Business Wire | May 26, 2021 06:45AM EDT

Capri Holdings Limited Announces Fourth Quarter and Full Year Fiscal 2021 Results

May 26, 2021

LONDON--(BUSINESS WIRE)--May 26, 2021--Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, today announced its financial results for the fourth quarter and full year fiscal 2021 ended March 27, 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210526005458/en/

Versace (Photo: Business Wire)

Fourth Quarter Fiscal 2021 Highlights

* Revenue was flat to prior year, a sequential improvement relative to the third quarter Retail sales increased 13% globally, with growth across all three luxury houses E-Commerce sales improved sequentially, increasing approximately 80% * Adjusted gross margin expanded 280 basis points versus prior year, with margin expansion across all luxury houses * Adjusted operating margin expansion of 360 basis points to 11.9% * Adjusted earnings per share of $0.38

John D. Idol, the Company's Chairman and Chief Executive Officer, said, "Looking back on fiscal 2021, the COVID-19 pandemic has had a profound effect on the entire world. The unprecedented challenges tested our business and industry in ways we could never have imagined. Despite these challenges, we were encouraged by the performance of all three of our luxury houses, with revenue and earnings significantly exceeding our expectations. These results are a testament to the strength of our brands as well as the dedication, resilience and agility of the entire Capri Holdings team."

Mr. Idol continued, "We were pleased with our fourth quarter results as revenue improved sequentially and exceeded our expectations. Retail sales increased 13% versus prior year, driven by an improvement in both E-Commerce and store sales. As we continued to execute on our strategic initiatives, earnings were higher than anticipated driven by better revenue results and gross margin expansion across all three of our luxury houses."

Mr. Idol added, "During the year, we reevaluated and refined Capri Holding's strategic direction to ensure the company emerges from the pandemic stronger and more profitable. For Versace and Jimmy Choo, we reaffirmed our long term plans and are even more enthusiastic about the prospects of these luxury houses. For Michael Kors, we recalibrated our plans to further elevate the brand positioning and deliver higher profit margins."

Mr. Idol concluded, "Looking forward, we remain optimistic about the outlook for the fashion luxury industry and Capri Holdings. As the world starts to recover from the pandemic, we are confident in our growth opportunities for Versace, Jimmy Choo and Michael Kors. We believe our three luxury houses position Capri Holdings to deliver multiple years of revenue and earnings growth, as well as increase shareholder value."

Fourth 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 Fourth Quarter Fiscal 2021 Results:

* Total revenue of $1.2 billion was approximately flat compared to last year. On a constant currency basis, total revenue decreased 3.8%. During the quarter, the Company experienced temporary door closures in geographies impacted by lockdowns associated with COVID-19 cases. On average, approximately 60% of the Company's retail stores in EMEA and approximately 40% of the Company's retail stores in Canada were closed during fourth quarter fiscal 2021. * Gross profit was $737 million and gross margin was 61.6%, compared to $631 million and 52.9% in the prior year. Adjusted gross profit was $760 million and adjusted gross margin was 63.5%, compared to $723 million and 60.7% in the prior year. * Loss from operations was $139 million and operating margin was (11.6)% compared to a loss of $536 million and operating margin of (45.0)% in the prior year. Adjusted income from operations was $143 million and operating margin was 11.9%, compared to $99 million and 8.3% in the prior year. * Net loss was $183 million, or $(1.21) per diluted share compared to a net loss of $551 million, or $(3.69) per diluted share in the prior year. Adjusted net income was $59 million, or $0.38 per diluted share. Last year, adjusted net income was $16 million or $0.11 per diluted share. * Net inventory at March 27, 2021 was $736 million, an 11% decrease compared to the prior year.

Versace Fourth Quarter Fiscal 2021 Results:

* Versace revenue of $235 million increased 10.3% compared to the prior year. On a constant currency basis, total revenue was approximately flat. * Versace operating income was $29 million and operating margin was 12.3% compared to an operating loss of $2 million and operating margin of (0.9)% in the prior year.

Jimmy Choo Fourth Quarter Fiscal 2021 Results:

* Jimmy Choo revenue of $124 million increased 15.9% compared to the prior year. On a constant currency basis, total revenue increased 10.3%. * Jimmy Choo operating loss was $18 million and operating margin was (14.5)%, compared to operating loss of $23 million and operating margin of (21.5)% in the prior year.

