CAPRI HOLDINGS LTD, 10-Q filed on 8/9/2022
Quarterly Report
v3.22.2
Cover Page - shares
3 Months Ended
Jul. 02, 2022
Aug. 03, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jul. 02, 2022  
Document Transition Report false  
Entity File Number 001-35368  
Entity Registrant Name CAPRI HOLDINGS LTD  
Entity Incorporation, State or Country Code D8  
Entity Address, Address Line One 33 Kingsway  
Entity Address, City or Town London  
Entity Address, Country GB  
Entity Address, Postal Zip Code WC2B 6UF  
Country Region 44  
City Area Code 207  
Local Phone Number 632 8600  
Title of 12(b) Security Ordinary Shares, no par value  
Trading Symbol CPRI  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   138,032,677
Amendment Flag false  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0001530721  
Current Fiscal Year End Date --04-01  
v3.22.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Jul. 02, 2022
Apr. 02, 2022
Current assets    
Cash and cash equivalents $ 221 $ 169
Receivables, net 394 434
Inventories, net 1,265 1,096
Prepaid expenses and other current assets 201 192
Total current assets 2,081 1,891
Property and equipment, net 466 476
Operating lease right-of-use assets 1,388 1,358
Intangible assets, net 1,739 1,847
Goodwill 1,336 1,418
Deferred tax assets 231 240
Other assets 369 250
Total assets 7,610 7,480
Current liabilities    
Accounts payable 540 555
Accrued payroll and payroll related expenses 123 165
Accrued income taxes 136 52
Short-term operating lease liabilities 399 414
Short-term debt 37 29
Accrued expenses and other current liabilities 379 351
Total current liabilities 1,614 1,566
Long-term operating lease liabilities 1,465 1,467
Deferred tax liabilities 476 432
Long-term debt 1,382 1,131
Other long-term liabilities 295 326
Total liabilities 5,232 4,922
Commitments and contingencies
Shareholders’ equity    
Ordinary shares, no par value; 650,000,000 shares authorized; 223,503,792 shares issued and 137,956,977 outstanding at July 2, 2022; 221,967,599 shares issued and 142,806,269 outstanding at April 2, 2022 0 0
Treasury shares, at cost (85,546,815 shares at July 2, 2022 and 79,161,330 shares at April 2, 2022) (4,299) (3,987)
Additional paid-in capital 1,294 1,260
Accumulated other comprehensive income 89 194
Retained earnings 5,293 5,092
Total shareholders’ equity of Capri 2,377 2,559
Noncontrolling interest 1 (1)
Total shareholders’ equity 2,378 2,558
Total liabilities and shareholders’ equity $ 7,610 $ 7,480
v3.22.2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares
Jul. 02, 2022
Apr. 02, 2022
Shareholders’ equity    
Ordinary shares, shares authorized (in shares) 650,000,000 650,000,000
Ordinary shares, shares issued (in shares) 223,503,792 221,967,599
Ordinary shares, shares outstanding (in shares) 137,956,977 142,806,269
Treasury shares (in shares) 85,546,815 79,161,330
v3.22.2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Income Statement [Abstract]    
Total revenue $ 1,360 $ 1,253
Cost of goods sold 459 397
Gross profit 901 856
Selling, general and administrative expenses 622 545
Depreciation and amortization 45 50
Restructuring and other charges 3 3
Total operating expenses 670 598
Income from operations 231 258
Interest (income) expense, net (4) 1
Foreign currency loss 4 1
Income before income taxes 231 256
Provision for income taxes 28 37
Net income 203 219
Less: Net income attributable to noncontrolling interest 2 0
Net income attributable to Capri $ 201 $ 219
Weighted average ordinary shares outstanding:    
Basic (in shares) 141,913,586 151,312,103
Diluted (in shares) 143,733,984 154,890,483
Net income per ordinary share attributable to Capri:    
Basic (in dollars per share) $ 1.42 $ 1.45
Diluted (in dollars per share) $ 1.40 $ 1.41
Statements of Comprehensive Income:    
Net income $ 203 $ 219
Foreign currency translation adjustments (107) 90
Net gain on derivatives 2 0
Total comprehensive income (loss) 98 309
Less: Net income attributable to noncontrolling interest 2 0
Less: Foreign currency translation adjustments attributable to noncontrolling interest 0 (1)
Comprehensive income attributable to Capri $ 96 $ 310
v3.22.2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
$ in Millions
Total
Total Equity of Capri
Ordinary Shares
Additional Paid-in Capital
Treasury Shares
Accumulated Other Comprehensive Income
Retained Earnings
Non-controlling Interest
Beginning balance (in shares) at Mar. 27, 2021     219,223,000          
Beginning balance at Mar. 27, 2021 $ 2,157 $ 2,158 $ 0 $ 1,158 $ (3,326) $ 56 $ 4,270 $ (1)
Beginning balance, treasury (in shares) at Mar. 27, 2021         (67,943,000)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 219 219         219 0
Other comprehensive loss 90 91       91   (1)
Total comprehensive income (loss) 309 310           (1)
Vesting of restricted awards, net of forfeitures (in shares)     1,591,000          
Exercise of employee share options (in shares)     160,000          
Exercise of employee share options 7 7   7        
Share based compensation expense 36 36   36        
Repurchase of ordinary shares (in shares)         (1,088,000)      
Repurchase of ordinary shares (59) (59)     $ (59)      
Ending balance (in shares) at Jun. 26, 2021     220,974,000          
Ending balance at Jun. 26, 2021 $ 2,450 2,452 $ 0 1,201 $ (3,385) 147 4,489 (2)
Ending balance, treasury (in shares) at Jun. 26, 2021         (69,031,000)      
Beginning balance (in shares) at Apr. 02, 2022 142,806,269   221,967,000          
Beginning balance at Apr. 02, 2022 $ 2,558 2,559 $ 0 1,260 $ (3,987) 194 5,092 (1)
Beginning balance, treasury (in shares) at Apr. 02, 2022 (79,161,330)       (79,161,000)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income $ 203 201         201 2
Other comprehensive loss (105) (105)       (105)   0
Total comprehensive income (loss) 98 96           2
Vesting of restricted awards, net of forfeitures (in shares)     1,420,000          
Exercise of employee share options (in shares)     117,000          
Exercise of employee share options 6 6   6        
Share based compensation expense 28 28   28        
Repurchase of ordinary shares (in shares)         (6,386,000)      
Repurchase of ordinary shares $ (312) (312)     $ (312)      
Ending balance (in shares) at Jul. 02, 2022 137,956,977   223,504,000          
Ending balance at Jul. 02, 2022 $ 2,378 $ 2,377 $ 0 $ 1,294 $ (4,299) $ 89 $ 5,293 $ 1
Ending balance, treasury (in shares) at Jul. 02, 2022 (85,546,815)       (85,547,000)      
v3.22.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Cash flows from operating activities    
Net income $ 203 $ 219
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 45 50
Share based compensation expense 28 36
Deferred income taxes 1 22
Changes to lease related balances, net (33) (36)
Foreign currency loss (gain) 1 (12)
Other non-cash adjustments 1 (3)
Change in assets and liabilities:    
Receivables, net 26 (7)
Inventories, net (209) (17)
Prepaid expenses and other current assets (13) (9)
Accounts payable 6 (40)
Accrued expenses and other current liabilities 87 (6)
Other long-term assets and liabilities (6) 7
Net cash provided by operating activities 137 204
Cash flows from investing activities    
Capital expenditures (36) (23)
Settlement of net investment hedges 66 0
Net cash provided by (used in) investing activities 30 (23)
Cash flows from financing activities    
Debt borrowings 1,350 59
Debt repayments (1,090) (70)
Debt issuance costs (4) 0
Repurchase of ordinary shares (312) (59)
Exercise of employee share options 6 7
Other financing activities 0 8
Net cash used in financing activities (50) (55)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (65) (2)
Net increase in cash, cash equivalents and restricted cash 52 124
Beginning of period 172 234
End of period 224 358
Supplemental disclosures of cash flow information    
Cash paid for interest 18 17
Net cash (received) paid for income taxes (72) 28
Supplemental disclosure of non-cash investing and financing activities    
Accrued capital expenditures $ 43 $ 14
v3.22.2
Business and Basis of Presentation
3 Months Ended
Jul. 02, 2022
Accounting Policies [Abstract]  
Business and Basis of Presentation Business and Basis of Presentation
Capri Holdings Limited (“Capri”, and together with its subsidiaries, the “Company”) was incorporated in the British Virgin Islands on December 13, 2002. The Company is a holding company that owns brands that are leading designers, marketers, distributors and retailers of branded women’s and men’s accessories, footwear and ready-to-wear bearing the Versace, Jimmy Choo and Michael Kors tradenames and related trademarks and logos. The Company operates in three reportable segments: Versace, Jimmy Choo and Michael Kors. See Note 16 for additional information.
The interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned or controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The interim consolidated financial statements as of July 2, 2022 and for the three months ended July 2, 2022 and June 26, 2021 are unaudited. The Company consolidates the results of its Versace business on a one-month lag, as consistent with prior periods. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, necessary for a fair presentation in conformity with U.S. GAAP. The interim consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended April 2, 2022, as filed with the Securities and Exchange Commission on June 1, 2022, in the Company’s Annual Report on Form 10-K. The results of operations for the interim periods should not be considered indicative of results to be expected for the full fiscal year.

The Company utilizes a 52- to 53-week fiscal year and the term “Fiscal Year” or “Fiscal” refers to that 52- or 53-week period. The results for the three months ended July 2, 2022 and June 26, 2021 are based on 13-week periods. The Company’s Fiscal Year 2023 is a 52-week period ending April 1, 2023.
v3.22.2
Summary of Significant Accounting Policies
3 Months Ended
Jul. 02, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to use judgment and make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are completed. The most significant assumptions and estimates involved in preparing the financial statements include allowances for customer deductions, sales returns, sales discounts, credit losses, estimates of inventory net realizable value, the valuation of share-based compensation, the valuation of deferred taxes, goodwill, intangible assets, operating lease right-of-use assets and property and equipment, along with the estimated useful lives assigned to these assets. Actual results could differ from those estimates.
Seasonality
The Company experiences certain effects of seasonality with respect to its business. The Company generally experiences greater sales during its third fiscal quarter, primarily driven by holiday season sales, and the lowest sales during its first fiscal quarter.
Cash, Cash Equivalents and Restricted Cash
All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. Included in the Company’s cash and cash equivalents as of July 2, 2022 and April 2, 2022 are credit card receivables of $28 million and $18 million, respectively, which generally settle within two to three business days.
A reconciliation of cash, cash equivalents and restricted cash as of July 2, 2022 and April 2, 2022 from the consolidated balance sheets to the consolidated statements of cash flows is as follows (in millions):
 July 2,
2022
April 2,
2022
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents$221 $169 
Restricted cash included within prepaid expenses and other current assets
Total cash, cash equivalents and restricted cash shown on the consolidated statements of cash flows$224 $172 
Inventories, net
Inventories primarily consist of finished goods with the exception of raw materials and work in process inventory. The combined total of raw materials and work in process inventory, net, recorded on the Company’s consolidated balance sheets was $33 million and $31 million as of July 2, 2022 and April 2, 2022, respectively.
Derivative Financial Instruments
Forward Foreign Currency Exchange Contracts
The Company uses forward foreign currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain transactions. The Company, in its normal course of business, enters into transactions with foreign suppliers and seeks to minimize risks related to these transactions. The Company employs these contracts to hedge the Company’s cash flows, as they relate to foreign currency transactions. Certain of these contracts are designated as hedges for accounting purposes, while others remain undesignated. All of the Company’s derivative instruments are recorded in the Company’s consolidated balance sheets at fair value on a gross basis, regardless of their hedge designation.
The Company designates certain contracts related to the purchase of inventory that qualify for hedge accounting as cash flow hedges. Formal hedge documentation is prepared for all derivative instruments designated as hedges, including a description of the hedged item and the hedging instrument and the risk being hedged. The changes in the fair value for contracts designated as cash flow hedges is recorded in equity as a component of accumulated other comprehensive income until the hedged item affects earnings. When the inventory related to forecasted inventory purchases that are being hedged is sold to a third party, the gains or losses deferred in accumulated other comprehensive income are recognized within cost of goods sold. The Company uses regression analysis to assess effectiveness of derivative instruments that are designated as hedges, which compares the change in the fair value of the derivative instrument to the change in the related hedged item. If the hedge is no longer expected to be highly effective in the future, future changes in the fair value are recognized in earnings. For those contracts that are not designated as hedges, changes in the fair value are recorded to foreign currency loss in the Company’s consolidated statements of operations and comprehensive income. The Company classifies cash flows relating to its forward foreign currency exchange contracts related to purchase of inventory consistently with the classification of the hedged item, within cash flows from operating activities.
The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. In order to mitigate counterparty credit risk, the Company only enters into contracts with carefully selected financial institutions based upon their credit ratings and certain other financial factors, adhering to established limits for credit exposure. The aforementioned forward contracts generally have a term of no more than 12 months. The period of these contracts is directly related to the foreign transaction they are intended to hedge.
Net Investment Hedges
The Company also uses fixed-to-fixed cross currency swap agreements to hedge its net investments in foreign operations against future volatility in the exchange rates between the U.S. Dollars and the associated foreign currencies. The Company has elected the spot method of designating these contracts under ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”, and has designated these contracts as net investment hedges. The net gain or loss on the net investment hedge is reported within foreign currency translation gains and losses (“CTA”), as a component of accumulated other comprehensive income on the Company’s consolidated balance sheets. Interest accruals and coupon payments are recognized directly in interest (income) expense, net, in the Company’s consolidated statements of operations and
comprehensive income. Upon discontinuation of a hedge, all previously recognized amounts remain in CTA until the net investment is sold, diluted or liquidated.
Leases

The Company leases retail stores, office space and warehouse space under operating lease agreements that expire at various dates through September 2043. The Company’s leases generally have terms of up to 10 years, generally require a fixed annual rent and may require the payment of additional rent if store sales exceed a negotiated amount. Although most of the Company’s equipment is owned, the Company has limited equipment leases that expire on various dates through May 2026. The Company acts as sublessor in certain leasing arrangements, primarily related to closed stores from previous restructuring activities. Fixed sublease payments received are recognized on a straight-line basis over the sublease term. The Company determines the sublease term based on the date it provides possession to the subtenant through the expiration date of the sublease.

