UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549  

			
 	 	 	
Form 8-K  

			
 	 	 	
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 7, 2018

	

MICHAEL KORS HOLDINGS LIMITED
(Exact name of Registrant as Specified in its Charter)

	

001-35368
(Commission File Number)

			
British Virgin Islands	 	N/A	
(State or other jurisdiction
of incorporation)	 	(I.R.S. Employer
Identification No.)	
33 Kingsway
London, United Kingdom
WC2B 6UF
(Address of Principal Executive Offices)
44 207 632 8600
(Registrant’s telephone number, including area code)

	

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:  

		
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	

		
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	

		
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	

		
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

		
Emerging growth company	o	

		
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.	o	

			

	
		
ITEM 2.02	RESULTS OF OPERATIONS AND FINANCIAL CONDITION.	
On November 7, 2018 , Michael Kors Holdings Limited issued a press release containing its unaudited financial results for its second fiscal quarter ended September 29, 2018 . A copy of the press release is attached hereto as Exhibit 99.1.

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

			
Exhibit
No.	  	 	
99.1	  	Press release issued by Michael Kors Holdings Limited, dated November 7, 2018.	
Exhibit 99.1 is furnished to comply with Item 2.02 and Item 9.01 of Form 8-K. Exhibit 99.1 is not to be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall Exhibit 99.1 be deemed incorporated by reference in any filing under the Securities Act of 1933 (except as shall be expressly set forth by specific reference in such filing).

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	
				
 	 	 	MICHAEL KORS HOLDINGS LIMITED
	
Date: November 7, 2018	 	 	 	
 	 	By:	/s/ Thomas J. Edwards, Jr.	
 	 	Name: 	Thomas J. Edwards, Jr.	
 	 	Title:	Executive Vice President, Chief Financial Officer, Chief Operating Officer and Treasurer	

 	 	 	 	

MICHAEL KORS HOLDINGS LIMITED

Exhibit 99.1

Michael Kors Holdings Limited Announces Second Quarter Fiscal 2019 Results
Second Quarter Results Exceed Expectations
Jimmy Choo Results Better than Anticipated
Raises Full Year Adjusted Earnings per Share Outlook to $4.95 to $5.05 from $4.90 to $5.00
London — November 7, 2018 — Michael Kors Holdings Limited (NYSE:KORS), a global fashion luxury group, today announced its financial results for the fiscal 2019 second quarter ended September 29, 2018 .
Second Quarter Fiscal 2019 Highlights
		
•	Delivered better than anticipated gross margin, operating margin and earnings per share	
		
•	Revenues and comparable store sales in line with expectations	
		
•	Michael Kors brand revenues were down 0.8%, in line with expectations	
		
◦	Comparable store sales were down low single digits, in line with expectations	
		
◦	Wholesale revenues exceeded expectations, reflecting strength in the Americas	
		
•	Jimmy Choo delivered better than anticipated revenues driven by strength in footwear	
John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “We are pleased to report results that have again exceeded our expectations, and are raising our fiscal 2019 EPS guidance to a range of $4.95 to $5.05, reflecting double digit earnings growth for the year. As we enter the second half of fiscal 2019 we look forward to welcoming Versace into our group. With the acquisition of Versace we have built one of the world's leading fashion luxury groups in just one year, setting the stage for accelerated revenue and earnings growth. This is a truly remarkable and historic moment for our company and we look forward to completing this transformational acquisition in the coming months.”
Second Quarter Fiscal 2019 Results
Financial Results and non-GAAP Reconciliation
The Company’s results are reported in this press release in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and on an adjusted, non-GAAP basis. A reconciliation of GAAP to non-GAAP financial information is provided at the end of this press release.
Overview of MKHL Second Quarter Fiscal 2019 Results:
		
•	Total revenue increased 9.3% to $1.25 billion , including a $116.7 million contribution from Jimmy Choo.	
		
•	Gross profit was $ 763.1 million and gross margin was 60.9% , compared to $ 690.8 million and 60.2% in the prior year. Adjusted gross profit was $765.4 million and adjusted gross margin was 61.0%, compared to $690.8 million and 60.2% in the prior year.	
		
•	Income from operations was $ 189.4 million and operating margin was 15.1% compared to $ 199.1 million and 17.4% in the prior year. Adjusted income from operations was $216.9 million and operating margin was 17.3%, compared to $237.4 million and 20.7% in the prior year.	
		