Michael Kors Fourth Quarter Fiscal 2021 Results:

* Michael Kors revenue of $838 million decreased 3.9% compared to the prior year. On a constant currency basis, total revenue decreased 6.5%. * Michael Kors operating income was $172 million and operating margin was 20.5%, compared to operating income of $139 million and operating margin of 15.9% in the prior year.

Revolving and Term Loan Credit Agreement

The Company has maintained a strong financial position throughout the COVID-19 crisis. As a result, ahead of schedule, the Company terminated its $230 million 364 day Revolving Credit Facility, effective May 25, 2021. In addition, on May 26, 2021, the Company terminated the covenant relief waiver entered into June 2020.

Share Repurchase Authorization

The Company has reinstated its share repurchase authorization which has $400 million of availability remaining. Share repurchases may be made in open market or privately negotiated transactions, subject to market conditions, applicable legal requirements, trading restrictions under the Company's insider trading policy, and other relevant factors. The program may be suspended or discontinued at any time.

Outlook

The following guidance is provided on an adjusted, non-GAAP basis. Guidance does not incorporate any significant additional store closures, extensions of closures, or new government restrictions that could further impact traffic and sales trends.

The Company also notes that fiscal 2022 includes a 53rd week in its fiscal fourth quarter.

Fiscal Year 2022 Outlook

For Capri Holdings, the Company expects the following.

* Total revenue of approximately $5.1 billion * Gross margin expansion of approximately 50 basis points, reflecting benefits from strategic initiatives, partially offset by higher transportation costs * Operating margin of approximately 14% * Net interest expense of approximately $20 million * Effective tax rate of approximately 15% * Weighted average diluted shares outstanding of approximately 156 million * Diluted earnings per share of approximately $3.70 to $3.80 * Capital expenditures of approximately $200 million

First Quarter Fiscal 2022 Outlook

For Capri Holdings, the Company expects the following.

* Total revenue of approximately $1.1 billion * Gross margin contraction of approximately 100 basis points, primarily due to higher wholesale channel mix * Operating margin of approximately 12% * Net interest expense of approximately $5 million * Effective tax rate of approximately 9% * Weighted average diluted shares outstanding of approximately 155 million * Diluted earnings per share of approximately $0.75

Second Quarter Fiscal 2022 Outlook

For Capri Holdings, the Company expects the following.

* Total revenue of approximately $1.2 billion * Operating margin of approximately 11% * Diluted earnings per share of approximately $0.70-$0.75

Third Quarter Fiscal 2022 Outlook

For Capri Holdings, the Company expects the following.

* Total revenue of approximately $1.4 billion * Operating margin of approximately 20% * Diluted earnings per share of approximately $1.65-$1.70

Fourth Quarter Fiscal 2022 Outlook

For Capri Holdings, the Company expects the following.

* Total revenue of approximately $1.4 billion * Operating margin of approximately 12% * Diluted earnings per share of approximately $0.55-$0.60

Conference Call Information

A conference call to discuss fourth quarter and full year fiscal 2021 results is scheduled for today, May 26, 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 June 2, 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 13719371. A replay of the webcast will also be available within two hours of the conclusion of the call and will remain on the website for 90 days. Additionally, a fourth quarter fiscal 2021 earnings highlights presentation is posted on the company's website.

Investor Meeting

The Company will host a virtual Investor Meeting on Tuesday, June 29, 2021. Additional details about the event will be included in a subsequent announcement.

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, charitable donations, an inventory step-up adjustment, acquisition foreign currency effects, restructuring and other charges. The Company uses non-GAAP financial measures, among other things, to evaluate its operating performance and in order to represent the manner in which the Company conducts and views its business. The Company believes that excluding these items helps its management and investors compare operating performance based on its ongoing operations. While the Company considers the non-GAAP measures to be useful supplemental measures in analyzing its results, they are not intended to replace, nor act as a substitute for, any amounts presented in its consolidated financial statements prepared in conformity with U.S. GAAP and may be different from non-GAAP measures reported by other companies.

