0001530721false00015307212024-08-082024-08-08
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 8, 2024
(Exact name of Registrant as Specified in its Charter)
001-35368
(Commission File Number) | | | | | | | | |
British Virgin Islands | | N/A |
(State or other jurisdiction of incorporation) | | (I.R.S. Employer Identification No.) |
90 Whitfield Street
2nd Floor
London, United Kingdom
W1T 4EZ
(Address of Principal Executive Offices)
44 207 632 8600
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | | | | | |
☐ | Written communications 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 communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| | | | | |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: | | | | | | | | |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on which Registered |
Ordinary Shares, no par value | CPRI | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | | | | | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
| | | | | |
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
On August 8, 2024, Capri Holdings Limited issued a press release containing its unaudited financial results for its first fiscal quarter ended June 29, 2024. A copy of the press release is attached hereto as Exhibit 99.1.
| | | | | |
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS. |
(d) Exhibits. | | | | | | | | |
Exhibit No. | | |
| | Press Released issued by Capri Holdings Limited, dated August 8, 2024 |
104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Exhibit 99.1 is furnished to comply with Item 2.02 and Item 9.01 of Form 8-K. Exhibit 99.1 is not to be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall Exhibit 99.1 be deemed incorporated by reference in any filing under the Securities Act of 1933 (except as shall be expressly set forth by specific reference in such filing).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | | | | | | | | | | |
| | | CAPRI HOLDINGS LIMITED
|
Date: August 8, 2024 | | | |
| | By: | /s/ Thomas J. Edwards, Jr. |
| | Name: | Thomas J. Edwards, Jr. |
| | Title: | Executive Vice President, Chief Financial Officer and Chief Operating Officer |
| | | |
| | | |
| | | |
| | | |
| | | |
Exhibit 99.1
Capri Holdings Limited Announces First Quarter Fiscal 2025 Results
London — August 8, 2024 — Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, today announced its financial results for the first quarter of Fiscal 2025 ended June 29, 2024.
First Quarter Fiscal 2025 Highlights
•Revenue decreased 13.2% on a reported basis and 12.1% in constant currency
•Adjusted operating margin of 1.5%
•Adjusted earnings per share of $0.04
John D. Idol, the Company's Chairman and Chief Executive Officer, said, "Overall, we were disappointed with our first quarter results as performance continued to be impacted by softening demand globally for fashion luxury goods. We are continuing to manage our operating expenses and inventory levels carefully in light of the challenging global retail environment. Looking forward, we remain focused on executing our strategic initiatives to deliver long-term sustainable growth across each of our luxury houses."
Mr. Idol continued, "Versace, Jimmy Choo and Michael Kors continued to resonate with consumers as evidenced by the 12.6 million new consumers added across our databases, representing 15% growth versus last year. This reflects the strong brand equity and enduring value of our three iconic 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 a lawsuit to block the proposed transaction. As we previously stated, Capri intends to vigorously defend this case 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.”
First Quarter Fiscal 2025 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 First Quarter Fiscal 2025 Results
•Total revenue of $1.07 billion decreased 13.2% compared to last year. On a constant currency basis, total revenue decreased 12.1%. Total company retail sales declined low-double-digits with trends being impacted by softening demand globally for fashion luxury goods. In wholesale, revenue decreased high-teens driven by softer demand globally.
•Gross profit was $689 million and gross margin was 64.6%, compared to $812 million and 66.1% in the prior year. Gross profit margin decreased relative to prior year primarily driven by lower full price sell throughs.
•Loss from operations was $8 million and operating margin was (0.7)%, compared to income from operations of $80 million and operating margin of 6.5% in the prior year. Adjusted income from operations was $16 million and adjusted operating margin was 1.5%, compared to $111 million and 9.0% in the prior year. The decline in operating margin reflects lower gross margin and expense deleverage on lower revenue.
•Net loss was $14 million, or $(0.11) per diluted share, compared to net income of $48 million, or $0.41 per diluted share, in the prior year. Adjusted net income was $4 million, or $0.04 per diluted share, compared to $88 million, or $0.74 per diluted share, in the prior year period.