•	Net income was $137.6 million , or $0.91 per diluted share compared to $202.9 million , or $1.32 per diluted share in the prior year. Adjusted net income was $192.5 million , or $1.27 per diluted share, compared to $204.5 million , or $1.33 per diluted share, in the prior year.	
Michael Kors Segments Second Quarter Fiscal 2019 Results:
		
•	Michael Kors Retail revenue of $ 643.9 million was approximately flat compared to the prior year. Comparable store sales decreased 2.1% , which was in line with expectations. On a constant currency basis, comparable store sales decreased 1.3% .	
		
•	Michael Kors Retail operating income was $67.9 million and operating margin was 10.5%, compared to $69.0 million and 10.7% in the prior year. Adjusted operating income was $79.6 million while adjusted operating margin was 12.4%, compared to $99.2 million and 15.4% in the prior year.	
		
•	Michael Kors Wholesale revenue declined 1.3% to $457.8 million compared to the prior year.	

MICHAEL KORS HOLDINGS LIMITED

		
•	Michael Kors Wholesale operating income was $130.1 million and operating margin was 28.4%, compared to $119.6 million and 25.8% in the prior year. On an adjusted basis operating income was $134.2 million while adjusted operating margin was 29.3% compared to $126.5 million and 27.3% in the prior year.	
		
•	Michael Kors Licensing revenue decreased 6.8% to $ 35.4 million compared to the prior year.	
		
•	Michael Kors Licensing operating income was $ 9.8 million and operating margin was 27.7%, compared to $10.5 million and 27.6% in the prior year. On an adjusted basis operating income was $10.5 million and operating margin was 29.7%, compared to $ 11.7 million and 30.8% in the prior year.	
		
•	Inventory for the Michael Kors brand at September 29, 2018 was $619.7 million, an 11% decrease as compared to the prior year.	
Jimmy Choo Second Quarter Fiscal 2019 Results:
		
•	Jimmy Choo revenue was $116.7 million . The company acquired Jimmy Choo on November 1, 2017, and compared to Jimmy Choo stand-alone results from the prior year, revenue increased double digits.	
		
•	Jimmy Choo operating loss was $ 18.4 million and adjusted operating loss was $ 7.4 million .	
Outlook
The Company is raising full year adjusted earnings per share guidance by $0.05 to $4.95 to $5.05, reflecting better than expected second quarter performance for both the Michael Kors and Jimmy Choo brands.
For the full year, the Company continues to expect total revenue to be approximately $5.125 billion, including between $580 million and $590 million of incremental Jimmy Choo revenue. Reported comparable store sales for Michael Kors is expected to be down in the low single digits, primarily driven by an unfavorable currency impact. The Company has raised guidance for operating margin to approximately 18.2%. Diluted earnings per share are expected to be in the range of $4.95 to $5.05. The Company continues to expect EPS dilution from Jimmy Choo of $0.05 to flat. Earnings per share guidance assumes approximately 152 million weighted average diluted shares outstanding and a tax rate of approximately 15.5%.
For the third quarter of fiscal 2019, the Company expects total revenue of approximately $1.46 billion, including approximately $165 million of incremental revenue from Jimmy Choo. The Company expects third quarter retail revenue for Michael Kors to grow in the low single digits. Comparable store sales on a reported basis are expected to decline in the low single digits, primarily due to an unfavorable foreign currency impact. The Company expects wholesale revenue to decrease in the high single digits, and licensing revenue to decline in the mid-teens. Operating margin is expected to be approximately 20.8%. Diluted earnings per share are expected to be in the range of $1.52 to $1.57, which includes approximately $0.04 to $0.06 of accretion from Jimmy Choo. Earnings per share assumes approximately 152 million weighted average diluted shares outstanding and a tax rate of approximately 20%.
Conference Call Information
A conference call to discuss second quarter results is scheduled for today, November 7, 2018 at 8:30 a.m. ET. A live webcast of the conference call will be available on the Company’s investor relations website, www.investors.michaelkors.com. In addition, a replay will be available shortly after the conclusion of the call and remain available until November 15, 2018. To access the telephone replay, listeners should dial 1-844-512-2921 or 1-412-317-6671 for international callers. The access code for the replay is 5309233. A replay of the webcast will also be available within two hours of the conclusion of the call and will remain on the website for 90 days.
Use of Non-GAAP Financial Measures
Constant currency effects are non-GAAP financial measures, which are provided to supplement our reported operating results to facilitate comparisons of our operating results and trends in our business, excluding the effects of foreign currency rate fluctuations. Because we are a global Company, foreign currency exchange rates may have a significant effect on our reported results. We calculate constant currency measures and the related foreign currency impacts by translating the current year’s reported amounts into comparable amounts using prior year’s foreign exchange rates for each currency. All constant currency performance measures discussed below should be considered a supplement to and not in lieu of our operating performance measures calculated in accordance with U.S. GAAP. Additionally, this earnings release includes certain non-GAAP financial measures relating to certain one-time costs associated with the Jimmy Choo acquisition and the agreement to acquire Versace and restructuring and non-cash impairment charges primarily associated with underperforming retail stores. The Company uses non-GAAP financial measures, among other things, to evaluate its operating performance and in order to represent the manner in which the Company conducts and views its business. The Company believes that excluding non-recurring items helps its management and investors compare operating performance based on its ongoing operations.

