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): November 6, 2019

	

(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.)	
33 Kingsway
London, United Kingdom
WC2B 6UF
(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).

		
Emerging growth company	☐	

		
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 November 6, 2019, Capri Holdings Limited issued a press release containing its unaudited financial results for its second fiscal quarter ended September 28, 2019. A copy of the press release is attached hereto as Exhibit 99.1.

		
ITEM 9.01	FINANCIAL STATEMENTS AND EXHIBITS.	
(d) Exhibits.

			
Exhibit
No.	  	 	
99.1	  	Press release issued by Capri Holdings Limited, dated November 6, 2019.	
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: November 6, 2019	 	 	 	
 	 	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 Second Quarter Fiscal 2020 Results
Reiterates Fiscal 2020 Revenue and Adjusted Earnings Per Share Guidance

London — November 6, 2019 — Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, today announced its financial results for the second quarter of fiscal 2020 ended September 28, 2019.
Second Quarter Fiscal 2020 Highlights
		
•	Second quarter revenue growth of 15.1%	
		
•	Michael Kors comparable sales increased low single digits	
		
•	Second quarter adjusted earnings per share of $1.16	
		
•	Reiterate Fiscal 2020 revenue guidance of $5.8 billion and adjusted earnings per share guidance of $4.95	
John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “For the second quarter, we were pleased to deliver a double digit increase in revenue, driven by the addition of Versace and growth from Jimmy Choo. Michael Kors revenue was in line with our expectations and we are extremely pleased to report that the brand returned to positive comparable store sales during the quarter, led by our successful efforts across product innovation, brand engagement and customer experience. Second quarter earnings per share were below our expectations, reflecting higher expenses due to timing, as well as greater than anticipated challenges related to the situation in Hong Kong.”
Mr. Idol continued, “For Fiscal 2020, we remain focused on executing on our strategic growth initiatives and are reiterating our guidance for revenue of approximately $5.8 billion and adjusted earnings per share of approximately $4.95. From a longer-term perspective, we are encouraged with the progress we are making developing our global fashion luxury group. The integration of Versace is going smoothly, and Jimmy Choo continues to advance its strategic initiatives. Additionally, the Michael Kors brand repositioning efforts are resonating with customers. With continued focus on execution and investment to support our growth plans, we are confident that Capri Holdings remains on track to grow revenue to $8 billion dollars over time and deliver multiple years of earnings growth."
Second Quarter Fiscal 2020 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 Second Quarter Fiscal 2020 Results:
		
•	Total revenue of $1.442 billion increased 15.1% compared to last year. On a constant currency basis, total revenue increased 16.1%.	
		
•	Gross profit was $874 million and gross margin was 60.6%, compared to $763 million and 60.9% in the prior year. Adjusted gross profit was $879 million and adjusted gross margin was 61.0%, compared to $765 million and 61.1% in the prior year.	
		
•	Income from operations was $75 million and operating margin was 5.2% compared to $190 million and 15.2% in the prior year. Adjusted income from operations was $202 million and operating margin was 14.0%, compared to $218 million and 17.4% in the prior year.	
		
•	Net income was $73 million, or $0.47 per diluted share compared to $138 million, or $0.91 per diluted share in the prior year. Adjusted net income was $177 million, or $1.16 per diluted share, compared to $192 million or $1.27 per diluted share in the prior year.	
		
•	Net inventory at September 28, 2019 was $1.073 billion, a 39.7% increase compared to the prior year, primarily reflecting incremental Versace inventory.	
Versace Second Quarter Fiscal 2020 Results:
		
•	Versace revenue was $228 million and comparable store sales were flat on a constant currency basis compared to stand-alone results from the prior year. Versace continued to deliver double digit comparable sales growth in the Americas and EMEA, but experienced declines in Asia as the region was affected by greater than anticipated challenges related to the situation in Hong Kong and consumer reaction in China to a incorrectly labeled product.	
		
•	Versace operating income was $9 million and operating margin was 3.9%. Adjusted operating income was $14 million and adjusted operating margin was 6.1%.	
Jimmy Choo Second Quarter Fiscal 2020 Results:
		
•	Jimmy Choo revenue of $125 million increased 7.8% compared to the prior year. On a constant currency basis, total revenue increased 9.5%. On a constant currency basis, comparable store sales declined in the mid-single-digits. Comparable store sales were impacted by weaker performance in Hong Kong and a decline in Japan as the brand lapped a highly successful 10th anniversary campaign in the prior year. Excluding Hong Kong and Japan, comparable stores would have been flat.	
		
