Business Wire | Feb 3, 2021 06:30AM EST

Capri Holdings Limited Announces Third Quarter Fiscal 2021 Results

Feb. 03, 2021

LONDON--(BUSINESS WIRE)--Feb. 03, 2021--Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, today announced its financial results for the third quarter of fiscal 2021 ended December 26, 2020.

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Versace (Photo: Business Wire)

Third Quarter Fiscal 2021 Highlights

* Revenue decline of 17%, a sequential improvement relative to the second quarter E-commerce sales improved sequentially, increasing 65% Positive retail sales in Asia across all luxury houses, led by double digit growth in Mainland China Double-digit global retail sales growth at Versace * Adjusted gross margin expansion of 520 basis points versus prior year * Adjusted operating margin expansion of 290 basis points versus prior year * Adjusted earnings per share of $1.65

John D. Idol, the Company's Chairman and Chief Executive Officer, said, "We are a year into the global pandemic that has profoundly impacted the entire world. Our thoughts and prayers remain with all those who have been affected. I am incredibly proud of our entire team and what Capri Holdings has been able to accomplish during this unprecedented time. Looking back over the last three quarters since the onset of COVID-19, we are encouraged by the performance of all our luxury houses, which illustrates the strength of our brands as well as the resilience and agility of our businesses."

Mr. Idol continued, "We were pleased with our third quarter results as revenue improved sequentially and exceeded our expectations. As we continued to execute on our strategic initiatives, earnings were meaningfully higher than anticipated driven by significant gross margin expansion. We also remain encouraged by the double digit increases in our customer databases as we continue to attract new consumers to each of our luxury houses."

Mr. Idol added, "As the world continues to emerge from this crisis, we are increasingly optimistic about the outlook for the fashion luxury industry and Capri Holdings. By fiscal 2023, we anticipate revenue and earnings per share will exceed pre-pandemic levels. We remain confident that our three luxury houses position Capri Holdings to deliver multiple years of revenue and earnings growth as well as increase shareholder value."

Mr. Idol concluded, "While the world is experiencing many difficulties, our values as an organization are more important than ever. To further our commitment to support diversity and inclusion, we are pleased to announce the creation of The Capri Holdings Foundation for the Advancement of Diversity in Fashion. We are donating $20 million to the foundation to foster and support programs designed to promote equality in the fashion industry, with a particular focus on underrepresented communities. We aspire for fashion to be open to all and are doing our part to create a more inclusive industry."

Third Quarter Fiscal 2021 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 Third Quarter Fiscal 2021 Results:

* Total revenue of $1.3 billion decreased 17.1% compared to last year. On a constant currency basis, total revenue decreased 19.5%. * Gross profit was $848 million and gross margin was 65.1%, compared to $932 million and 59.3% in the prior year. Adjusted gross profit was $843 million and adjusted gross margin was 64.7%, compared to $934 million and 59.5% in the prior year. * Income from operations was $167 million and operating margin was 12.8% compared to $205 million and 13.0% in the prior year. Adjusted income from operations was $257 million and operating margin was 19.7%, compared to $264 million and 16.8% in the prior year. * Net income was $179 million, or $1.18 per diluted share compared to $210 million, or $1.38 per diluted share in the prior year. Adjusted net income was $250 million, or $1.65 per diluted share, compared to $253 million or $1.66 per diluted share in the prior year. * Net inventory at December 26, 2020 was $789 million, an 18% decrease compared to the prior year.

Versace Third Quarter Fiscal 2021 Results:

* Versace revenue of $195 million was flat compared to the prior year. On a constant currency basis, total revenue decreased 6.7%. * Versace operating income was $13 million and operating margin was 6.7% compared to a loss of $12 million and operating margin of (6.2)% in the prior year. Last year, adjusted operating loss was $10 million and adjusted operating margin was (5.1)%.