About Capri Holdings Limited

Capri Holdings Limited is a global fashion luxury group, consisting of iconic brands that are industry leaders in design, style and craftsmanship. Its brands cover the full spectrum of fashion luxury categories including women's and men's accessories, footwear and ready-to-wear as well as wearable technology, watches, jewelry, eyewear and a full line of fragrance products. The Company's goal is to continue to extend the global reach of its brands while ensuring that they maintain their independence and exclusive DNA. Capri Holdings Limited is publicly listed on the New York Stock Exchange under the ticker CPRI.

Forward Looking Statements

This press release contains statements which are, or may be deemed to be, "forward-looking statements." Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Capri Holdings Limited (the "Company") about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. All statements other than statements of historical facts included in this press release may be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words "plans", "believes", "expects", "intends", "will", "should", "could", "would", "may", "anticipates", "might" or similar words or phrases, are forward-looking statements. These forward-looking statements are not guarantees of future financial performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions, which could cause actual results to differ materially from those projected or implied in any forward-looking statements. These risks, uncertainties and other factors include the impact of 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 and to successfully execute our growth strategies; the risk of disruptions to the Company's businesses; risks associated with operating in international markets and our global sourcing activities; the risk of cybersecurity threats and privacy or data security breaches; the negative effects of events on the market price of the Company's ordinary shares and its operating results; significant transaction costs; unknown liabilities; the risk of litigation and/or regulatory actions related to the Company's businesses; fluctuations in demand for the Company's products; levels of indebtedness (including the indebtedness incurred in connection with acquisitions); the timing and scope of future share buybacks, which may be made in open market or privately negotiated transactions, and are subject to market conditions, applicable legal requirements, trading restrictions under the Company's insider trading policy and other relevant factors, and which share repurchases may be suspended or discontinued at any time, the level of other investing activities and uses of cash; changes in consumer traffic and retail trends; loss of market share and industry competition; fluctuations in the capital markets; fluctuations in interest and exchange rates; the occurrence of unforeseen epidemics and pandemics, disasters or catastrophes; political or economic instability in principal markets; adverse outcomes in litigation; and general, local and global economic, political, business and market conditions, as well as those risks set forth in the reports that the Company files from time to time with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended March 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 Fiscal Years Ended

March 27, March 28, March 27, March 28, 2021 2020 2021 2020

Total revenue $ 1,197 $ 1,192 $ 4,060 $ 5,551

Cost of goods 460 561 1,463 2,280 sold

Gross profit 737 631 2,597 3,271

Total operating 876 1,167 2,578 3,463 expenses

(Loss) income (139) (536) 19 (192) from operations

Other income, (3) (2) (7) (6) net

Interestexpense 4 (1) 43 18 (income), net

Foreigncurrency (gain) (4) 7 (20) 11 loss

(Loss) incomebefore (136) (540) 3 (215) provision forincome taxes

Provision for 46 12 66 10 income taxes

Net loss (182) (552) (63) (225)

Less: Netincome (loss)attributable to 1 (1) (1) (2) noncontrollinginterests

Net lossattributable to $ (183) $ (551) $ (62) $ (223) Capri

Weightedaverage ordinary sharesoutstanding:

Basic 151,104,434 149,380,121 150,453,568 150,714,598

Diluted 151,104,434 149,380,121 150,453,568 150,714,598

Net loss per ordinary share:

Basic $ (1.21) $ (3.69) $ (0.41) $ (1.48)

Diluted $ (1.21) $ (3.69) $ (0.41) $ (1.48)

SCHEDULE 2

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

(Unaudited)

March 27, 2021

March 28, 2020

Assets

Current assets

Cash and cash equivalents

$

232

$

592

Receivables, net

373

308

Inventories, net

736

827

Prepaid expenses and other current assets

205

167

Total current assets

1,546

1,894

Property and equipment, net

485

561

Operating lease right-of-use assets

1,504

1,625

Intangible assets, net

1,992

1,986

Goodwill

1,498

1,488

Deferred tax assets

278

225

Other assets

178

167

Total assets

$

7,481

$

7,946

Liabilities and Shareholders' Equity

Current liabilities

Accounts payable

$

512

$

428

Accrued payroll and payroll related expenses

116

93

Accrued income taxes

126

42

Short-term operating lease liabilities

447

430

Short-term debt

123

167

Accrued expenses and other current liabilities

297

241

Total current liabilities

1,621

1,401

Long-term operating lease liabilities

1,657

1,758

Deferred tax liabilities

397

465

Long-term debt

1,219

2,012

Other long-term liabilities

430

142

Total liabilities

5,324

5,778

Commitments and contingencies

Shareholders' equity

Ordinary shares, no par value; 650,000,000 shares authorized; 219,222,937 shares issued and 151,280,011 outstanding at March 27, 2021; 217,320,010 shares issued and 149,425,612 outstanding at March 28, 2020