•	Jimmy Choo operating loss was $10 million and operating margin was (8.0)%, compared to an operating loss of $9 million and operating margin of (7.8)% in the prior year. Adjusted operating loss was $7 million and adjusted operating margin was (6.0)% in the prior year.	
Michael Kors Second Quarter Fiscal 2020 Results:
		
•	Michael Kors revenue of $1.089 billion decreased 4.2% compared to the prior year. On a constant currency basis, total revenue decreased 3.3%. On a constant currency basis, comparable store sales increased in the low single digits.	
		
•	Michael Kors operating income was $222 million and operating margin was 20.4%, compared to $248 million and 21.8% in the prior year.	

Outlook
The following guidance is provided on an adjusted, non-GAAP basis. All comparable store sales guidance is provided on a constant currency basis.
Full Year Fiscal 2020 Outlook
For Capri Holdings, the Company expects the following.
		
•	Total revenue of approximately $5.8 billion	
		
•	Operating margin of approximately 15.0%	
		
•	Interest expense in a range of $15 million to $25 million	
		
•	Weighted average diluted shares outstanding of approximately 153 million	
		
•	Effective tax rate of approximately 11%	
		
•	Diluted earnings per share of approximately $4.95, including approximately $0.20 per share of dilution from Versace	
Third Quarter Fiscal 2020 Outlook
For Capri Holdings, the Company expects the following.
		
•	Total revenue of approximately $1.53 billion	
		
•	Operating margin of approximately 17.5%	
		
•	Interest expense of approximately $5 million	
		
•	Weighted average diluted shares outstanding of approximately 153 million	
		
•	Effective tax rate of approximately 8%	
		
•	Diluted earnings per share of $1.55 to $1.60, including approximately $0.15 per share of dilution from Versace	
For Versace, the Company expects the following.
		
•	Revenue of approximately $180 million	
		
•	Comparable store sales approximately flat to prior year	
		
•	Negative operating margin reflecting normal seasonality and increased investments to support growth initiatives	
For Jimmy Choo, the Company expects the following.
		
•	Revenue of approximately $165 million	
		
•	Comparable store sales approximately flat to prior year	
		
•	Positive operating margin reflecting normal seasonality	
For Michael Kors, the Company expects the following.
		
•	Revenue slightly below $1.2 billion	
		
•	Comparable store sales growth in the low single digits	
		
•	Operating margin to be below prior year	
Conference Call Information
A conference call to discuss second quarter results is scheduled for today, November 6, 2019 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 November 13, 2019. 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 8120228. 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.

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 relating to certain one-time costs associated with the Jimmy Choo acquisition and the Versace acquisition and restructuring and non-cash impairment 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 non-recurring 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 “targets”, “plans”, “believes”, “expects”, “aims”, “intends”, “will”, “should”, “could”, “would”, “may”, “anticipates”, “estimates”, “synergy”, “cost-saving”, “projects”, “goal”, “strategy”, “budget”, “forecast” or “might” or, words or terms of similar substance or the negative thereof, are forward-looking statements. Forward-looking statements include statements relating to future capital expenditures, expenses, revenues, earnings, economic performance, indebtedness, financial condition, share buybacks, dividend policy, losses and future prospects of the Company, business and management strategies and the expansion and growth of the Company’s operations, and benefits from any acquisition. 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 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); future availability of credit; 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 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 30, 2019 (File No. 001-35368). 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.