Jimmy Choo Third Quarter Fiscal 2021 Results:

* Jimmy Choo revenue of $121 million decreased 26.7% compared to the prior year. On a constant currency basis, total revenue decreased 27.3%. * Jimmy Choo operating loss was $8 million and operating margin was (6.6)%, compared to an operating income of $9 million and operating margin of 5.5% in the prior year.

Michael Kors Third Quarter Fiscal 2021 Results:

* Michael Kors revenue of $986 million decreased 18.6% compared to the prior year. On a constant currency basis, total revenue decreased 20.6%. * Michael Kors operating income was $281 million and operating margin was 28.5%, compared to $288 million and 23.8% in the prior year.

Fiscal Year 2021 Outlook

The company is not providing annual earnings guidance for fiscal year 2021 due to the lack of visibility surrounding the progression of the pandemic, macroeconomic fundamentals and tourism flows.

Conference Call Information

A conference call to discuss third quarter fiscal 2021 results is scheduled for today, February 3, 2021 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 February 10, 2021. 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 13714566. A replay of the webcast will also be available within two hours of the conclusion of the 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 COVID-19 related charges, long-lived asset impairments, ERP implementation costs, Capri transformation costs, an inventory step-up adjustment, 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 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. 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 are forced to close again 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 Company's filings with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended March 28, 2020 (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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share and per share data)

(Unaudited)

Three Months Ended Nine Months Ended

December 26, December 28, December 26, December 28, 2020 2019 2020 2019

Total revenue $ 1,302 $ 1,571 $ 2,863 $ 4,359

Cost of goods 454 639 1,003 1,719 sold

Gross profit 848 932 1,860 2,640

Total operating 681 727 1,702 2,296 expenses

Income from 167 205 158 344 operations

Other income, (3 ) (1 ) (4 ) (4 )net

Interest 10 3 39 19 expense, net

Foreigncurrency (gain) (13 ) (2 ) (16 ) 4 loss

Income beforeprovision for 173 205 139 325 income taxes

(Benefit from)provision for (5 ) (4 ) 20 (2 )income taxes

Net income 178 209 119 327

Less: Net lossattributable to (1 ) (1 ) (2 ) (1 )noncontrollinginterests

Net incomeattributable to $ 179 $ 210 $ 121 $ 328 Capri

Weightedaverage ordinary sharesoutstanding:

Basic 150,661,252 150,826,196 150,236,612 151,159,423

Diluted 151,958,057 152,154,372 151,417,457 152,354,936

Net income per ordinary share:

Basic $ 1.19 $ 1.39 $ 0.80 $ 2.17

Diluted $ 1.18 $ 1.38 $ 0.80 $ 2.15

SCHEDULE 2

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

(Unaudited)

December 26, 2020

March 28, 2020

December 28, 2019

Assets

Current assets

Cash and cash equivalents

$

229

$

592

$

237

Receivables, net

369

308

321

Inventories, net

789

827

960

Prepaid expenses and other current assets

106

167

263

Total current assets

1,493

1,894

1,781

Property and equipment, net

518

561

596

Operating lease right-of-use assets

1,575

1,625

1,665

Intangible assets, net

2,102

1,986

2,225

Goodwill

1,615

1,488

1,681

Deferred tax assets

283

225

165

Other assets

179

167

212

Total assets

$

7,765

$

7,946

$

8,325

Liabilities and Shareholders' Equity

Current liabilities

Accounts payable

$

495

$

428

$

375

Accrued payroll and payroll related expenses

107

93

110

Accrued income taxes

66

42

30

Current operating lease liabilities

448

430

406

Short-term debt

169

167

1,031

Accrued expenses and other current liabilities

309

241

353

Total current liabilities

1,594

1,401

2,305

Long-term operating lease liabilities

1,724

1,758

1,751

Deferred tax liabilities

444

465

440

Long-term debt

1,243

2,012

1,085

Other long-term liabilities

405

142

133

Total liabilities

5,410

5,778

5,714

Commitments and contingencies

Shareholders' equity

Ordinary shares, no par value; 650,000,000 shares authorized; 218,624,581 shares issued and 150,682,036 outstanding at December 26, 2020; 217,320,010 shares issued and 149,425,612 outstanding at March 28, 2020 and 216,906,643 shares issued and 149,012,245 outstanding at December 28, 2019