-

-

Treasury shares, at cost (67,942,926 shares at March 27, 2021 and 67,894,398 shares at March 28, 2020)

(3,326)

(3,325)

Additional paid-in capital

1,158

1,085

Accumulated other comprehensive income

56

75

Retained earnings

4,270

4,332

Total shareholders' equity of Capri

2,158

2,167

Noncontrolling interest

(1)

1

Total shareholders' equity

2,157

2,168

Total liabilities and shareholders' equity

$

7,481

$

7,946

SCHEDULE 2

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

(Unaudited)

March 27, March 28, 2021 2020

Assets

Current assets

Cash and cash equivalents $ 232 $ 592

Receivables, net 373 308

Inventories, net 736 827

Prepaid expenses and other current assets 205 167

Total current assets 1,546 1,894

Property and equipment, net 485 561

Operating lease right-of-use assets 1,504 1,625

Intangible assets, net 1,992 1,986

Goodwill 1,498 1,488

Deferred tax assets 278 225

Other assets 178 167

Total assets $ 7,481 $ 7,946

Liabilities and Shareholders' Equity

Current liabilities

Accounts payable $ 512 $ 428

Accrued payroll and payroll related expenses 116 93

Accrued income taxes 126 42

Short-term operating lease liabilities 447 430

Short-term debt 123 167

Accrued expenses and other current liabilities 297 241

Total current liabilities 1,621 1,401

Long-term operating lease liabilities 1,657 1,758

Deferred tax liabilities 397 465

Long-term debt 1,219 2,012

Other long-term liabilities 430 142

Total liabilities 5,324 5,778

Commitments and contingencies

Shareholders' equity

Ordinary shares, no par value; 650,000,000 sharesauthorized; 219,222,937 sharesissued and 151,280,011 outstanding at March 27, 2021; - - 217,320,010 shares issuedand 149,425,612 outstanding at March 28, 2020

Treasury shares, at cost (67,942,926 shares at March 27,2021 and 67,894,398 (3,326) (3,325) shares at March 28, 2020)

Additional paid-in capital 1,158 1,085

Accumulated other comprehensive income 56 75

Retained earnings 4,270 4,332

Total shareholders' equity of Capri 2,158 2,167

Noncontrolling interest (1) 1

Total shareholders' equity 2,157 2,168

Total liabilities and shareholders' equity $ 7,481 $ 7,946

SCHEDULE 3

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED SEGMENT DATA

($ in millions)

(Unaudited)

Three Months Ended

Fiscal Years Ended

March 27, 2021

March 28, 2020

March 27, 2021

March 28, 2020

Revenue by Segment and Region:

Versace

The Americas

$

69

$

53

$

201

$

186

EMEA

93

109

276

420

Asia

73

51

241

237

Versace Revenue

235

213

718

843

Jimmy Choo

The Americas

31

22

102

107

EMEA

44

54

146

282

Asia

49

31

170

166

Jimmy Choo Revenue

124

107

418

555

Michael Kors

The Americas

548

600

1,869

2,822

EMEA

160

169

607

821

Asia

130

103

448

510

Michael Kors Revenue

838

872

2,924

4,153

Total Revenue

$

1,197

$

1,192

$

4,060

$

5,551

Income (Loss) from Operations:

Versace

$

29

$

(2)

$

21

$

(8)

Jimmy Choo

(18)

(23)

(55)

(13)

Michael Kors

172

139

595

850

Total segment income from operations

183

114

561

829

Less: Corporate expenses

(62)

(38)

(152)

(152)

Restructuring and other charges

(14)

(5)

(32)

(42)

Impairment of long-lived assets

(206)

(488)

(316)

(708)