•Net inventory as of June 29, 2024 was $902 million, a 23% decrease compared to the prior year reflecting the Company's ongoing diligent inventory management.
•Cash flow from operating activities for the first quarter was an inflow of $83 million, while free cash flow was an inflow of $40 million versus an outflow of $10 million last year.
•Cash and cash equivalents totaled $213 million, and total borrowings outstanding were $1.71 billion, resulting in net debt of $1.50 billion versus $1.70 billion last year.
Versace First Quarter Fiscal 2025 Results
•Versace revenue of $219 million decreased 15.4% on a reported basis and 14.3% on a constant currency basis compared to prior year. The decline was primarily driven by softening demand globally for fashion luxury goods. Retail sales decreased high-single-digits while wholesale revenue decreased double-digits. Revenue in the Americas declined 15%, while revenue in EMEA decreased 22% and revenue in Asia declined 3%. Versace’s global database increased by 1.3 million new consumers, representing 20% growth over the last year.
•Versace operating loss was $17 million and operating margin was (7.8)%, compared to operating income of $3 million and operating margin of 1.2% 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 First Quarter Fiscal 2025 Results
•Jimmy Choo revenue of $173 million decreased 5.5% on a reported basis and 3.8% on a constant currency basis compared to prior year driven primarily by softening demand globally for fashion luxury goods. Retail sales decreased mid-single-digits while wholesale revenue decreased low-single-digits. Revenue in the Americas increased 6%, while revenue in EMEA decreased 5% and revenue in Asia declined 17%. Jimmy Choo’s global database increased by 0.7 million new consumers, representing 13% growth over the last year.
•Jimmy Choo operating income was $4 million and operating margin was 2.3%, compared to $16 million and 8.7% in the prior year. The decline in operating margin rate was primarily due to higher store related costs and expense deleverage on lower revenue.
Michael Kors First Quarter Fiscal 2025 Results
•Michael Kors revenue of $675 million decreased 14.2% on a reported basis and 13.3% on a constant currency basis compared to prior year. The decline was primarily attributable to softening demand globally for fashion luxury goods. Retail sales declined low-teens while wholesale revenue decreased high-teens. Revenue in the Americas declined 10%, while revenue in EMEA decreased 21% and revenue in Asia declined 23%. Michael Kors’ global database increased by 10.6 million new consumers, representing 15% growth over the last year.
•Michael Kors operating income was $75 million and operating margin was 11.1%, compared to $130 million and 16.5% 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 and Conference Call
As previously stated, given the pending merger transaction with a wholly owned subsidiary of Tapestry, Inc. (the "Merger"), the Company is not providing financial guidance or hosting a conference call.
Use of Non-GAAP Financial Measures
Constant currency effects are non-GAAP financial measures, which are provided to supplement our reported operating results to facilitate comparisons of our operating results and trends in our business, excluding the effects of foreign currency rate fluctuations. Because we are a global company, foreign currency exchange rates may have a significant effect on our reported results. We calculate constant currency measures and the related foreign currency impacts by translating the current year’s reported amounts into comparable amounts using prior year’s foreign exchange rates for each currency. All constant currency performance measures discussed 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, Capri transformation costs and costs related to the Merger. 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 the risk factors identified in the Company's Annual Report on Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission. 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.
