.7%,
compared to $863 million and 64.6% in the prior year. Gross profit
margin decreased relative to prior year primarily driven by lower
full price sell-throughs.
- Loss from operations was $543 million and operating margin was
(44.4)% compared to loss from operations of $40 million and
operating margin of (3.0)% in the prior year primarily due to
non-cash impairments. Adjusted income from operations was $78
million and operating margin was 6.4%, compared to $121 million and
9.1% in the prior year. The decline in adjusted operating margin
primarily reflects lower gross margin and expense deleverage on
lower revenue.
- Net loss was $472 million, or $(4.03) per diluted share,
compared to net loss of $34 million, or $(0.28) per diluted share,
in the prior year, impacted by non-cash impairments. Adjusted net
income was $50 million, or $0.42 per diluted share, compared to
$121 million, or $0.97 per diluted share, in the prior year.
- Net inventory at March 30, 2024 was $862 million, an 18.4%
decrease compared to the prior year.
- Cash flow from operating activities for the fourth quarter was
an inflow of $44 million, while free cash flow was an outflow of $6
million. This result was well below our expectations reflecting
lower operating results, higher working capital usage and higher
cash taxes.
- For the full year cash flow from operating activities was an
inflow of $309 million, while free cash flow was an inflow of $120
million. This includes approximately $130 million of spending on
transformation initiatives that are largely complete. It also
includes the negative impact of over $200 million related to
accounts payable, accrued expenses and prepaid expenses as well as
higher cash taxes paid.
- Capri Holdings anticipates free cash flow to normalize in
Fiscal 2025.
- Cash and cash equivalents totaled $199 million, and total
borrowings outstanding were $1.723 billion, resulting in net debt
of $1.524 billion.
Versace Fourth Quarter Fiscal 2024 Results
- Versace revenue of $264 million decreased 3.6% on a reported
basis and 2.9% on a constant currency basis driven primarily by
softening demand globally for fashion luxury goods. Retail sales
increased mid-single-digits while wholesale revenue decreased
double-digits. Revenue in the Americas declined 1%, while revenue
in EMEA decreased 11% and revenue in Asia increased 6%. Versace’s
global database increased by 1.9 million new consumers,
representing 30% growth over the last year.
- Versace operating income was $1 million and operating margin
was 0.4% compared to an operating income of $14 million and
operating margin of 5.1% in the prior year. The decline in
operating margin rate was primarily due to lower full price
sell-throughs and expense deleverage on lower revenue.
Jimmy Choo Fourth Quarter Fiscal 2024 Results
- Jimmy Choo revenue of $137 million decreased 9.3% on both a
reported and constant currency basis driven primarily by softening
demand globally for fashion luxury goods. Retail sales decreased
low-single-digits while wholesale revenue decreased double-digits.
Revenue in the Americas declined 9%, while revenue in EMEA
decreased 6% and revenue in Asia declined 14%. Jimmy Choo’s global
database increased by 0.7 million new consumers, representing 12%
growth over the last year.
- Jimmy Choo operating loss was $8 million and operating margin
was (5.8)%, compared to an operating loss of $7 million and
operating margin of (4.6)% in the prior year. The decline in
operating margin rate was primarily due to lower full price
sell-throughs and expense deleverage on lower revenue.
Michael Kors Fourth Quarter Fiscal 2024 Results
- Michael Kors revenue of $822 million decreased 9.7% on a
reported basis and 9.2% on a constant currency basis. The decline
versus prior year was primarily attributable to softening demand
globally for fashion luxury goods. Retail sales declined in the
high-single-digits while wholesale revenue decreased double-digits.
Revenue in the Americas declined 9%, while revenue in EMEA
decreased 7% and revenue in Asia declined 16%. Michael Kors’ global
database increased by 9.0 million new consumers, representing 13%
growth over the last year.
- Michael Kors operating income was $116 million and operating
margin was 14.1%, compared to operating income of $147 million and
operating margin of 16.2% in the prior year. The decline in
operating margin rate was primarily related to lower full price
sell-throughs and expense deleverage on lower revenue.
Outlook
As previously stated, given the pending merger transaction of
Capri Holdings Limited by Tapestry, Inc., the Company does not
intend to provide financial guidance.