The Company recognizes operating lease right-of-use assets and lease liabilities at lease commencement date, based on the present value of fixed lease payments over the expected lease term. The Company uses its incremental borrowing rates to determine the present value of fixed lease payments based on the information available at the lease commencement date, as the rate implicit in the lease is not readily determinable for the Company’s leases. The Company’s incremental borrowing rates are based on the term of the leases, the economic environment of the leases and reflect the expected interest rate it would incur to borrow on a secured basis. Certain leases include one or more renewal options. The exercise of lease renewal options is generally at the Company’s sole discretion and as such, the Company typically determines that exercise of these renewal options is not reasonably certain. As a result, the Company generally does not include the renewal option period in the expected lease term and the associated lease payments are not included in the measurement of the operating lease right-of-use asset and lease liability. Certain leases also contain termination options with an associated penalty. Generally, the Company is reasonably certain not to exercise these options and as such, they are not included in the determination of the expected lease term. The Company recognizes operating lease expense on a straight-line basis over the lease term.

Leases with an initial lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for its short-term leases on a straight-line basis over the lease term.

The Company’s leases generally provide for payments of non-lease components, such as common area maintenance, real estate taxes and other costs associated with the leased property. The Company accounts for lease and non-lease components of its real estate leases together as a single lease component and, as such, includes fixed payments of non-lease components in the measurement of the operating lease right-of-use assets and lease liabilities for its real estate leases. Variable lease payments, such as percentage rentals based on sales, periodic adjustments for inflation, reimbursement of real estate taxes, any variable common area maintenance and any other variable costs associated with the leased property are expensed as incurred as variable lease costs and are not recorded on the balance sheet. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or covenants.
The following table presents the Company’s supplemental cash flow information related to leases (in millions):
Three Months Ended
July 2, 2022June 26, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases (1)
$125 $149 
(1)Operating cash flows used in operating leases for the three months ended June 26, 2021 excluded $4 million of deferred rent payments due to the COVID-19 pandemic.
During each of the three months ended July 2, 2022 and June 26, 2021, the Company recorded sublease income of $2 million within selling, general and administrative expenses. During the three months ended July 2, 2022 and June 26, 2021, the Company recorded $2 million and $7 million, respectively, of rent concessions negotiated in connection with the impact of COVID-19 as if it were contemplated as part of the existing contract. The aforementioned rent concessions were recorded as a reduction to variable lease expense within selling, general and administrative expenses.
Net Income per Share
The Company’s basic net income per ordinary share is calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period. Diluted net income per ordinary share reflects the potential dilution that would occur if share option grants or any other potentially dilutive instruments, including restricted shares and restricted share units (“RSUs”), were exercised or converted into ordinary shares. These potentially dilutive securities are included in diluted shares to the extent they are dilutive under the treasury stock method for the applicable periods. Performance-based RSUs are included as diluted shares if the related performance conditions are considered satisfied as of the end of the reporting period and to the extent they are dilutive under the treasury stock method.
The components of the calculation of basic net income per ordinary share and diluted net income per ordinary share are as follows (in millions, except share and per share data):
 Three Months Ended
July 2,
2022
June 26,
2021
Numerator:
Net income attributable to Capri$201 $219 
Denominator:
Basic weighted average shares141,913,586 151,312,103 
Weighted average dilutive share equivalents:
Share options and restricted shares/units, and performance restricted share units
1,820,398 3,578,380 
Diluted weighted average shares143,733,984 154,890,483 
Basic net income per share (1)
$1.42 $1.45 
Diluted net income per share (1)
$1.40 $1.41 
(1)Basic and diluted net income per share are calculated using unrounded numbers.
During the three months ended July 2, 2022, share equivalents of 657,340 shares have been excluded from the above calculations due to their anti-dilutive effect. Share equivalents of 610,684 shares have been excluded from the above calculations for the three months ended June 26, 2021 due to their anti-dilutive effect.
See Note 2 in the Company’s Annual Report on Form 10-K for the fiscal year ended April 2, 2022 for a complete disclosure of the Company’s significant accounting policies.
Recently Issued Accounting Pronouncements
Reference Rate Reform
In March 2020, the FASB issued ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and in January 2021, issued ASU 2021-01, “Reference Rate Reform: Scope”. Both of these updates aim to ease the potential burden in accounting for reference rate reform. These updates provide optional expedients and exceptions, if certain criteria are met, for applying accounting principles generally accepted in the United States to contract modifications, hedging relationships and other transactions affected by the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). The amendments were effective upon issuance and allowed companies to adopt the amendments on a prospective basis through December 31, 2022. The Company does not expect the adoption of this standard to have a material impact on the Company’s results of operations, financial condition or cash flows based on current information.
The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on the Company’s results of operations, financial condition or cash flows based on current information.
v3.22.2
Revenue Recognition
3 Months Ended
Jul. 02, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The Company accounts for contracts with its customers when there is approval and commitment from both parties, the rights of the parties and payment terms have been identified, the contract has commercial substance and collectibility of consideration is probable. Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services.
The Company sells its products through three primary channels of distribution: retail, wholesale and licensing. Within the retail and wholesale channels, substantially all of the Company’s revenues consist of sales of products that represent a single performance obligation, where control transfers at a point in time to the customer. For licensing arrangements, royalty and advertising revenue is recognized over time based on access provided to the Company’s trademarks.
Retail
The Company generates sales through directly operated stores and e-commerce sites throughout the Americas (United States, Canada and Latin America), certain parts of EMEA (Europe, Middle East and Africa) and certain parts of Asia (Asia and Oceania).
Gift Cards. The Company sells gift cards that can be redeemed for merchandise, resulting in a contract liability upon issuance. Revenue is recognized when the gift card is redeemed or upon “breakage” for the estimated portion of gift cards that are not expected to be redeemed. “Breakage” revenue is calculated under the proportional redemption methodology, which considers the historical patterns of redemption in jurisdictions where the Company is not required to remit the value of the unredeemed gift cards as unclaimed property. The contract liability related to gift cards, net of estimated “breakage”, of $15 million and $13 million as of July 2, 2022 and April 2, 2022, respectively, is included within accrued expenses and other current liabilities in the Company’s consolidated balance sheet.
Loyalty Program. The Company offers a loyalty program, which allows its Michael Kors United States customers to earn points on qualifying purchases toward monetary and non-monetary rewards, which may be redeemed for purchases at Michael Kors retail stores and e-commerce sites. The Company defers a portion of the initial sales transaction based on the estimated relative fair value of the benefits based on projected timing of future redemptions and historical activity. These amounts include estimated “breakage” for points that are not expected to be redeemed.
Wholesale
The Company’s products are sold primarily to major department stores, specialty stores and travel retail shops throughout the Americas, EMEA and Asia. The Company also has arrangements where its products are sold to geographic licensees in certain parts of EMEA, Asia and South America.
Licensing
The Company provides its third-party licensees with the right to access its Versace, Jimmy Choo and Michael Kors trademarks under product and geographic licensing arrangements. Under geographic licensing arrangements, third party licensees receive the right to distribute and sell products bearing the Company’s trademarks in retail and/or wholesale channels within certain geographical areas, including Brazil, the Middle East, Eastern Europe, South Africa and certain parts of Asia.
The Company recognizes royalty revenue and advertising contributions based on the percentage of sales made by the licensees. Generally, the Company’s guaranteed minimum royalty amounts due from licensees relate to contractual periods that do not exceed 12 months, however, certain guaranteed minimums for Versace are multi-year based.
As of July 2, 2022, contractually guaranteed minimum fees from the Company’s license agreements expected to be recognized as revenue during future periods were as follows (in millions):
Contractually Guaranteed Minimum Fees
Remainder of Fiscal 2023$23 
Fiscal 202429 
Fiscal 202525 
Fiscal 202622 
Fiscal 202721 
Fiscal 2028 and thereafter46 
 Total$166 
Sales Returns
The refund liability recorded as of July 2, 2022 was $56 million, and the related asset for the right to recover returned product as of July 2, 2022 was $13 million. The refund liability recorded as of April 2, 2022 was $52 million, and the related asset for the right to recover returned product as of April 2, 2022 was $15 million.
Contract Balances
Total contract liabilities were $26 million and $30 million as of July 2, 2022 and April 2, 2022, respectively. For the three months ended July 2, 2022, the Company recognized $5 million in revenue which related to contract liabilities that existed at April 2, 2022. For the three months ended June 26, 2021, the Company recognized $6 million in revenue which related to contract liabilities that existed at March 27, 2021. There were no material contract assets recorded as of July 2, 2022 and April 2, 2022.
There were no changes in historical variable consideration estimates that were materially different from actual results.
Disaggregation of Revenue
The following table presents the Company’s segment revenue disaggregated by geographic location (in millions):
 Three Months Ended
 July 2,
2022
June 26,
2021
Versace revenue - the Americas$115 $87 
Versace revenue - EMEA107 87 
Versace revenue - Asia53 66 
 Total Versace275 240 
Jimmy Choo revenue - the Americas54 38 
Jimmy Choo revenue - EMEA66 50 
Jimmy Choo revenue - Asia52 54 
Total Jimmy Choo172 142 
Michael Kors revenue - the Americas625 590 
Michael Kors revenue - EMEA191 165 
Michael Kors revenue - Asia97 116 
 Total Michael Kors913 871 
Total revenue - the Americas794 715 
Total revenue - EMEA364 302 
Total revenue - Asia202 236 
Total revenue$1,360 $1,253 
See Note 3 in the Company’s Annual Report on Form 10-K for the fiscal year ended April 2, 2022 for a complete disclosure of the Company’s revenue recognition policy.
v3.22.2
Receivables, net
3 Months Ended
Jul. 02, 2022
Receivables [Abstract]  
Receivables, net Receivables, net
Receivables, net, consist of (in millions):
July 2,
2022
April 2,
2022
Trade receivables (1)
$426 $461 
Receivables due from licensees21 17 
447 478 
Less: allowances(53)(44)
Total receivables, net$394 $434 
(1)As of July 2, 2022 and April 2, 2022, $89 million and $83 million, respectively, of trade receivables were insured.
Receivables are presented net of allowances for discounts, markdowns, operational chargebacks and credit losses. Discounts are based on open invoices where trade discounts have been extended to customers. Markdowns are based on wholesale customers’ sales performance, seasonal negotiations with customers, historical deduction trends and an evaluation of current market conditions. Operational chargebacks are based on deductions taken by customers, net of expected recoveries. Such provisions, and related recoveries, are reflected in revenues.
The Company’s allowance for credit losses is determined through analysis of periodic aging of receivables and assessments of collectibility based on an evaluation of historic and anticipated trends, the financial condition of the Company’s customers and the impact of general economic conditions. The past due status of a receivable is based on its contractual terms. Amounts deemed uncollectible are written off against the allowance when it is probable the amounts will not be recovered. Allowance for credit losses was $10 million as of July 2, 2022 and April 2, 2022. The Company had credit losses of $1 million and $(1) million for the three months ended July 2, 2022 and June 26, 2021, respectively.
v3.22.2
Property and Equipment, net
3 Months Ended
Jul. 02, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment, net Property and Equipment, net
Property and equipment, net, consists of (in millions):
July 2,
2022
April 2,
2022
Leasehold improvements$553 $575 
Computer equipment and software229 212 
Furniture and fixtures211 218 
Equipment79 81 
Building46 48 
In-store shops46 47 
Land18 19 
Total property and equipment, gross1,182 1,200 
Less: accumulated depreciation and amortization(783)(790)
Subtotal399 410 
Construction-in-progress67 66 
Total property and equipment, net$466 $476 
Depreciation and amortization of property and equipment for the three months ended July 2, 2022 and June 26, 2021 was $34 million and $38 million, respectively. The Company did not record any property and equipment impairment charges for the three months ended July 2, 2022 and June 26, 2021.
v3.22.2
Intangible Assets and Goodwill
3 Months Ended
Jul. 02, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible Assets and Goodwill
The following table details the carrying values of the Company’s intangible assets and goodwill (in millions):
 July 2,
2022
April 2,
2022
Definite-lived intangible assets:
Reacquired rights$400 $400 
Trademarks23 23 
Customer relationships (1)
386 414 
Gross definite-lived intangible assets809 837 
Less: accumulated amortization(231)(228)
Net definite-lived intangible assets578 609 
Indefinite-lived intangible assets:
Jimmy Choo brand (2)
296 321 
Versace brand (1)
865 917 
Net indefinite-lived intangible assets1,161 1,238 
Total intangible assets, excluding goodwill$1,739 $1,847 
Goodwill (3)
$1,336 $1,418 
(1)The change in the carrying value since April 2, 2022 reflects the impact of foreign currency translation.
(2)Includes accumulated impairment of $249 million as of July 2, 2022 and April 2, 2022. The change in the carrying value since April 2, 2022 reflects the impact of foreign currency translation.
(3)Includes accumulated impairment of $265 million related to the Jimmy Choo reporting units as of July 2, 2022 and April 2, 2022. The change in the carrying value since April 2, 2022 reflects the impact of foreign currency translation.
Amortization expense for the Company’s definite-lived intangible assets for the three months ended July 2, 2022 and June 26, 2021 was $11 million and $12 million, respectively.
v3.22.2
Current Assets and Current Liabilities
3 Months Ended
Jul. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Current Assets and Current Liabilities Current Assets and Current Liabilities
Prepaid expenses and other current assets consist of the following (in millions):
July 2,
2022
April 2,
2022
Prepaid taxes$79 $86 
Prepaid contracts17 15 
Prepaid insurance12 
Interest receivable related to net investment hedges11 13 
Other accounts receivables17 
Other73 59 
Total prepaid expenses and other current assets$201 $192 

Accrued expenses and other current liabilities consist of the following (in millions):
July 2,
2022
April 2,
2022
Other taxes payable$71 $61 
Return liabilities56 52 
Accrued capital expenditures43 39 
Accrued advertising and marketing22 21 
Accrued rent (1)
21 20 
Gift cards and retail store credits15 17 
Professional services14 15 
Accrued litigation12 13 
Accrued purchases and samples12 11 
Charitable donations (2)
10 10 
Accrued interest10 
Other100 82 
Total accrued expenses and other current liabilities$379 $351 
(1)The accrued rent balance relates to variable lease payments.
(2)The charitable donations balance relates to a $10 million unconditional pledge to The Versace Foundation as of July 2, 2022 and April 2, 2022.
v3.22.2
Restructuring and Other Charges
3 Months Ended
Jul. 02, 2022
Restructuring and Related Activities [Abstract]  
Restructuring and Other Charges Restructuring and Other Charges
Capri Retail Store Optimization Program
During Fiscal 2022, the Company completed its plan to close certain retail stores as part of its Capri Retail Store Optimization Program.
During the three months ended June 26, 2021, the Company closed 10 of its retail stores, which have been incorporated into the Capri Retail Store Optimization Program. Net restructuring charges recorded in connection with the Capri Retail Store Optimization Program during the three months ended June 26, 2021 were $(3) million.