CONTACTS:
Investor Relations:
Jennifer Davis
+1 (201) 514-8234
Jennifer.Davis@CapriHoldings.com
Media:
Press@CapriHoldings.com
SCHEDULE 1
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | |
| | June 29, 2024 | | July 1, 2023 | | | | |
Total revenue | | $ | 1,067 | | | $ | 1,229 | | | | | |
Cost of goods sold | | 378 | | | 417 | | | | | |
Gross profit | | 689 | | | 812 | | | | | |
Total operating expenses | | 697 | | | 732 | | | | | |
(Loss) income from operations | | (8) | | | 80 | | | | | |
Other expense, net | | — | | | 1 | | | | | |
Interest (income) expense, net | | (4) | | | 8 | | | | | |
Foreign currency loss | | 5 | | | 21 | | | | | |
(Loss) income before income taxes | | (9) | | | 50 | | | | | |
Provision for income taxes | | 3 | | | 2 | | | | | |
Net (loss) income | | (12) | | | 48 | | | | | |
Less: Net income attributable to noncontrolling interest | | 2 | | | — | | | | | |
Net (loss) income attributable to Capri | | $ | (14) | | | $ | 48 | | | | | |
Weighted average ordinary shares outstanding: | | | | | | | | |
Basic | | 117,440,282 | | | 117,431,941 | | | | | |
Diluted | | 117,440,282 | | | 118,282,633 | | | | | |
Net (loss) income per ordinary share: | | | | | | | | |
Basic | | $ | (0.11) | | | $ | 0.41 | | | | | |
Diluted | | $ | (0.11) | | | $ | 0.41 | | | | | |
SCHEDULE 2
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | |
| | June 29, 2024 | | March 30, 2024 | | July 1, 2023 | | |
Assets | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 213 | | | $ | 199 | | | $ | 238 | | | |
Receivables, net | | 292 | | | 332 | | | 300 | | | |
Inventories, net | | 902 | | | 862 | | | 1,166 | | | |
Prepaid expenses and other current assets | | 197 | | | 215 | | | 216 | | | |
Total current assets | | 1,604 | | | 1,608 | | | 1,920 | | | |
Property and equipment, net | | 573 | | | 579 | | | 551 | | | |
Operating lease right-of-use assets | | 1,385 | | | 1,438 | | | 1,359 | | | |
Intangible assets, net | | 1,378 | | | 1,394 | | | 1,737 | | | |
Goodwill | | 1,108 | | | 1,106 | | | 1,308 | | | |
Deferred tax assets | | 351 | | | 352 | | | 312 | | | |
Other assets | | 218 | | | 212 | | | 222 | | | |
Total assets | | $ | 6,617 | | | $ | 6,689 | | | $ | 7,409 | | | |
Liabilities and Shareholders’ Equity | | | | | | | | |
Current liabilities | | | | | | | | |
Accounts payable | | $ | 416 | | | $ | 352 | | | $ | 476 | | | |
Accrued payroll and payroll related expenses | | 105 | | | 107 | | | 121 | | | |
Accrued income taxes | | 45 | | | 64 | | | 82 | | | |
Short-term operating lease liabilities | | 374 | | | 400 | | | 416 | | | |
Short-term debt | | 461 | | | 462 | | | 13 | | | |
Accrued expenses and other current liabilities | | 296 | | | 310 | | | 340 | | | |
Total current liabilities | | 1,697 | | | 1,695 | | | 1,448 | | | |
Long-term operating lease liabilities | | 1,391 | | | 1,452 | | | 1,354 | | | |
Deferred tax liabilities | | 361 | | | 362 | | | 505 | | | |
Long-term debt | | 1,252 | | | 1,261 | | | 1,924 | | | |
Other long-term liabilities | | 334 | | | 319 | | | 366 | | | |
Total liabilities | | 5,035 | | | 5,089 | | | 5,597 | | | |
Commitments and contingencies | | | | | | | | |
| | | | | | | | |
Shareholders’ equity | | | | | | | | |
Ordinary shares, no par value; 650,000,000 shares authorized; 227,517,072 shares issued and 117,781,894 outstanding at June 29, 2024; 226,271,074 shares issued and 116,629,634 outstanding at March 30, 2024 and 225,684,542 shares issued and 116,064,396 outstanding at July 1, 2023 | | — | | | — | | | — | | | |
Treasury shares, at cost (109,735,178 shares at June 29, 2024, 109,641,440 shares at March 30, 2024 and 109,620,146 shares at July 1, 2023) | | (5,461) | | | (5,458) | | | (5,457) | | | |