-

-

-

Treasury shares, at cost 67,942,545 shares at December 26, 2020, 67,894,398 shares at March 28, 2020 and 67,894,398 shares at December 28, 2019

(3,326

)

(3,325

)

(3,325

)

Additional paid-in capital

1,138

1,085

1,080

Accumulated other comprehensive income (loss)

91

75

(29

)

Retained earnings

4,453

4,332

4,883

Total shareholders' equity of Capri

2,356

2,167

2,609

Noncontrolling interest

(1

)

1

2

Total shareholders' equity

2,355

2,168

2,611

Total liabilities and shareholders' equity

$

7,765

$

7,946

$

8,325

SCHEDULE 2

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

(Unaudited)

December March 28, December 26, 2020 28, 2020 2019

Assets

Current assets

Cash and cash equivalents $ 229 $ 592 $ 237

Receivables, net 369 308 321

Inventories, net 789 827 960

Prepaid expenses and other current assets 106 167 263

Total current assets 1,493 1,894 1,781

Property and equipment, net 518 561 596

Operating lease right-of-use assets 1,575 1,625 1,665

Intangible assets, net 2,102 1,986 2,225

Goodwill 1,615 1,488 1,681

Deferred tax assets 283 225 165

Other assets 179 167 212

Total assets $ 7,765 $ 7,946 $ 8,325

Liabilities and Shareholders' Equity

Current liabilities

Accounts payable $ 495 $ 428 $ 375

Accrued payroll and payroll related 107 93 110 expenses

Accrued income taxes 66 42 30

Current operating lease liabilities 448 430 406

Short-term debt 169 167 1,031

Accrued expenses and other current 309 241 353 liabilities

Total current liabilities 1,594 1,401 2,305

Long-term operating lease liabilities 1,724 1,758 1,751

Deferred tax liabilities 444 465 440

Long-term debt 1,243 2,012 1,085

Other long-term liabilities 405 142 133

Total liabilities 5,410 5,778 5,714

Commitments and contingencies

Shareholders' equity

Ordinary shares, no par value; 650,000,000shares authorized; 218,624,581 sharesissued and 150,682,036 outstanding atDecember 26, 2020; 217,320,010 shares - - - issued and 149,425,612 outstanding at March28, 2020 and 216,906,643 shares issued and149,012,245 outstanding at December 28,2019

Treasury shares, at cost 67,942,545 sharesat December 26, 2020, 67,894,398 shares at (3,326 ) (3,325 ) (3,325 )March 28, 2020 and 67,894,398 shares atDecember 28, 2019

Additional paid-in capital 1,138 1,085 1,080

Accumulated other comprehensive income 91 75 (29 )(loss)

Retained earnings 4,453 4,332 4,883

Total shareholders' equity of Capri 2,356 2,167 2,609

Noncontrolling interest (1 ) 1 2

Total shareholders' equity 2,355 2,168 2,611

Total liabilities and shareholders' equity $ 7,765 $ 7,946 $ 8,325



SCHEDULE 3

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED SEGMENT DATA

($ in millions)

(Unaudited)

Three Months Ended

Nine Months Ended

December 26, 2020

December 28, 2019

December 26, 2020

December 28, 2019

Revenue by Segment and Region:

Versace

The Americas

$

57

$

41

$

132

$

133

EMEA

76

98

183

311

Asia

62

56

168

186

Versace Revenue

195

195

483

630

Jimmy Choo

The Americas

32

34

71

85

EMEA

40

85

102

228

Asia

49

46

121

135

Jimmy Choo Revenue

121

165

294

448

Michael Kors

The Americas

671

834

1,321

2,222

EMEA

183

239

447

652

Asia

132

138

318

407

Michael Kors Revenue

986

1,211

2,086

3,281

Total Revenue

$

1,302

$

1,571

$

2,863

$

4,359

Income (loss) from Operations:

Versace

$

13

$

(12

)

$

(8

)

$

(6

)

Jimmy Choo

(8

)

9

(37

)

10

Michael Kors

281

288

423

711

Total segment income from operations

286

285

378

715

Less: Corporate expenses

(29

)

(46

)

(90

)

(114

)

Restructuring and other charges

(1

)

(15

)

(18

)

(37

)

Impairment of assets

(90

)

(19

)

(110

)

(220

)

COVID-19 related charges

1

-

(2

)

-

Total Income from Operations

$

167

$

205

$

158

$

344

Operating Margin:

Versace

6.7

%

(6.2

)%

(1.7

)%

(1.0

)%

Jimmy Choo

(6.6

)%

5.5

%

(12.6

)%

2.2

%

Michael Kors

28.5

%

23.8

%

20.3

%

21.7

%

Capri Operating Margin

12.8

%

13.0

%

5.5

%

7.9

%

SCHEDULE 3

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED SEGMENT DATA

($ in millions)

(Unaudited)

Three Months Ended Nine Months Ended

December December December December 26, 28, 26, 28, 2020 2019 2020 2019

Revenue by Segment and Region:

Versace The $ 57 $ 41 $ 132 $ 133 Americas

EMEA 76 98 183 311

Asia 62 56 168 186

Versace Revenue 195 195 483 630



Jimmy Choo The 32 34 71 85 Americas

EMEA 40 85 102 228

Asia 49 46 121 135

Jimmy Choo Revenue 121 165 294 448



Michael Kors The 671 834 1,321 2,222 Americas

EMEA 183 239 447 652

Asia 132 138 318 407

Michael Kors Revenue 986 1,211 2,086 3,281



Total Revenue $ 1,302 $ 1,571 $ 2,863 $ 4,359



Income (loss) from Operations:

Versace $ 13 $ (12 ) $ (8 ) $ (6 )

Jimmy Choo (8 ) 9 (37 ) 10

Michael Kors 281 288 423 711

Total segment income 286 285 378 715 from operations

Less: Corporate expenses (29 ) (46 ) (90 ) (114 )

Restructuring and other (1 ) (15 ) (18 ) (37 )charges

Impairment of assets (90 ) (19 ) (110 ) (220 )

COVID-19 related charges 1 - (2 ) -

Total Income from $ 167 $ 205 $ 158 $ 344 Operations



Operating Margin:

Versace 6.7 % (6.2 ) (1.7 ) (1.0 ) % % %

Jimmy Choo (6.6 ) 5.5 % (12.6 ) 2.2 % % %

Michael Kors 28.5 % 23.8 % 20.3 % 21.7 %

Capri Operating Margin 12.8 % 13.0 % 5.5 % 7.9 %

SCHEDULE 4

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

SUPPLEMENTAL RETAIL STORE INFORMATION

(Unaudited)

As of

Retail Store Information:

December 26, 2020

December 28, 2019

Versace

217

208

Jimmy Choo

231

223

Michael Kors

831

846

Total number of retail stores

1,279

1,277

SCHEDULE 4

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

SUPPLEMENTAL RETAIL STORE INFORMATION

(Unaudited)

As of

Retail Store Information: December 26, December 28, 2020 2019

Versace 217 208

Jimmy Choo 231 223

Michael Kors 831 846

Total number of retail stores 1,279 1,277

SCHEDULE 5

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSTANT CURRENCY DATA

(In millions)

(Unaudited)

Three Months Ended

% Change

December 26, 2020

December 28, 2019

As Reported

Constant Currency

Total revenue:

Versace

$

195

$

195

-

%

(6.7)

%

Jimmy Choo

121

165

(26.7)

%

(27.3)

%

Michael Kors

986

1,211

(18.6)

%

(20.6)

%

Total revenue

$

1,302

$

1,571

(17.1)

%

(19.5)

%

SCHEDULE 5

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSTANT CURRENCY DATA

(In millions)

(Unaudited)

Three Months Ended % Change

December 26, December 28, As Constant 2020 2019 Reported Currency

Total revenue:

Versace $ 195 $ 195 - % (6.7) %

Jimmy Choo 121 165 (26.7) % (27.3) %

Michael Kors 986 1,211 (18.6) % (20.6) %

Total revenue $ 1,302 $ 1,571 (17.1) % (19.5) %

Nine Months Ended

% Change

December 26, 2020

December 28, 2019

As Reported

Constant Currency

Total revenue:

Versace

$

483

$

630

(23.3)

%

(26.7)

%

Jimmy Choo

294

448

(34.4)

%

(35.7)

%

Michael Kors

2,086

3,281

(36.4)

%

(37.3)

%

Total revenue

$

2,863

$

4,359

(34.3)

%

(35.6)

%

Nine Months Ended % Change

December 26, December 28, As Constant 2020 2019 Reported Currency

Total revenue:

Versace $ 483 $ 630 (23.3) % (26.7) %

Jimmy Choo 294 448 (34.4) % (35.7) %

Michael Kors 2,086 3,281 (36.4) % (37.3) %

Total revenue $ 2,863 $ 4,359 (34.3) % (35.6) %



SCHEDULE 6

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Three Months Ended December 26, 2020

As Reported

Impairment Charges

Restructuring and Other Charges (1)

COVID-19 Related Charges

As Adjusted

Gross profit

$

848

$

-

$

-

$

(5

)

$

843

Operating expenses

$

681

$

(90

)

$

(1

)

$

(4

)

$

586

Total income from operations

$

167

$

90

$

1

$

(1

)

$

257

Income before provision for income taxes

$

173

$

90

$

1

$

(1

)

$

263

(Benefit from) provision for income taxes

$

(5

)

$

19

$

(1

)

$

1

$

14

Net income attributable to Capri

$

179

$

71

$

2

$

(2

)

$

250

Diluted net income per ordinary share - Capri

$

1.18

$

0.47

$

0.01

$

(0.01

)

$

1.65

______________________

SCHEDULE 6

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Three Months Ended December 26, 2020

As Impairment Restructuring COVID-19 As Reported Charges and Other Related Adjusted Charges ^(1) Charges

Gross profit $ 848 $ - $ - $ (5 ) $ 843



Operating $ 681 $ (90 ) $ (1 ) $ (4 ) $ 586expenses



Total income $ 167 $ 90 $ 1 $ (1 ) $ 257from operations



Income beforeprovision for $ 173 $ 90 $ 1 $ (1 ) $ 263income taxes

(Benefit from)provision for $ (5 ) $ 19 $ (1 ) $ 1 $ 14income taxes

Net incomeattributable to $ 179 $ 71 $ 2 $ (2 ) $ 250Capri

Diluted netincome per $ 1.18 $ 0.47 $ 0.01 $ (0.01 ) $ 1.65ordinary share -Capri

______________________

Includes store closure costs which have been incorporated into the Capri^ Retail Store Optimization Program, other restructuring initiatives, and(1) other costs recorded in connection with the acquisitions of Gianni Versace S.r.l. and Jimmy Choo Group Limited.