CONTACTS:
Investor Relations:
Jennifer Davis
(201) 514-8234
Jennifer.Davis@CapriHoldings.com
Media:
Dinesh Kandiah
(917) 934-2427
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	 	Six Months Ended	
 	 	September 28,
2019	 	September 29,
2018	 	September 28,
2019	 	September 29,
2018	
Total revenue	 	$	1,442		 	$	1,253		 	$	2,788		 	$	2,456		
Cost of goods sold	 	568		 	490		 	1,080		 	942		
Gross profit	 	874		 	763		 	1,708		 	1,514		
Total operating expenses	 	799		 	573		 	1,569		 	1,109		
Income from operations	 	75		 	190		 	139		 	405		
Other income, net	 	(1	)	 	(1	)	 	(3	)	 	(2	)	
Interest expense, net	 	3		 	6		 	16		 	14		
Foreign currency loss	 	4		 	33		 	6		 	36		
Income before provision for income taxes	 	69		 	152		 	120		 	357		
(Benefit from) provision for income taxes	 	(4	)	 	15		 	2		 	34		
Net income	 	73		 	137		 	118		 	323		
Less: Net loss attributable to noncontrolling interests	 	—		 	(1	)	 	—		 	(1	)	
Net income attributable to Capri	 	$	73		 	$	138		 	$	118		 	$	324		
Weighted average ordinary shares outstanding:	 	 	 	 	 	 	 	 	
Basic	 	151,602,502		 	149,575,112		 	151,326,037		 	149,538,607		
Diluted	 	152,576,283		 	151,705,685		 	152,455,218		 	152,052,671		
Net income per ordinary share:	 	 	 	 	 	 	 	 	
Basic	 	$	0.48		 	$	0.92		 	$	0.78		 	$	2.17		
Diluted	 	$	0.47		 	$	0.91		 	$	0.77		 	$	2.13		

SCHEDULE 2
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)

	
													
 	 	September 28,
2019	 	March 30,
2019	 	September 29,
2018	
Assets	 	 	 	 	 	 	
Current assets	 	 	 	 	 	 	
Cash and cash equivalents	 	$	179		 	$	172		 	$	155		
Receivables, net	 	368		 	383		 	340		
Inventories, net	 	1,073		 	953		 	768		
Prepaid expenses and other current assets	 	275		 	221		 	211		
Total current assets	 	1,895		 	1,729		 	1,474		
Property and equipment, net	 	589		 	615		 	552		
Operating lease right-of-use assets	 	1,671		 	—		 	—		
Intangible assets, net	 	2,171		 	2,293		 	1,159		
Goodwill	 	1,598		 	1,659		 	797		
Deferred tax assets	 	160		 	112		 	47		
Other assets	 	309		 	242		 	78		
Total assets	 	$	8,393		 	$	6,650		 	$	4,107		
Liabilities and Shareholders’ Equity	 	 	 	 	 	 	
Current liabilities	 	 	 	 	 	 	
Accounts payable	 	$	390		 	$	371		 	$	290		
Accrued payroll and payroll related expenses	 	97		 	133		 	83		
Accrued income taxes	 	27		 	34		 	24		
Current operating lease liabilities	 	403		 	—		 	—		
Short-term debt	 	603		 	630		 	255		
Accrued expenses and other current liabilities	 	283		 	374		 	346		
Total current liabilities	 	1,803		 	1,542		 	998		
Long-term operating lease liabilities	 	1,766		 	—		 	—		
Deferred rent	 	—		 	132		 	133		
Deferred tax liabilities	 	440		 	438		 	182		
Long-term debt	 	1,796		 	1,936		 	505		
Other long-term liabilities	 	176		 	166		 	105		
Total liabilities	 	5,981		 	4,214		 	1,923		
Commitments and contingencies	 	 	 	 	 	 	
Redeemable noncontrolling interest	 	4		 	4		 	—		
Shareholders’ equity	 	 	 	 	 	 	
Ordinary shares, no par value; 650,000,000 shares authorized; 216,815,137 shares issued and 151,633,281 outstanding at September 28, 2019; 216,050,939 shares issued and 150,932,306 outstanding at March 30, 2019, and 213,208,924 shares issued and 150,150,297 outstanding at September 29, 2018	 	—		 	—		 	—		
Treasury shares, at cost (65,181,856 shares at September 28, 2019; 65,118,633 shares at March 30, 2019; and 63,058,627 shares at September 29, 2018)	 	(3,225	)	 	(3,223	)	 	(3,123	)	
Additional paid-in capital	 	1,060		 	1,011		 	877		
Accumulated other comprehensive loss	 	(103	)	 	(66	)	 	(62	)	
Retained earnings	 	4,673		 	4,707		 	4,488		
Total shareholders’ equity of Capri	 	2,405		 	2,429		 	2,180		
Noncontrolling interest	 	3		 	3		 	4		
Total shareholders’ equity	 	2,408		 	2,432		 	2,184		
Total liabilities and shareholders’ equity	 	$	8,393		 	$	6,650		 	$	4,107		