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 restructuring and other charges, ERP implementation
costs, COVID-19 related expenses, war in Ukraine related costs,
Capri transformation costs, costs related to the pending merger
transaction with a wholly-owned subsidiary of Tapestry, Inc. (the
"Merger") and long-lived asset impairments. 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 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. 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, including regarding the pending Merger. These risks,
uncertainties and other factors include but are not limited to, our
ability to respond to changing fashion, consumer traffic and retail
trends; fluctuations in demand for our products; high consumer debt
levels, recession and inflationary pressures; loss of market share
and increased competition; reductions in our wholesale channel; the
impact of the COVID-19 pandemic, or other unforeseen epidemics,
pandemics, disasters or catastrophes; levels of cash flow and
future availability of credit; Capri's ability to successfully
execute its growth strategies; departure of key employees or
failure to attract and retain highly qualified personnel; risks
associated with operating in international markets and global
sourcing activities, including disruptions or delays in
manufacturing or shipments; the risk of cybersecurity threats and
privacy or data security breaches; extreme weather conditions and
natural disasters; general economic, political, business or market
conditions; acts of war and other geopolitical conflicts; the
outcome of the U.S. Federal Trade Commission's lawsuit attempting
to block the pending Merger, the occurrence of any other event,
change or other circumstances that could give rise to the
termination of the merger agreement entered into in connection with
the pending Merger; the risk that the parties to the merger
agreement may not be able to satisfy the conditions to the pending
Merger in a timely manner or at all; risks related to disruption of
management time from ongoing business operations due to the pending
Merger; the risk that any announcements relating to the pending
Merger could have adverse effects on the market price of Capri's
ordinary shares; the risk of any unexpected costs or expenses
resulting from the pending Merger; the risk of any litigation
relating to the pending Merger; the risk that the pending Merger
could have an adverse effect on the ability of Capri to retain and
maintain relationships with customers, suppliers and other business
partners and retain and hire key personnel and on its operating
results and business generally, as well as those risks that are
outlined in Capri’s disclosure filings and materials, which you can
find on http://www.capriholdings.com, such as its Form 10-K, Form
10-Q and Form 8-K reports that have been filed with the SEC. Please
consult these documents for a more complete understanding of these
risks and uncertainties. Any forward-looking statement in this
press release speaks only as of the date made and Capri 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
March 30, 2024
April 1, 2023
March 30, 2024
April 1, 2023
Total revenue
$
1,223
$
1,335
$
5,170
$
5,619
Cost of goods sold
456
468
1,831
1,895
Gross profit
767
867
3,339
3,724
Total operating expenses
1,310
907
3,580
3,045
(Loss) income from operations
(543
)
(40
)
(241
)
679
Other income, net
(1
)
(1
)
(1
)
(3
)
Interest (income) expense, net
(6
)
11
6
24
Foreign currency loss
21
20
37
10
(Loss) income before (benefit) provision
for income taxes
(557
)
(70
)
(283
)
648
(Benefit) provision for income taxes
(85
)
(37
)
(54
)
29
Net (loss) income
(472
)
(33
)
(229
)
619
Less: Net income attributable to
noncontrolling interests
—
1
—
3
Net (loss) income attributable to
Capri
$
(472
)
$
(34
)
$
(229
)
$
616
Weighted average ordinary shares
outstanding:
Basic
117,156,327
123,327,209
117,014,420
132,532,009
Diluted
117,156,327
123,327,209
117,014,420
134,002,480
Net income (loss) per ordinary share:
Basic