Other Restructuring Charges
In addition to the restructuring charges related to the completed Capri Retail Store Optimization Program, the Company did not record costs for the three months ended July 2, 2022. During the three months ended June 26, 2021, the Company recorded costs of $1 million, primarily relating to closures of certain corporate locations.
Other CostsThe Company recorded costs of $3 million and $5 million during the three months ended July 2, 2022 and June 26, 2021, respectively, primarily related to equity awards associated with the acquisition of Versace.
v3.22.2
Debt Obligations
3 Months Ended
Jul. 02, 2022
Debt Disclosure [Abstract]  
Debt Obligations Debt Obligations
The following table presents the Company’s debt obligations (in millions):
July 2,
2022
April 2,
2022
Revolving Credit Facilities$922 $175 
Senior Notes due 2024450 450 
Term Loan— 497 
Other49 42 
Total debt 1,421 1,164 
Less: Unamortized debt issuance costs
Less: Unamortized discount on senior notes
Total carrying value of debt1,419 1,160 
Less: Short-term debt37 29 
Total long-term debt
$1,382 $1,131 
On July 1, 2022, the Company entered into a revolving credit facility (the “2022 Credit Facility”) with, among others, JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), as administrative agent (the “Administrative Agent”), which refinanced its existing senior unsecured revolving credit facility. The Company, a U.S. subsidiary of the Company, a Canadian subsidiary of the Company, a Dutch subsidiary of the Company and a Swiss subsidiary of the Company are the borrowers under the 2022 Credit Facility, and the borrowers and certain subsidiaries of the Company provide unsecured guaranties of the 2022 Credit Facility. The 2022 Credit Facility replaced the third amended and restated senior unsecured credit facility, dated as of November 15, 2018 (the “2018 Credit Facility”).
The 2022 Credit Facility provides for a $1.5 billion revolving credit facility (the “2022 Revolving Credit Facility”), which may be denominated in U.S. Dollars and other currencies, including Euros, Canadian Dollars, Pounds Sterling, Japanese Yen and Swiss Francs. The 2022 Revolving Credit Facility also includes sub-facilities for the issuance of letters of credit of up to $125 million and swing line loans at the Administrative Agent’s discretion of up to $100 million. The Company has the ability to expand its borrowing availability under the 2022 Credit Facility in the form of increased revolving commitments or one or more tranches of term loans by up to an additional $500 million, subject to the agreement of the participating lenders and certain other customary conditions.
Borrowings under the 2022 Credit Facility bear interest, at the Company’s option, at the following rates:
For loans denominated in U.S. Dollars, (A) an alternate base rate, which is the greatest of (a) the prime rate publicly announced from time to time by JPMorgan Chase, (b) the greater of the federal funds effective rate and the Federal Reserve Bank of New York overnight bank funding rate and zero, plus 50 basis points, and (c) the greater of term SOFR for an interest period of one month plus 10 basis points and zero, plus 100 basis points, (B) the greater of term SOFR for the applicable interest period plus 10 basis points (“Adjusted Term SOFR”) and zero or (C) the greater of daily simple SOFR plus 10 basis points and zero;
For loans denominated in Pounds Sterling, the greater of Secured Overnight Index Average (“SONIA”) and zero;
For loans denominated in Swiss Francs, the greater of Swiss Average Rate Overnight (“SARON”) and zero;
For loans denominated in Euro, the greater of Euro Interbank Offer Rate (“EURIBOR”) for the applicable interest period adjusted for statutory reserve requirements (“Adjusted EURIBOR Rate”) and zero;
For loans denominated in Canadian Dollars, the greater of the rate applicable to Canadian Dollar Canadian banker’s acceptances quoted on Reuters for the applicable interest period adjusted for statutory reserve requirements (“Adjusted CDOR Rate”) and zero; and
For loans denominated in Japanese Yen, the greater of Tokyo Interbank Offer Rate (“TIBOR”) for the applicable interest period adjusted for statutory reserve requirements (“Adjusted TIBOR Rate”) and zero; in each case, plus an applicable margin based on the Company’s public debt ratings and/or net leverage ratio.
The 2022 Credit Facility provides for an annual administration fee and a commitment fee equal to 7.5 basis points to 17.5 basis points per annum, which was 15.0 basis points as of July 2, 2022. The fees are based on the Company’s public debt ratings and/or net leverage ratio, applied to the average daily unused amount of the 2022 Credit Facility.
Loans under the 2022 Credit Facility may be prepaid and commitments may be terminated or reduced by the borrowers without premium or penalty other than customary “breakage” costs with respect to loans bearing interest based upon Adjusted Term SOFR, the Adjusted EURIBOR Rate, the Adjusted CDOR Rate and the Adjusted TIBOR Rate.

The 2022 Credit Facility requires the Company to maintain a net leverage ratio as of the end of each fiscal quarter of no greater than 4.0 to 1.0. Such net leverage ratio is calculated as the ratio of the sum of total indebtedness as of the date of the measurement plus the capitalized amount of all operating lease obligations, minus unrestricted cash and cash equivalents not to exceed $200 million, to Consolidated EBITDAR for the last four consecutive fiscal quarters. Consolidated EBITDAR is defined as consolidated net income plus provision for taxes based on income, profits or capital, net interest expense, depreciation and amortization expense, consolidated rent expense and other non-cash losses, charge and expenses, subject to certain additions and deductions. The 2022 Credit Facility also includes covenants that limit additional indebtedness, liens, acquisitions and other investments, restricted payments and affiliate transactions.

The 2022 Credit Facility also contains events of default customary for financings of this type, including, but not limited to, payment defaults, material inaccuracy of representations and warranties, covenant defaults, cross-defaults to certain indebtedness, certain events of bankruptcy or insolvency, certain events under the Employee Retirement Income Security Act, material judgments, actual or asserted failure of any guaranty supporting the 2022 Credit Facility to be in full force and effect, and changes of control. If such an event of default occurs and is continuing, the lenders under the 2022 Credit Facility would be entitled to take various actions, including, but not limited to, terminating the commitments and accelerating amounts outstanding under the 2022 Credit Facility.
As of July 2, 2022, and the date these financial statements were issued, the Company was in compliance with all covenants related to the 2022 Credit Facility.
As of July 2, 2022, the Company had $922 million of borrowings outstanding under the 2022 Revolving Credit Facility and $175 million of borrowings outstanding under revolver in the 2018 Credit Facility as of April 2, 2022. In addition, stand-by letters of credit of $21 million were outstanding as of both July 2, 2022 and April 2, 2022. At July 2, 2022, the amount available for future borrowings under the 2022 Revolving Credit Facility was $557 million and $804 million for future borrowings under the revolver in the 2018 Credit Facility as of April 2, 2022.
As of July 2, 2022, the Company no longer had a term loan facility outstanding. As of April 2, 2022, the carrying value of term loan outstanding under the 2018 Credit Facility was $495 million, which was recorded within long-term debt in the Company’s consolidated balance sheets.
As of July 2, 2022, the Company had $7 million of deferred financing fees associated with the 2022 Credit Facility and $3 million of deferred financing fees associated with the 2018 Credit Facility as of April 2, 2022, which were recorded within other assets in the Company’s consolidated balance sheets.
The Company offers a supplier financing program which enables suppliers, at their sole discretion, to sell their receivables (i.e., the Company’s payment obligations to suppliers) to a financial institution on a non-recourse basis in order to be paid earlier than current payment terms provide. The Company’s obligations, including the amount due and scheduled payment dates, are not impacted by a suppliers’ decision to participate in this program. The Company does not reimburse suppliers for any costs they incur to participate in the program and their participation is voluntary. The amount outstanding under this program as of July 2, 2022 and April 2, 2022 was $36 million and $21 million, respectively, and is presented as short-term debt in the Company’s consolidated balance sheets.
During Fiscal 2022, the Company's subsidiary, Versace, entered into an agreement with Banco BPM Banking Group (“the Bank”) to sell certain tax receivables to the Bank in exchange for cash. The arrangement was determined to be a financing arrangement because the de-recognition criteria for the receivables was not met at the time of the cash receipt from the Bank. As of July 2, 2022, the outstanding balance was $10 million, with $1 million and $9 million recorded within short-term debt and long-term debt in the Company’s consolidated balance sheets, respectively. As of April 2, 2022, the outstanding balance was $18 million, with $8 million and $10 million recorded within short-term debt and long-term debt in the Company’s consolidated balance sheets, respectively.
See Note 11 to the Company’s Fiscal 2022 Annual Report on Form 10-K for additional information regarding the Company’s credit facilities and debt obligations.
v3.22.2
Commitments and Contingencies
3 Months Ended
Jul. 02, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
In the ordinary course of business, the Company is party to various legal proceedings and claims. Although the outcome of such claims cannot be determined with certainty, the Company believes that the outcome of all pending legal proceedings, in the aggregate, will not have a material adverse effect on its cash flow, results of operations or financial position.
Please refer to the Contractual Obligations and Commercial Commitments disclosure within the Liquidity and Capital Resources section of the Company’s Annual Report on Form 10-K for the fiscal year ended April 2, 2022 for a detailed disclosure of other commitments and contractual obligations as of April 2, 2022.
v3.22.2
Fair Value Measurements
3 Months Ended
Jul. 02, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Financial assets and liabilities are measured at fair value using the three-level valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy of a particular asset or liability depends on the inputs used in the valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally derived (unobservable). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs based on a company’s own assumptions about market participant assumptions based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs as follows:
Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that a company has the ability to access at the measurement date.
Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs derived principally from or corroborated by observable market data.
Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

At July 2, 2022 and April 2, 2022, the fair values of the Company’s derivative contracts were determined using broker quotations, which were calculations derived from observable market information: the applicable currency rates at the balance sheet date and those forward rates particular to the contract at inception. The Company makes no adjustments to these broker obtained quotes or prices, but assesses the credit risk of the counterparty and would adjust the provided valuations for counterparty credit risk when appropriate. The fair values of the forward contracts are included in prepaid expenses and other current assets, and in accrued expenses and other current liabilities in the consolidated balance sheets, depending on whether they represent assets or liabilities to the Company. The fair values of net investment hedges and interest rate swaps are included in other assets, and in other long-term liabilities in the consolidated balance sheets, depending on whether they represent assets or liabilities of the Company. See Note 12 for further detail.
All contracts are measured and recorded at fair value on a recurring basis and are categorized in Level 2 of the fair value hierarchy, as shown in the following table (in millions):
 