SCHEDULE 3
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED SEGMENT DATA
($ in millions)
(Unaudited)

																			
 	 	Three Months Ended	 	Six Months Ended	
 	 	September 28,
2019	 	September 29,
2018	 	September 28,
2019	 	September 29,
2018	
Revenue by Segment and Region:	 	 	 	 	 	 	 	 	
Versace	 	The Americas	 	$	48		 	$	—		 	$	92		 	$	—		
 	 	EMEA	 	121		 	—		 	213		 	—		
 	 	Asia	 	59		 	—		 	130		 	—		
Versace Revenue	 	228		 	—		 	435		 	—		
 	 	 	 	 	 	 	 	 	 	 	
Jimmy Choo	 	The Americas	 	21		 	20		 	51		 	46		
 	 	EMEA	 	64		 	56		 	143		 	158		
 	 	Asia	 	40		 	40		 	89		 	85		
Jimmy Choo Revenue	 	125		 	116		 	283		 	289		
 	 	 	 	 	 	 	 	 	 	 	
Michael Kors	 	The Americas	 	733		 	773		 	1,388		 	1,465		
 	 	EMEA	 	224		 	233		 	413		 	433		
 	 	Asia	 	132		 	131		 	269		 	269		
Michael Kors Revenue	 	1,089		 	1,137		 	2,070		 	2,167		
 	 			 			 			 			
Total Revenue	 	$	1,442		 	$	1,253		 	$	2,788		 	$	2,456		
 	 	 	 	 	 	 	 	 	
Income (Loss) from Operations:	 	 	 	 	 	 	 	 	
Versace	 	 	 	$	9		 	$	—		 	$	6		 	$	—		
Jimmy Choo	 	 	 	(10	)	 	(9	)	 	1		 	13		
Michael Kors	 	 	 	222		 	248		 	423		 	478		
Total segment income from operations	 	221		 	239		 	430		 	491		
Less: Corporate expenses	 	(35	)	 	(23	)	 	(68	)	 	(45	)	
Restructuring and other charges	 	(7	)	 	(19	)	 	(22	)	 	(30	)	
Impairment of long-lived assets	 	(104	)	 	(7	)	 	(201	)	 	(11	)	
Total Income from Operations	 	$	75		 	$	190		 	$	139		 	$	405		
 	 	 	 	 	 	 	 	 	 	 	
Operating Margin:	 	 	 	 	 	 	 	 	 	 	
Versace	 	 	 	3.9	 %	 	—	 %	 	1.4	%	 	—	%	
Jimmy Choo	 	 	 	(8.0	)%	 	(7.8	)%	 	0.4	%	 	4.5	%	
Michael Kors	 	 	 	20.4	 %	 	21.8	 %	 	20.4	%	 	22.1	%	
Capri Operating Margin	 	 	 	5.2	 %	 	15.2	 %	 	5.0	%	 	16.5	%	

SCHEDULE 4
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
SUPPLEMENTAL RETAIL STORE INFORMATION
(Unaudited)

	
									
 	 	 	 	As of	
Retail Store Information:	 	September 28, 2019	 	September 29, 2018	
Versace	 	198		 	—		
Jimmy Choo	 	216		 	204		
Michael Kors	 	850		 	854		
Total number of retail stores	 	 	 	1,264		 	1,058		

SCHEDULE 5
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
CONSTANT CURRENCY DATA
(In millions)
(Unaudited) 

															
 	 	Three Months Ended	 	% Change	
 	 	September 28,
2019	 	September 29,
2018	 	As
Reported	 	Constant
Currency	
Total revenue:	 	 	 	 	 	 	 	 	
Versace	 	$	228		 	$	—		 	NM		 	NM		
Jimmy Choo	 	125		 	116		 	7.8	 %	 	9.5	 %	
Michael Kors	 	1,089		 	1,137		 	(4.2	)%	 	(3.3	)%	
Total revenue	 	$	1,442		 	$	1,253		 	15.1	 %	 	16.1	 %	

	
															
 	 	Six Months Ended	 	% Change	
 	 	September 28,
2019	 	September 29,
2018	 	As
Reported	 	Constant
Currency	
Total revenue:	 	 	 	 	 	 	 	 	
Versace	 	$	435		 	$	—		 	NM		 	NM		
Jimmy Choo	 	283		 	289		 	(2.1	)%	 	0.3	 %	
Michael Kors	 	2,070		 	2,167		 	(4.5	)%	 	(3.1	)%	
Total revenue	 	$	2,788		 	$	2,456		 	13.5	 %	 	15.0	 %	
___________________
NM Not meaningful