COVID-19 related charges

(40)

(119)

(42)

(119)

Total (Loss) Income from Operations

$

(139)

$

(536)

$

19

$

(192)

Operating Margin:

Versace

12.3

%

(0.9)

%

2.9

%

(0.9)

%

Jimmy Choo

(14.5)

%

(21.5)

%

(13.2)

%

(2.3)

%

Michael Kors

20.5

%

15.9

%

20.3

%

20.5

%

Capri Operating Margin

(11.6)

%

(45.0)

%

0.5

%

(3.5)

%

SCHEDULE 3

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED SEGMENT DATA

($ in millions)

(Unaudited)

Three Months Ended Fiscal Years Ended

March 27, March 28, March 27, March 28, 2021 2020 2021 2020

Revenue by Segment and Region:

Versace The $ 69 $ 53 $ 201 $ 186 Americas

EMEA 93 109 276 420

Asia 73 51 241 237

Versace Revenue 235 213 718 843



Jimmy Choo The 31 22 102 107 Americas

EMEA 44 54 146 282

Asia 49 31 170 166

Jimmy Choo Revenue 124 107 418 555



Michael Kors The 548 600 1,869 2,822 Americas

EMEA 160 169 607 821

Asia 130 103 448 510

Michael Kors Revenue 838 872 2,924 4,153



Total Revenue $ 1,197 $ 1,192 $ 4,060 $ 5,551



Income (Loss) from Operations:

Versace $ 29 $ (2) $ 21 $ (8)

Jimmy Choo (18) (23) (55) (13)

Michael Kors 172 139 595 850

Total segment income from 183 114 561 829 operations

Less: Corporate expenses (62) (38) (152) (152)

Restructuring and other charges (14) (5) (32) (42)

Impairment of long-lived assets (206) (488) (316) (708)

COVID-19 related charges (40) (119) (42) (119)

Total (Loss) Income from $ (139) $ (536) $ 19 $ (192) Operations



Operating Margin:

Versace 12.3 % (0.9) % 2.9 % (0.9) %

Jimmy Choo (14.5) % (21.5) % (13.2) % (2.3) %

Michael Kors 20.5 % 15.9 % 20.3 % 20.5 %

Capri Operating (11.6) % (45.0) % 0.5 % (3.5) %Margin

SCHEDULE 4

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

SUPPLEMENTAL RETAIL STORE INFORMATION

(Unaudited)

As of

Retail Store Information:

March 27, 2021

March 28, 2020

Versace

210

206

Jimmy Choo

227

226

Michael Kors

820

839

Total number of retail stores

1,257

1,271

SCHEDULE 4

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

SUPPLEMENTAL RETAIL STORE INFORMATION

(Unaudited)

As of

Retail Store Information: March 27, 2021 March 28, 2020

Versace 210 206

Jimmy Choo 227 226

Michael Kors 820 839

Total number of retail stores 1,257 1,271

SCHEDULE 5

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSTANT CURRENCY DATA

(In millions)

(Unaudited)

Three Months Ended

% Change

March 27, 2021

March 28, 2020

As

Reported

Constant

Currency

Total revenue:

Versace

$

235

213

10.3

%

(0.5)

%

Jimmy Choo

124

107

15.9

%

10.3

%

Michael Kors

838

872

(3.9)

%

(6.5)

%

Total revenue

$

1,197

$

1,192

0.4

%

(3.8)

%

SCHEDULE 5

CAPRI HOLDINGS LIMITED AND SUBSIDIARIES

CONSTANT CURRENCY DATA

(In millions)

(Unaudited)

Three Months Ended % Change

March 27, March 28, As Constant 2021 2020 Reported Currency

Total revenue:

Versace $ 235 213 10.3 % (0.5) %

Jimmy Choo 124 107 15.9 % 10.3 %

Michael Kors 838 872 (3.9) % (6.5) %

Total revenue $ 1,197 $ 1,192 0.4 % (3.8) %

Fiscal Years Ended

% Change

March 27, 2021

March 28, 2020

As

Reported

Constant

Currency

Total revenue:

Versace

$

718

$

843

(14.8)

%

(19.8)

%

Jimmy Choo

418

555

(24.7)

%

(26.8)