MICHAEL KORS HOLDINGS LIMITED

While the Company considers the non-GAAP measures to be useful supplemental measures in analyzing its results, they are not intended to replace, nor act as a substitute for, any amounts presented in its consolidated financial statements prepared in conformity with U.S. GAAP and may be different from non-GAAP measures reported by other companies.
About Michael Kors Holdings Limited
Michael Kors Holdings Limited is a global fashion luxury group, consisting of iconic brands that are industry leaders in design, style and craftsmanship. Its brands cover the full spectrum of fashion luxury categories including women’s and men’s accessories, footwear and apparel as well as wearable technology, watches, jewelry, eyewear and a full line of fragrance products. The Company’s goal is to continue to extend the global reach of its brands while ensuring that they maintain their independence and exclusive DNA. Michael Kors Holdings Limited is publicly listed on the New York Stock Exchange under the ticker KORS. As previously announced, in connection with the closing of the Company’s acquisition of Versace, anticipated to occur in the Company’s fourth fiscal quarter, the Company will rename itself Capri Holdings Limited (NYSE: CPRI).
Forward Looking Statements
This press release contains statements which are, or may be deemed to be, “forward-looking statements.” Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Michael Kors Holdings Limited (the “Company”) about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. All statements other than statements of historical facts included in this press release may be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets”, “plans”, “believes”, “expects”, “aims”, “intends”, “will”, “should”, “could”, “would”, “may”, “anticipates”, “estimates”, “synergy”, “cost-saving”, “projects”, “goal”, “strategy”, “budget”, “forecast” or “might” or, words or terms of similar substance or the negative thereof, are forward-looking statements. Forward-looking statements include statements relating to the following: (i) the expected effects of the Versace acquisition on the Company, (ii) the expected timing and scope of the Versace acquisition, (iii) future capital expenditures, expenses, revenues, earnings, economic performance, indebtedness, financial condition, share buybacks, dividend policy, losses and future prospects; (iv) business and management strategies and the expansion and growth of the Company’s and Versace’s operations and benefits from the acquisition; and (v) the effects of government regulation on the Company’s or Versace’s business. These forward-looking statements are not guarantees of future financial performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many risks, uncertainties and other factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. These risks, uncertainties and other factors include the satisfaction of the conditions to consummating the Versace acquisition, timing of closing of the Versace acquisition, the Company’s ability to integrate the businesses successfully and to achieve anticipated benefits of the Versace acquisition; the risk of disruptions to the Company’s or Versace’s businesses; the negative effects of the announcement of the proposed Versace acquisition or the consummation of the proposed acquisition on the market price of the Company’s ordinary shares and its operating results; significant transaction costs; unknown liabilities; the risk of litigation and/or regulatory actions related to the proposed Versace acquisition; fluctuations in demand for the Company’s and Versace’s products; future levels of indebtedness; future availability of credit; the timing and scope of future share buybacks, which may be suspended at any time due to market conditions and the level of other investing activities and uses of cash, including in connection with the pending Versace acquisition; changes in consumer traffic and retail trends; loss of market share and industry competition; fluctuations in the capital markets; fluctuations in interest and exchange rates; the occurrence of unforeseen disasters or catastrophes; political or economic instability in principal markets; adverse outcomes in litigation; and general, local and global economic, political, business and market conditions, as well as those risks set forth in the reports that the Company files from time to time with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2018 (File No. 001-35368). Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. Such forward-looking statements should therefore be construed in the light of such factors. Unless otherwise required by applicable law, the Company does not provide any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this press release will actually occur. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements. All subsequent oral or written forward-looking statements attributable to the Company are expressly qualified in their entirety by the cautionary statement above. The Company disclaims any obligation to update or revise any forward-looking or other statements contained herein other than in accordance with legal and regulatory obligations.

MICHAEL KORS HOLDINGS LIMITED

CONTACTS:
Michael Kors Holdings Limited
Katina Metzidakis
(201) 514-8234
InvestorRelations@MichaelKors.com
Media:
Michael Kors Holdings Limited
Dinesh Kandiah
(917) 934-2427
Press@MichaelKors.com

MICHAEL KORS HOLDINGS LIMITED

SCHEDULE 1
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share data)
(Unaudited)

	
																	
 	 	Three Months Ended	 	Six Months Ended	
 	 	September 29,
2018	 	September 30,
2017	 	September 29,
2018	 	September 30,
2017	
Total revenue	 	$	1,253.8		 	$	1,146.6		 	$	2,456.3		 	$	2,099.0		
Cost of goods sold	 	490.7		 	455.8		 	942.4		 	833.5		
Gross profit	 	763.1		 	690.8		 	1,513.9		 	1,265.5		
Total operating expenses	 	573.7		 	491.7		 	1,109.3		 	917.0		
Income from operations	 	189.4		 	199.1		 	404.6		 	348.5		
Other income, net	 	(1.5	)	 	(0.3	)	 	(2.3	)	 	(0.9	)	
Interest expense, net	 	5.9		 	0.8		 	13.4		 	1.9		
Foreign currency loss (gain)	 	33.0		 	(40.5	)	 	35.9		 	(41.7	)	
Income before provision for income taxes	 	152.0		 	239.1		 	357.6		 	389.2		
Provision for income taxes	 	14.9		 	36.4		 	34.3		 	61.0		
Net income	 	137.1		 	202.7		 	323.3		 	328.2		
Less: Net loss attributable to noncontrolling interests	 	(0.5	)	 	(0.2	)	 	(0.7	)	 	(0.2	)	
Net income attributable to MKHL	 	$	137.6		 	$	202.9		 	$	324.0		 	$	328.4		
Weighted average ordinary shares outstanding:	 	 	 	 	 	 	 	 	
Basic	 	149,575,112		 	151,781,340		 	149,538,607		 	153,134,119		
Diluted	 	151,705,685		 	154,168,094		 	152,052,671		 	155,519,806		
Net income per ordinary share:	 	 	 	 	 	 	 	 	
Basic	 	$	0.92		 	$	1.34		 	$	2.17		 	$	2.14		
Diluted	 	$	0.91		 	$	1.32		 	$	2.13		 	$	2.11		

MICHAEL KORS HOLDINGS LIMITED

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

	
													
 	 	September 29,
2018	 	March 31,
2018	 	September 30,
2017	
Assets	 	 	 	 	 	 	
Current assets	 	 	 	 	 	 	
Cash and cash equivalents	 	$	155.2		 	$	163.1		 	$	178.2		
Receivables, net	 	339.9		 	290.5		 	274.5		
Inventories	 	767.6		 	660.7		 	696.5		
Prepaid expenses and other current assets	 	211.4		 	147.8		 	181.5		
Total current assets	 	1,474.1		 	1,262.1		 	1,330.7		
Property and equipment, net	 	552.0		 	583.2		 	562.7		
Intangible assets, net	 	1,158.6		 	1,235.7		 	405.7		
Goodwill	 	796.9		 	847.7		 	119.7		
Deferred tax assets	 	47.1		 	56.2		 	69.2		
Other assets	 	78.6		 	74.1		 	43.7		
Total assets	 	$	4,107.3		 	$	4,059.0		 	$	2,531.7		
Liabilities and Shareholders’ Equity	 	 	 	 	 	 	
Current liabilities	 	 	 	 	 	 	
Accounts payable	 	$	290.5		 	$	294.1		 	$	174.0		
Accrued payroll and payroll related expenses	 	82.7		 	93.0		 	51.9		
Accrued income taxes	 	23.9		 	77.6		 	60.1		
Short-term debt	 	255.0		 	200.0		 	—		
Accrued expenses and other current liabilities	 	345.8		 	295.6		 	188.7		
Total current liabilities	 	997.9		 	960.3		 	474.7		
Deferred rent	 	133.5		 	128.4		 	131.7		
Deferred tax liabilities	 	181.5		 	186.3		 	78.7		
Long-term debt	 	504.6		 	674.4		 	—		
Other long-term liabilities	 	106.5		 	88.1		 	41.4		
Total liabilities	 	1,924.0		 	2,037.5		 	726.5		
Commitments and contingencies	 	 	 	 	 	 	
Shareholders’ equity	 	 	 	 	 	 	
Ordinary shares, no par value; 650,000,000 shares authorized; 213,208,924 shares issued and 150,150,297 outstanding at September 29, 2018; 210,991,091 shares issued and 149,698,407 outstanding at March 31, 2018, and 210,200,479 shares issued and 152,066,668 outstanding at September 30, 2017	 	—		 	—		 	—		
Treasury shares, at cost (63,058,627 shares at September 29, 2018; 61,292,684 shares at March 31, 2018; and 58,133,811 shares at September 30, 2017)	 	(3,123.0	)	 	(3,015.9	)	 	(2,815.8	)	
Additional paid-in capital	 	877.9		 	831.1		 	791.9		
Accumulated other comprehensive (loss) income	 	(62.9	)	 	50.5		 	(59.6	)	
Retained earnings	 	4,487.7		 	4,152.0		 	3,888.5		
Total shareholders’ equity of MKHL	 	2,179.7		 	2,017.7		 	1,805.0		
Noncontrolling interest	 	3.6		 	3.8		 	0.2		
Total shareholders’ equity	 	2,183.3		 	2,021.5		 	1,805.2		
Total liabilities and shareholders’ equity	 	$	4,107.3		 	$	4,059.0		 	$	2,531.7		

MICHAEL KORS HOLDINGS LIMITED

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

																			
 	 	Three Months Ended	 	Six Months Ended	
 	 	September 29,
2018	 	September 30,
2017	 	September 29,
2018	 	September 30,
2017	
Revenue by Segment and Region:	 	 	 	 	 	 	 	 	
MK Retail	 	The Americas	 	$	394.9		 	$	385.5		 	$	797.1		 	$	777.6		
 	 	Europe	 	139.2		 	154.2		 	258.7		 	276.3		
 	 	Asia	 	109.8		 	105.3		 	227.6		 	211.0		
MK Retail Revenue	 	643.9		 	645.0		 	1,283.4		 	1,264.9		
 	 	 	 	 	 	 	 	 	 	 	
MK Wholesale	 	The Americas	 	354.3		 	340.4		 	629.4		 	567.6		
 	 	EMEA	 	80.9		 	104.5		 	149.3		 	169.5		
 	 	Asia	 	22.6		 	18.7		 	41.9		 	30.1		
MK Wholesale Revenue	 	457.8		 	463.6		 	820.6		 	767.2		
 	 	 	 	 	 	 	 	 	 	 	
MK Licensing	 	The Americas	 	23.1		 	26.0		 	38.4		 	40.8		
 	 	EMEA	 	12.3		 	12.0		 	24.5		 	26.1		
MK Licensing Revenue	 	35.4		 	38.0		 	62.9		 	66.9		
 	 	 	 	 	 	 	 	 	
Michael Kors Revenue	 	1,137.1		 	1,146.6		 	2,166.9		 	2,099.0		
 	 	 	 	 	 	 	 	 	 	 	
Jimmy Choo	 	The Americas	 	20.4		 	—		 	46.0		 	—		
 	 	EMEA	 	56.8		 	—		 	158.5		 	—		
 	 	Asia	 	39.5		 	—		 	84.9		 	—		
Jimmy Choo Revenue	 	116.7		 	—		 	289.4		 	—		
 	 	 	 	 	 	 	 	 	
Total Revenue	 	$	1,253.8		 	$	1,146.6		 	$	2,456.3		 	$	2,099.0		
 	 	 	 	 	 	 	 	 	
Income from Operations:	 	 	 	 	 	 	 	 	
MK Retail	 	 	 	$	67.9		 	$	69.0		 	$	160.4		 	$	161.2		
MK Wholesale	 	 	 	130.1		 	119.6		 	227.6		 	163.1		
MK Licensing	 	 	 	9.8		 	10.5		 	18.9		 	24.2		
Michael Kors	 	 	 	207.8		 	199.1		 	406.9		 	348.5		
Jimmy Choo	 	 	 	(18.4	)	 	—		 	(2.3	)	 	—		
Total Income from Operations	 	$	189.4		 	$	199.1		 	$	404.6		 	$	348.5		
 	 	 	 	 	 	 	 	 	 	 	
Operating Margin:	 	 	 	 	 	 	 	 	 	 	
MK Retail	 	 	 	10.5	 %	 	10.7	%	 	12.5	 %	 	12.7	%	
MK Wholesale	 	 	 	28.4	 %	 	25.8	%	 	27.7	 %	 	21.3	%	
MK Licensing	 	 	 	27.7	 %	 	27.6	%	 	30.0	 %	 	36.2	%	
Michael Kors	 	 	 	18.3	 %	 	17.4	%	 	18.8	 %	 	16.6	%	
Jimmy Choo	 	 	 	(15.8	)%	 	—	%	 	(0.8	)%	 	—	%	
Total Operating Margin	 	 	 	15.1	 %	 	17.4	%	 	16.5	 %	 	16.6	%	

MICHAEL KORS HOLDINGS LIMITED

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

	
												
 	 	 	 	 	 	 	September 29, 2018	
Retail Store Information:	 	 	 	 	Store Count	 	Square Footage	
The Americas	 	 	 	 	398		 	1,365,108		
Europe	 	 	 	 	195		 	535,103		
Asia	 	 	 	 	261		 	560,401		
Michael Kors	 	 	 	 	854		 	2,460,612		
Jimmy Choo	 	 	 	 	204		 	268,251		
Total MKHL	 	 	 	 	 	 	1,058		 	2,728,863		

MICHAEL KORS HOLDINGS LIMITED

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

															
 	 	Three Months Ended	 	% Change	
 	 	September 29,
2018	 	September 30,
2017	 	As
Reported	 	Constant
Currency	
Total revenue:	 	 	 	 	 	 	 	 	
MK Retail	 	$	643.9		 	$	645.0		 	(0.2	)%	 	0.5	 %	
MK Wholesale	 	457.8		 	463.6		 	(1.3	)%	 	(0.9	)%	
MK Licensing	 	35.4		 	38.0		 	(6.8	)%	 	(6.8	)%	
Michael Kors	 	1,137.1		 	1,146.6		 	(0.8	)%	 	(0.3	)%	
Jimmy Choo	 	116.7		 	—		 	NM		 	NM		
Total revenue	 	$	1,253.8		 	$	1,146.6		 	9.3	 %	 	9.9	 %	

															
 	 	Six Months Ended	 	% Change	
 	 	September 29,
2018	 	September 30,
2017	 	As
Reported	 	Constant
Currency	
Total revenue:	 	 	 	 	 	 	 	 	
MK Retail	 	$	1,283.4		 	$	1,264.9		 	1.5	 %	 	0.6	 %	
MK Wholesale	 	820.6		 	767.2		 	7.0	 %	 	6.5	 %	
MK Licensing	 	62.9		 	66.9		 	(6.0	)%	 	(6.0	)%	
Michael Kors	 	2,166.9		 	2,099.0		 	3.2	 %	 	2.6	 %	
Jimmy Choo	 	289.4		 	—		 	NM		 	NM		
Total revenue	 	$	2,456.3		 	$	2,099.0		 	17.0	 %	 	16.4	 %	

MICHAEL KORS HOLDINGS LIMITED

SCHEDULE 6

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

																									
 	 	Three Months Ended September 29, 2018	
 	 	As Reported	 	Impairment Charges	 	Restructuring and Other Charges (1)	 	Inventory Step-up Adjustment	 	Acquisition Price Derivative Contract	 	As Adjusted	
Jimmy Choo gross profit	 	$	82.4		 	$	—		 	$	—		 	$	2.3		 	$	—		 	$	84.7		
Total gross profit	 	$	763.1		 	$	—		 	$	—		 	$	2.3		 	$	—		 	$	765.4		
 	 	 	 	 	 	 	 	 	 	 	 	 	