SCHEDULE 6

NON-GAAP RECONCILIATIONS OF REPORTED TO ADJUSTED MEASURES,
EXCLUDING LONG-LIVED ASSET IMPAIRMENTS, RESTRUCTURING AND OTHER CHARGES,
INVENTORY STEP-UP RELATED TO VERSACE ACQUISITION, ERP IMPLEMENTATION COSTS
CAPRI TRANSFORMATION COSTS AND FOREIGN CURRENCY EFFECTS RELATED TO VERSACE
(In millions, except share and per share data)
(Unaudited)

																																	
 	 	Three Months Ended September 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	 	$	874		 	$	—		 	$	—		 	$	5		 	$	—		 	$	—		 	$	—		 	$	879		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses	 	$	799		 	$	(104	)	 	$	(7	)	 	$	—		 	$	(9	)	 	$	(2	)	 	$	—		 	$	677		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Versace operating income	 	$	9		 	$	—		 	$	—		 	$	5		 	$	—		 	$	—		 	$	—		 	$	14		
Total income from operations	 	$	75		 	$	104		 	$	7		 	$	5		 	$	9		 	$	2		 	$	—		 	$	202		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign currency loss	 	$	4		 	$	—		 	$	—		 	$	—		 	$	—		 	$	—		 	$	(1	)	 	$	3		
Income before provision for income taxes	 	$	69		 	$	104		 	$	7		 	$	5		 	$	9		 	$	2		 	$	1		 	$	197		
(Benefit from) provision for income taxes	 	$	(4	)	 	$	18		 	$	2		 	$	1		 	$	2		 	$	1		 	$	—		 	$	20		
Net income attributable to Capri	 	$	73		 	$	86		 	$	5		 	$	4		 	$	7		 	$	1		 	$	1		 	$	177		
Diluted net income per ordinary share - Capri	 	$	0.47		 	$	0.56		 	$	0.03		 	$	0.03		 	$	0.05		 	$	0.01		 	$	0.01		 	$	1.16		
______________________
		
(1) 	Includes store closure costs recorded in connection with the Michael 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.	

SCHEDULE 7

NON-GAAP RECONCILIATIONS OF REPORTED TO ADJUSTED MEASURES,
EXCLUDING LONG-LIVED ASSET IMPAIRMENTS, RESTRUCTURING AND OTHER CHARGES,
INVENTORY STEP-UP RELATED TO VERSACE ACQUISITION, ERP IMPLEMENTATION COSTS
CAPRI TRANSFORMATION COSTS AND FOREIGN CURRENCY EFFECTS RELATED TO VERSACE
(In millions, except share and per share data)
(Unaudited)

																																	
 	 	Six Months Ended September 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	 	$	1,708		 	$	—		 	$	—		 	$	11		 	$	—		 	$	—		 	$	—		 	$	1,719		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses	 	$	1,569		 	$	(201	)	 	$	(22	)	 	$	—		 	$	(17	)	 	$	(2	)	 	$	—		 	$	1,327		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Versace operating income	 	$	6		 	$	—		 	$	—		 	$	11		 	$	—		 	$	—		 	$	—		 	$	17		
Total income from operations	 	$	139		 	$	201		 	$	22		 	$	11		 	$	17		 	$	2		 	$	—		 	$	392		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign currency loss	 	$	6		 	$	—		 	$	—		 	$	—		 	$	—		 	$	—		 	$	(1	)	 	$	5		
Income before provision for income taxes	 	$	120		 	$	201		 	$	22		 	$	11		 	$	17		 	$	2		 	$	1		 	$	374		
Provision for income taxes	 	$	2		 	$	37		 	$	5		 	$	3		 	$	4		 	$	1		 	$	—		 	$	52		
Net income attributable to Capri	 	$	118		 	$	164		 	$	17		 	$	8		 	$	13		 	$	1		 	$	1		 	$	322		
Diluted net income per ordinary share - Capri	 	$	0.77		 	$	1.08		 	$	0.11		 	$	0.05		 	$	0.08		 	$	0.01		 	$	0.01		 	$	2.11		
______________________
		
(1) 	Includes store closure costs recorded in connection with the Michael 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.	