%

Michael Kors

2,924

4,153

(29.6)

%

(30.9)

%

Total revenue

$

4,060

$

5,551

(26.9)

%

(28.8)

%

Fiscal Years Ended % Change

March 27, March 28, As Constant 2021 2020 Reported Currency

Total revenue:

Versace $ 718 $ 843 (14.8) % (19.8) %

Jimmy Choo 418 555 (24.7) % (26.8) %

Michael Kors 2,924 4,153 (29.6) % (30.9) %

Total revenue $ 4,060 $ 5,551 (26.9) % (28.8) %

SCHEDULE 6

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Three Months Ended March 27, 2021

As

Reported

Impairment Charges (1)

Restructuring and Other Charges (2)

Charitable Donations

COVID-19 Related Charges

Capri Transformation

As

Adjusted

Gross profit

$

737

$

-

$

-

$

-

$

23

$

-

$

760

Operating expenses

$

876

$

(206)

$

(14)

$

(20)

$

(17)

$

(2)

$

617

Total (loss) income from operations

$

(139)

$

206

$

14

$

20

$

40

$

2

$

143

(Loss) income before provision for income taxes

$

(136)

$

206

$

14

$

20

$

40

$

2

$

146

Provision for income taxes

$

46

$

23

$

6

$

5

$

6

$

-

$

86

Net (loss) income attributable to Capri

$

(183)

$

183

$

8

$

15

$

34

$

2

$

59

Weighted average diluted ordinary shares outstanding

151,104,434

154,379,232

Diluted (loss) net income per ordinary share - Capri

$

(1.21)

$

1.19

$

0.06

$

0.10

$

0.22

$

0.02

$

0.38

______________________

SCHEDULE 6

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Three Months Ended March 27, 2021

As Impairment Restructuring Charitable COVID-19 Capri As Charges ^ and Other Donations Related Transformation Reported (1) Charges ^(2) Charges Adjusted

Gross profit $ 737 $ - $ - $ - $ 23 $ - $ 760



Operating $ 876 $ (206) $ (14) $ (20) $ (17) $ (2) $ 617 expenses



Total (loss)income from $ (139) $ 206 $ 14 $ 20 $ 40 $ 2 $ 143 operations



(Loss)incomebefore $ (136) $ 206 $ 14 $ 20 $ 40 $ 2 $ 146 provisionfor incometaxes

Provisionfor income $ 46 $ 23 $ 6 $ 5 $ 6 $ - $ 86 taxes

Net (loss)income $ (183) $ 183 $ 8 $ 15 $ 34 $ 2 $ 59 attributableto Capri

Weightedaveragediluted 151,104,434 154,379,232 ordinarysharesoutstanding

Diluted(loss) netincome per $ (1.21) $ 1.19 $ 0.06 $ 0.10 $ 0.22 $ 0.02 $ 0.38 ordinaryshare -Capri

______________________

Includes impairment charges of $94 million related to goodwill associated with the Jimmy Choo wholesale and licensing reporting units, $69 million related to the Jimmy Choo brand indefinite-lived intangible assets. These(1) impairment charges were primarily related to higher discount rates in the current year driven by a change in market factors as well as a shift in expected revenue and earnings mix to the retail segment. This amount also includes $43 million primarily related to operating lease right-of-use assets and fixed assets of our retail store locations.

Includes store closure costs which have been incorporated into the Capri(2) Retail Store Optimization Program, other restructuring initiatives, and 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)

Fiscal Year Ended March 27, 2021

As

Reported

Impairment Charges (1)

Restructuring and Other Charges (2)

Charitable Donations

COVID-19 Related Charges

ERP Implementation

Capri Transformation

As

Adjusted

Gross profit

$

2,597

$

-

$

-

$

-

$

10

$

-

$

-

$

2,607

Operating expenses

$

2,578

$

(316)

$

(32)

$

(20)

$

(32)

$

(2)

$

(4)

$

2,172

Total income from operations

$

19

$

316

$

32

$

20

$

42

$

2

$

4

$

435

Income before provision for income taxes

$

3

$

316

$

32

$

20

$

42

$

2

$

4

$

419

Provision for (benefit from) income taxes

$

66

$

51

$

4

$

5

$

4

$

(1)