Fair value at July 2, 2022 using:
Fair value at April 2, 2022 using:
 Quoted prices in
active markets for
identical assets
(Level 1)
Significant
other observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Quoted prices in
active markets for
identical assets
(Level 1)
Significant
other observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Derivative assets:
Forward foreign currency exchange contracts
$— $$— $— $$— 
Net investment hedges— 166 — — 44 — 
Undesignated derivative contracts— — — — 
Total derivative assets$— $175 $— $— $52 $— 
Derivative liabilities:
Net investment hedges$— $$— $— $37 $— 
Total derivative liabilities$— $$— $— $37 $— 
The Company’s long-term debt obligations are recorded in its consolidated balance sheets at carrying values, which may differ from the related fair values. The fair value of the Company’s long-term debt is estimated using external pricing data, including any available quoted market prices and based on other debt instruments with similar characteristics. Borrowings under revolving credit agreements, if outstanding, are recorded at carrying value, which approximates fair value due to the frequent nature of such borrowings and repayments. See Note 9 for detailed information related to carrying values of the Company’s outstanding debt. The following table summarizes the carrying values and estimated fair values of the Company’s short- and long-term debt, based on Level 2 measurements (in millions):
July 2, 2022April 2, 2022
Carrying
Value
Estimated
Fair Value
Carrying
Value
Estimated
Fair Value
Senior Notes due 2024$448 $431 $448 $451 
Term Loan$— $— $495 $490 
Revolving Credit Facilities$922 $922 $175 $175 
The Company’s cash and cash equivalents, accounts receivable and accounts payable are recorded at carrying value, which approximates fair value.
Non-Financial Assets and Liabilities
The Company’s non-financial assets include goodwill, intangible assets, operating lease right-of-use assets and property and equipment. Such assets are reported at their carrying values and are not subject to recurring fair value measurements. The Company’s goodwill and its indefinite-lived intangible assets (Versace and Jimmy Choo brands) are assessed for impairment at least annually, while its other long-lived assets, including operating lease right-of-use assets, property and equipment and definite-lived intangible assets, are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. The Company determines the fair values of these assets based on Level 3 measurements using the Company’s best estimates of the amount and timing of future discounted cash flows, based on historical experience, market conditions, current trends and performance expectations.
The Company recorded no impairment charges during the three months ended July 2, 2022 and June 26, 2021.
v3.22.2
Derivative Financial Instruments
3 Months Ended
Jul. 02, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Forward Foreign Currency Exchange Contracts
The Company uses forward foreign currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain of its transactions. The Company, in its normal course of business, enters into transactions with foreign suppliers and seeks to minimize risks related to certain forecasted inventory purchases by using forward foreign currency exchange contracts. The Company only enters into derivative instruments with highly credit-rated counterparties. The Company does not enter into derivative contracts for trading or speculative purposes.
Net Investment Hedges
During the first quarter of Fiscal 2023, the Company modified multiple fixed-to-fixed cross-currency swap agreements with aggregate notional amounts of $1.094 billion to hedge its net investment, of which $900 million was in Euro denominated subsidiaries and $194 million was in Japanese-Yen denominated subsidiaries. The modification of these swaps resulted in the Company receiving $66 million in cash during the first quarter of Fiscal 2023. These contracts have been designated as net investment hedges.
Certain of these contracts are supported by a credit support annex (“CSA”) which provides for collateral exchange with the earliest effective date being May 2027. If the outstanding position of a contract exceeds a certain threshold governed by the aforementioned CSA’s, either party is required to post cash collateral.
As of July 2, 2022, the Company had multiple fixed-to-fixed cross-currency swap agreements with aggregate notional amounts of $4 billion to hedge its net investment in Euro denominated subsidiaries and $194 million to hedge its net investment in Japanese Yen denominated subsidiaries against future volatility in the exchange rates between the U.S. Dollar and these currencies. Under the terms of these contracts, the Company will exchange the semi-annual fixed rate payments on U.S. denominated debt for fixed rate payments of 0% to 2.872% in Euros and 1.061% to 2.858% in Japanese Yen. These contracts have maturity dates between March 2024 and February 2051 and have been designated as net investment hedges.
When a cross-currency swap is used as a hedging instrument in a net investment hedge assessed under the spot method, the cross-currency basis spread is excluded from the assessment of hedge effectiveness and is recognized as a reduction in interest expense in the Company’s consolidated statements of operations and comprehensive income. Accordingly, the Company recorded interest income of $17 million and $12 million during the three months ended July 2, 2022 and June 26, 2021, respectively.
The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of July 2, 2022 and April 2, 2022 (in millions):
Fair Values
 Notional AmountsAssetsLiabilities
 July 2,
2022
April 2,
2022
July 2,
2022
April 2,
2022
July 2,
2022
April 2,
2022
Designated forward foreign currency exchange contracts$100 $119 $
(1)
$
(1)
$— $— 
Designated net investment hedges4,194 4,194 166 
(2)
44 
(2)
(3)
37 
(3)
Total designated hedges4,294 4,313 174 48 37 
Undesignated derivative contracts (4)
10 38 — — 
Total$4,304 $4,351 $175 $52 $$37 
(1)Recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets.
(2)Recorded within other assets in the Company’s consolidated balance sheets.
(3)Recorded within other long-term liabilities in the Company’s consolidated balance sheets.
(4)Represents undesignated hedges of inventory purchases.
The Company records and presents the fair values of all of its derivative assets and liabilities in its consolidated balance sheets on a gross basis, as shown in the previous table. However, if the Company were to offset and record the asset and liability balances for its derivative instruments on a net basis in accordance with the terms of its master netting arrangements, which provide for the right to set-off amounts for similar transactions denominated in the same currencies, the resulting impact as of July 2, 2022 and April 2, 2022 would be as follows (in millions):
Forward Currency
Exchange Contracts
Net Investment
Hedges
July 2,
2022
April 2,
2022
July 2,
2022
April 2,
2022
Assets subject to master netting arrangements
$$$166 $44 
Liabilities subject to master netting arrangements
$— $— $$37 
Derivative assets, net$$$166 $42 
Derivative liabilities, net$— $— $$35 
Currently, the Company’s master netting arrangements do not require cash collateral to be pledged by the Company or its counterparties.
Changes in the fair value of the Company’s forward foreign currency exchange contracts that are designated as accounting hedges are recorded in equity as a component of accumulated other comprehensive income and are reclassified from accumulated other comprehensive income into earnings when the items underlying the hedged transactions are recognized into earnings, as a component of cost of goods sold within the Company’s consolidated statements of operations and comprehensive income. The net gain or loss on net investment hedges are reported within CTA as a component of accumulated other comprehensive income on the Company’s consolidated balance sheets. Upon discontinuation of the hedge, such amounts remain in CTA until the related investment is sold or liquidated.
The following table summarizes the pre-tax impact of the gains and losses on the Company’s designated forward foreign currency exchange contracts, net investment hedges and interest rate swaps (in millions):
Three Months Ended
July 2, 2022June 26, 2021
Pre-Tax Gains
Recognized in OCI
Pre-Tax Gains (Losses)
Recognized in OCI
Designated forward foreign currency exchange contracts
$$(1)
Designated net investment hedges$213 $83 
The following tables summarize the pre-tax impact of the gains and losses within the consolidated statements of operations and comprehensive income related to the designated forward foreign currency exchange contracts for the three months ended July 2, 2022 and June 26, 2021 (in millions):
Three Months Ended
Pre-Tax (Gain) Loss Reclassified from
Accumulated OCI
Location of (Gain) Loss Recognized
July 2, 2022June 26, 2021
Designated forward foreign currency exchange contracts
$(4)$Cost of goods sold
The Company expects that substantially all of the amounts currently recorded in accumulated other comprehensive income for its forward foreign currency exchange contracts will be reclassified into earnings during the next 12 months, based upon the timing of inventory purchases and turnover.
Undesignated HedgesDuring the three months ended July 2, 2022, a $2 million gain was recognized within foreign currency loss in the Company’s consolidated statements of operations and comprehensive income as a result of the changes in the fair value of undesignated forward foreign currency exchange contracts. During the three months ended June 26, 2021, the net impact of changes in the fair value of undesignated forward foreign currency exchange contracts recognized within foreign currency loss in the Company’s consolidated statements of operations and comprehensive income was immaterial.
v3.22.2
Shareholders' Equity
3 Months Ended
Jul. 02, 2022
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
Share Repurchase Program
During the first quarter of Fiscal 2022, the Company reinstated its $500 million share repurchase program, which was previously suspended during the first quarter of Fiscal 2021 in response to the impact of the COVID-19 pandemic and the provisions of the 2018 Credit Facility. Subsequently, on November 3, 2021, the Company announced that its Board of Directors had terminated the Company’s existing $500 million share repurchase program (the “Prior Plan”), which had $250 million of availability remaining at the time, and authorized a new share repurchase program (the “Fiscal 2022 Plan”) pursuant to which the Company may, from time to time, repurchase up to $1.0 billion of its outstanding ordinary shares within a period of two years from the effective date of the program.
On June 1, 2022, the Company announced that its Board of Directors has terminated the Fiscal 2022 Plan, with $500 million of availability remaining, and authorized a new share repurchase program (the “Fiscal 2023 Plan”) pursuant to which the Company may, from time to time, repurchase up to $1.0 billion of its outstanding ordinary shares within a period of two years from the effective date of the program.
During the three months ended July 2, 2022, the Company purchased 6,120,174 shares for a total cost of approximately $300 million, including commissions, under the Fiscal 2023 Plan. As of July 2, 2022, the remaining availability under the Company’s existing share repurchase program was $700 million.
During the three months ended June 26, 2021, the Company purchased 921,080 shares for a total cost of approximately $50 million, including commission, through open market transactions under the Prior Plan.
Share repurchases may be made in open market or privately negotiated transactions, subject to market conditions, applicable legal requirements, trading transactions under the Company’s insider trading policy and other relevant factors. The program may be suspended or discontinued at any time.
The Company also has in place a “withhold to cover” repurchase program, which allows the Company to withhold ordinary shares from certain executive officers and directors to satisfy minimum tax withholding obligations relating to the vesting of their restricted share awards. During the three month periods ended July 2, 2022 and June 26, 2021, the Company withheld 265,311 shares and 167,070 shares, respectively, with a fair value of $12 million and $9 million, respectively, in satisfaction of minimum tax withholding obligations relating to the vesting of restricted share awards.
Accumulated Other Comprehensive Income
The following table details changes in the components of accumulated other comprehensive income (“AOCI”), net of taxes, for the three months ended July 2, 2022 and June 26, 2021, respectively (in millions):
Foreign Currency Adjustments (1)
Net Gains (Losses) on Derivatives (2)
Other Comprehensive Income (Loss) Attributable to Capri
Balance at April 2, 2022$184 $10 $194 
Other comprehensive (loss) income before reclassifications(107)(101)
Less: amounts reclassified from AOCI to earnings
— 
Other comprehensive (loss) income, net of tax(107)(105)
Balance at July 2, 2022$77 $12 $89 
Balance at March 27, 2021$57 $(1)$56 
Other comprehensive income (loss) before reclassifications 91 (1)90 
Less: amounts reclassified from AOCI to earnings
— (1)(1)
Other comprehensive income, net of tax91 — 91 
Balance at June 26, 2021$148 $(1)$147 
(1)Foreign currency translation adjustments for the three months ended July 2, 2022 primarily include a $151 million gain, net of taxes of $62 million, relating to the Company’s net investment hedges, and a net $253 million translation loss. Foreign currency translation adjustments for the three months ended June 26, 2021 primarily include a $64 million gain, net of taxes of $19 million, relating to the Company’s net investment hedges, in addition to a net $27 million translation gain.
(2)Reclassified amounts primarily relate to the Company’s forward foreign currency exchange contracts for inventory purchases and are recorded within cost of goods sold in the Company’s consolidated statements of operations and comprehensive income. All tax effects were not material for the periods presented.
v3.22.2
Share-Based Compensation
3 Months Ended
Jul. 02, 2022
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
The Company grants equity awards to certain employees and directors of the Company at the discretion of the Company’s Compensation and Talent Committee. The Company has two equity plans, one stock option plan adopted in Fiscal 2008 (as amended and restated, the “2008 Plan”), and the Omnibus Incentive Plan adopted in the third fiscal quarter of Fiscal 2012 and amended and restated with shareholder approval in May 2015, and again in June 2020 (the “Incentive Plan”). The 2008 Plan only provided for grants of share options and was authorized to issue up to 23,980,823 ordinary shares. As of July 2, 2022, there were no shares available to grant equity awards under the 2008 Plan.
The Incentive Plan allows for grants of share options, restricted shares and RSUs, and other equity awards, and authorizes a total issuance of up to 18,846,000 ordinary shares after amendments in June 2020. At July 2, 2022, there were 2,516,526 ordinary shares available for future grants of equity awards under the Incentive Plan. Option grants issued from the 2008 Plan generally expire ten years from the date of the grant, and those issued under the Incentive Plan generally expire seven years from the date of the grant.
The following table summarizes the Company’s share-based compensation activity during the three months ended July 2, 2022:
 OptionsService-Based RSUsPerformance-Based RSUs
Outstanding/Unvested at April 2, 2022
355,448 3,827,700 210,192 
Granted— 1,430,545 152,921 
Exercised/Vested(116,570)(1,353,698)(197,874)
Canceled/Forfeited— (37,753)— 
Outstanding/Unvested at July 2, 2022
238,878 3,866,794 165,239 
The weighted average grant date fair value of service-based and performance-based RSUs granted during the three months ended July 2, 2022 was $49.02 and $47.41, respectively. The weighted average grant date fair value of service-based RSUs granted during the three months ended June 26, 2021 was $54.67.
Share-Based Compensation Expense
The following table summarizes compensation expense attributable to share-based compensation for the three months ended July 2, 2022 and June 26, 2021 (in millions):
Three Months Ended
July 2,
2022
June 26,
2021
Share-based compensation expense$28 $36 
Tax benefit related to share-based compensation expense$$
Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates forfeitures based on historical forfeiture rates. The estimated value of future forfeitures for equity grants as of July 2, 2022 is approximately $23 million.
See Note 16 in the Company’s Fiscal 2022 Annual Report on Form 10-K for additional information relating to the Company’s share-based compensation awards.
v3.22.2
Income Taxes
3 Months Ended
Jul. 02, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesThe Company’s effective tax rate for the three months ended July 2, 2022 was 12.1%. Such rates differ from the United Kingdom (“U.K.”) federal statutory rate of 19% primarily due to the impact of global financing activities. The global financing activities are related to the Company’s 2014 move of its principal executive office from Hong Kong to the U.K. and decision to become a U.K. tax resident. In connection with this decision, the Company funded its international growth strategy through intercompany debt financing arrangements. These debt financing arrangements reside between certain of our U.S., U.K. and Hungarian subsidiaries. Due to the difference in the statutory income tax rates between these jurisdictions, the Company realized lower effective tax rates for the three months ended July 2, 2022.
v3.22.2
Segment Information
3 Months Ended
Jul. 02, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company operates its business through three operating segments — Versace, Jimmy Choo and Michael Kors, which are based on its business activities and organization. The reportable segments are segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by the Company’s chief operating decision maker (“CODM”) in deciding how to allocate resources, as well as in assessing performance. The primary key performance indicators are revenue and operating income for each segment. The Company’s reportable segments represent components of the business that offer similar merchandise, customer experience and sales/marketing strategies.
The Company’s three reportable segments are as follows:
Versace — segment includes revenue generated through the sale of Versace luxury ready-to-wear, accessories, and footwear through directly operated Versace boutiques throughout the Americas, certain parts of EMEA and certain
parts of Asia, as well as through Versace outlet stores and e-commerce sites. In addition, revenue is generated through wholesale sales to distribution partners (including geographic licensing arrangements that allow third parties to use the Versace trademarks in connection with retail and/or wholesale sales of Versace branded products in specific geographic regions), multi-brand department stores and specialty stores worldwide, as well as through product license agreements in connection with the manufacturing and sale of jeans, fragrances, watches, jewelry, eyewear and home furnishings.
Jimmy Choo — segment includes revenue generated through the sale of Jimmy Choo luxury footwear, handbags and small leather goods and accessories through directly operated Jimmy Choo retail and outlet stores throughout the Americas, certain parts of EMEA and certain parts of Asia, through its e-commerce sites, as well as through wholesale sales of luxury goods to distribution partners (including geographic licensing arrangements that allow third parties to use the Jimmy Choo trademarks in connection with retail and/or wholesale sales of Jimmy Choo branded products in specific geographic regions), multi-brand department stores and specialty stores worldwide. In addition, revenue is generated through product licensing agreements, which allow third parties to use the Jimmy Choo brand name and trademarks in connection with the manufacturing and sale of fragrances and eyewear.
Michael Kors — segment includes revenue generated through the sale of Michael Kors products through four primary Michael Kors retail store formats: “Collection” stores, “Lifestyle” stores (including concessions), outlet stores and e-commerce sites, through which the Company sells Michael Kors products, as well as licensed products bearing the Michael Kors name, directly to consumers throughout the Americas, certain parts of EMEA and certain parts of Asia. The Company also sells Michael Kors products directly to department stores, primarily located across the Americas and Europe, to specialty stores and travel retail shops, and to its geographic licensees. In addition, revenue is generated through product and geographic licensing arrangements, which allow third parties to use the Michael Kors brand name and trademarks in connection with the manufacturing and sale of products, including watches, jewelry, fragrances and eyewear.
In addition to these reportable segments, the Company has certain corporate costs that are not directly attributable to its brands and, therefore, are not allocated to its segments. Such costs primarily include certain administrative, corporate occupancy, shared service and information system expenses, including enterprise resource planning system implementation costs. In addition, certain other costs are not allocated to segments, including restructuring and other charges and COVID-19 related charges. The segment structure is consistent with how the Company’s CODM plans and allocates resources, manages the business and assesses performance. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance.
The following table presents the key performance information of the Company’s reportable segments (in millions):
 Three Months Ended
 July 2,
2022
June 26,
2021
Total revenue:
Versace$275 $240 
Jimmy Choo172 142 
Michael Kors913 871 
Total revenue$1,360 $1,253 
Income from operations:
Versace$52 $48 
Jimmy Choo19 11 
Michael Kors222 240 
Total segment income from operations293 299 
Less: Corporate expenses
(60)(41)
Restructuring and other charges(3)(3)
COVID-19 related charges
Total income from operations$231 $258 
Depreciation and amortization expense for each segment are as follows (in millions):
 Three Months Ended
 July 2,
2022
June 26,
2021
Depreciation and amortization:
Versace$12 $14 
Jimmy Choo
Michael Kors25 29 
Corporate— 
Total depreciation and amortization$45 $50 

Total revenue (based on country of origin) by geographic location are as follows (in millions):
 Three Months Ended
 July 2,
2022
June 26,
2021
Revenue:
The Americas (United States, Canada and Latin America) (1)
$794 $715 
EMEA364 302 
Asia202 236 
Total revenue$1,360 $1,253 
(1)Total revenue earned in the U.S. was $733 million and $671 million for the three months ended July 2, 2022 and June 26, 2021, respectively.
v3.22.2
Subsequent Events
3 Months Ended
Jul. 02, 2022
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Net Investment Hedges
During the second quarter of Fiscal 2023, the Company terminated multiple fixed-to-fixed cross-currency swap agreements with aggregate notional amounts of $4 billion related to its net investment in Euro denominated subsidiaries, while subsequently replacing these terminated contracts with aggregate notional amounts of $2 billion to hedge its net investment in Euro denominated subsidiaries. The modification of these hedges resulted in the Company receiving $237 million in cash during the second quarter of Fiscal 2023. These contracts have been designated as net investment hedges.