SCHEDULE 8

NON-GAAP RECONCILIATIONS OF REPORTED TO ADJUSTED MEASURES,
EXCLUDING LONG-LIVED ASSET IMPAIRMENTS,
RESTRUCTURING AND OTHER CHARGES, AND
INVENTORY STEP-UP RELATED TO JIMMY CHOO ACQUISITION
(In millions, except share and per share data)
(Unaudited)

																									
 	 	Three Months Ended September 29, 2018	
 	 	As Reported	 	Impairment Charges	 	Restructuring and Other Charges(1)	 	Inventory Step-up Adjustment	 	Acquisition Price
 Derivative Contract	 	As Adjusted	
Gross profit	 	$	763		 	$	—		 	$	—		 	$	2		 	$	—		 	$	765		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	 	$	573		 	$	(7	)	 	$	(19	)	 	$	—		 	$	—		 	$	547		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Jimmy Choo operating loss	 	$	(9	)	 	$	—		 	$	—		 	$	2		 	$	—		 	$	(7	)	
Total income from operations	 	$	190		 	$	7		 	$	19		 	$	2		 	$	—		 	$	218		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign currency loss	 	$	33		 	$	—		 	$	—		 	$	—		 	$	(30	)	 	$	3		
Income before provision for income taxes	 	$	152		 	$	7		 	$	19		 	$	2		 	$	30		 	$	210		
Provision for income taxes	 	$	15		 	$	1		 	$	2		 	$	1		 	$	—		 	$	19		
Net income attributable to Capri	 	$	138		 	$	6		 	$	17		 	$	1		 	$	30		 	$	192		
Diluted net income per ordinary share - Capri	 	$	0.91		 	$	0.04		 	$	0.11		 	$	0.01		 	$	0.20		 	$	1.27		
______________________
		
(1) 	Includes store closure costs recorded in connection with the Michael Kors Retail Fleet Optimization Plan, as well as transaction and transition costs recorded in connection with the acquisition of Jimmy Choo Group Limited.	

SCHEDULE 9

NON-GAAP RECONCILIATIONS OF REPORTED TO ADJUSTED MEASURES,
EXCLUDING LONG-LIVED ASSET IMPAIRMENTS, RESTRUCTURING AND OTHER CHARGES,
INVENTORY STEP-UP RELATED TO JIMMY CHOO ACQUISITION, AND
DERIVATIVE CONTRACT RELATED TO AGREEMENT TO ACQUIRE VERSACE
(In millions, except share and per share data)
(Unaudited)

																									
 	 	Six Months Ended September 29, 2018	
 	 	As Reported	 	Impairment Charges	 	Restructuring and Other Charges(1)	 	Inventory Step-up Adjustment	 	Acquisition Price Derivative Contract	 	As Adjusted	
Gross profit	 	$	1,514		 	$	—		 	$	—		 	$	5		 	$	—		 	$	1,519		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	 	$	1,109		 	$	(11	)	 	$	(30	)	 	$	—		 	$	—		 	$	1,068		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Jimmy Choo operating income	 	$	13		 	$	—		 	$	—		 	$	5		 	$	—		 	$	18		
Total income from operations	 	$	405		 	$	11		 	$	30		 	$	5		 	$	—		 	$	451		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign currency loss	 	$	36		 	$	—		 	$	—		 	$	—		 	$	(30	)	 	$	6		
Income before provision for income taxes	 	$	357		 	$	11		 	$	30		 	$	5		 	$	30		 	$	433		
Provision for income taxes	 	$	34		 	$	2		 	$	4		 	$	1		 	$	—		 	$	41		
Net income attributable to Capri	 	$	324		 	$	9		 	$	26		 	$	4		 	$	30		 	$	393		
Diluted net income per ordinary share - Capri	 	$	2.13		 	$	0.06		 	$	0.17		 	$	0.03		 	$	0.20		 	$	2.59		
______________________
		
(1) 	Includes store closure costs recorded in connection with the Retail Fleet Optimization Plan and other restructuring initiatives, transition costs recorded in connection with the acquisition of Jimmy Choo Group Limited and transaction and transition costs recorded in connection with the Company’s agreement to acquire Gianni Versace S.p.A.