MK Retail operating income	 	$	67.9		 	$	5.7		 	$	6.0		 	$	—		 	$	—		 	$	79.6		
MK Wholesale operating income	 	130.1		 	—		 	4.1		 	—		 	—		 	134.2		
MK Licensing operating income	 	9.8		 	—		 	0.7		 	—		 	—		 	10.5		
Michael Kors operating income	 	207.8		 	5.7		 	10.8		 	—		 	—		 	224.3		
Jimmy Choo operating loss	 	(18.4	)	 	1.3		 	7.4		 	2.3		 	—		 	(7.4	)	
Total income from operations	 	$	189.4		 	$	7.0		 	$	18.2		 	$	2.3		 	$	—		 	$	216.9		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Michael Kors operating expense	 	$	472.9		 	$	(5.7	)	 	$	(10.8	)	 	$	—		 	$	—		 	$	456.4		
Jimmy Choo operating expense	 	100.8		 	(1.3	)	 	(7.4	)	 	—		 	—		 	92.1		
Total operating expenses	 	$	573.7		 	$	(7.0	)	 	$	(18.2	)	 	$	—		 	$	—		 	$	548.5		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign currency loss	 	$	33.0		 	$	—		 	$	—		 	$	—		 	$	(30.4	)	 	$	2.6		
Income before provision for income taxes	 	$	152.0		 	$	7.0		 	$	18.2		 	$	2.3		 	$	30.4		 	$	209.9		
Provision for income taxes	 	$	14.9		 	$	1.0		 	$	1.6		 	$	0.4		 	$	—		 	$	17.9		
Net income attributable to MKHL	 	$	137.6		 	$	6.0		 	$	16.6		 	$	1.9		 	$	30.4		 	$	192.5		
Diluted net income per ordinary share - MKHL	 	$	0.91		 	$	0.04		 	$	0.11		 	$	0.01		 	$	0.20		 	$	1.27		
______________________
		
(1)  	Includes store closure costs recorded in connection with the Retail Fleet Optimization Plan and other restructuring initiatives, transition costs recorded in connection with the acquisition of Jimmy Choo Group Limited and transaction and transition costs recorded in connection with the Company’s agreement to acquire Gianni Versace S.p.A.	

MICHAEL KORS HOLDINGS LIMITED

SCHEDULE 7

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

																									
 	 	Six Months Ended September 29, 2018	
 	 	As Reported	 	Impairment Charges	 	Restructuring and Other Charges (1)	 	Inventory Step-up Adjustment	 	Acquisition Price Derivative Contract	 	As Adjusted	
Gross profit	 	$	1,513.9		 	$	—		 	$	—		 	$	4.7		 	$	—		 	$	1,518.6		
 	 	 	 	 	 	 	 	 	 	 	 	 	
MK Retail operating income	 	$	160.4		 	$	10.0		 	$	10.6		 	$	—		 	$	—		 	$	181.0		
MK Wholesale operating income	 	227.6		 	—		 	4.5		 	—		 	—		 	232.1		
MK Licensing operating income	 	18.9		 	—		 	0.8		 	—		 	—		 	19.7		
Michael Kors operating income	 	406.9		 	10.0		 	15.9		 	—		 	—		 	432.8		
Jimmy Choo operating (loss) income	 	(2.3	)	 	1.3		 	13.6		 	4.7		 	—		 	17.3		
Total income from operations	 	$	404.6		 	$	11.3		 	$	29.5		 	$	4.7		 	$	—		 	$	450.1		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Michael Kors operating expense	 	$	912.4		 	$	(10.0	)	 	$	(15.9	)	 	$	—		 	$	—		 	$	886.5		
Jimmy Choo operating expense	 	196.9		 	(1.3	)	 	(13.6	)	 	—		 	—		 	182.0		
Total operating expenses	 	$	1,109.3		 	$	(11.3	)	 	$	(29.5	)	 	$	—		 	$	—		 	$	1,068.5		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign currency loss	 	$	35.9		 	$	—		 	$	—		 	$	—		 	$	(30.4	)	 	$	5.5		
Income before provision for income taxes	 	$	357.6		 	$	11.3		 	$	29.5		 	$	4.7		 	$	30.4		 	$	433.5		
Provision for income taxes	 	$	34.3		 	$	1.9		 	$	4.0		 	$	0.8		 	$	—		 	$	41.0		
Net income attributable to MKHL	 	$	324.0		 	$	9.4		 	$	25.5		 	$	3.9		 	$	30.4		 	$	393.2		
Diluted net income per ordinary share - MKHL	 	$	2.13		 	$	0.06		 	$	0.17		 	$	0.03		 	$	0.20		 	$	2.59		
______________________
		
(1)  	Includes store closure costs recorded in connection with the Retail Fleet Optimization Plan and other restructuring initiatives, transition costs recorded in connection with the acquisition of Jimmy Choo Group Limited and transaction and transition costs recorded in connection with the Company’s agreement to acquire Gianni Versace S.p.A.	

MICHAEL KORS HOLDINGS LIMITED

SCHEDULE 8
NON-GAAP RECONCILIATIONS OF REPORTED TO ADJUSTED MEASURES,
EXCLUDING LONG-LIVED ASSET IMPAIRMENTS,
RESTRUCTURING AND OTHER CHARGES AND DERIVATIVE CONTRACT
RELATED TO ACQUISITION OF JIMMY CHOO
(In millions, except share and per share data)
(Unaudited)

																					
 	 	Three Months Ended September 30, 2017	
 	 	As Reported	 	Impairment Charges	 	Restructuring and Other Charges (1)	 	Acquisition Price Derivative Contract	 	As Adjusted	
MK Retail operating income	 	$	69.0		 	$	16.3		 	$	13.9		 	$	—		 	$	99.2		
MK Wholesale operating income	 	119.6		 	—		 	6.9		 	—		 	126.5		
MK Licensing operating income	 	10.5		 	—		 	1.2		 	—		 	11.7		
Total income from operations	 	$	199.1		 	$	16.3		 	$	22.0		 	$	—		 	$	237.4		
 	 	 	 	 	 	 	 	 	 	 	
Operating expenses	 	$	491.7		 	$	(16.3	)	 	$	(22.0	)	 	$	—		 	$	453.4		
Foreign currency gain	 	$	(40.5	)	 	$	—		 	$	—		 	$	36.7		 	$	(3.8	)	
Income before provision for income taxes	 	$	239.1		 	$	16.3		 	$	22.0		 	$	(36.7	)	 	$	240.7		
Provision for income taxes	 	$	36.4		 	$	2.9		 	$	4.1		 	$	(7.0	)	 	$	36.4		
Net income attributable to MKHL	 	$	202.9		 	$	13.4		 	$	17.9		 	$	(29.7	)	 	$	204.5		
Diluted net income per ordinary share - MKHL	 	$	1.32		 	$	0.09		 	$	0.11		 	$	(0.19	)	 	$	1.33		

																					
 	 	Six Months Ended September 30, 2017	
 	 	As Reported	 	Impairment Charges	 	Restructuring and Other Charges (1)	 	Acquisition Price Derivative Contract	 	As Adjusted	
MK Retail operating income	 	$	161.2		 	$	16.3		 	$	14.5		 	$	—		 	$	192.0		
Total income from operations	 	$	348.5		 	$	16.3		 	$	23.3		 	$	—		 	$	388.1		
 	 	 	 	 	 	 	 	 	 	 	
Operating expenses	 	$	917.0		 	$	(16.3	)	 	$	(23.3	)	 	$	—		 	$	877.4		
Foreign currency gain	 	$	(41.7	)	 	$	—		 	$	—		 	$	36.7		 	$	(5.0	)	
Net income attributable to MKHL	 	$	328.4		 	$	13.4		 	$	19.0		 	$	(29.7	)	 	$	331.1		
Diluted net income per ordinary share - MKHL	 	$	2.11		 	$	0.09		 	$	0.12		 	$	(0.19	)	 	$	2.13		
______________________
		
(1)  	Includes store closure costs recorded in connection with the Retail Fleet Optimization Plan and transaction costs recorded in connection with the acquisition of Jimmy Choo Group Limited.