Third Amended and Restated Omnibus Incentive Plan
On August 3, 2022, the Company filed a Registration Statement in accordance with the requirements of Form S-8 under the Securities Act of 1933, as amended, to register an additional 3,625,000 of its ordinary shares, no par value, that are reserved for issuance under the Capri Holdings Limited Third Amended and Restated Omnibus Incentive Plan (the “Plan”). An amendment to increase the number of shares available to be awarded under the Plan was approved by the Company’s shareholders on August 3, 2022.
v3.22.2
Summary of Significant Accounting Policies (Policies)
3 Months Ended
Jul. 02, 2022
Accounting Policies [Abstract]  
Consolidation The interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned or controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The interim consolidated financial statements as of July 2, 2022 and for the three months ended July 2, 2022 and June 26, 2021 are unaudited. The Company consolidates the results of its Versace business on a one-month lag, as consistent with prior periods. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, necessary for a fair presentation in conformity with U.S. GAAP. The interim consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended April 2, 2022, as filed with the Securities and Exchange Commission on June 1, 2022, in the Company’s Annual Report on Form 10-K. The results of operations for the interim periods should not be considered indicative of results to be expected for the full fiscal year.
Fiscal Period The Company utilizes a 52- to 53-week fiscal year and the term “Fiscal Year” or “Fiscal” refers to that 52- or 53-week period. The results for the three months ended July 2, 2022 and June 26, 2021 are based on 13-week periods. The Company’s Fiscal Year 2023 is a 52-week period ending April 1, 2023.
Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to use judgment and make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are completed. The most significant assumptions and estimates involved in preparing the financial statements include allowances for customer deductions, sales returns, sales discounts, credit losses, estimates of inventory net realizable value, the valuation of share-based compensation, the valuation of deferred taxes, goodwill, intangible assets, operating lease right-of-use assets and property and equipment, along with the estimated useful lives assigned to these assets. Actual results could differ from those estimates.
Seasonality The Company experiences certain effects of seasonality with respect to its business.
Inventories, net Inventories primarily consist of finished goods with the exception of raw materials and work in process inventory.
Derivative Financial Instruments
Forward Foreign Currency Exchange Contracts
The Company uses forward foreign currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain transactions. The Company, in its normal course of business, enters into transactions with foreign suppliers and seeks to minimize risks related to these transactions. The Company employs these contracts to hedge the Company’s cash flows, as they relate to foreign currency transactions. Certain of these contracts are designated as hedges for accounting purposes, while others remain undesignated. All of the Company’s derivative instruments are recorded in the Company’s consolidated balance sheets at fair value on a gross basis, regardless of their hedge designation.
The Company designates certain contracts related to the purchase of inventory that qualify for hedge accounting as cash flow hedges. Formal hedge documentation is prepared for all derivative instruments designated as hedges, including a description of the hedged item and the hedging instrument and the risk being hedged. The changes in the fair value for contracts designated as cash flow hedges is recorded in equity as a component of accumulated other comprehensive income until the hedged item affects earnings. When the inventory related to forecasted inventory purchases that are being hedged is sold to a third party, the gains or losses deferred in accumulated other comprehensive income are recognized within cost of goods sold. The Company uses regression analysis to assess effectiveness of derivative instruments that are designated as hedges, which compares the change in the fair value of the derivative instrument to the change in the related hedged item. If the hedge is no longer expected to be highly effective in the future, future changes in the fair value are recognized in earnings. For those contracts that are not designated as hedges, changes in the fair value are recorded to foreign currency loss in the Company’s consolidated statements of operations and comprehensive income. The Company classifies cash flows relating to its forward foreign currency exchange contracts related to purchase of inventory consistently with the classification of the hedged item, within cash flows from operating activities.
The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. In order to mitigate counterparty credit risk, the Company only enters into contracts with carefully selected financial institutions based upon their credit ratings and certain other financial factors, adhering to established limits for credit exposure. The aforementioned forward contracts generally have a term of no more than 12 months. The period of these contracts is directly related to the foreign transaction they are intended to hedge.
Net Investment Hedges
The Company also uses fixed-to-fixed cross currency swap agreements to hedge its net investments in foreign operations against future volatility in the exchange rates between the U.S. Dollars and the associated foreign currencies. The Company has elected the spot method of designating these contracts under ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”, and has designated these contracts as net investment hedges. The net gain or loss on the net investment hedge is reported within foreign currency translation gains and losses (“CTA”), as a component of accumulated other comprehensive income on the Company’s consolidated balance sheets. Interest accruals and coupon payments are recognized directly in interest (income) expense, net, in the Company’s consolidated statements of operations and
comprehensive income. Upon discontinuation of a hedge, all previously recognized amounts remain in CTA until the net investment is sold, diluted or liquidated.
Leases
The Company leases retail stores, office space and warehouse space under operating lease agreements that expire at various dates through September 2043. The Company’s leases generally have terms of up to 10 years, generally require a fixed annual rent and may require the payment of additional rent if store sales exceed a negotiated amount. Although most of the Company’s equipment is owned, the Company has limited equipment leases that expire on various dates through May 2026. The Company acts as sublessor in certain leasing arrangements, primarily related to closed stores from previous restructuring activities. Fixed sublease payments received are recognized on a straight-line basis over the sublease term. The Company determines the sublease term based on the date it provides possession to the subtenant through the expiration date of the sublease.

The Company recognizes operating lease right-of-use assets and lease liabilities at lease commencement date, based on the present value of fixed lease payments over the expected lease term. The Company uses its incremental borrowing rates to determine the present value of fixed lease payments based on the information available at the lease commencement date, as the rate implicit in the lease is not readily determinable for the Company’s leases. The Company’s incremental borrowing rates are based on the term of the leases, the economic environment of the leases and reflect the expected interest rate it would incur to borrow on a secured basis. Certain leases include one or more renewal options. The exercise of lease renewal options is generally at the Company’s sole discretion and as such, the Company typically determines that exercise of these renewal options is not reasonably certain. As a result, the Company generally does not include the renewal option period in the expected lease term and the associated lease payments are not included in the measurement of the operating lease right-of-use asset and lease liability. Certain leases also contain termination options with an associated penalty. Generally, the Company is reasonably certain not to exercise these options and as such, they are not included in the determination of the expected lease term. The Company recognizes operating lease expense on a straight-line basis over the lease term.

Leases with an initial lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for its short-term leases on a straight-line basis over the lease term.

The Company’s leases generally provide for payments of non-lease components, such as common area maintenance, real estate taxes and other costs associated with the leased property. The Company accounts for lease and non-lease components of its real estate leases together as a single lease component and, as such, includes fixed payments of non-lease components in the measurement of the operating lease right-of-use assets and lease liabilities for its real estate leases. Variable lease payments, such as percentage rentals based on sales, periodic adjustments for inflation, reimbursement of real estate taxes, any variable common area maintenance and any other variable costs associated with the leased property are expensed as incurred as variable lease costs and are not recorded on the balance sheet. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or covenants.
Net Income (Loss) per Share The Company’s basic net income per ordinary share is calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period. Diluted net income per ordinary share reflects the potential dilution that would occur if share option grants or any other potentially dilutive instruments, including restricted shares and restricted share units (“RSUs”), were exercised or converted into ordinary shares. These potentially dilutive securities are included in diluted shares to the extent they are dilutive under the treasury stock method for the applicable periods. Performance-based RSUs are included as diluted shares if the related performance conditions are considered satisfied as of the end of the reporting period and to the extent they are dilutive under the treasury stock method.
Recently Issued Accounting Pronouncements
Reference Rate Reform
In March 2020, the FASB issued ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and in January 2021, issued ASU 2021-01, “Reference Rate Reform: Scope”. Both of these updates aim to ease the potential burden in accounting for reference rate reform. These updates provide optional expedients and exceptions, if certain criteria are met, for applying accounting principles generally accepted in the United States to contract modifications, hedging relationships and other transactions affected by the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). The amendments were effective upon issuance and allowed companies to adopt the amendments on a prospective basis through December 31, 2022. The Company does not expect the adoption of this standard to have a material impact on the Company’s results of operations, financial condition or cash flows based on current information.
The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on the Company’s results of operations, financial condition or cash flows based on current information.
Revenue Recognition
The Company accounts for contracts with its customers when there is approval and commitment from both parties, the rights of the parties and payment terms have been identified, the contract has commercial substance and collectibility of consideration is probable. Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services.
The Company sells its products through three primary channels of distribution: retail, wholesale and licensing. Within the retail and wholesale channels, substantially all of the Company’s revenues consist of sales of products that represent a single performance obligation, where control transfers at a point in time to the customer. For licensing arrangements, royalty and advertising revenue is recognized over time based on access provided to the Company’s trademarks.
Retail
The Company generates sales through directly operated stores and e-commerce sites throughout the Americas (United States, Canada and Latin America), certain parts of EMEA (Europe, Middle East and Africa) and certain parts of Asia (Asia and Oceania).
Gift Cards. The Company sells gift cards that can be redeemed for merchandise, resulting in a contract liability upon issuance. Revenue is recognized when the gift card is redeemed or upon “breakage” for the estimated portion of gift cards that are not expected to be redeemed. “Breakage” revenue is calculated under the proportional redemption methodology, which considers the historical patterns of redemption in jurisdictions where the Company is not required to remit the value of the unredeemed gift cards as unclaimed property. The contract liability related to gift cards, net of estimated “breakage”, of $15 million and $13 million as of July 2, 2022 and April 2, 2022, respectively, is included within accrued expenses and other current liabilities in the Company’s consolidated balance sheet.
Loyalty Program. The Company offers a loyalty program, which allows its Michael Kors United States customers to earn points on qualifying purchases toward monetary and non-monetary rewards, which may be redeemed for purchases at Michael Kors retail stores and e-commerce sites. The Company defers a portion of the initial sales transaction based on the estimated relative fair value of the benefits based on projected timing of future redemptions and historical activity. These amounts include estimated “breakage” for points that are not expected to be redeemed.