$

1

$

130

Net (loss) income attributable to Capri

$

(62)

$

265

$

28

$

15

$

38

$

3

$

3

$

290

Weighted average diluted ordinary shares outstanding

150,453,568

152,157,901

Diluted net (loss) income per ordinary share - Capri

$

(0.41)

$

1.74

$

0.18

$

0.10

$

0.25

$

0.02

$

0.02

$

1.90

______________________

SCHEDULE 7

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Fiscal Year Ended March 27, 2021

As Impairment Restructuring Charitable COVID-19 ERP Capri As Charges ^ and Other Donations Related Implementation Transformation Reported (1) Charges ^(2) Charges Adjusted

Gross profit $ 2,597 $ - $ - $ - $ 10 $ - $ - $ 2,607



Operating $ 2,578 $ (316) $ (32) $ (20) $ (32) $ (2) $ (4) $ 2,172 expenses



Total incomefrom $ 19 $ 316 $ 32 $ 20 $ 42 $ 2 $ 4 $ 435 operations



Incomebeforeprovision $ 3 $ 316 $ 32 $ 20 $ 42 $ 2 $ 4 $ 419 for incometaxes

Provisionfor (benefit $ 66 $ 51 $ 4 $ 5 $ 4 $ (1) $ 1 $ 130 from) incometaxes

Net (loss)income $ (62) $ 265 $ 28 $ 15 $ 38 $ 3 $ 3 $ 290 attributableto Capri

Weightedaveragediluted 150,453,568 152,157,901 ordinarysharesoutstanding

Diluted net(loss)income per $ (0.41) $ 1.74 $ 0.18 $ 0.10 $ 0.25 $ 0.02 $ 0.02 $ 1.90 ordinaryshare -Capri

______________________

Includes impairment charges of $153 million primarily related to operating lease right-of-use assets and fixed assets of our retail store locations. This amount also includes $94 million related to goodwill associated with the Jimmy Choo wholesale and licensing reporting units(1) and $69 million related to the Jimmy Choo brand indefinite-lived intangible assets. The Jimmy Choo impairment charges were primarily related to higher discount rates in the current year driven by a change in market factors as well as a shift in expected revenue and earnings mix to the retail segment.

Includes store closure costs which have been incorporated into the Capri(2) Retail Store Optimization Program, other restructuring initiatives, and 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 March 28, 2020

As Reported

Impairment Charges (1)

Restructuring and Other Charges (2)

COVID-19 Related Charges

ERP Implementation

Capri Transformation

As Adjusted

Gross profit

$

631

$

-

$

-

$

92

$

-

$

-

$

723

Total operating expenses

$

1,167

$

(488)

$

(5)

$

(27)

$

(12)

$

(11)

$

624

Total (loss) income from operations

$

(536)

$

488

$

5

$

119

$

12

$

11

$

99

(Loss) income before provision for income taxes

$

(540)

$

488

$

5

$

119

$

12

$

11

$

95

Provision for (benefit from) income taxes

$

12

$

48

$

(1)

$

16

$

3

$

2

$

80

Net (loss) income attributable to Capri

$

(551)

$

440

$

6

$

103

$

9

$

9

$

16

Weighted average diluted ordinary shares outstanding

149,380,121

150,623,391

Diluted net (loss) income per ordinary share - Capri

$

(3.69)

$

2.95

$

0.04

$

0.69

$

0.06

$

0.06

$

0.11

______________________

SCHEDULE 8

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Three Months Ended March 28, 2020

Impairment Restructuring COVID-19 ERP Capri As Reported Charges ^ and Other Related Implementation Transformation As Adjusted (1) Charges ^(2) Charges

Gross profit $ 631 $ - $ - $ 92 $ - $ - $ 723



Totaloperating $ 1,167 $ (488) $ (5) $ (27) $ (12) $ (11) $ 624 expenses



Total (loss)income from $ (536) $ 488 $ 5 $ 119 $ 12 $ 11 $ 99 operations



(Loss)incomebefore $ (540) $ 488 $ 5 $ 119 $ 12 $ 11 $ 95 provisionfor incometaxes