SCHEDULE 7

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Nine Months Ended December 26, 2020

As Reported

Impairment Charges

Restructuring and Other Charges(1)

COVID-19 Related Charges

Capri Transformation

ERP Implementation

As Adjusted

Gross profit

$

1,860

$

-

$

-

$

(13

)

$

-

$

-

$

1,847

Operating expenses

$

1,702

$

(110

)

$

(18

)

$

(15

)

$

(2

)

$

(2

)

$

1,555

Total income from operations

$

158

$

110

$

18

$

2

$

2

$

2

$

292

Income before provision for income taxes

$

139

$

110

$

18

$

2

$

2

$

2

$

273

Provision for (benefit from) income taxes

$

20

$

28

$

(2

)

$

(2

)

$

1

$

(1

)

$

44

Net income attributable to Capri

$

121

$

82

$

20

$

4

$

1

$

3

$

231

Diluted net income per ordinary share - Capri

$

0.80

$

0.53

$

0.13

$

0.03

$

0.01

$

0.02

$

1.52

______________________

SCHEDULE 7

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Nine Months Ended December 26, 2020

As Impairment Restructuring COVID-19 Capri ERP As Reported Charges and Other Related Transformation Implementation Adjusted Charges^(1) Charges

Gross profit $ 1,860 $ - $ - $ (13 ) $ - $ - $ 1,847



Operating $ 1,702 $ (110 ) $ (18 ) $ (15 ) $ (2 ) $ (2 ) $ 1,555expenses



Total incomefrom $ 158 $ 110 $ 18 $ 2 $ 2 $ 2 $ 292operations



Incomebeforeprovision $ 139 $ 110 $ 18 $ 2 $ 2 $ 2 $ 273for incometaxes

Provisionfor (benefit $ 20 $ 28 $ (2 ) $ (2 ) $ 1 $ (1 ) $ 44from) incometaxes

Net incomeattributable $ 121 $ 82 $ 20 $ 4 $ 1 $ 3 $ 231to Capri

Diluted netincome perordinary $ 0.80 $ 0.53 $ 0.13 $ 0.03 $ 0.01 $ 0.02 $ 1.52share -Capri

______________________

Includes store closure costs which have been incorporated into the Capri^ Retail Store Optimization Program, other restructuring initiatives, and(1) other costs recorded in connection with the acquisitions of Gianni Versace S.r.l. and Jimmy Choo Group Limited.

SCHEDULE 8

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Three Months Ended December 28, 2019

As Reported

Impairment Charges

Restructuring and Other Charges (1)

Inventory Step-up Adjustment

ERP Implementation

Capri Transformation

As Adjusted

Gross profit

$

932

$

-

$

-

$

2

$

-

$

-

$

934

Operating expenses

$

727

$

(19

)

$

(15

)

$

-

$

(12

)

$

(11

)

$

670

Versace operating income

$

(12

)

$

-

$

-

$

2

$

-

$

-

$

(10

)

Total income from operations

$

205

$

19

$

15

$

2

$

12

$

11

$

264

Income before provision for income taxes

$

205

$

19

$

15

$

2

$

12

$

11

$

264

(Benefit from) provision for income taxes

$

(4

)

$

7

$

3

$

-

$

3

$

3

$

12

Net income attributable to Capri

$

210

$

12

$

12

$

2

$

9

$

8

$

253

Diluted net income per ordinary share - Capri

$

1.38

$

0.08

$

0.08

$

0.01

$

0.06

$

0.05

$

1.66

______________________

SCHEDULE 8

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Three Months Ended December 28, 2019

As Impairment Restructuring Inventory ERP Capri As Reported Charges and Other Step-up Implementation Transformation Adjusted Charges ^(1) Adjustment

Gross profit $ 932 $ - $ - $ 2 $ - $ - $ 934



Operating $ 727 $ (19 ) $ (15 ) $ - $ (12 ) $ (11 ) $ 670 expenses



Versaceoperating $ (12 ) $ - $ - $ 2 $ - $ - $ (10 )income

Total incomefrom $ 205 $ 19 $ 15 $ 2 $ 12 $ 11 $ 264 operations



Incomebeforeprovision $ 205 $ 19 $ 15 $ 2 $ 12 $ 11 $ 264 for incometaxes

(Benefitfrom)provision $ (4 ) $ 7 $ 3 $ - $ 3 $ 3 $ 12 for incometaxes

Net incomeattributable $ 210 $ 12 $ 12 $ 2 $ 9 $ 8 $ 253 to Capri

Diluted netincome perordinary $ 1.38 $ 0.08 $ 0.08 $ 0.01 $ 0.06 $ 0.05 $ 1.66 share -Capri

