We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Capri Holdings Limited | NYSE:CPRI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.09 | -0.28% | 32.22 | 32.39 | 32.09 | 32.26 | 241,852 | 15:42:29 |
Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, today announced its financial results for the third quarter of Fiscal 2024 ended December 30, 2023.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240208378853/en/
(Photo: Business Wire)
Third Quarter Fiscal 2024 Highlights
John D. Idol, the Company's Chairman and Chief Executive Officer, said, "Overall, our performance in the third quarter continued to be impacted by softening demand for fashion luxury goods. However, sales trends improved sequentially in the third quarter, driven by better results in our own retail channel while sales in our wholesale channel remained challenged. Additionally, we were pleased to have resolved the Michael Kors Americas Ecommerce implementation issues discussed last quarter and our platform is now running smoothly."
Mr. Idol continued, "Versace, Jimmy Choo and Michael Kors continued to resonate with consumers as evidenced by the 10.7 million new consumers added across our databases, representing 13% growth versus last year. In fact, we achieved a new milestone, with our database surpassing 90 million customers. This reflects the strong brand equity and enduring value of our three iconic houses."
Mr. Idol concluded, “We look forward to the successful completion of the merger transaction with Tapestry in calendar year 2024. 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, we will have greater resources and capabilities to accelerate the expansion of our global reach while preserving the unique DNA of our brands.”
Third 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 Third Quarter Fiscal 2024 Results
Versace Third Quarter Fiscal 2024 Results
Jimmy Choo Third Quarter Fiscal 2024 Results
Michael Kors Third Quarter Fiscal 2024 Results
Outlook
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, Tapestry merger related costs 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 report 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 transaction with a wholly-owned subsidiary of Tapestry, Inc. (the "Merger"). These risks, uncertainties and other factors include the impact of the COVID-19 pandemic; changes in consumer traffic and retail trends; the timing, receipt and terms and conditions of any required governmental and regulatory approvals for the pending Merger that could delay or result in the termination of 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 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 and its announcement could have an adverse effect on the ability of Capri to retain customers and retain and hire key personnel and maintain relationships with customers, suppliers, employees, shareholders and other business relationships and on its operating results and business generally, and the risk the pending Merger could divert the attention of Capri’s management; 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
Nine Months Ended
December 30, 2023
December 31, 2022
December 30, 2023
December 31, 2022
Total revenue
$
1,427
$
1,512
$
3,947
$
4,284
Cost of goods sold
499
507
1,375
1,427
Gross profit
928
1,005
2,572
2,857
Total operating expenses
806
769
2,270
2,138
Income from operations
122
236
302
719
Other income, net
—
(1
)
—
(2
)
Interest expense, net
1
12
12
13
Foreign currency (gain) loss
(2
)
(3
)
16
(10
)
Income before income taxes
123
228
274
718
Provision for income taxes
18
3
31
66
Net income
105
225
243
652
Less: Net income attributable to noncontrolling interest
—
—
—
2
Net income attributable to Capri
$
105
$
225
$
243
$
650
Weighted average ordinary shares outstanding:
Basic
116,795,382
128,849,793
116,967,118
135,600,276
Diluted
118,163,528
130,364,919
118,003,245
137,050,159
Net income per ordinary share:
Basic
$
0.89
$
1.74
$
2.07
$
4.79
Diluted
$
0.88
$
1.72
$
2.06
$
4.74
SCHEDULE 2
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)
December 30, 2023
April 1, 2023
December 31, 2022
Assets
Current assets
Cash and cash equivalents
$
249
$
249
$
281
Receivables, net
339
369
372
Inventories, net
1,020
1,057
1,188
Prepaid expenses and other current assets
310
195
243
Total current assets
1,918
1,870
2,084
Property and equipment, net
560
552
546
Operating lease right-of-use assets
1,485
1,330
1,369
Intangible assets, net
1,727
1,728
1,743
Goodwill
1,319
1,293
1,358
Deferred tax assets
371
296
247
Other assets
237
226
207