Wholesale
The Company’s products are sold primarily to major department stores, specialty stores and travel retail shops throughout the Americas, EMEA and Asia. The Company also has arrangements where its products are sold to geographic licensees in certain parts of EMEA, Asia and South America.
Licensing
The Company provides its third-party licensees with the right to access its Versace, Jimmy Choo and Michael Kors trademarks under product and geographic licensing arrangements. Under geographic licensing arrangements, third party licensees receive the right to distribute and sell products bearing the Company’s trademarks in retail and/or wholesale channels within certain geographical areas, including Brazil, the Middle East, Eastern Europe, South Africa and certain parts of Asia.
The Company recognizes royalty revenue and advertising contributions based on the percentage of sales made by the licensees. Generally, the Company’s guaranteed minimum royalty amounts due from licensees relate to contractual periods that do not exceed 12 months, however, certain guaranteed minimums for Versace are multi-year based.
Receivables, net Receivables are presented net of allowances for discounts, markdowns, operational chargebacks and credit losses. Discounts are based on open invoices where trade discounts have been extended to customers. Markdowns are based on wholesale customers’ sales performance, seasonal negotiations with customers, historical deduction trends and an evaluation of current market conditions. Operational chargebacks are based on deductions taken by customers, net of expected recoveries. Such provisions, and related recoveries, are reflected in revenues.The Company’s allowance for credit losses is determined through analysis of periodic aging of receivables and assessments of collectibility based on an evaluation of historic and anticipated trends, the financial condition of the Company’s customers and the impact of general economic conditions. The past due status of a receivable is based on its contractual terms. Amounts deemed uncollectible are written off against the allowance when it is probable the amounts will not be recovered.
Fair Value Measurements At July 2, 2022 and April 2, 2022, the fair values of the Company’s derivative contracts were determined using broker quotations, which were calculations derived from observable market information: the applicable currency rates at the balance sheet date and those forward rates particular to the contract at inception. The Company makes no adjustments to these broker obtained quotes or prices, but assesses the credit risk of the counterparty and would adjust the provided valuations for counterparty credit risk when appropriate. The fair values of the forward contracts are included in prepaid expenses and other current assets, and in accrued expenses and other current liabilities in the consolidated balance sheets, depending on whether they represent assets or liabilities to the Company. The fair values of net investment hedges and interest rate swaps are included in other assets, and in other long-term liabilities in the consolidated balance sheets, depending on whether they represent assets or liabilities of the Company.The Company’s long-term debt obligations are recorded in its consolidated balance sheets at carrying values, which may differ from the related fair values. The fair value of the Company’s long-term debt is estimated using external pricing data, including any available quoted market prices and based on other debt instruments with similar characteristics. Borrowings under revolving credit agreements, if outstanding, are recorded at carrying value, which approximates fair value due to the frequent nature of such borrowings and repayments.The Company’s cash and cash equivalents, accounts receivable and accounts payable are recorded at carrying value, which approximates fair value.
Non-Financial Assets and Liabilities The Company’s non-financial assets include goodwill, intangible assets, operating lease right-of-use assets and property and equipment. Such assets are reported at their carrying values and are not subject to recurring fair value measurements. The Company’s goodwill and its indefinite-lived intangible assets (Versace and Jimmy Choo brands) are assessed for impairment at least annually, while its other long-lived assets, including operating lease right-of-use assets, property and equipment and definite-lived intangible assets, are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. The Company determines the fair values of these assets based on Level 3 measurements using the Company’s best estimates of the amount and timing of future discounted cash flows, based on historical experience, market conditions, current trends and performance expectations.
v3.22.2
Summary of Significant Accounting Policies (Tables)
3 Months Ended
Jul. 02, 2022
Accounting Policies [Abstract]  
Schedule of Cash and Cash Equivalents
A reconciliation of cash, cash equivalents and restricted cash as of July 2, 2022 and April 2, 2022 from the consolidated balance sheets to the consolidated statements of cash flows is as follows (in millions):
 July 2,
2022
April 2,
2022
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents$221 $169 
Restricted cash included within prepaid expenses and other current assets
Total cash, cash equivalents and restricted cash shown on the consolidated statements of cash flows$224 $172 
Restrictions on Cash and Cash Equivalents
A reconciliation of cash, cash equivalents and restricted cash as of July 2, 2022 and April 2, 2022 from the consolidated balance sheets to the consolidated statements of cash flows is as follows (in millions):
 July 2,
2022
April 2,
2022
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents$221 $169 
Restricted cash included within prepaid expenses and other current assets
Total cash, cash equivalents and restricted cash shown on the consolidated statements of cash flows$224 $172 
Schedule of Net Lease Costs and Supplemental Cash Flow Information
The following table presents the Company’s supplemental cash flow information related to leases (in millions):
Three Months Ended
July 2, 2022June 26, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases (1)
$125 $149 
(1)Operating cash flows used in operating leases for the three months ended June 26, 2021 excluded $4 million of deferred rent payments due to the COVID-19 pandemic.
Schedule of Components of Calculation of Basic Net Income Per Ordinary Share and Diluted Net Income Per Ordinary Share
The components of the calculation of basic net income per ordinary share and diluted net income per ordinary share are as follows (in millions, except share and per share data):
 Three Months Ended
July 2,
2022
June 26,
2021
Numerator:
Net income attributable to Capri$201 $219 
Denominator:
Basic weighted average shares141,913,586 151,312,103 
Weighted average dilutive share equivalents:
Share options and restricted shares/units, and performance restricted share units
1,820,398 3,578,380 
Diluted weighted average shares143,733,984 154,890,483 
Basic net income per share (1)
$1.42 $1.45 
Diluted net income per share (1)
$1.40 $1.41 
(1)Basic and diluted net income per share are calculated using unrounded numbers.
v3.22.2
Revenue Recognition (Tables)
3 Months Ended
Jul. 02, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Contractually Guaranteed Minimum Fees As of July 2, 2022, contractually guaranteed minimum fees from the Company’s license agreements expected to be recognized as revenue during future periods were as follows (in millions):
Contractually Guaranteed Minimum Fees
Remainder of Fiscal 2023$23 
Fiscal 202429 
Fiscal 202525 
Fiscal 202622 
Fiscal 202721 
Fiscal 2028 and thereafter46 
 Total$166 
Schedule of Segment Revenues Disaggregated by Geographic Location The following table presents the Company’s segment revenue disaggregated by geographic location (in millions):
 Three Months Ended
 July 2,
2022
June 26,
2021
Versace revenue - the Americas$115 $87 
Versace revenue - EMEA107 87 
Versace revenue - Asia53 66 
 Total Versace275 240 
Jimmy Choo revenue - the Americas54 38 
Jimmy Choo revenue - EMEA66 50 
Jimmy Choo revenue - Asia52 54 
Total Jimmy Choo172 142 
Michael Kors revenue - the Americas625 590 
Michael Kors revenue - EMEA191 165 
Michael Kors revenue - Asia97 116 
 Total Michael Kors913 871 
Total revenue - the Americas794 715 
Total revenue - EMEA364 302 
Total revenue - Asia202 236 
Total revenue$1,360 $1,253 
v3.22.2
Receivables, net (Tables)
3 Months Ended
Jul. 02, 2022
Receivables [Abstract]  
Receivables, net
Receivables, net, consist of (in millions):
July 2,
2022
April 2,
2022
Trade receivables (1)
$426 $461 
Receivables due from licensees21 17 
447 478 
Less: allowances(53)(44)
Total receivables, net$394 $434 
(1)As of July 2, 2022 and April 2, 2022, $89 million and $83 million, respectively, of trade receivables were insured.
v3.22.2
Property and Equipment, net (Tables)
3 Months Ended
Jul. 02, 2022
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, Net Property and equipment, net, consists of (in millions):
July 2,
2022
April 2,
2022
Leasehold improvements$553 $575 
Computer equipment and software229 212 
Furniture and fixtures211 218 
Equipment79 81 
Building46 48 
In-store shops46 47 
Land18 19 
Total property and equipment, gross1,182 1,200 
Less: accumulated depreciation and amortization(783)(790)
Subtotal399 410 
Construction-in-progress67 66 
Total property and equipment, net$466 $476 
v3.22.2
Intangible Assets and Goodwill (Tables)
3 Months Ended
Jul. 02, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Indefinite-Lived Intangible Assets
The following table details the carrying values of the Company’s intangible assets and goodwill (in millions):
 July 2,
2022
April 2,
2022
Definite-lived intangible assets:
Reacquired rights$400 $400 
Trademarks23 23 
Customer relationships (1)
386 414 
Gross definite-lived intangible assets809 837 
Less: accumulated amortization(231)(228)
Net definite-lived intangible assets578 609 
Indefinite-lived intangible assets:
Jimmy Choo brand (2)
296 321 
Versace brand (1)
865 917 
Net indefinite-lived intangible assets1,161 1,238 
Total intangible assets, excluding goodwill$1,739 $1,847 
Goodwill (3)
$1,336 $1,418 
(1)The change in the carrying value since April 2, 2022 reflects the impact of foreign currency translation.
(2)Includes accumulated impairment of $249 million as of July 2, 2022 and April 2, 2022. The change in the carrying value since April 2, 2022 reflects the impact of foreign currency translation.
(3)Includes accumulated impairment of $265 million related to the Jimmy Choo reporting units as of July 2, 2022 and April 2, 2022. The change in the carrying value since April 2, 2022 reflects the impact of foreign currency translation.
Schedule of Finite-Lived Intangible Assets
The following table details the carrying values of the Company’s intangible assets and goodwill (in millions):
 July 2,
2022
April 2,
2022
Definite-lived intangible assets:
Reacquired rights$400 $400 
Trademarks23 23 
Customer relationships (1)
386 414 
Gross definite-lived intangible assets809 837 
Less: accumulated amortization(231)(228)
Net definite-lived intangible assets578 609 
Indefinite-lived intangible assets:
Jimmy Choo brand (2)
296 321 
Versace brand (1)
865 917 
Net indefinite-lived intangible assets1,161 1,238 
Total intangible assets, excluding goodwill$1,739 $1,847 
Goodwill (3)
$1,336 $1,418 
(1)The change in the carrying value since April 2, 2022 reflects the impact of foreign currency translation.
(2)Includes accumulated impairment of $249 million as of July 2, 2022 and April 2, 2022. The change in the carrying value since April 2, 2022 reflects the impact of foreign currency translation.
(3)Includes accumulated impairment of $265 million related to the Jimmy Choo reporting units as of July 2, 2022 and April 2, 2022. The change in the carrying value since April 2, 2022 reflects the impact of foreign currency translation.
v3.22.2
Current Assets and Current Liabilities (Tables)
3 Months Ended
Jul. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in millions):
July 2,
2022
April 2,
2022
Prepaid taxes$79 $86 
Prepaid contracts17 15 
Prepaid insurance12 
Interest receivable related to net investment hedges11 13 
Other accounts receivables17 
Other73 59 
Total prepaid expenses and other current assets$201 $192 
Schedule of Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following (in millions):
July 2,
2022
April 2,
2022
Other taxes payable$71 $61 
Return liabilities56 52 
Accrued capital expenditures43 39 
Accrued advertising and marketing22 21 
Accrued rent (1)
21 20 
Gift cards and retail store credits15 17 
Professional services14 15 
Accrued litigation12 13 
Accrued purchases and samples12 11 
Charitable donations (2)
10 10 
Accrued interest10 
Other100 82 
Total accrued expenses and other current liabilities$379 $351 
(1)The accrued rent balance relates to variable lease payments.
(2)The charitable donations balance relates to a $10 million unconditional pledge to The Versace Foundation as of July 2, 2022 and April 2, 2022.
v3.22.2
Debt Obligations (Tables)
3 Months Ended
Jul. 02, 2022
Debt Disclosure [Abstract]  
Schedule of Debt Obligations The following table presents the Company’s debt obligations (in millions):
July 2,
2022
April 2,
2022
Revolving Credit Facilities$922 $175 
Senior Notes due 2024450 450 
Term Loan— 497 
Other49 42 
Total debt 1,421 1,164 
Less: Unamortized debt issuance costs
Less: Unamortized discount on senior notes
Total carrying value of debt1,419 1,160 
Less: Short-term debt37 29 
Total long-term debt
$1,382 $1,131 
v3.22.2
Fair Value Measurements (Tables)
3 Months Ended
Jul. 02, 2022
Fair Value Disclosures [Abstract]  
Schedule of Contracts Measured and Recorded at Fair Value on Recurring and Categorized in Level 2 of Fair Value Hierarchy
All contracts are measured and recorded at fair value on a recurring basis and are categorized in Level 2 of the fair value hierarchy, as shown in the following table (in millions):
 