______________________

Includes store closure costs recorded in connection with the Michael Kors^ Retail Fleet Optimization Plan and other restructuring initiatives, and(1) other costs recorded in connection with the acquisitions of Gianni Versace S.r.l and Jimmy Choo Group Limited.

SCHEDULE 9

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Nine Months Ended December 28, 2019

As Reported

Impairment Charges

Restructuring and Other Charges(1)

Inventory Step-up Adjustment

ERP Implementation

Capri Transformation

Acquisition Foreign Currency Effects

As Adjusted

Gross profit

$

2,640

$

-

$

-

$

13

$

-

$

-

$

-

$

2,653

Total operating expenses

$

2,296

$

(220

)

$

(37

)

$

-

$

(29

)

$

(13

)

$

-

$

1,997

Versace operating income

$

(6

)

$

-

$

-

$

13

$

-

$

-

$

-

$

7

Total income from operations

$

344

$

220

$

37

$

13

$

29

$

13

$

-

$

656

Foreign currency loss (gain)

$

4

$

-

$

-

$

-

$

-

$

-

$

(1

)

$

3

Income before provision for income taxes

$

325

$

220

$

37

$

13

$

29

$

13

$

1

$

638

Provision for income taxes

$

(2

)

$

44

$

8

$

3

$

7

$

4

$

-

$

64

Net income attributable to Capri

$

328

$

176

$

29

$

10

$

22

$

9

$

1

$

575

Diluted net income per ordinary share - Capri

$

2.15

$

1.16

$

0.19

$

0.06

$

0.14

$

0.06

$

0.01

$

3.77

______________________

SCHEDULE 9

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Nine Months Ended December 28, 2019

Restructuring Inventory Acquisition As Impairment and Other Step-up ERP Capri Foreign As Reported Charges Charges^(1) Adjustment Implementation Transformation Currency Adjusted Effects

Gross profit $ 2,640 $ - $ - $ 13 $ - $ - $ - $ 2,653



Total operating expenses $ 2,296 $ (220 ) $ (37 ) $ - $ (29 ) $ (13 ) $ - $ 1,997



Versace operating income $ (6 ) $ - $ - $ 13 $ - $ - $ - $ 7

Total income from operations $ 344 $ 220 $ 37 $ 13 $ 29 $ 13 $ - $ 656



Foreign currency loss (gain) $ 4 $ - $ - $ - $ - $ - $ (1 ) $ 3

Income before provision for $ 325 $ 220 $ 37 $ 13 $ 29 $ 13 $ 1 $ 638income taxes

Provision for income taxes $ (2 ) $ 44 $ 8 $ 3 $ 7 $ 4 $ - $ 64

Net income attributable to Capri $ 328 $ 176 $ 29 $ 10 $ 22 $ 9 $ 1 $ 575

Diluted net income per ordinary $ 2.15 $ 1.16 $ 0.19 $ 0.06 $ 0.14 $ 0.06 $ 0.01 $ 3.77share - Capri

______________________

Includes store closure costs recorded in connection with the Michael(1) Kors Retail Fleet Optimization Plan and other restructuring initiatives, and other costs recorded in connection with the acquisitions of Gianni Versace S.r.l and Jimmy Choo Group Limited.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210203005260/en/

CONTACT: Investor Relations: Jennifer Davis +1 (201) 514-8234 Jennifer.Davis@CapriHoldings.com

CONTACT: Media: Dinesh Kandiah +1 (917) 934-2427 Press@CapriHoldings.com