Additional paid-in capital | | 1,443 | | | 1,417 | | | 1,375 | | | |
Accumulated other comprehensive income | | 132 | | | 161 | | | 137 | | | |
Retained earnings | | 5,465 | | | 5,479 | | | 5,756 | | | |
Total shareholders’ equity of Capri | | 1,579 | | | 1,599 | | | 1,811 | | | |
Noncontrolling interest | | 3 | | | 1 | | | 1 | | | |
Total shareholders’ equity | | 1,582 | | | 1,600 | | | 1,812 | | | |
Total liabilities and shareholders’ equity | | $ | 6,617 | | | $ | 6,689 | | | $ | 7,409 | | | |
| | | | | | | | |
SCHEDULE 3
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED SEGMENT DATA
($ in millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Three Months Ended |
| | | | | | June 29, 2024 | | July 1, 2023 |
Revenue by Segment and Region: | | | | | | | | |
| | | | | | | | | | |
Versace | | The Americas | | | | | | $ | 70 | | | $ | 82 | |
| | EMEA | | | | | | 90 | | | 116 | |
| | Asia | | | | | | 59 | | | 61 | |
Versace Revenue | | | | | | 219 | | | 259 | |
| | | | | | | | | | |
Jimmy Choo | | The Americas | | | | | | 52 | | | 49 | |
| | EMEA | | | | | | 77 | | | 81 | |
| | Asia | | | | | | 44 | | | 53 | |
Jimmy Choo Revenue | | | | | | 173 | | | 183 | |
| | | | | | | | | | |
Michael Kors | | The Americas | | | | | | 451 | | | 501 | |
| | EMEA | | | | | | 138 | | | 175 | |
| | Asia | | | | | | 86 | | | 111 | |
Michael Kors Revenue | | | | | | 675 | | | 787 | |
| | | | | | | | |
Total Revenue | | | | | | $ | 1,067 | | | $ | 1,229 | |
| | | | | | | | |
Income (loss) from Operations: | | | | | | | | |
Versace | | | | | | | | $ | (17) | | | $ | 3 | |
Jimmy Choo | | | | | | | | 4 | | | 16 | |
Michael Kors | | | | | | | | 75 | | | 130 | |
Total segment income from operations | | | | | | 62 | | | 149 | |
Less: Corporate expenses | | | | | | (64) | | | (71) | |
| | | | | | | | |
Merger related costs | | | | | (5) | | | — | |
Restructuring and other (expense) income | | | | | | (1) | | | 2 | |
| | | | | | | |
| | | | | | | |
Total (Loss) Income from Operations | | | | | | $ | (8) | | | $ | 80 | |
| | | | | | | | | | |
Operating Margin: | | | | | | | | | | |
Versace | | | | | | | | (7.8) | % | | 1.2 | % |
Jimmy Choo | | | | | | | | 2.3 | % | | 8.7 | % |
Michael Kors | | | | | | | | 11.1 | % | | 16.5 | % |
Capri | | | | | | | | (0.7) | % | | 6.5 | % |
SCHEDULE 4
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
SUPPLEMENTAL RETAIL STORE INFORMATION
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | | As of |
Retail Store Information: | | June 29, 2024 | | July 1, 2023 |
Versace | | 239 | | | 224 | |
Jimmy Choo | | 227 | | | 237 | |
Michael Kors | | 764 | | | 810 | |
Total number of retail stores | | | | 1,230 | | | 1,271 | |
SCHEDULE 5
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
CONSTANT CURRENCY DATA
(In millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | % Change |
| | June 29, 2024 | | July 1, 2023 | | As Reported | | Constant Currency |
Total Revenue: | | | | | | | | |
Versace | | $ | 219 | | | $ | 259 | | | (15.4) | % | | (14.3) | % |
Jimmy Choo | | 173 | | | 183 | | | (5.5) | % | | (3.8) | % |
Michael Kors | | 675 | | | 787 | | | (14.2) | % | | (13.3) | % |
Total Revenue | | $ | 1,067 | | | $ | 1,229 | | | (13.2) | % | | (12.1) | % |
SCHEDULE 6
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 29, 2024 |
| | As Reported | | | | Restructuring and Other Charges (1) | | | | ERP Implementation(2) | | | | | | Capri Transformation (3) | | Merger Related Costs | | As Adjusted |