$
(4.03
)
$
(0.28
)
$
(1.96
)
$
4.65
Diluted
$
(4.03
)
$
(0.28
)
$
(1.96
)
$
4.60
SCHEDULE 2
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In millions, except share
data)
(Unaudited)
March 30, 2024
April 1, 2023
Assets
Current assets
Cash and cash equivalents
$
199
$
249
Receivables, net
332
369
Inventories, net
862
1,057
Prepaid expenses and other current
assets
215
195
Total current assets
1,608
1,870
Property and equipment, net
579
552
Operating lease right-of-use assets
1,438
1,330
Intangible assets, net
1,394
1,728
Goodwill
1,106
1,293
Deferred tax assets
352
296
Other assets
212
226
Total assets
$
6,689
$
7,295
Liabilities and Shareholders’
Equity
Current liabilities
Accounts payable
$
352
$
475
Accrued payroll and payroll related
expenses
107
154
Accrued income taxes
64
73
Short-term operating lease liabilities
400
429
Short-term debt
462
5
Accrued expenses and other current
liabilities
310
314
Total current liabilities
1,695
1,450
Long-term operating lease liabilities
1,452
1,348
Deferred tax liabilities
362
508
Long-term debt
1,261
1,822
Other long-term liabilities
319
318
Total liabilities
5,089
5,446
Commitments and contingencies
Shareholders’ equity
Ordinary shares, no par value; 650,000,000
shares authorized; 226,271,074 shares issued and 116,629,634
outstanding at March 30, 2024; 224,166,250 shares issued and
117,347,045 outstanding at April 1, 2023
—
—
Treasury shares, at cost (109,641,440
shares at March 30, 2024 and 106,819,205 shares at April 1,
2023)
(5,458
)
(5,351
)
Additional paid-in capital
1,417
1,344
Accumulated other comprehensive income
161
147
Retained earnings
5,479
5,708
Total shareholders’ equity of Capri
1,599
1,848
Noncontrolling interest
1
1
Total shareholders’ equity
1,600
1,849
Total liabilities and shareholders’
equity
$
6,689
$
7,295
SCHEDULE 3
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
CONSOLIDATED SEGMENT
DATA
($ in millions)
(Unaudited)
Three Months Ended
Fiscal Years Ended
March 30, 2024
April 1, 2023
March 30, 2024
April 1, 2023
Revenue by Segment and Region:
Versace
The Americas
$
87
$
88
$
338
$
408
EMEA
105
118
444
468
Asia
72
68
248
230
Versace Revenue
264
274
1,030
1,106
Jimmy Choo
The Americas
41
45
176
196
EMEA
58
62
266
255
Asia
38
44
176
182
Jimmy Choo Revenue
137
151
618
633
Michael Kors
The Americas
519
571
2,298
2,616
EMEA
189
203
791
819
Asia
114
136
433
445
Michael Kors Revenue
822
910
3,522
3,880
Total Revenue
$
1,223
$
1,335
$
5,170
$
5,619
(Loss) Income from Operations:
Versace
$
1
$
14
$
25
$
152
Jimmy Choo
(8
)
(7
)
3
38
Michael Kors
116
147
634
868
Total segment income from operations
109
154
662
1,058
Less: Corporate expenses
(65
)
(62
)
(275
)
(233
)
Restructuring and other charges
(30
)
(5
)
(33
)
(16
)
Impairment of long-lived assets
(549
)
(130
)
(575
)
(142
)
Merger related costs
(8
)
—
(20
)
—
Impact of war in Ukraine
—
—
—
3
COVID-19 related charges
—
3
—
9
Total (Loss) Income from
Operations
$
(543
)
$
(40
)
$
(241
)
$
679
Operating Margin:
Versace
0.4
%
5.1
%
2.4
%
13.7
%
Jimmy Choo
(5.8
)%
(4.6
)%
0.5
%
6.0
%
Michael Kors
14.1
%
16.2
%
18.0
%
22.4
%
Capri
(44.4
)%
(3.0
)%
(4.7
)%
12.1
%
SCHEDULE 4
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
SUPPLEMENTAL RETAIL STORE
INFORMATION
(Unaudited)
As of
Retail Store Information:
March 30, 2024
April 1, 2023
Versace
236
223
Jimmy Choo
234
237
Michael Kors
769
812
Total number of retail stores
1,239
1,272
SCHEDULE 5
CAPRI HOLDINGS LIMITED AND
SUBSIDIARIES
CONSTANT CURRENCY DATA
(In millions)
(Unaudited)
Three Months Ended
% Change
March 30, 2024
April 1, 2023
As
Reported
Constant
Currency
Total revenue:
Versace
$
264
$
274
(3.6
)%
(2.9
)%
Jimmy Choo
137
151
(9.3
)%
(9.3
)%
Michael Kors
822
910
(9.7
)%
(9.2
)%
Total revenue
$
1,223
$
1,335
(8.4
)%
(7.9
)%
Fiscal Years Ended
% Change
March 30, 2024
April 1, 2023
As
Reported
Constant
Currency
Total revenue:
Versace
$
1,030
$
1,106
(6.9
)%
(7.9
)%
Jimmy Choo
618
633
(2.4
)%
(3.0
)%
Michael Kors
3,522
3,880
(9.2
)%
(9.5
)%
Total revenue
$
5,170
$
5,619
(8.0
)%
(8.4
)%
SCHEDULE 6