Provisionfor (benefit $ 12 $ 48 $ (1) $ 16 $ 3 $ 2 $ 80 from) incometaxes

Net (loss)income $ (551) $ 440 $ 6 $ 103 $ 9 $ 9 $ 16 attributableto Capri

Weightedaveragediluted 149,380,121 150,623,391 ordinarysharesoutstanding

Diluted net(loss)income per $ (3.69) $ 2.95 $ 0.04 $ 0.69 $ 0.06 $ 0.06 $ 0.11 ordinaryshare -Capri

______________________

Includes impairment charges of $180 million related to the Jimmy Choo brand indefinite-lived intangible assets, $171 million related to(1) goodwill associated with the Jimmy Choo retail and licensing reporting units and $137 million primarily related to operating lease right-of-use assets and fixed assets of our retail store locations.

Includes store closure costs recorded in connection with the Michael Kors(2) 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.

SCHEDULE 9

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Fiscal Year Ended March 28, 2020

As Reported

Impairment Charges (1)

Restructuring and Other Charges (2)

Inventory Step-up Adjustment

ERP

Implementation

Capri Transformation

Acquisition Foreign Currency Effects

COVID-19 Related Charges

As Adjusted

Gross profit

$

3,271

$

-

$

-

$

13

$

-

$

-

$

-

$

92

$

3,376

Total operating expenses

$

3,463

$

(708)

$

(42)

$

-

$

(41)

$

(24)

$

-

$

(27)

$

2,621

Total (loss) income from operations

$

(192)

$

708

$

42

$

13

$

41

$

24

$

-

$

119

$

755

Foreign currency loss (gain)

$

11

$

-

$

-

$

-

$

-

$

-

$

(1)

$

-

$

10

(Loss) income before provision for income taxes

$

(215)

$

708

$

42

$

13

$

41

$

24

$

1

$

119

$

733

Provision for income taxes

$

10

$

92

$

7

$

3

$

10

$

6

$

-

$

16

$

144

Net (loss) income attributable to Capri

$

(223)

$

616

$

35

$

10

$

31

$

18

$

1

$

103

$

591

Weighted average diluted ordinary shares outstanding

150,714,598

151,922,050

Diluted net (loss) income per ordinary share - Capri

$

(1.48)

$

4.05

$

0.23

$

0.07

$

0.21

$

0.12

$

0.01

$

0.68

$

3.89

______________________

SCHEDULE 9

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except share and per share data)

(Unaudited)

Fiscal Year Ended March 28, 2020

Impairment Restructuring Inventory ERP Acquisition COVID-19 As Reported Charges ^ and Other Step-up Capri Foreign Related As Adjusted (1) Charges ^(2) Adjustment Implementation Transformation Currency Charges Effects

Gross profit $ 3,271 $ - $ - $ 13 $ - $ - $ - $ 92 $ 3,376



Total operating expenses $ 3,463 $ (708) $ (42) $ - $ (41) $ (24) $ - $ (27) $ 2,621



Total (loss) income from $ (192) $ 708 $ 42 $ 13 $ 41 $ 24 $ - $ 119 $ 755 operations



Foreign currency loss (gain) $ 11 $ - $ - $ - $ - $ - $ (1) $ - $ 10

(Loss) income beforeprovision for $ (215) $ 708 $ 42 $ 13 $ 41 $ 24 $ 1 $ 119 $ 733 income taxes

Provision for income taxes $ 10 $ 92 $ 7 $ 3 $ 10 $ 6 $ - $ 16 $ 144

Net (loss) income $ (223) $ 616 $ 35 $ 10 $ 31 $ 18 $ 1 $ 103 $ 591 attributable to Capri

Weighted average dilutedordinary 150,714,598 151,922,050 shares outstanding

Diluted net (loss) income perordinary $ (1.48) $ 4.05 $ 0.23 $ 0.07 $ 0.21 $ 0.12 $ 0.01 $ 0.68 $ 3.89 share - Capri

______________________

Includes impairment charges of $357 million primarily related to operating lease right-of-use assets and fixed assets of our retail store(1) locations, $180 million related to the Jimmy Choo brand indefinite-lived intangible assets and $171 million related to goodwill associated with the Jimmy Choo retail and licensing reporting units.

Includes store closure costs recorded in connection with the Michael Kors(2) 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/20210526005458/en/

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

CONTACT: Media: Press@CapriHoldings.com