Gross profit | | $ | 689 | | | | | $ | — | | | | | $ | — | | | | | | | $ | — | | | $ | — | | | $ | 689 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Operating expenses | | $ | 697 | | | | | $ | (1) | | | | | $ | (4) | | | | | | | $ | (14) | | | $ | (5) | | | $ | 673 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total (loss) income from operations | | $ | (8) | | | | | $ | 1 | | | | | $ | 4 | | | | | | | $ | 14 | | | $ | 5 | | | $ | 16 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
(Loss) income before provision for income taxes | | $ | (9) | | | | | $ | 1 | | | | | $ | 4 | | | | | | | $ | 14 | | | $ | 5 | | | $ | 15 | |
Provision for income taxes | | $ | 3 | | | | | $ | — | | | | | $ | 1 | | | | | | | $ | 4 | | | $ | 1 | | | $ | 9 | |
Net (loss) income attributable to Capri | | $ | (14) | | | | | $ | 1 | | | | | $ | 3 | | | | | | | $ | 10 | | | $ | 4 | | | $ | 4 | |
| | | | | | | | | | | | | | | | | | | | |
Diluted net (loss) income per ordinary share - Capri | | $ | (0.11) | | | | | $ | 0.01 | | | | | $ | 0.03 | | | | | | | $ | 0.08 | | | $ | 0.03 | | | $ | 0.04 | |
______________________
(1)Amounts impacting operating expenses primarily relate to Global Optimization Plan costs of lease termination and store closure costs.
(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. During Fiscal 2024, the remaining transformation projects were paused due to the pending Merger and we will reassess this program, along with related timing, during Fiscal 2025.
SCHEDULE 7
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended July 1, 2023 |
| | As Reported | | | | Restructuring and Other (Income) Charges (1) | | | | ERP Implementation (2) | | Capri Transformation (3) | | | | As Adjusted |
Gross profit | | $ | 812 | | | | | $ | — | | | | | $ | — | | | $ | — | | | | | $ | 812 | |
| | | | | | | | | | | | | | | | |
Operating expenses | | $ | 732 | | | | | $ | 2 | | | | | $ | (5) | | | $ | (28) | | | | | $ | 701 | |
| | | | | | | | | | | | | | | | |
Total income from operations | | $ | 80 | | | | | $ | (2) | | | | | $ | 5 | | | $ | 28 | | | | | $ | 111 | |
| | | | | | | | | | | | | | | | |
Foreign currency loss | | $ | 21 | | | | | $ | (17) | | | | | $ | — | | | $ | — | | | | | $ | 4 | |
| | | | | | | | | | | | | | | | |
Income before provision for income taxes | | $ | 50 | | | | | $ | 15 | | | | | $ | 5 | | | $ | 28 | | | | | $ | 98 | |
Provision for income taxes | | $ | 2 | | | | | $ | 3 | | | | | $ | 1 | | | $ | 4 | | | | | $ | 10 | |
Net income attributable to Capri | | $ | 48 | | | | | $ | 12 | | | | | $ | 4 | | | $ | 24 | | | | | $ | 88 | |
| | | | | | | | | | | | | | | | |
Diluted net income per ordinary share - Capri | | $ | 0.41 | | | | | $ | 0.10 | | | | | $ | 0.03 | | | $ | 0.20 | | | | | $ | 0.74 | |
______________________
(1)Amounts impacting operating expenses primarily includes a gain on the sale of a long-lived corporate asset, partially offset by expenses related to equity awards associated with the acquisition of Gianni Versace S.r.l. and severance expenses. 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.
v3.24.2.u1
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
+ References
+ Details
Name: |
dei_EntityAddressAddressLine1 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
+ References
+ Details
Name: |
dei_EntityAddressCityOrTown |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionISO 3166-1 alpha-2 country code.
+ References
+ Details
Name: |
dei_EntityAddressCountry |
Namespace Prefix: |
dei_ |
Data Type: |
dei:countryCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCode for the postal or zip code
+ References
+ Details
Name: |
dei_EntityAddressPostalZipCode |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Section 14a -Number 240 -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
Capri (NYSE:CPRI)
過去 株価チャート
から 8 2024 まで 9 2024
Capri (NYSE:CPRI)
過去 株価チャート
から 9 2023 まで 9 2024