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In millions, except share and
per share data)
(Unaudited)
Three Months Ended March 30,
2024
As
Reported
Impairment of Assets(1)
Restructuring and Other Charges
(2)
ERP Implementation (3)
Capri Transformation(4)
Merger Costs
As
Adjusted
Gross profit
$
767
$
—
$
—
$
—
$
—
$
—
$
767
Operating expenses
$
1,310
$
(549
)
$
(30
)
$
(5
)
$
(29
)
$
(8
)
$
689
Total (loss) income from operations
$
(543
)
$
549
$
30
$
5
$
29
$
8
$
78
Foreign currency loss
$
21
$
—
$
—
$
—
$
—
$
—
$
21
(Loss) income before (benefit) provision
for income taxes
$
(557
)
$
549
$
30
$
5
$
29
$
8
$
64
(Benefit) provision for income taxes
$
(85
)
$
86
$
7
$
1
$
4
$
1
$
14
Net (loss) income attributable to
Capri
$
(472
)
$
463
$
23
$
4
$
25
$
7
$
50
Weighted average diluted ordinary shares
outstanding
117,156,327
118,221,490
Diluted net (loss) income per ordinary
share - Capri
$
(4.03
)
$
3.93
$
0.20
$
0.04
$
0.22
$
0.06
$
0.42
____________________
(1)
Asset impairment charges primarily relate
to the impairment of the Jimmy Choo Retail and Wholesale reporting
units goodwill and Versace and Jimmy Choo brand intangible assets,
as well as the impairment of certain operating lease right-of-use
assets.
(2)
Amounts impacting operating expenses
primarily relate to Global Optimization Plan costs, equity awards
associated with the acquisition of Gianni Versace S.r.l and
severance expenses incurred during the fourth quarter.
(3)
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.
(4)
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.
During Fiscal 2024, the remaining transformation projects were
paused due to the pending Merger and we will reassess this program,
along with related timing, in Fiscal 2025.
SCHEDULE 7
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In millions, except share and
per share data)
(Unaudited)
Fiscal Year Ended March 30,
2024
As
Reported
Impairment of Assets(1)
Restructuring and Other Charges
(2)
ERP Implementation (3)
Capri Transformation(4)
Merger Costs
As
Adjusted
Gross profit
$
3,339
$
—
$
—
$
—
$
—
$
—
$
3,339
Operating expenses
$
3,580
$
(575
)
$
(33
)
$
(18
)
$
(113
)
$
(20
)
$
2,821
Total (loss) income from operations
$
(241
)
$
575
$
33
$
18
$
113
$
20
$
518
Foreign currency loss
$
37
$
—
$
(17
)
$
—
$
—
$
—
$
20
(Loss) income before (benefit) provision
for income taxes
$
(283
)
$
575
$
50
$
18
$
113
$
20
$
493
(Benefit) provision for income taxes
$
(54
)
$
92
$
11
$
4
$
23
$
4
$
80
Net (loss) income attributable to
Capri
$
(229
)
$
483
$
39
$
14
$
90
$
16
$
413
Weighted average diluted ordinary shares
outstanding
117,014,420
118,057,806
Diluted net (loss) income per ordinary
share - Capri
$
(1.96
)
$
4.10
$
0.33
$
0.12
$
0.77
$
0.14
$
3.50
____________________
(1)
Asset impairment charges primarily relate
to the impairment of the Jimmy Choo Retail and Wholesale reporting
units goodwill and Versace and Jimmy Choo brand intangible assets,
as well as the impairment of certain operating lease right-of-use
assets.
(2)
Amounts impacting operating expenses
primarily relate to Global Optimization Plan costs, equity awards
associated with the acquisition of Gianni Versace S.r.l and
severance expense.
(3)
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.
(4)
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.
During Fiscal 2024, the remaining transformation projects were
paused due to the pending Merger and we will reassess this program,
along with related timing, in Fiscal 2025.
SCHEDULE 8
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.
(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.
SCHEDULE 9
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.
(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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240529961065/en/
Investor Relations: Jennifer Davis +1 (201) 514-8234
Jennifer.Davis@CapriHoldings.com
Media: Press@CapriHoldings.com
Capri (NYSE:CPRI)
Historical Stock Chart
Von Nov 2024 bis Dez 2024
Capri (NYSE:CPRI)
Historical Stock Chart
Von Dez 2023 bis Dez 2024