Fair value at July 2, 2022 using:
Fair value at April 2, 2022 using:
 Quoted prices in
active markets for
identical assets
(Level 1)
Significant
other observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Quoted prices in
active markets for
identical assets
(Level 1)
Significant
other observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Derivative assets:
Forward foreign currency exchange contracts
$— $$— $— $$— 
Net investment hedges— 166 — — 44 — 
Undesignated derivative contracts— — — — 
Total derivative assets$— $175 $— $— $52 $— 
Derivative liabilities:
Net investment hedges$— $$— $— $37 $— 
Total derivative liabilities$— $$— $— $37 $— 
Fair Value Measurement of Long-term Debt The following table summarizes the carrying values and estimated fair values of the Company’s short- and long-term debt, based on Level 2 measurements (in millions):
July 2, 2022April 2, 2022
Carrying
Value
Estimated
Fair Value
Carrying
Value
Estimated
Fair Value
Senior Notes due 2024$448 $431 $448 $451 
Term Loan$— $— $495 $490 
Revolving Credit Facilities$922 $922 $175 $175 
v3.22.2
Derivative Financial Instruments (Tables)
3 Months Ended
Jul. 02, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Value of Derivative Contracts Recorded on Gross Basis in Consolidated Balance Sheets
The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of July 2, 2022 and April 2, 2022 (in millions):
Fair Values
 Notional AmountsAssetsLiabilities
 July 2,
2022
April 2,
2022
July 2,
2022
April 2,
2022
July 2,
2022
April 2,
2022
Designated forward foreign currency exchange contracts$100 $119 $
(1)
$
(1)
$— $— 
Designated net investment hedges4,194 4,194 166 
(2)
44 
(2)
(3)
37 
(3)
Total designated hedges4,294 4,313 174 48 37 
Undesignated derivative contracts (4)
10 38 — — 
Total$4,304 $4,351 $175 $52 $$37 
(1)Recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets.
(2)Recorded within other assets in the Company’s consolidated balance sheets.
(3)Recorded within other long-term liabilities in the Company’s consolidated balance sheets.
(4)Represents undesignated hedges of inventory purchases.
Schedule of Derivative Instruments on The Balance Sheets, Net Basis However, if the Company were to offset and record the asset and liability balances for its derivative instruments on a net basis in accordance with the terms of its master netting arrangements, which provide for the right to set-off amounts for similar transactions denominated in the same currencies, the resulting impact as of July 2, 2022 and April 2, 2022 would be as follows (in millions):
Forward Currency
Exchange Contracts
Net Investment
Hedges
July 2,
2022
April 2,
2022
July 2,
2022
April 2,
2022
Assets subject to master netting arrangements
$$$166 $44 
Liabilities subject to master netting arrangements
$— $— $$37 
Derivative assets, net$$$166 $42 
Derivative liabilities, net$— $— $$35 
Reclassification out of Accumulated Other Comprehensive Income
The following table summarizes the pre-tax impact of the gains and losses on the Company’s designated forward foreign currency exchange contracts, net investment hedges and interest rate swaps (in millions):
Three Months Ended
July 2, 2022June 26, 2021
Pre-Tax Gains
Recognized in OCI
Pre-Tax Gains (Losses)
Recognized in OCI
Designated forward foreign currency exchange contracts
$$(1)
Designated net investment hedges$213 $83 
The following tables summarize the pre-tax impact of the gains and losses within the consolidated statements of operations and comprehensive income related to the designated forward foreign currency exchange contracts for the three months ended July 2, 2022 and June 26, 2021 (in millions):
Three Months Ended
Pre-Tax (Gain) Loss Reclassified from
Accumulated OCI
Location of (Gain) Loss Recognized
July 2, 2022June 26, 2021
Designated forward foreign currency exchange contracts
$(4)$Cost of goods sold
v3.22.2
Shareholders' Equity (Tables)
3 Months Ended
Jul. 02, 2022
Equity [Abstract]  
Changes in Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes
The following table details changes in the components of accumulated other comprehensive income (“AOCI”), net of taxes, for the three months ended July 2, 2022 and June 26, 2021, respectively (in millions):
Foreign Currency Adjustments (1)
Net Gains (Losses) on Derivatives (2)
Other Comprehensive Income (Loss) Attributable to Capri
Balance at April 2, 2022$184 $10 $194 
Other comprehensive (loss) income before reclassifications(107)(101)
Less: amounts reclassified from AOCI to earnings
— 
Other comprehensive (loss) income, net of tax(107)(105)
Balance at July 2, 2022$77 $12 $89 
Balance at March 27, 2021$57 $(1)$56 
Other comprehensive income (loss) before reclassifications 91 (1)90 
Less: amounts reclassified from AOCI to earnings
— (1)(1)
Other comprehensive income, net of tax91 — 91 
Balance at June 26, 2021$148 $(1)$147 
(1)Foreign currency translation adjustments for the three months ended July 2, 2022 primarily include a $151 million gain, net of taxes of $62 million, relating to the Company’s net investment hedges, and a net $253 million translation loss. Foreign currency translation adjustments for the three months ended June 26, 2021 primarily include a $64 million gain, net of taxes of $19 million, relating to the Company’s net investment hedges, in addition to a net $27 million translation gain.
(2)Reclassified amounts primarily relate to the Company’s forward foreign currency exchange contracts for inventory purchases and are recorded within cost of goods sold in the Company’s consolidated statements of operations and comprehensive income. All tax effects were not material for the periods presented.
v3.22.2
Share-Based Compensation (Tables)
3 Months Ended
Jul. 02, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Share-based Compensation Activity The following table summarizes the Company’s share-based compensation activity during the three months ended July 2, 2022:
 OptionsService-Based RSUsPerformance-Based RSUs
Outstanding/Unvested at April 2, 2022
355,448 3,827,700 210,192 
Granted— 1,430,545 152,921 
Exercised/Vested(116,570)(1,353,698)(197,874)
Canceled/Forfeited— (37,753)— 
Outstanding/Unvested at July 2, 2022
238,878 3,866,794 165,239 
Summary of Compensation Expense Attributable to Share-Based Compensation
The following table summarizes compensation expense attributable to share-based compensation for the three months ended July 2, 2022 and June 26, 2021 (in millions):
Three Months Ended
July 2,
2022
June 26,
2021
Share-based compensation expense$28 $36 
Tax benefit related to share-based compensation expense$$
v3.22.2
Segment Information (Tables)
3 Months Ended
Jul. 02, 2022
Segment Reporting [Abstract]  
Key Performance Information of Reportable Segments The following table presents the key performance information of the Company’s reportable segments (in millions):
 Three Months Ended
 July 2,
2022
June 26,
2021
Total revenue:
Versace$275 $240 
Jimmy Choo172 142 
Michael Kors913 871 
Total revenue$1,360 $1,253 
Income from operations:
Versace$52 $48 
Jimmy Choo19 11 
Michael Kors222 240 
Total segment income from operations293 299 
Less: Corporate expenses
(60)(41)
Restructuring and other charges(3)(3)
COVID-19 related charges
Total income from operations$231 $258 
Depreciation and Amortization Expense for Each Segment
Depreciation and amortization expense for each segment are as follows (in millions):
 Three Months Ended
 July 2,
2022
June 26,
2021
Depreciation and amortization:
Versace$12 $14 
Jimmy Choo
Michael Kors25 29 
Corporate— 
Total depreciation and amortization$45 $50 
Total Revenue (as Recognized Based on Country of Origin)
Total revenue (based on country of origin) by geographic location are as follows (in millions):
 Three Months Ended
 July 2,
2022
June 26,
2021
Revenue:
The Americas (United States, Canada and Latin America) (1)
$794 $715 
EMEA364 302 
Asia202 236 
Total revenue$1,360 $1,253 
(1)Total revenue earned in the U.S. was $733 million and $671 million for the three months ended July 2, 2022 and June 26, 2021, respectively.
v3.22.2
Business and Basis of Presentation (Details)
3 Months Ended
Jul. 02, 2022
segment
Accounting Policies [Abstract]  
Number of reportable segments 3
v3.22.2
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Apr. 02, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Credit card receivables $ 28   $ 18
Raw materials inventory and work in process inventory 33   $ 31
Sublease income $ 2 $ 2  
Anti-dilutive securities excluded from calculation of basic and diluted net income per ordinary share (in shares) 657,340 610,684  
COVID-19      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Rent relief $ 2 $ 7  
Maximum      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Term of lease 10 years    
v3.22.2
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($)
$ in Millions
Jul. 02, 2022
Apr. 02, 2022
Jun. 26, 2021
Mar. 27, 2021
Accounting Policies [Abstract]        
Cash and cash equivalents $ 221 $ 169    
Restricted cash included within prepaid expenses and other current assets 3 3    
Total cash, cash equivalents and restricted cash shown on the consolidated statements of cash flows $ 224 $ 172 $ 358 $ 234
v3.22.2
Summary of Significant Accounting Policies - Supplemental Cash Flow Information Related to Leases (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows used in operating leases $ 125 $ 149
COVID-19    
Cash paid for amounts included in the measurement of lease liabilities:    
Deferred rent payments   $ 4
v3.22.2
Summary of Significant Accounting Policies - Components of Calculation of Basic Net Income Per Ordinary Share and Diluted Net Income Per Ordinary Share (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Numerator:    
Net income attributable to Capri $ 201 $ 219
Denominator:    
Basic weighted average shares (in shares) 141,913,586 151,312,103
Weighted average dilutive share equivalents:    
Share options and restricted shares/units, and performance restricted share units (in shares) 1,820,398 3,578,380
Diluted weighted average shares (in shares) 143,733,984 154,890,483
Basic net income (loss) per share (in dollars per share) $ 1.42 $ 1.45
Diluted net income (loss) per share (in dollars per share) $ 1.40 $ 1.41
v3.22.2
Revenue Recognition - Narrative (Details)
$ in Millions
3 Months Ended
Jul. 02, 2022
USD ($)
distributionChannel
Jun. 26, 2021
USD ($)
Apr. 02, 2022
USD ($)
Contract With Customer, Asset And Liability [Line Items]      
Number of product distribution channels | distributionChannel 3    
Deferred loyalty program liabilities $ 15   $ 17
Return liabilities 56   52
Right to recover returned product 13   15
Contract liabilities 26   30
Revenue recognized during period 5 $ 6  
Contract assets 0   0
Gift Cards      
Contract With Customer, Asset And Liability [Line Items]      
Deferred loyalty program liabilities $ 15   $ 13
v3.22.2
Revenue Recognition - Schedule of Contractually Guaranteed Minimum Fees (Details)
$ in Millions
Jul. 02, 2022
USD ($)
Revenue from Contract with Customer [Abstract]  
Remainder of Fiscal 2023 $ 23
Fiscal 2024 29
Fiscal 2025 25
Fiscal 2026 22
Fiscal 2027 21
Fiscal 2028 and thereafter 46
Total $ 166
v3.22.2
Revenue Recognition - Schedule of Revenue Disaggregation (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Disaggregation of Revenue [Line Items]    
Total revenue $ 1,360 $ 1,253
The Americas    
Disaggregation of Revenue [Line Items]    
Total revenue 794 715
EMEA    
Disaggregation of Revenue [Line Items]    
Total revenue 364 302
Asia    
Disaggregation of Revenue [Line Items]    
Total revenue 202 236
Versace    
Disaggregation of Revenue [Line Items]    
Total revenue 275 240
Versace | The Americas    
Disaggregation of Revenue [Line Items]    
Total revenue 115 87
Versace | EMEA    
Disaggregation of Revenue [Line Items]    
Total revenue 107 87
Versace | Asia    
Disaggregation of Revenue [Line Items]    
Total revenue 53 66
Jimmy Choo    
Disaggregation of Revenue [Line Items]    
Total revenue 172 142
Jimmy Choo | The Americas    
Disaggregation of Revenue [Line Items]    
Total revenue 54 38
Jimmy Choo | EMEA    
Disaggregation of Revenue [Line Items]    
Total revenue 66 50
Jimmy Choo | Asia    
Disaggregation of Revenue [Line Items]    
Total revenue 52 54
Michael Kors    
Disaggregation of Revenue [Line Items]    
Total revenue 913 871
Michael Kors | The Americas    
Disaggregation of Revenue [Line Items]    
Total revenue 625 590
Michael Kors | EMEA    
Disaggregation of Revenue [Line Items]    
Total revenue 191 165
Michael Kors | Asia    
Disaggregation of Revenue [Line Items]    
Total revenue $ 97 $ 116
v3.22.2
Receivables, net - Schedule of Receivables (Details) - USD ($)
$ in Millions
Jul. 02, 2022
Apr. 02, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade receivables $ 426 $ 461
Receivables due from licensees 21 17
Receivables, gross 447 478
Less: allowances (53) (44)
Total receivables, net 394 434
Credit Risk Assumed by Insured    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade receivables $ 89 $ 83
v3.22.2
Receivables, net - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Apr. 02, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for doubtful accounts     $ 10
COVID-19      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Credit loss $ 1 $ (1)  
v3.22.2
Property and Equipment, net - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Millions
Jul. 02, 2022
Apr. 02, 2022
Property, Plant and Equipment [Abstract]    
Leasehold improvements $ 553 $ 575
Computer equipment and software 229 212
Furniture and fixtures 211 218
Equipment 79 81
Building 46 48
In-store shops 46 47
Land 18 19
Total property and equipment, gross 1,182 1,200
Less: accumulated depreciation and amortization (783) (790)
Subtotal 399 410
Construction-in-progress 67 66
Total property and equipment, net $ 466 $ 476
v3.22.2
Property and Equipment, net - Additional Information (Details) - USD ($)
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Property, Plant and Equipment [Abstract]    
Depreciation and amortization of property and equipment $ 34,000,000 $ 38,000,000
Impairment charge $ 0 $ 0
v3.22.2
Intangible Assets and Goodwill - Carrying Values of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Jul. 02, 2022
Apr. 02, 2022
Definite-lived intangible assets:    
Gross definite-lived intangible assets $ 809 $ 837
Less: accumulated amortization (231) (228)
Net definite-lived intangible assets 578 609
Indefinite-lived intangible assets:    
Net indefinite-lived intangible assets 1,161 1,238
Total intangible assets, excluding goodwill 1,739 1,847
Goodwill 1,336 1,418
Reacquired rights    
Definite-lived intangible assets:    
Gross definite-lived intangible assets 400 400
Trademarks    
Definite-lived intangible assets:    
Gross definite-lived intangible assets 23 23
Customer relationships    
Definite-lived intangible assets:    
Gross definite-lived intangible assets 386 414
Jimmy Choo    
Indefinite-lived intangible assets:    
Net indefinite-lived intangible assets 296 321
Accumulated impairment loss 249 249
Accumulated impairment loss, goodwill 265 265
Versace    
Indefinite-lived intangible assets:    
Net indefinite-lived intangible assets $ 865 $ 917
v3.22.2
Intangible Assets and Goodwill - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
Amortization of intangible assets $ 11 $ 12
v3.22.2
Current Assets and Current Liabilities - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Millions
Jul. 02, 2022
Apr. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Prepaid taxes $ 79 $ 86
Prepaid contracts 17 15
Prepaid insurance 12 2
Interest receivable related to net investment hedges 11 13
Other accounts receivables 9 17
Other 73 59
Total prepaid expenses and other current assets $ 201 $ 192
v3.22.2
Current Assets and Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Millions
Jul. 02, 2022
Apr. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Other taxes payable $ 71 $ 61
Return liabilities 56 52
Accrued capital expenditures 43 39
Accrued advertising and marketing 22 21
Accrued rent 21 20
Gift cards and retail store credits 15 17
Professional services 14 15
Accrued litigation 12 13
Accrued purchases and samples 12 11
Charitable donations 10 10
Accrued interest 3 10
Other 100 82
Total accrued expenses and other current liabilities $ 379 $ 351
v3.22.2
Restructuring and Other Charges - Narrative (Details)
$ in Millions
3 Months Ended
Jul. 02, 2022
USD ($)
Jun. 26, 2021
USD ($)
retailStore
Gianni Versace S.r.l.    
Restructuring Cost and Reserve [Line Items]    
Transition costs $ 3 $ 5
Facility Closing    
Restructuring Cost and Reserve [Line Items]    
Restructuring charges and other charges   $ 1
Capri Retail Store Optimization Program    
Restructuring Cost and Reserve [Line Items]    
Number of store closed | retailStore   10
Restructuring charges, net   $ (3)
v3.22.2
Debt Obligations - Schedule of Debt Obligations (Details) - USD ($)
$ in Millions
Jul. 02, 2022
Apr. 02, 2022
Debt Instrument [Line Items]    
Total debt $ 1,421 $ 1,164
Less: Unamortized debt issuance costs 1 3
Less: Unamortized discount on senior notes 1 1
Total carrying value of debt 1,419 1,160
Less: Short-term debt 37 29
Total long-term debt 1,382 1,131
Senior Notes due 2024 | Revolving Credit Facilities    
Debt Instrument [Line Items]    
Total debt 450 450
Term Loan    
Debt Instrument [Line Items]    
Total debt 0 497
Other    
Debt Instrument [Line Items]    
Total debt $ 49 $ 42
v3.22.2
Debt Obligations - Narrative (Details) - USD ($)
Jul. 02, 2022
Jul. 01, 2022
Apr. 02, 2022
Debt Instrument [Line Items]      
Total debt $ 1,421,000,000   $ 1,164,000,000
Long-term debt 1,419,000,000   1,160,000,000
Debt issuance costs, gross 1,000,000   3,000,000
Short-term debt obligation 36,000,000   21,000,000
Short-term debt 37,000,000   29,000,000
Long-term debt 1,382,000,000   1,131,000,000
Notes Payable to Banks      
Debt Instrument [Line Items]      
Long-term debt 10,000,000   18,000,000
Short-term debt 1,000,000   8,000,000
Long-term debt 9,000,000   10,000,000
Revolving Credit Facilities | Revolving Credit Facilities      
Debt Instrument [Line Items]      
Letter of credit outstanding $ 21,000,000   21,000,000
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities      
Debt Instrument [Line Items]      
Line of credit facility, maximum borrowing capacity   $ 1,500,000,000  
Accordion feature, increase limit   $ 500,000,000  
Commitment fee percentage 0.15%    
Leverage ratio on credit facility   4.0  
Cash and cash equivalents limit for leverage ratio   $ 200,000,000  
Total debt $ 922,000,000    
Amount available for future borrowings 557,000,000    
Debt issuance costs, gross $ 7,000,000    
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Fed Funds Effective Rate Overnight Index Swap Rate | Variable Rate Component One      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate   0.00%  
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Fed Funds Effective Rate Overnight Index Swap Rate | Variable Rate Component Two      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate   0.50%  
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Secured Overnight Financing Rate (SOFR)      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate   0.10%  
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Secured Overnight Financing Rate (SOFR) | Variable Rate Component One      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate   0.10%  
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Secured Overnight Financing Rate (SOFR) | Variable Rate Component Two      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate   0.00%  