Total assets
$
7,617
$
7,295
$
7,554
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable
$
370
$
475
$
519
Accrued payroll and payroll related expenses
105
154
131
Accrued income taxes
74
73
65
Short-term operating lease liabilities
408
429
412
Short-term debt
461
5
19
Accrued expenses and other current liabilities
397
314
413
Total current liabilities
1,815
1,450
1,559
Long-term operating lease liabilities
1,459
1,348
1,392
Deferred tax liabilities
519
508
531
Long-term debt
1,383
1,822
1,521
Other long-term liabilities
506
318
328
Total liabilities
5,682
5,446
5,331
Commitments and contingencies
Shareholders’ equity
Ordinary shares, no par value; 650,000,000 shares authorized; 225,904,103 shares issued and 116,262,663 outstanding at December 30, 2023; 224,166,250 shares issued and 117,347,045 outstanding at April 1, 2023 and 223,781,728 shares issued and 125,398,217 outstanding at December 31, 2022
—
—
—
Treasury shares, at cost (109,641,440 shares at December 30, 2023, 106,819,205 shares at April 1, 2023 and 98,383,511 shares at December 31, 2022)
(5,458
)
(5,351
)
(4,951
)
Additional paid-in capital
1,410
1,344
1,327
Accumulated other comprehensive income
31
147
105
Retained earnings
5,951
5,708
5,742
Total shareholders’ equity of Capri
1,934
1,848
2,223
Noncontrolling interest
1
1
—
Total shareholders’ equity
1,935
1,849
2,223
Total liabilities and shareholders’ equity
$
7,617
$
7,295
$
7,554
SCHEDULE 3
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED SEGMENT DATA
($ in millions)
(Unaudited)
Three Months Ended
Nine Months Ended
December 30, 2023
December 31, 2022
December 30, 2023
December 31, 2022
Revenue by Segment and Region:
Versace
The Americas
$
73
$
85
$
251
$
320
EMEA
98
113
339
350
Asia
56
51
176
162
Versace Revenue
227
249
766
832
Jimmy Choo
The Americas
48
54
135
151
EMEA
70
70
208
193
Asia
48
44
138
138
Jimmy Choo Revenue
166
168
481
482
Michael Kors
The Americas
722
777
1,779
2,045
EMEA
208
212
602
616
Asia
104
106
319
309
Michael Kors Revenue
1,034
1,095
2,700
2,970
Total Revenue
$
1,427
$
1,512
$
3,947
$
4,284
Income (loss) from Operations:
Versace
$
(14
)
$
24
$
24
$
138
Jimmy Choo
4
18
11
45
Michael Kors
219
251
518
721
Total segment income from operations
209
293
553
904
Less: Corporate expenses
(68
)
(56
)
(210
)
(171
)
Impairment of assets
(6
)
(1
)
(26
)
(12
)
Merger related costs
(8
)
—
(12
)
—
Restructuring and other expense
(5
)
(5
)
(3
)
(11
)
COVID-19 related charges
—
2
—
6
Impact of war in Ukraine
—
3
—
3
Total Income from Operations
$
122
$
236
$
302
$
719
Operating Margin:
Versace
(6.2
)%
9.6
%
3.1
%
16.6
%
Jimmy Choo
2.4
%
10.7
%
2.3
%
9.3
%
Michael Kors
21.2
%
22.9
%
19.2
%
24.3
%
Capri
8.5
%
15.6
%
7.7
%
16.8
%
SCHEDULE 4
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
SUPPLEMENTAL RETAIL STORE INFORMATION
(Unaudited)
As of
Retail Store Information:
December 30, 2023
December 31, 2022
Versace
233
225
Jimmy Choo
237
242
Michael Kors
800
827
Total number of retail stores
1,270
1,294
SCHEDULE 5
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
CONSTANT CURRENCY DATA
(In millions)
(Unaudited)
Three Months Ended
% Change
December 30, 2023
December 31, 2022
As
Reported
Constant
Currency
Total Revenue:
Versace
$
227
$
249
(8.8
)%
(10.8
)%
Jimmy Choo
166
168
(1.2
)%
(3.0
)%
Michael Kors
1,034
1,095
(5.6
)%
(6.2
)%
Total Revenue
$
1,427
$
1,512
(5.6
)%
(6.6
)%
Nine Months Ended
% Change
December 30, 2023
December 31, 2022
As
Reported
Constant
Currency
Total Revenue:
Versace
$
766
$
832
(7.9
)%
(9.5
)%
Jimmy Choo
481
482
(0.2
)%
(1.2
)%
Michael Kors
2,700
2,970
(9.1
)%
(9.5
)%
Total Revenue
$
3,947
$
4,284
(7.9
)%
(8.6
)%
SCHEDULE 6
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)
Three Months Ended December 30, 2023
As Reported
Impairment Charges
Restructuring and Other Expense (1)
ERP Implementation(2)
Capri Transformation (3)
Merger Related Costs
As Adjusted
Gross profit
$
928
$
—
$
—
$
—
$
—
$
—
$
928
Operating expenses
$
806
$
(6
)
$
(5
)
$
(4
)
$
(27
)
$
(8
)
$
756
Total income from operations
$
122
$
6
$
5
$
4
$
27
$
8
$
172
Income before provision for income taxes
$
123
$
6
$
5
$
4
$
27
$
8
$
173
Provision for income taxes
$
18
$
2
$
1
$
1
$
7
$
2
$
31
Net income attributable to Capri
$
105
$
4
$
4
$
3
$
20
$
6
$
142
Diluted net income per ordinary share - Capri
$
0.88
$
0.03
$
0.04
$
0.03
$
0.17
$
0.05
$
1.20
______________________
(1)Amounts impacting operating expenses primarily relate to equity awards associated with the acquisition of Gianni Versace S.r.l and severance expenses incurred during the third quarter.
