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 5, 2020

			

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.)	
33 Kingsway
London, United Kingdom
WC2B 6UF
(Address of Principal Executive Offices)
44 207 632 8600
(Registrant’s telephone number, including area code)

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

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

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

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

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

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

			

						
ITEM 2.02	RESULTS OF OPERATIONS AND FINANCIAL CONDITION.	
On February 5, 2020, Capri Holdings Limited issued a press release containing its unaudited financial results for its third fiscal quarter ended December 28, 2019. A copy of the press release is attached hereto as Exhibit 99.1.

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

Exhibit
No.	  	 	
99.1	  	Press release issued by Capri Holdings Limited, dated February 5, 2020.	
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 5, 2020				
		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 2020 Results
Third Quarter Revenue and Adjusted Earnings Per Share Exceed Expectations

London — February 5, 2020 — Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, today announced its financial results for the third quarter of fiscal 2020 ended December 28, 2019.
Third Quarter Fiscal 2020 Highlights
•Third quarter revenue growth of 9.2%
•Third quarter adjusted earnings per share of $1.66
•Repaid approximately $300 million of debt in the third quarter, and approximately $500 million year-to-date

John D. Idol, the Company’s Chairman and Chief Executive Officer, said, "For the third quarter, we were pleased to deliver revenue and earnings per share above our expectations. Our revenue increase reflected the addition of Versace and growth from Jimmy Choo, while Michael Kors revenue was better than anticipated. The strategic initiatives for our recent acquisitions, Versace and Jimmy Choo, continue to gain traction, and we believe we are on the right path to position Michael Kors for future growth. Longer term, as we continue to execute against our strategies, we are confident in our ability to deliver multiple years of revenue and earnings growth."

Mr. Idol continued, “We are in the midst of a dynamic global health emergency related to the coronavirus. Our thoughts and prayers go out to the people of China, including our own employees located in this region, as well as all of those affected by the virus globally. We hope for a speedy and positive resolution to this crisis. The situation in China and the measures being taken to protect the population are having a material impact on our business. Given our current visibility, we now anticipate annual revenue of approximately $5.65 billion and adjusted earnings per share of $4.45 to $4.50. This estimate could materially change if the severity of the situation in China worsens."
Third Quarter Fiscal 2020 Results
Financial Results and non-GAAP Reconciliation
The Company’s results are reported in this press release in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and on an adjusted, non-GAAP basis. A reconciliation of GAAP to non-GAAP financial information is provided at the end of this press release.

Overview of Capri Holdings Third Quarter Fiscal 2020 Results:
•Total revenue of $1.571 billion increased 9.2% compared to last year. On a constant currency basis, total revenue increased 9.6%.
•Gross profit was $932 million and gross margin was 59.3%, compared to $873 million and 60.7% in the prior year. Adjusted gross profit was $934 million and adjusted gross margin was 59.5%, compared to $874 million and 60.8% in the prior year.
•Income from operations was $205 million and operating margin was 13.0% compared to $290 million and 20.2% in the prior year. Adjusted income from operations was $264 million and operating margin was 16.8%, compared to $316 million and 22.0% in the prior year.
•Net income was $210 million, or $1.38 per diluted share compared to $200 million, or $1.33 per diluted share in the prior year. Adjusted net income was $253 million, or $1.66 per diluted share, compared to $265 million or $1.76 per diluted share in the prior year.
•Net inventory at December 28, 2019 was $960 million, a 25% increase compared to the prior year, primarily reflecting incremental Versace inventory. Michael Kors inventory declined 2% compared to the prior year.
Versace Third Quarter Fiscal 2020 Results:
•Versace revenue was $195 million and comparable store sales increased in the mid single digits on a constant currency basis compared to stand-alone results from the prior year. Versace continued to deliver double digit comparable store sales growth in the Americas and EMEA.
•Versace operating loss was $12 million and operating margin was (6.2)%. Adjusted operating loss was $10 million and adjusted operating margin was (5.1)%.
Jimmy Choo Third Quarter Fiscal 2020 Results:
•Jimmy Choo revenue of $165 million increased 1.9% compared to the prior year on both a reported and constant currency basis. On a constant currency basis, comparable store sales were flat. Comparable store sales increased in the Americas and EMEA.
•Jimmy Choo operating income was $9 million and operating margin was 5.5%, compared to operating income of $15 million and operating margin of 9.3% in the prior year. In the prior year, adjusted operating income was $16 million and adjusted operating margin was 9.9%.
Michael Kors Third Quarter Fiscal 2020 Results:
•Michael Kors revenue of $1.211 billion decreased 5.1% compared to the prior year. On a constant currency basis, total revenue decreased 4.7%. On a constant currency basis, comparable store sales decreased in the low single digits.
•Michael Kors operating income was $288 million and operating margin was 23.8%, compared to $320 million and 25.1% in the prior year.
Share Repurchase Program
During the third quarter, the Company repurchased approximately 2.7 million of the Company's ordinary shares for approximately $100 million in open market transactions. As of December 28, 2019 the remaining availability under the Company’s share repurchase program was $400 million.