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Base Rate | Variable Rate Component One      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate   0.00%  
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Base Rate | Variable Rate Component Two      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate   1.00%  
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Secured Overnight Index Average (SONIA)      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate   0.00%  
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Swiss Average Rate Overnight (SARON)      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate   0.00%  
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Euro Interbank Offer Rate (EURIBOR)      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate   0.00%  
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Canadian Dollar Canadian Banker's Acceptances Quoted On Reuters Rate (CDOR)      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate   0.00%  
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Tokyo Interbank Offer Rate (TIBOR)      
Debt Instrument [Line Items]      
Debt instrument, basis spread on variable rate   0.00%  
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Minimum      
Debt Instrument [Line Items]      
Commitment fee percentage   0.075%  
Revolving Credit Facilities | 2022 Credit Facility | Revolving Credit Facilities | Maximum      
Debt Instrument [Line Items]      
Commitment fee percentage   0.175%  
Revolving Credit Facilities | 2018 Credit Facility | Revolving Credit Facilities      
Debt Instrument [Line Items]      
Total debt     175,000,000
Amount available for future borrowings     804,000,000
Debt issuance costs, net     3,000,000
Letter of Credit | 2022 Credit Facility | Revolving Credit Facilities      
Debt Instrument [Line Items]      
Line of credit facility, maximum borrowing capacity   $ 125,000,000  
Bridge Loan | 2022 Credit Facility | Revolving Credit Facilities      
Debt Instrument [Line Items]      
Line of credit facility, maximum borrowing capacity   $ 100,000,000  
2018 Term Loan Facility | Term Loan Facility | Revolving Credit Facilities      
Debt Instrument [Line Items]      
Long-term debt     $ 495,000,000
v3.22.2
Fair Value Measurements - Schedule of Fair Value and Carrying Value of Assets (Details) - USD ($)
$ in Millions
Jul. 02, 2022
Apr. 02, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total derivative assets $ 175 $ 52
Total derivative liabilities 4 37
Fair value, measurements, recurring | Quoted prices in active markets for identical assets (Level 1)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total derivative assets 0 0
Total derivative liabilities 0 0
Fair value, measurements, recurring | Significant other observable inputs (Level 2)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total derivative assets 175 52
Total derivative liabilities 4 37
Fair value, measurements, recurring | Significant unobservable inputs (Level 3)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total derivative assets 0 0
Total derivative liabilities 0 0
Fair value, measurements, recurring | Forward foreign currency exchange contracts | Quoted prices in active markets for identical assets (Level 1)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total derivative assets 0 0
Fair value, measurements, recurring | Forward foreign currency exchange contracts | Significant other observable inputs (Level 2)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total derivative assets 8 4
Fair value, measurements, recurring | Forward foreign currency exchange contracts | Significant unobservable inputs (Level 3)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total derivative assets 0 0
Fair value, measurements, recurring | Net investment hedges | Quoted prices in active markets for identical assets (Level 1)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total derivative assets 0 0
Total derivative liabilities 0 0
Fair value, measurements, recurring | Net investment hedges | Significant other observable inputs (Level 2)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total derivative assets 166 44
Total derivative liabilities 4 37
Fair value, measurements, recurring | Net investment hedges | Significant unobservable inputs (Level 3)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total derivative assets 0 0
Total derivative liabilities 0 0
Fair value, measurements, recurring | Undesignated derivative contracts | Quoted prices in active markets for identical assets (Level 1)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total derivative assets 0 0
Fair value, measurements, recurring | Undesignated derivative contracts | Significant other observable inputs (Level 2)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total derivative assets 1 4
Fair value, measurements, recurring | Undesignated derivative contracts | Significant unobservable inputs (Level 3)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total derivative assets $ 0 $ 0
v3.22.2
Fair Value Measurements - Schedule of Fair Value Measurement of Long-term Debt (Details) - USD ($)
$ in Millions
Jul. 02, 2022
Apr. 02, 2022
Senior Notes due 2024 | Carrying Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt $ 448 $ 448
Senior Notes due 2024 | Level 2 | Estimated Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt 431 451
Term Loan | Carrying Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt 0 495
Term Loan | Level 2 | Estimated Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt 0 490
Revolving Credit Facilities | Carrying Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt 922 175
Revolving Credit Facilities | Level 2 | Estimated Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt $ 922 $ 175
v3.22.2
Fair Value Measurements - Narrative (Details) - USD ($)
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Fair Value Disclosures [Abstract]    
Other long-lived asset impairment charges $ 0 $ 0
v3.22.2
Derivative Financial Instruments - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Apr. 02, 2022
Derivative [Line Items]      
Settlement of net investment hedges $ 66 $ 0  
Notional amounts 4,304   $ 4,351
Interest income (expense), net 4 (1)  
Designated as Hedging Instrument      
Derivative [Line Items]      
Notional amounts 4,294   4,313
Net investment hedges | Net investment hedging | Designated as Hedging Instrument      
Derivative [Line Items]      
Restructured derivative 1,094    
Settlement of net investment hedges 66    
Notional amounts 4,194   $ 4,194
Interest income (expense), net 17 $ 12  
Net investment hedges | Net investment hedging | Designated as Hedging Instrument | Euro Member Countries, Euro      
Derivative [Line Items]      
Restructured derivative 900    
Notional amounts 4,000    
Net investment hedges | Net investment hedging | Designated as Hedging Instrument | Japan, Yen      
Derivative [Line Items]      
Restructured derivative 194    
Notional amounts $ 194    
Net investment hedge, group one | Net investment hedging | Designated as Hedging Instrument | Euro Member Countries, Euro      
Derivative [Line Items]      
Derivative fixed interest rate 2.872%    
Net investment hedge, group one | Net investment hedging | Designated as Hedging Instrument | United States of America, Dollars      
Derivative [Line Items]      
Derivative fixed interest rate 0.00%    
Net investment hedge, group two | Net investment hedging | Designated as Hedging Instrument | Japan, Yen      
Derivative [Line Items]      
Derivative fixed interest rate 2.858%    
Net investment hedge, group two | Net investment hedging | Designated as Hedging Instrument | United States of America, Dollars      
Derivative [Line Items]      
Derivative fixed interest rate 1.061%    
Forward foreign currency exchange contracts      
Derivative [Line Items]      
Gain (loss) on derivative recognized $ 2    
v3.22.2
Derivative Financial Instruments - Schedule of Fair Value of Derivative Contracts Recorded on Gross Basis in Consolidated Balance Sheets (Details) - USD ($)
$ in Millions
Jul. 02, 2022
Apr. 02, 2022
Derivatives, Fair Value [Line Items]    
Notional Amounts $ 4,304 $ 4,351
Assets 175 52
Liabilities 4 37
Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional Amounts 4,294 4,313
Assets 174 48
Liabilities 4 37
Not Designated as Hedging Instrument | Forward foreign currency exchange contracts    
Derivatives, Fair Value [Line Items]    
Notional Amounts 10 38
Assets 1 4
Liabilities 0 0
Cash flow hedging | Designated as Hedging Instrument | Forward foreign currency exchange contracts    
Derivatives, Fair Value [Line Items]    
Notional Amounts 100 119
Assets 8 4
Liabilities 0 0
Designated net investment hedges | Designated as Hedging Instrument | Designated net investment hedges    
Derivatives, Fair Value [Line Items]    
Notional Amounts 4,194 4,194
Assets 166 44
Liabilities $ 4 $ 37
v3.22.2
Derivative Financial Instruments - Fair Values of Derivative Assets and Liabilities (Details) - USD ($)
$ in Millions
Jul. 02, 2022
Apr. 02, 2022
Cash flow hedging | Forward Currency Exchange Contracts    
Derivative [Line Items]    
Assets subject to master netting arrangements $ 9 $ 8
Liabilities subject to master netting arrangements 0 0
Derivative assets, net 9 8
Derivative liabilities, net 0 0
Net investment hedging | Net investment hedges    
Derivative [Line Items]    
Assets subject to master netting arrangements 166 44
Liabilities subject to master netting arrangements 4 37
Derivative assets, net 166 42
Derivative liabilities, net $ 4 $ 35
v3.22.2
Derivative Financial Instruments - Summary of Pre-tax Impact of Gains (Losses) on Derivative (Details) - Designated as Hedging Instrument - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Forward Currency Exchange Contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Pre-Tax Gains (Losses) Recognized in OCI $ 6 $ (1)
Net investment hedges    
Derivative Instruments, Gain (Loss) [Line Items]    
Pre-Tax Gains (Losses) Recognized in OCI $ 213 $ 83
v3.22.2
Derivative Financial Instruments - Summary of Pretax Impact of Gain (Loss) Reclassified from AOCI (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Forward Currency Exchange Contracts | Designated as Hedging Instrument    
Derivative Instruments, Gain (Loss) [Line Items]    
Pre-Tax (Gain) Loss Reclassified from Accumulated OCI $ (4) $ 1
v3.22.2
Shareholders' Equity - Narrative (Details) - USD ($)
3 Months Ended
Nov. 03, 2021
Jul. 02, 2022
Jun. 26, 2021
Jun. 01, 2022
Subsidiary or Equity Method Investee [Line Items]        
Ordinary shares, shares repurchased amount   $ 312,000,000 $ 59,000,000  
Prior Plan        
Subsidiary or Equity Method Investee [Line Items]        
Share-repurchase program amount $ 500,000,000   $ 500,000,000  
Share-repurchase program remaining amount 250,000,000      
Ordinary shares, shares repurchased (in shares)     921,080  
Ordinary shares, shares repurchased amount     $ 50,000,000  
Fiscal 2022 Plan        
Subsidiary or Equity Method Investee [Line Items]        
Share-repurchase program amount $ 1,000,000,000      
Share-repurchase program remaining amount       $ 500,000,000
Stock repurchase program, period in force 2 years      
Fiscal 2023 Plan        
Subsidiary or Equity Method Investee [Line Items]        
Share-repurchase program amount       $ 1,000,000,000
Share-repurchase program remaining amount   $ 700,000,000    
Ordinary shares, shares repurchased (in shares)   6,120,174    
Ordinary shares, shares repurchased amount   $ 300,000,000    
Withholding Taxes        
Subsidiary or Equity Method Investee [Line Items]        
Ordinary shares, shares repurchased (in shares)   265,311 167,070  
Ordinary shares, shares repurchased amount   $ 12,000,000 $ 9,000,000  
v3.22.2
Shareholders' Equity - Changes in Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance $ 2,558 $ 2,157
Other comprehensive income, net of tax (105) 90
Ending balance 2,378 2,450
Foreign currency translation adjustments (107) 90
Other Comprehensive Income (Loss) Attributable to Capri    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance 194 56
Other comprehensive income (loss) before reclassifications (101) 90
Less: amounts reclassified from AOCI to earnings 4 (1)
Other comprehensive income, net of tax (105) 91
Ending balance 89 147
Foreign Currency Adjustments    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance 184 57
Other comprehensive income (loss) before reclassifications (107) 91
Less: amounts reclassified from AOCI to earnings 0 0
Other comprehensive income, net of tax (107) 91
Ending balance 77 148
Gain related to net investment hedges 151 64
Taxes related to the gain on net investment hedges 62 19
Foreign currency translation adjustments (253) 27
Net (Losses) Gains on Derivatives    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance 10 (1)
Other comprehensive income (loss) before reclassifications 6 (1)
Less: amounts reclassified from AOCI to earnings 4 (1)
Other comprehensive income, net of tax 2 0
Ending balance $ 12 $ (1)
v3.22.2
Share-Based Compensation - Additional Information (Details)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Jul. 02, 2022
USD ($)
equityPlan
$ / shares
shares
Jun. 26, 2021
$ / shares
Mar. 29, 2008
stockOptionPlan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of equity plans | equityPlan 2    
Estimated value of future forfeitures | $ $ 23    
Service-Based RSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted average grant date fair value of RSUs (in dollars per share) | $ / shares $ 49.02 $ 54.67  
Performance-Based RSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted average grant date fair value of RSUs (in dollars per share) | $ / shares $ 47.41    
2008 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of equity plans adopted | stockOptionPlan     1
Shares authorized for issuance (up to) (in shares) 23,980,823    
Shares available for grant (in shares) 0    
Option expiration period (years) 10 years    
2012 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares authorized for issuance (up to) (in shares) 18,846,000    
Shares available for grant (in shares) 2,516,526    
Option expiration period (years) 7 years    
v3.22.2
Share-Based Compensation - Summary of Share-based Compensation Activity (Details)
3 Months Ended
Jul. 02, 2022
shares
Options  
Options  
Outstanding at beginning of period (in shares) 355,448
Granted (in shares) 0
Exercised/Vested (in shares) (116,570)
Canceled/Forfeited (in shares) 0
Outstanding at end of period (in shares) 238,878
Service-Based RSUs  
RSUs  
Unvested at beginning of period (in shares) 3,827,700
Granted (in shares) 1,430,545
Exercised/Vested (in shares) (1,353,698)
Canceled/Forfeited (in shares) (37,753)
Unvested at end of period (in shares) 3,866,794
Performance-Based RSUs  
RSUs  
Unvested at beginning of period (in shares) 210,192
Granted (in shares) 152,921
Exercised/Vested (in shares) (197,874)
Canceled/Forfeited (in shares) 0
Unvested at end of period (in shares) 165,239
v3.22.2
Share-Based Compensation - Summary of Compensation Expense Attributable to Share-Based Compensation (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Share-Based Payment Arrangement [Abstract]    
Share-based compensation expense $ 28 $ 36
Tax benefit related to share-based compensation expense $ 5 $ 7
v3.22.2
Income Taxes (Details)
3 Months Ended
Jul. 02, 2022
Income Tax Disclosure [Abstract]  
Effective tax rate 12.10%
v3.22.2
Segment Information - Additional Information (Details)
3 Months Ended
Jul. 02, 2022
segment
retailStore
Segment Reporting Information [Line Items]  
Number of operating segments 3
Number of reportable segments 3
Michael Kors  
Segment Reporting Information [Line Items]  
Number of retail store formats | retailStore 4
v3.22.2
Segment Information - Key Performance Information of Reportable Segments (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Segment Reporting Information [Line Items]    
Total revenue $ 1,360 $ 1,253
Less: Corporate expenses (60) (41)
Restructuring and other charges (3) (3)
Total income from operations 231 258
COVID-19    
Segment Reporting Information [Line Items]    
COVID-19 related charges 1 3
Operating Segments    
Segment Reporting Information [Line Items]    
Total income from operations 293 299
Versace    
Segment Reporting Information [Line Items]    
Total revenue 275 240
Versace | Operating Segments    
Segment Reporting Information [Line Items]    
Total income from operations 52 48
Jimmy Choo    
Segment Reporting Information [Line Items]    
Total revenue 172 142
Jimmy Choo | Operating Segments    
Segment Reporting Information [Line Items]    
Total income from operations 19 11
Michael Kors    
Segment Reporting Information [Line Items]    
Total revenue 913 871
Michael Kors | Operating Segments    
Segment Reporting Information [Line Items]    
Total income from operations $ 222 $ 240
v3.22.2
Segment Information - Depreciation and Amortization Expense for Each Segment (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Segment Reporting Information [Line Items]    
Total depreciation and amortization $ 45 $ 50
Versace    
Segment Reporting Information [Line Items]    
Total depreciation and amortization 12 14
Jimmy Choo    
Segment Reporting Information [Line Items]    
Total depreciation and amortization 7 7
Michael Kors    
Segment Reporting Information [Line Items]    
Total depreciation and amortization 25 29
Corporate    
Segment Reporting Information [Line Items]    
Total depreciation and amortization $ 1 $ 0
v3.22.2
Segment Information - Total Revenue (as Recognized Based on Country of Origin) by Geographic Location (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 02, 2022
Jun. 26, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total revenue $ 1,360 $ 1,253
The Americas    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total revenue 794 715
U.S.    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total revenue 733 671
EMEA    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total revenue 364 302
Asia    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total revenue $ 202 $ 236
v3.22.2
Subsequent Events (Details) - USD ($)
$ in Millions
1 Months Ended 3 Months Ended
Aug. 09, 2022
Jul. 02, 2022
Jun. 26, 2021
Aug. 03, 2022
Apr. 02, 2022
Subsequent Event [Line Items]          
Notional amounts   $ 4,304     $ 4,351
Settlement of net investment hedges   66 $ 0    
Designated as Hedging Instrument          
Subsequent Event [Line Items]          
Notional amounts   4,294     4,313
Net investment hedges | Net investment hedging | Designated as Hedging Instrument          
Subsequent Event [Line Items]          
Terminated derivative   1,094      
Notional amounts   4,194     $ 4,194
Settlement of net investment hedges   66      
Net investment hedges | Net investment hedging | Designated as Hedging Instrument | Euro Member Countries, Euro          
Subsequent Event [Line Items]          
Terminated derivative   900      
Notional amounts   $ 4,000      
Subsequent event          
Subsequent Event [Line Items]          
Common stock, capital shares reserved for future issuance (in shares)       3,625,000  
Subsequent event | Net investment hedges | Net investment hedging | Designated as Hedging Instrument          
Subsequent Event [Line Items]          
Settlement of net investment hedges $ 237        
Subsequent event | Net investment hedges | Net investment hedging | Designated as Hedging Instrument | Euro Member Countries, Euro          
Subsequent Event [Line Items]          
Terminated derivative 4,000        
Notional amounts $ 2,000