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): February 8, 2023

			

			
CAPRI HOLDINGS LTD	
(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.)	
90 Whitfield Street
2nd Floor
London, United Kingdom
W1T 4EZ
(Address of Principal Executive Offices)
44 207 632 8600
(Registrant’s telephone number, including area code)

			
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
						
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	

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

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

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
Securities registered pursuant to Section 12(b) of the Act:
									
Title of Each Class	Trading Symbol(s)	Name of Each Exchange on which Registered	
Ordinary Shares, no par value	CPRI	New York Stock Exchange	
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
						
Emerging growth company	☐	

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

			

						
ITEM 2.02	RESULTS OF OPERATIONS AND FINANCIAL CONDITION.	

On February 8, 2023, Capri Holdings Limited issued a press release containing its unaudited financial results for its third fiscal quarter ended December 31, 2022. 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 Released issued by Capri Holdings Limited, dated February 8, 2023	
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)	

Exhibit 99.1 is furnished to comply with Item 2.02 and Item 9.01 of Form 8-K. Exhibit 99.1 is not to be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall Exhibit 99.1 be deemed incorporated by reference in any filing under the Securities Act of 1933 (except as shall be expressly set forth by specific reference in such filing).

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

			CAPRI HOLDINGS LIMITED
	
Date: February 8, 2023				
		By:	/s/ Thomas J. Edwards, Jr.	
		Name: 	Thomas J. Edwards, Jr.	
		Title:	Executive Vice President, Chief Financial Officer and Chief Operating Officer	

				

Exhibit 99.1
Capri Holdings Limited Announces Third Quarter Fiscal 2023 Results

London — February 8, 2023 — Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, today announced its financial results for the third quarter of Fiscal 2023 ended December 31, 2022.
Third Quarter Fiscal 2023 Highlights
•Revenue decreased 6.0% on a reported basis and 0.5% in constant currency
•Adjusted operating margin of 16.9%
•Adjusted earnings per share of $1.84

John D. Idol, the Company's Chairman and Chief Executive Officer, said, "Overall, our performance in the third quarter was more challenging than anticipated. However, many aspects of our business performed well, in particular we were pleased with the continued growth in our own retail channel across all three of our luxury houses. This is a testament to the strength of our powerful iconic brands, as well as the success of our strategic initiatives."

Mr. Idol continued, "However, we were disappointed with the performance of our global wholesale business in the quarter which resulted in expense deleverage and a lower operating margin. We have begun taking measures to better align operating expenses with the change in revenue by channel. At the same time we will continue to make strategic investments to drive long term growth."

Mr. Idol concluded, "As we look to fiscal 2024 we expect Capri Holdings to generate mid-single-digit revenue and earnings growth. We remain confident in our ability to achieve our long-term goals over time due to the resilience of the luxury industry, the strength of our portfolio of luxury houses and the talented group of employees executing our strategic initiatives."

Third Quarter Fiscal 2023 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 ("GAAP") and on an adjusted, non-GAAP basis. A reconciliation of GAAP to non-GAAP financial information is provided at the end of this press release.
Overview of Capri Holdings Third Quarter Fiscal 2023 Results:
•Total revenue of $1.51 billion decreased 6.0% compared to last year. On a constant currency basis, total revenue decreased 0.5%.
•Gross profit was $1.01 billion and gross margin was 66.5%, compared to $1.05 billion and 65.1% in the prior year. Adjusted gross profit was $1.00 billion and adjusted gross margin was 66.3%, compared to $1.05 billion and 65.1% in the prior year.
•Income from operations was $236 million and operating margin was 15.6%, compared to $331 million and 20.6% in the prior year. Adjusted income from operations was $256 million and operating margin was 16.9%, compared to $359 million and 22.3% in the prior year.
•Net income was $225 million, or $1.72 per diluted share, compared to $322 million, or $2.11 per diluted share, in the prior year. Adjusted net income was $240 million, or $1.84 per diluted share, compared to $339 million, or $2.22 per diluted share, in the prior year.
•Net inventory as of December 31, 2022 was $1.188 billion, a 21% increase compared to the prior year. This represents a sequential improvement and management continues to expect inventory levels to be below prior year by the end of the fourth quarter.
Versace Third Quarter Fiscal 2023 Results:
•Versace revenue of $249 million decreased 0.8% compared to the prior year. On a constant currency basis, total revenue increased 11.2%.
•Versace operating income was $24 million and operating margin was 9.6%, compared to $32 million and 12.7% in the prior year.
Jimmy Choo Third Quarter Fiscal 2023 Results:
•Jimmy Choo revenue of $168 million decreased 5.6% compared to the prior year. On a constant currency basis, total revenue increased 3.4%.
•Jimmy Choo operating income was $18 million and operating margin was 10.7%, compared to $16 million and 9.0% in the prior year.
Michael Kors Third Quarter Fiscal 2023 Results:
•Michael Kors revenue of $1.095 billion decreased 7.2% compared to the prior year. On a constant currency basis, total revenue decreased 3.6%.
•Michael Kors operating income was $251 million and operating margin was 22.9%, compared to $335 million and 28.4% in the prior year.

Share Repurchase Program
During the third quarter, the Company repurchased approximately 5.7 million ordinary shares for approximately $300 million in open market transactions.
Outlook
The following guidance is provided on an adjusted, non-GAAP basis. Financial results could differ materially from the current outlook due to a number of external events which are not reflected in our guidance, including changes in global macroeconomic conditions, greater than anticipated inflationary pressures, further considerable fluctuations in foreign currency exchange rates, COVID-19 variants and other COVID related disruptions.
Fiscal Year 2023 Outlook
For Capri Holdings, the Company expects the following:
•Total revenue of approximately $5.56 billion
•Modest gross margin expansion
•Operating margin of approximately 16.0%
•Net interest expense and foreign currency gains of approximately $12 million
•Effective tax rate of approximately 7%
•Weighted average diluted shares outstanding of approximately 134 million
•Diluted earnings per share of approximately $6.10
•Ending inventory to be below prior year
For Versace, the Company expects the following:
•Total revenue of approximately $1.1 billion
•Operating margin of approximately 15%
For Jimmy Choo, the Company expects the following:
•Total revenue of approximately $610 million
•Operating margin of approximately 4%
For Michael Kors, the Company expects the following:
•Total revenue of approximately $3.83 billion
•Operating margin of approximately 22%
Fourth Quarter Fiscal 2023 Outlook
For Capri Holdings, the Company expects the following:
•Total revenue of approximately $1.275 billion
•Operating margin of approximately 8.5%
•Net interest expense of approximately $11 million
•Effective tax rate of approximately (20)%
•Weighted average diluted shares outstanding of approximately 126 million
•Diluted earnings per share of $0.90-$0.95

For Versace, the Company expects the following:
•Total revenue of approximately $280 million
•Operating margin of approximately 10%
For Jimmy Choo, the Company expects the following:
•Total revenue of approximately $130 million
•Operating margin of approximately (14)%
For Michael Kors, the Company expects the following:
•Total revenue of approximately $865 million
•Operating margin of approximately 15%

Fiscal Year 2024 Outlook
For Capri Holdings, the Company expects the following:
•Total revenue of approximately $5.8 billion
•Modest gross margin expansion
•Operating margin of approximately 16.5%
•Effective tax rate in the mid-teens range
•Diluted earnings per share of approximately $6.40
For Versace, the Company expects the following:
•Total revenue of approximately $1.25 billion
•Operating margin in the mid-teens range
For Jimmy Choo, the Company expects the following:
•Total revenue of approximately $650 million
•Operating margin in the high-single-digit range
For Michael Kors, the Company expects the following:
•Total revenue of approximately $3.9 billion
•Operating margin in the low-20% range

Conference Call Information
A conference call to discuss third quarter Fiscal 2023 results is scheduled for today, February 8, 2023 at 8:30 a.m. ET. A live webcast of the conference call will be available on the Company’s website, www.capriholdings.com. In addition, a replay will be available shortly after the conclusion of the call and remain available until February 15, 2023. 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 13735207. A replay of the webcast will also be available within two hours of the conclusion of the call.
Use of Non-GAAP Financial Measures
Constant currency effects are non-GAAP financial measures, which are provided to supplement our reported operating results to facilitate comparisons of our operating results and trends in our business, excluding the effects of foreign currency rate fluctuations. Because we are a global company, foreign currency exchange rates may have a significant effect on our reported results. We calculate constant currency measures and the related foreign currency impacts by translating the current year’s reported amounts into comparable amounts using prior year’s foreign exchange rates for each currency. All constant currency performance measures discussed should be considered a supplement to and not in lieu of our operating performance measures calculated in accordance with U.S. GAAP. Additionally, this earnings release includes certain non-GAAP financial measures that exclude certain costs associated with COVID-19 related charges, the impact of the war in Ukraine, ERP implementation costs, Capri transformation costs, impairment charges, restructuring and other charges. The Company uses non-GAAP financial measures, among other things, to evaluate its operating performance and in order to represent the manner in which the Company conducts and views its business. The Company believes that excluding these items helps its management and investors compare operating performance based on its ongoing operations. While the Company considers the non-GAAP measures to be useful supplemental measures in analyzing its results, they are not intended to replace, nor act as a substitute for, any amounts presented in its consolidated financial statements prepared in conformity with U.S. GAAP and may be different from non-GAAP measures reported by other companies.
About Capri Holdings Limited
Capri Holdings is a global fashion luxury group consisting of iconic, founder-led brands Versace, Jimmy Choo and Michael Kors. Our commitment to glamorous style and craftsmanship is at the heart of each of our luxury brands. We have built our reputation on designing exceptional, innovative products that cover the full spectrum of fashion luxury categories. Our strength lies in the unique DNA and heritage of each of our brands, the diversity and passion of our people and our dedication to the clients and communities we serve. Capri Holdings Limited is publicly listed on the New York Stock Exchange under the ticker CPRI.

Forward-Looking Statements
This press release contains statements which are, or may be deemed to be, “forward-looking statements.” Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Capri Holdings Limited (the “Company”) about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. All statements other than statements of historical facts included herein, may be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “plans”, “believes”, “expects”, “intends”, “will”, “should”, “could”, “would”, “may”, “anticipates”, “might” or similar words or phrases, are forward-looking statements. These forward-looking statements are not guarantees of future financial performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions, which could cause actual results to differ materially from those projected or implied in any forward-looking statements. These risks, uncertainties and other factors include the impact of the COVID-19 pandemic; changes in consumer traffic and retail trends; high consumer debt levels, recession and inflationary pressures; levels of cash flow and future availability of credit;

compliance with restrictive covenants under the Company’s credit agreement; the Company’s ability to integrate successfully and to achieve anticipated benefits of any acquisition and to successfully execute our growth strategies; the risk of disruptions to the Company’s businesses; risks associated with operating in international markets and our global sourcing activities, including disruptions or delays in manufacturing or shipments; the risk of cybersecurity threats and privacy of data security breaches; the negative effects of events on the market price of the Company’s ordinary shares and its operating results; significant transaction costs; unknown liabilities; the risk of litigation and/or regulatory actions related to the Company’s businesses; fluctuations in demand for the Company’s products; levels of indebtedness (including the indebtedness incurred in connection with acquisitions); the timing and scope of future share buybacks, which may be made in open market or privately negotiated transactions, and are subject to market conditions, applicable legal requirements, trading restrictions under the Company’s insider trading policy and other relevant factors, and which share repurchases may be suspended or discontinued at any time; the level of other investing activities and uses of cash; loss of market share and industry competition; fluctuations in the capital markets; fluctuations in interest and exchange rates; the occurrence of unforeseen epidemics and pandemics, disasters or catastrophes; extreme weather conditions and natural disasters; political or economic instability in principal markets; adverse outcomes in litigation; and general, local and global economic, political, business and market conditions including acts of war and other geopolitical conflicts; as well as those risks set forth in the Company’s filings with the U.S. Securities and Exchange Commission (the "SEC"), including the Company’s Annual Report on Form 10-K for the fiscal year ended April 2, 2022 (File No. 001-35368). Any forward-looking statement in this press release speaks only as of the date made and the Company disclaims any obligation to update or revise any forward-looking or other statements contained herein other than in accordance with legal and regulatory obligations.

CONTACTS:
Investor Relations:
Jennifer Davis
+1 (201) 514-8234
Jennifer.Davis@CapriHoldings.com
Media:
Dinesh Kandiah
+1 (917) 934-2427
Press@CapriHoldings.com

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

 		Three Months Ended		Nine Months Ended	
		December 31,
2022		December 25,
2021		December 31,
2022		December 25,
2021	
Total revenue		$	1,512 			$	1,609 			$	4,284 			$	4,162 		
Cost of goods sold		507 			561 			1,427 			1,374 		
Gross profit		1,005 			1,048 			2,857 			2,788 		
Total operating expenses		769 			717 			2,138 			2,004 		
Income from operations		236 			331 			719 			784 		
Other income, net		(1)			— 			(2)			(2)		
Interest expense (income), net		12 			(7)			13 			(11)		
Foreign currency (gain) loss		(3)			(4)			(10)			1 		
Income before income taxes		228 			342 			718 			796 		
Provision for income taxes		3 			19 			66 			54 		
Net income		225 			323 			652 			742 		
Less: Net income attributable to noncontrolling interest		— 			1 			2 			1 		
Net income attributable to Capri		$	225 			$	322 			$	650 			$	741 		
Weighted average ordinary shares outstanding:									
Basic		128,849,793 			149,717,485 			135,600,276 			150,975,773 		
Diluted		130,364,919 			152,375,294 			137,050,159 			153,834,120 		
Net income per ordinary share:									
Basic		$	1.74 			$	2.15 			$	4.79 			$	4.91 		
Diluted		$	1.72 			$	2.11 			$	4.74 			$	4.82 		

SCHEDULE 2
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)
																					
		December 31,
2022		April 2,
2022		December 25,
2021	
Assets							
Current assets							
Cash and cash equivalents		$	281 			$	169 			$	261 		
Receivables, net		372 			434 			449 		
Inventories, net		1,188 			1,096 			978 		
Prepaid expenses and other current assets		243 			192 			384 		
Total current assets		2,084 			1,891 			2,072 		
Property and equipment, net		546 			476 			460 		
Operating lease right-of-use assets		1,369 			1,358 			1,401 		
Intangible assets, net		1,743 			1,847 			1,895 		
Goodwill		1,358 			1,418 			1,447 		
Deferred tax assets		247 			240 			178 		
Other assets		207 			250 			227 		
Total assets		$	7,554 			$	7,480 			$	7,680 		
Liabilities and Shareholders’ Equity							
Current liabilities							
Accounts payable		$	519 			$	555 			$	593 		
Accrued payroll and payroll related expenses		131 			165 			149 		
Accrued income taxes		65 			52 			166 		
Short-term operating lease liabilities		412 			414 			437 		
Short-term debt		19 			29 			26 		
Accrued expenses and other current liabilities		413 			351 			381 		
Total current liabilities		1,559 			1,566 			1,752 		
Long-term operating lease liabilities		1,392 			1,467 			1,503 		
Deferred tax liabilities		531 			432 			443 		
Long-term debt		1,521 			1,131 			976 		
Other long-term liabilities		328 			326 			231 		
Total liabilities		5,331 			4,922 			4,905 		
Commitments and contingencies							
	
Shareholders’ equity							
Ordinary shares, no par value; 650,000,000 shares authorized; 223,781,728 shares issued and 125,398,217 outstanding at December 31, 2022; 221,967,599 shares issued and 142,806,269 outstanding at April 2, 2022 and 221,322,510 shares issued and 147,252,018 outstanding at December 25, 2021		— 			— 			— 		
Treasury shares, at cost (98,383,511 shares at December 31, 2022, 79,161,330 shares at April 2, 2022 and 74,070,492 shares at December 25, 2021)		(4,951)			(3,987)			(3,686)		
Additional paid-in capital		1,327 			1,260 			1,238 		
Accumulated other comprehensive income		105 			194 			213 		
Retained earnings		5,742 			5,092 			5,011 		
Total shareholders’ equity of Capri		2,223 			2,559 			2,776 		
Noncontrolling interest		— 			(1)			(1)		
Total shareholders’ equity		2,223 			2,558 			2,775 		
Total liabilities and shareholders’ equity		$	7,554 			$	7,480 			$	7,680 		

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

 		Three Months Ended		Nine Months Ended	
		December 31,
2022		December 25,
2021		December 31,
2022		December 25,
2021	
Revenue by Segment and Region:									
											
Versace		The Americas		$	85 			$	89 			$	320 			$	283 		
		EMEA		113 			99 			350 			304 		
		Asia		51 			63 			162 			186 		
Versace Revenue		249 			251 			832 			773 		
											
Jimmy Choo		The Americas		54 			51 			151 			127 		
		EMEA		70 			69 			193 			175 		
		Asia		44 			58 			138 			155 		
Jimmy Choo Revenue		168 			178 			482 			457 		
											
Michael Kors		The Americas		777 			814 			2,045 			1,960 		
		EMEA		212 			237 			616 			616 		
		Asia		106 			129 			309 			356 		
Michael Kors Revenue		1,095 			1,180 			2,970 			2,932 		
									
Total Revenue		$	1,512 			$	1,609 			$	4,284 			$	4,162 		
									
Income from Operations:									
Versace				$	24 			$	32 			$	138 			$	135 		
Jimmy Choo				18 			16 			45 			28 		
Michael Kors				251 			335 			721 			795 		
Total segment income from operations		293 			383 			904 			958 		
Less: Corporate expenses		(56)			(37)			(171)			(123)		
Impairment of assets		(1)			— 			(12)			(33)		
Restructuring and other charges		(5)			(14)			(11)			(25)		
COVID-19 related charges	2 			(1)			6 			7 		
Impact of war in Ukraine	3 			— 			3 			— 		
Total Income from Operations		$	236 			$	331 			$	719 			$	784 		
											
Operating Margin:											
Versace				9.6 	%		12.7 	%		16.6 	%		17.5 	%	
Jimmy Choo				10.7 	%		9.0 	%		9.3 	%		6.1 	%	
Michael Kors				22.9 	%		28.4 	%		24.3 	%		27.1 	%	
Capri Operating Margin				15.6 	%		20.6 	%		16.8 	%		18.8 	%	

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

 		 		As of	
Retail Store Information:		December 31,
2022		December 25,
2021	
Versace		225 			212 		
Jimmy Choo		242 			240 		
Michael Kors		827 			834 		
Total number of retail stores				1,294 			1,286 		

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

 		Three Months Ended		% Change	
		December 31,
2022		December 25,
2021		As
Reported		Constant
Currency	
Total Revenue:									
Versace		$	249 			$	251 			(0.8)	%		11.2 	%	
Jimmy Choo		168 			178 			(5.6)	%		3.4 	%	
Michael Kors		1,095 			1,180 			(7.2)	%		(3.6)	%	
Total Revenue		$	1,512 			$	1,609 			(6.0)	%		(0.5)	%	

 		Nine Months Ended		% Change	
		December 31,
2022		December 25,
2021		As
Reported		Constant
Currency	
Total Revenue:									
Versace		$	832 			$	773 			7.6 	%		22.9 	%	
Jimmy Choo		482 			457 			5.5 	%		15.1 	%	
Michael Kors		2,970 			2,932 			1.3 	%		5.6 	%	
Total Revenue		$	4,284 			$	4,162 			2.9 	%		9.9 	%	

SCHEDULE 6

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)

		Three Months Ended December 31, 2022	
		As
Reported		Impairment Charges		Restructuring and Other Charges (1)		COVID-19 Related Charges		ERP Implementation		Capri Transformation		War in Ukraine		As
Adjusted	
Gross profit		$	1,005 			$	— 			$	— 			$	(2)			$	— 			$	— 			$	— 			$	1,003 		

Operating expenses		$	769 			$	(1)			$	(5)			$	— 			$	(4)			$	(15)			$	3 			$	747 		

Total income from operations		$	236 			$	1 			$	5 			$	(2)			$	4 			$	15 			$	(3)			$	256 		
																	
Income before provision for income taxes		$	228 			$	1 			$	5 			$	(2)			$	4 			$	15 			$	(3)			$	248 		
Provision for income taxes		$	3 			$	— 			$	1 			$	— 			$	1 			$	4 			$	(1)			$	8 		
Net income attributable to Capri		$	225 			$	1 			$	4 			$	(2)			$	3 			$	11 			$	(2)			$	240 		
	
Diluted net income per ordinary share - Capri		$	1.72 			$	0.01 			$	0.03 			$	(0.02)			$	0.02 			$	0.09 			$	(0.01)			$	1.84 		
______________________
(1)Primarily Includes other charges recorded in connection with the acquisition of Gianni Versace S.r.l.

SCHEDULE 7

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)

		Nine Months Ended December 31, 2022	
		As
Reported		Impairment Charges		Restructuring and Other Charges(1)		COVID-19 Related Charges		ERP Implementation		Capri Transformation		War in Ukraine		As
Adjusted	
Gross profit		$	2,857 			$	— 			$	— 			$	(6)			$	— 			$	— 			$	— 			$	2,851 		
																	
Operating expenses		$	2,138 			$	(12)			$	(11)			$	— 			$	(20)			$	(34)			$	3 			$	2,064 		

Total income from operations		$	719 			$	12 			$	11 			$	(6)			$	20 			$	34 			$	(3)			$	787 		

Income before provision for income taxes		$	718 			$	12 			$	11 			$	(6)			$	20 			$	34 			$	(3)			$	786 		
Provision for income taxes		$	66 			$	2 			$	3 			$	(1)			$	5 			$	10 			$	(1)			$	84 		
Net income attributable to Capri		$	650 			$	10 			$	8 			$	(5)			$	15 			$	24 			$	(2)			$	700 		
	
Diluted net income per ordinary share - Capri		$	4.74 			$	0.07 			$	0.06 			$	(0.04)			$	0.11 			$	0.18 			$	(0.01)			$	5.11 		
______________________
(1)Primarily Includes other charges recorded in connection with the acquisition of Gianni Versace S.r.l.

SCHEDULE 8

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)

		Three Months Ended December 25, 2021	
		As Reported		Restructuring and Other Charges (1)		COVID-19 Related Charges		ERP Implementation		Capri Transformation		As Adjusted	
Gross profit		$	1,048 			$	— 			$	(1)			$	— 			$	— 			$	1,047 		
													
Operating expenses		$	717 			$	(14)			$	(2)			$	(3)			$	(10)			$	688 		
													
Total income from operations		$	331 			$	14 			$	1 			$	3 			$	10 			$	359 		

Income before provision for income taxes		$	342 			$	14 			$	1 			$	3 			$	10 			$	370 		
Provision for income taxes		$	19 			$	1 			$	1 			$	1 			$	8 			$	30 		
Net income attributable to Capri		$	322 			$	13 			$	— 			$	2 			$	2 			$	339 		
	
Diluted net income per ordinary share - Capri		$	2.11 			$	0.09 			$	— 			$	0.01 			$	0.01 			$	2.22 		
______________________
(1)Includes store closure costs which have been incorporated into the Capri Retail Store Optimization Program, other restructuring initiatives, and other costs recorded in connection with the acquisitions of Gianni Versace S.r.l and Jimmy Choo Group Limited.

SCHEDULE 9

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)

		Nine Months Ended December 25, 2021	
		As Reported		Impairment Charges		Restructuring and Other Charges(1)		COVID-19 Related Charges		ERP
Implementation		Capri
Transformation		As Adjusted	
Gross profit		$	2,788 			$	— 			$	— 			$	(9)			$	— 			$	— 			$	2,779 		
															
Operating expenses		$	2,004 			$	(33)			$	(25)			$	(2)			$	(11)			$	(15)			$	1,918 		

	
Total income from operations		$	784 			$	33 			$	25 			$	(7)			$	11 			$	15 			$	861 		

Income before provision for income taxes		$	796 			$	33 			$	25 			$	(7)			$	11 			$	15 			$	873 		
Provision for income taxes		$	54 			$	8 			$	2 			$	— 			$	4 			$	9 			$	77 		
Net income attributable to Capri		$	741 			$	25 			$	23 			$	(7)			$	7 			$	6 			$	795 		
	
Diluted net income per ordinary share - Capri		$	4.82 			$	0.16 			$	0.15 			$	(0.05)			$	0.05 			$	0.04 			$	5.17 		
______________________
(1)Includes store closure costs which have been incorporated into the Capri Retail Store Optimization Program, other restructuring initiatives, and other costs recorded in connection with the acquisitions of Gianni Versace S.r.l and Jimmy Choo Group Limited.