Outlook
The following guidance is provided on an adjusted, non-GAAP basis.
Full Year Fiscal 2020 Outlook
During the fourth quarter of fiscal 2020, there has been an outbreak of coronavirus in China which the Company expects will materially impact its financial results. As of February 5, 2020, approximately 150 of the Company’s 225 stores in mainland China are closed. Additionally, most of the stores that remain open are operating with reduced hours and experiencing significant declines in customer traffic. While this global health emergency is expected to be temporary, the duration and intensity of the disruption is uncertain, including potential broader impact outside of China if travel and tourist traffic is further restricted and there is a resulting decline in Chinese tourist spending in other regions. Given the dynamic nature of these circumstances, the Company currently expects the situation in China to reduce revenue by approximately $100 million and earnings per share by $0.40 to $0.45 for the fourth quarter and full year. This estimate could materially change if the severity of the situation worsens, including potential broader impact on our business outside the region if outbound travel and tourist traffic is further restricted out of China and into other countries and regions. In addition, given the lower than normal visibility, the Company will not be providing brand comparable store sales guidance ranges in the fourth quarter.
For Capri Holdings, the Company expects the following.
•Total revenue of approximately $5.65 billion
•Operating margin of approximately 13.7%
•Net interest expense in a range of $15 million to $20 million
•Weighted average diluted shares outstanding of approximately 152 million
•Effective tax rate of approximately 9.5%
•Diluted earnings per share of $4.45 to $4.50
Fourth Quarter Fiscal 2020 Outlook
For Capri Holdings, the Company expects the following.
•Total revenue of approximately $1.3 billion
•Operating margin of approximately 9.0%
•Net interest expense of approximately $0 million
•Weighted average diluted shares outstanding of approximately 152 million
•Effective tax rate of approximately 7%
•Diluted earnings per share of $0.68 to $0.73
For Versace, the Company expects the following.
•Revenue of approximately $210 million
•Positive operating margin reflecting an additional month in the quarter, December, partially offset by increased investments to support growth initiatives
For Jimmy Choo, the Company expects the following.
•Revenue of approximately $130 million
•Operating margin improvement reflecting expense leverage and the normalization of strategic investments
For Michael Kors, the Company expects the following.
•Revenue of approximately $950 million
•Operating margin to be below prior year due to the impact of the situation in China, partially offset by cost reductions associated with the fleet optimization program

Conference Call Information
A conference call to discuss third quarter results is scheduled for today, February 5, 2020 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 12, 2020. 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 9391540. 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 and Versace acquisitions, restructuring and non-cash impairment charges, transformation costs and ERP implementation costs. The Company uses non-GAAP financial measures, among other things, to evaluate its operating performance and in order to represent the manner in which the Company conducts and views its business. The Company believes that excluding non-recurring items helps its management and investors compare operating performance based on its ongoing operations. While the Company considers the non-GAAP measures to be useful supplemental measures in analyzing its results, they are not intended to replace, nor act as a substitute for, any amounts presented in its consolidated financial statements prepared in conformity with U.S. GAAP and may be different from non-GAAP measures reported by other companies.
About Capri Holdings Limited
Capri Holdings Limited is a global fashion luxury group, consisting of iconic brands that are industry leaders in design, style and craftsmanship. Its brands cover the full spectrum of fashion luxury categories including women’s and men’s accessories, footwear and ready-to-wear as well as wearable technology, watches, jewelry, eyewear and a full line of fragrance products. The Company’s goal is to continue to extend the global reach of its brands while ensuring that they maintain their independence and exclusive DNA. Capri Holdings Limited is publicly listed on the New York Stock Exchange under the ticker CPRI.
Forward Looking Statements
This press release contains statements which are, or may be deemed to be, “forward-looking statements.” Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Capri Holdings Limited (the “Company”) about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. All statements other than statements of historical facts included in this press release may be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets”, “plans”, “believes”, “expects”, “aims”, “intends”, “will”, “should”, “could”, “would”, “may”, “anticipates”, “estimates”, “synergy”, “cost-saving”, “projects”, “goal”, “strategy”, “budget”, “forecast” or “might” or, words or terms of similar substance or the negative thereof, are forward-looking statements. Forward-looking statements include statements relating to future capital expenditures, expenses, revenues, earnings, economic performance, indebtedness, financial condition, share buybacks, dividend policy, losses and future prospects of the Company, business and management strategies and the expansion and growth of the Company’s operations, and benefits from any acquisition. These forward-looking statements are not guarantees of future financial performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions, which could cause actual results to differ materially from those projected or implied in any forward-looking statements. These risks, uncertainties and other factors include the Company’s ability to integrate successfully and to achieve anticipated benefits of any acquisition; the risk of disruptions to the Company’s businesses; the negative effects of events on the market price of the Company’s ordinary shares and its operating results; significant transaction costs; unknown liabilities; the risk of litigation and/or regulatory actions related to the Company’s businesses; fluctuations in

demand for the Company’s products; levels of indebtedness (including the indebtedness incurred in connection with acquisitions); future availability of credit; the timing and scope of future share buybacks, which may be made in open market or privately negotiated transactions, and are subject to market conditions, applicable legal requirements, trading restrictions under the Company’s insider trading policy and other relevant factors, and which share repurchases may be suspended or discontinued at any time, the level of other investing activities and uses of cash; changes in consumer traffic and retail trends; loss of market share and industry competition; fluctuations in the capital markets; fluctuations in interest and exchange rates; the occurrence of unforeseen epidemics (including the outbreak of the coronavirus and its potential impact on our future financial results), disasters or catastrophes; political or economic instability in principal markets (including the continuing business disruption in Hong Kong); adverse outcomes in litigation; and general, local and global economic, political, business and market conditions, as well as those risks set forth in the reports that the Company files from time to time with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended March 30, 2019 (File No. 001-35368). 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
(201) 514-8234
Jennifer.Davis@CapriHoldings.com
Media:
Dinesh Kandiah
(917) 934-2427
Press@CapriHoldings.com

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

 		Three Months Ended		Nine Months Ended	
		December 28,
2019		December 29,
2018		December 28,
2019		December 29,
2018	
Total revenue		$	1,571 	 		$	1,438 	 		$	4,359 	 		$	3,894 	 	
Cost of goods sold		639 	 		565 	 		1,719 	 		1,507 	 	
Gross profit		932 	 		873 	 		2,640 	 		2,387 	 	
Total operating expenses		727 	 		583 	 		2,296 	 		1,692 	 	
Income from operations		205 	 		290 	 		344 	 		695 	 	
Other income, net		(1)	 		(2)	 		(4)	 		(4)	 	
Interest expense, net		3 	 		7 	 		19 	 		21 	 	
Foreign currency (gain) loss		(2)	 		43 	 		4 	 		79 	 	
Income before provision for income taxes		205 	 		242 	 		325 	 		599 	 	
(Benefit from) provision for income taxes		(4)	 		42 	 		(2)	 		76 	 	
Net income		209 	 		200 	 		327 	 		523 	 	
Less: Net loss attributable to noncontrolling interests		(1)	 		— 	 		(1)	 		(1)	 	
Net income attributable to Capri		$	210 	 		$	200 	 		$	328 	 		$	524 	 	
Weighted average ordinary shares outstanding:									
Basic		150,826,196 	 		149,183,049 	 		151,159,423 	 		149,420,087 	 	
Diluted		152,154,372 	 		150,268,424 	 		152,354,936 	 		151,457,921 	 	
Net income per ordinary share:									
Basic		$	1.39 	 		$	1.34 	 		$	2.17 	 		$	3.50 	 	
Diluted		$	1.38 	 		$	1.33 	 		$	2.15 	 		$	3.46 	 	

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

		December 28,
2019		March 30,
2019		December 29,
2018	
Assets							
Current assets							
Cash and cash equivalents		$	237 	 		$	172 	 		$	265 	 	
Receivables, net		321 	 		383 	 		291 	 	
Inventories, net		960 	 		953 	 		765 	 	
Prepaid expenses and other current assets		263 	 		221 	 		2,119 	 	
Total current assets		1,781 	 		1,729 	 		3,440 	 	
Property and equipment, net		596 	 		615 	 		544 	 	
Operating lease right-of-use assets		1,665 	 		— 	 		— 	 	
Intangible assets, net		2,225 	 		2,293 	 		1,133 	 	
Goodwill		1,681 	 		1,659 	 		780 	 	
Deferred tax assets		165 	 		112 	 		47 	 	
Other assets		212 	 		242 	 		85 	 	
Total assets		$	8,325 	 		$	6,650 	 		$	6,029 	 	
Liabilities and Shareholders’ Equity							
Current liabilities							
Accounts payable		$	375 	 		$	371 	 		$	329 	 	
Accrued payroll and payroll related expenses		110 	 		133 	 		99 	 	
Accrued income taxes		30 	 		34 	 		23 	 	
Current operating lease liabilities		406 	 		— 	 		— 	 	
Short-term debt		1,031 	 		630 	 		579 	 	
Accrued expenses and other current liabilities		353 	 		374 	 		357 	 	
Total current liabilities		2,305 	 		1,542 	 		1,387 	 	
Long-term operating lease liabilities		1,751 	 		— 	 		— 	 	
Deferred rent		— 	 		132 	 		131 	 	
Deferred tax liabilities		440 	 		438 	 		182 	 	
Long-term debt		1,085 	 		1,936 	 		1,955 	 	
Other long-term liabilities		133 	 		166 	 		107 	 	
Total liabilities		5,714 	 		4,214 	 		3,762 	 	
Commitments and contingencies							
Redeemable noncontrolling interest		— 	 		4 	 		— 	 	
Shareholders’ equity							
Ordinary shares, no par value; 650,000,000 shares authorized; 216,906,643 shares issued and 149,012,245 outstanding at December 28, 2019; 216,050,939 shares issued and 150,932,306 outstanding at March 30, 2019, and 213,432,129 shares issued and 148,313,496 outstanding at December 29, 2018		— 	 		— 	 		— 	 	
Treasury shares, at cost 67,894,398 shares at December 28, 2019; 65,118,633 shares at March 30, 2019; and 65,118,633 shares at December 29, 2018)		(3,325)	 		(3,223)	 		(3,223)	 	
Additional paid-in capital		1,080 	 		1,011 	 		892 	 	
Accumulated other comprehensive loss		(29)	 		(66)	 		(93)	 	
Retained earnings		4,883 	 		4,707 	 		4,688 	 	
Total shareholders’ equity of Capri		2,609 	 		2,429 	 		2,264 	 	
Noncontrolling interest		2 	 		3 	 		3 	 	
Total shareholders’ equity		2,611 	 		2,432 	 		2,267 	 	
Total liabilities and shareholders’ equity		$	8,325 	 		$	6,650 	 		$	6,029 	 	

SCHEDULE 3
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED SEGMENT DATA
($ in millions)
(Unaudited)
																																	
 		Three Months Ended		Nine Months Ended	
		December 28,
2019		December 29,
2018		December 28,
2019		December 29,
2018	
Revenue by Segment and Region:									
Versace		The Americas		$	41 	 		$	— 	 		$	133 	 		$	— 	 	
		EMEA		98 	 		— 	 		311 	 		— 	 	
		Asia		56 	 		— 	 		186 	 		— 	 	
Versace Revenue		195 	 		— 	 		630 	 		— 	 	
											
Jimmy Choo		The Americas		34 	 		29 	 		85 	 		75 	 	
		EMEA		85 	 		90 	 		228 	 		248 	 	
		Asia		46 	 		43 	 		135 	 		128 	 	
Jimmy Choo Revenue		165 	 		162 	 		448 	 		451 	 	
											
Michael Kors		The Americas		834 	 		898 	 		2,222 	 		2,363 	 	
		EMEA		239 	 		244 	 		652 	 		677 	 	
		Asia		138 	 		134 	 		407 	 		403 	 	
Michael Kors Revenue		1,211 	 		1,276 	 		3,281 	 		3,443 	 	
									
Total Revenue		$	1,571 	 		$	1,438 	 		$	4,359 	 		$	3,894 	 	
									
Income (Loss) from Operations:									
Versace				$	(12)	 		$	— 	 		$	(6)	 		$	— 	 	
Jimmy Choo				9 	 		15 	 		10 	 		28 	 	
Michael Kors				288 	 		320 	 		711 	 		798 	 	
Total segment income from operations		285 	 		335 	 		715 	 		826 	 	
Less: Corporate expenses		(46)	 		(20)	 		(114)	 		(65)	 	
Restructuring and other charges		(15)	 		(19)	 		(37)	 		(49)	 	
Impairment of long-lived assets		(19)	 		(6)	 		(220)	 		(17)	 	
Total Income from Operations		$	205 	 		$	290 	 		$	344 	 		$	695 	 	
											
Operating Margin:											
Versace				(6.2)	%		— 	%		(1.0)	%		— 	%	
Jimmy Choo				5.5 	%		9.3 	%		2.2 	%		6.2 	%	
Michael Kors				23.8 	%		25.1 	%		21.7 	%		23.2 	%	
Capri Operating Margin				13.0 	%		20.2 	%		7.9 	%		17.8 	%	

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

 		 		As of	
Retail Store Information:		December 28, 2019		December 29, 2018	
Versace		208 	 		— 	 	
Jimmy Choo		223 	 		206 	 	
Michael Kors		846 	 		870 	 	
Total number of retail stores				1,277 	 		1,076 	 	

SCHEDULE 5
CAPRI HOLDINGS LIMITED AND SUBSIDIARIES
CONSTANT CURRENCY DATA
(In millions)
(Unaudited)
																											
 		Three Months Ended		% Change	
		December 28,
2019		December 29,
2018		As
Reported		Constant
Currency	
Total revenue:									
Versace		$	195 	 		$	— 	 		NM 	 		NM 	 	
Jimmy Choo		165 	 		162 	 		1.9 	%		1.9 	%	
Michael Kors		1,211 	 		1,276 	 		(5.1)	%		(4.7)	%	
Total revenue		$	1,571 	 		$	1,438 	 		9.2 	%		9.6 	%	

 		Nine Months Ended		% Change	
		December 28,
2019		December 29,
2018		As
Reported		Constant
Currency	
Total revenue:									
Versace		$	630 	 		$	— 	 		NM 	 		NM 	 	
Jimmy Choo		448 	 		451 	 		(0.7)	%		0.9 	%	
Michael Kors		3,281 	 		3,443 	 		(4.7)	%		(3.7)	%	
Total revenue		$	4,359 	 		$	3,894 	 		11.9 	%		13.0 	%	
___________________
NM Not meaningful

SCHEDULE 6

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

		Three Months Ended December 28, 2019	
		As
Reported		Impairment Charges		Restructuring and Other Charges(1)		Inventory Step-up Adjustment		ERP Implementation		Capri Transformation		As
Adjusted	
Gross profit		$	932 	 		$	— 	 		$	— 	 		$	2 	 		$	— 	 		$	— 	 		$	934 	 	

Operating expenses		$	727 	 		$	(19)	 		$	(15)	 		$	— 	 		$	(12)	 		$	(11)	 		$	670 	 	
															
Versace operating (loss) income		$	(12)	 		$	— 	 		$	— 	 		$	2 	 		$	— 	 		$	— 	 		$	(10)	 	
Total income from operations		$	205 	 		$	19 	 		$	15 	 		$	2 	 		$	12 	 		$	11 	 		$	264 	 	
															
Income before provision for income taxes		$	205 	 		$	19 	 		$	15 	 		$	2 	 		$	12 	 		$	11 	 		$	264 	 	
(Benefit from) provision for income taxes		$	(4)	 		$	7 	 		$	3 	 		$	— 	 		$	3 	 		$	3 	 		$	12 	 	
Net income attributable to Capri		$	210 	 		$	12 	 		$	12 	 		$	2 	 		$	9 	 		$	8 	 		$	253 	 	
	
Diluted net income per ordinary share - Capri		$	1.38 	 		$	0.08 	 		$	0.08 	 		$	0.01 	 		$	0.06 	 		$	0.05 	 		$	1.66 	 	
______________________
(1)Includes store closure costs recorded in connection with the Michael Kors Retail Fleet Optimization Plan and other restructuring initiatives, and other costs recorded in connection with the acquisitions of Gianni Versace S.r.l. and Jimmy Choo Group Limited.

SCHEDULE 7

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

		Nine Months Ended December 28, 2019	
		As
Reported		Impairment Charges		Restructuring and Other Charges(1)		Inventory Step-up Adjustment		ERP Implementation		Capri Transformation		Acquisition Foreign Currency Effects		As
Adjusted	
Gross profit		$	2,640 	 		$	— 	 		$	— 	 		$	13 	 		$	— 	 		$	— 	 		$	— 	 		$	2,653 	 	

Operating expenses		$	2,296 	 		$	(220)	 		$	(37)	 		$	— 	 		$	(29)	 		$	(13)	 		$	— 	 		$	1,997 	 	
																	
Versace operating income		$	(6)	 		$	— 	 		$	— 	 		$	13 	 		$	— 	 		$	— 	 		$	— 	 		$	7 	 	
Total income from operations		$	344 	 		$	220 	 		$	37 	 		$	13 	 		$	29 	 		$	13 	 		$	— 	 		$	656 	 	
																	
Foreign currency loss		$	4 	 		$	— 	 		$	— 	 		$	— 	 		$	— 	 		$	— 	 		$	(1)	 		$	3 	 	
Income before provision for income taxes		$	325 	 		$	220 	 		$	37 	 		$	13 	 		$	29 	 		$	13 	 		$	1 	 		$	638 	 	
(Benefit from) provision for income taxes		$	(2)	 		$	44 	 		$	8 	 		$	3 	 		$	7 	 		$	4 	 		$	— 	 		$	64 	 	
Net income attributable to Capri		$	328 	 		$	176 	 		$	29 	 		$	10 	 		$	22 	 		$	9 	 		$	1 	 		$	575 	 	
	
Diluted net income per ordinary share - Capri		$	2.15 	 		$	1.16 	 		$	0.19 	 		$	0.06 	 		$	0.14 	 		$	0.06 	 		$	0.01 	 		$	3.77 	 	
______________________
(1)Includes store closure costs recorded in connection with the Michael Kors Retail Fleet Optimization Plan and other restructuring initiatives, and other costs recorded in connection with the acquisitions of Gianni Versace S.r.l. and Jimmy Choo Group Limited.

SCHEDULE 8

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

		Three Months Ended December 29, 2018	
		As Reported		Impairment Charges		Restructuring and Other Charges(1)		Inventory Step-up Adjustment		Acquisition Price
Derivative Contract		As Adjusted	
Gross profit		$	873 	 		$	— 	 		$	— 	 		$	1 	 		$	— 	 		$	874 	 	
													
Total operating expenses		$	583 	 		$	(6)	 		$	(19)	 		$	— 	 		$	— 	 		$	558 	 	
													
Jimmy Choo operating income		$	15 	 		$	— 	 		$	— 	 		$	1 	 		$	— 	 		$	16 	 	
Total income from operations		$	290 	 		$	6 	 		$	19 	 		$	1 	 		$	— 	 		$	316 	 	
													
Foreign currency loss		$	43 	 		$	— 	 		$	— 	 		$	— 	 		$	(42)	 		$	1 	 	
Income before provision for income taxes		$	242 	 		$	6 	 		$	19 	 		$	1 	 		$	42 	 		$	310 	 	
Provision for income taxes		$	42 	 		$	1 	 		$	3 	 		$	— 	 		$	(1)	 		$	45 	 	
Net income attributable to Capri		$	200 	 		$	5 	 		$	16 	 		$	1 	 		$	43 	 		$	265 	 	
	
Diluted net income per ordinary share - Capri		$	1.33 	 		$	0.03 	 		$	0.11 	 		$	— 	 		$	0.29 	 		$	1.76 	 	
______________________
(1)Includes store closure costs recorded in connection with the Michael Kors Retail Fleet Optimization Plan, as well as transaction and transition costs recorded in connection with the acquisition of Jimmy Choo Group Limited.

SCHEDULE 9

NON-GAAP RECONCILIATIONS OF REPORTED TO ADJUSTED MEASURES,
EXCLUDING LONG-LIVED ASSET IMPAIRMENTS, RESTRUCTURING AND OTHER CHARGES,
INVENTORY STEP-UP RELATED TO JIMMY CHOO ACQUISITION, AND
DERIVATIVE CONTRACT RELATED TO AGREEMENT TO ACQUIRE VERSACE
(In millions, except share and per share data)
(Unaudited)
																																							
		Nine Months Ended December 29, 2018	
		As Reported		Impairment Charges		Restructuring and Other Charges(1)		Inventory Step-up Adjustment		Acquisition Price Derivative Contract		As Adjusted	
Gross profit		$	2,387 	 		$	— 	 		$	— 	 		$	6 	 		$	— 	 		$	2,393 	 	
													
Total operating expenses		$	1,692 	 		$	(17)	 		$	(49)	 		$	— 	 		$	— 	 		$	1,626 	 	
													
Jimmy Choo operating income		$	28 	 		$	— 	 		$	— 	 		$	6 	 		$	— 	 		$	34 	 	
Total income from operations		$	695 	 		$	17 	 		$	49 	 		$	6 	 		$	— 	 		$	767 	 	
													
Foreign currency loss		$	79 	 		$	— 	 		$	— 	 		$	— 	 		$	(72)	 		$	7 	 	
Income before provision for income taxes		$	599 	 		$	17 	 		$	49 	 		$	6 	 		$	72 	 		$	743 	 	
Provision for income taxes		$	76 	 		$	3 	 		$	7 	 		$	1 	 		$	(1)	 		$	86 	 	
Net income attributable to Capri		$	524 	 		$	14 	 		$	42 	 		$	5 	 		$	73 	 		$	658 	 	
	
Diluted net income per ordinary share - Capri		$	3.46 	 		$	0.09 	 		$	0.28 	 		$	0.03 	 		$	0.49 	 		$	4.35 	 	
______________________
(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.