(2)Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. This ERP implementation will continue through Fiscal 2026 and we expect expenditures up to $170 million.
(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. Through Fiscal 2026, we expect expenditures up to $220 million related to these efforts.
SCHEDULE 7
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)
Nine Months Ended December 30, 2023
As Reported
Impairment Charges
Restructuring and Other Expense (1)
ERP Implementation (2)
Capri Transformation (3)
Merger Related Costs
As Adjusted
Gross profit
$
2,572
$
—
$
—
$
—
$
—
$
—
$
2,572
Operating expenses
$
2,270
$
(26
)
$
(3
)
$
(13
)
$
(84
)
$
(12
)
$
2,132
Total income from operations
$
302
$
26
$
3
$
13
$
84
$
12
$
440
Foreign currency loss (gain)
$
16
$
—
$
(17
)
$
—
$
—
$
—
$
(1
)
Income before provision for income taxes
$
274
$
26
$
20
$
13
$
84
$
12
$
429
Provision for income taxes
$
31
$
6
$
4
$
3
$
19
$
3
$
66
Net income attributable to Capri
$
243
$
20
$
16
$
10
$
65
$
9
$
363
Diluted net income per ordinary share - Capri
$
2.06
$
0.17
$
0.14
$
0.08
$
0.55
$
0.08
$
3.08
______________________
(1)Amounts impacting operating expenses primarily relate to equity awards associated with the acquisition of Gianni Versace S.r.l and severance for certain employees, partially offset by a $10 million gain on the sale of a long-lived corporate asset. The foreign currency exchange loss represents a charge recognized in conjunction with restructuring activities to rationalize certain legal entities within our structure.
(2)Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. This ERP implementation will continue through Fiscal 2026 and we expect expenditures up to $170 million.
(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. Through Fiscal 2026, we expect expenditures up to $220 million related to these efforts.
SCHEDULE 8
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)
Three Months Ended December 31, 2022
As Reported
Impairment Charges
Restructuring and Other Expense (1)
COVID-19 Related Expenses
ERP Implementation
Capri Transformation
War in Ukraine
As Adjusted
Gross profit
$
1,005
$
—
$
—
$
(2
)
$
—
$
—
$
—
$
1,003
Operating expenses
$
769
$
(1
)
$
(5
)
$
—
$
(4
)
$
(15
)
$
3
$
747
Total income from operations
$
236
1
$
5
$
(2
)
$
4
$
15
$
(3
)
$
256
Income before provision for income taxes
$
228
$
1
$
5
$
(2
)
$
4
$
15
$
(3
)
$
248
Provision for income taxes
$
3
$
—
$
1
$
—
$
1
$
4
$
(1
)
$
8
Net income attributable to Capri
$
225
$
1
$
4
$
(2
)
$
3
$
11
$
(2
)
$
240
Diluted net income per ordinary share - Capri
$
1.72
$
0.01
$
0.03
$
(0.02
)
$
0.02
$
0.09
$
(0.01
)
$
1.84
______________________
(1)Primarily includes expenses related to equity award associated with the acquisition of Gianni Versace S.r.l.
SCHEDULE 9
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)
Nine Months Ended December 31, 2022
As Reported
Impairment Charges
Restructuring and Other Expense(1)
COVID-19 Related Charges
ERP Implementation
Capri Transformation
War in Ukraine
As Adjusted
Gross profit
$
2,857
$
—
$
—
$
(6
)
$
—
$
—
$
—
$
2,851
Operating expenses
$
2,138
$
(12
)
$
(11
)
$
—
$
(20
)
$
(34
)
$
3
$
2,064
Total income from operations
$
719
$
12
$
11
$
(6
)
$
20
$
34
$
(3
)
$
787
Income before provision for income taxes
$
718
$
12
$
11
$
(6
)
$
20
$
34
$
(3
)
$
786
Provision for income taxes
$
66
$
2
$
3
$
(1
)
$
5
$
10
$
(1
)
$
84
Net income attributable to Capri
$
650
$
10
$
8
$
(5
)
$
15
$
24
$
(2
)
$
700
Diluted net income per ordinary share - Capri
$
4.74
$
0.07
$
0.06
$
(0.04
)
$
0.11
$
0.18
$
(0.01
)
$
5.11
______________________
(1)Primarily Includes expenses related to equity award associated with the acquisition of Gianni Versace S.r.l.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240208378853/en/
Investor Relations: Jennifer Davis +1 (201) 514-8234 Jennifer.Davis@CapriHoldings.com
Media: Press@CapriHoldings.com
1 Year Capri Chart |
1 Month Capri Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions