Capri Holdings Limited · NYSE:CPRI
Capri — Investor Day (July 2022)
136 slides from Capri's investor day presentation, Jul 20, 2022
Slide 1: Investor Day
INVESTOR DAY JULY 20, 2022
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains 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
Slide 3: July 20, 2022 Investor Day presenters
JULY 20, 2022 INVESTOR DAY John Idol, Chairman & Chief Executive Officer Tom Edwards, Chief Financial & Chief Operating Officer Cedric Wilmotte, Versace Interim CEO Jenny Pham, Versace Chief Brand Officer Hannah Colman, Jimmy Choo CEO Helene Phillips, Jimmy Choo Chief Client Officer John Idol, Micha
Slide 4: Investor Day Program
INVESTOR DAY PROGRAM CAPRI OVERVIEW Q&A
Slide 5: Three Powerful Global Fashion Luxury Houses
THREE POWERFUL GLOBAL FASHION LUXURY HOUSES
Slide 6: Personal Luxury Goods Market Overview
PERSONAL LUXURY GOODS MARKET OVERVIEW +6% TO +7% CAGR € 360-380 € €305-330 € 281 € 288 € 220 2019 2020 2021 2022E 2025E Source: BAIN-ALTAGAMMA LUXURY GOODS WORLDWIDE MARKET STUDY SPRING 2022
Slide 7: Capri's Strategic Pillars
CAPRI’S STRATEGIC PILLARS • MAXIMIZE THE FULL POTENTIAL OF OUR THREE DISTINCT FASHION LUXURY BRANDS • DESIGN INNOVATIVE FASHION LUXURY PRODUCT • DEEPEN CONSUMER DESIRE AND ENGAGEMENT THROUGH EXCITING & IMPACTFUL COMMUNICATION • LEVERAGE SEAMLESS OMNI-RETAILING CAPABILITIES TO ACCLERATE REVENUE GROWT
Slide 8: Capri Revenue and Earnings Growth Opportunity
CAPRI REVENUE AND EARNINGS GROWTH OPPORTUNITY $8.00B +40% ~ $8.0B 35.0% 30.0% $7.00B $6.00B $5.55B $5.65B ~ $5.85B 25.0% $5.00B $4.06B 19.0% ~20% $4.00B ~18% 20.0% OPERATING $3.00B 13.6% 15.0% MARGIN * $2.00B 10.7% 10.0% $1.00B $0.00B 5.0% F2020 F2021 F2022 F2023E FUTURE Y/Y FX IMPACT $(45)M $107M $
Slide 9: Capri Revenue by Brand
CAPRI REVENUE BY BRAND ~ $8.0B 25% $5.55B $5.65B ~$5.85B Versace 12.5% 15% 19% 20% 10% $4.06B 11% 11% Jimmy Choo 18% 10% Michael Kors 62.5% 75% 70% 69% 72% F2020 F2021 F2022 F2023E FUTURE
Slide 10: Capri Revenue by Region
CAPRI REVENUE BY REGION ~ $8.0B 25% $5.65B ~ $5.85B $5.55B 17% 16% Asia 16% 25% $4.06B 25% 27% 26% EMEA 21% 26% Americas 50% 57% 57% 59% 53% F2020 F2021 F2022 F2023E FUTURE
Slide 11: Capri Revenue by Channel
CAPRI REVENUE BY CHANNEL ~ $8.0B 3% 21% $5.65B ~ $5.85B $5.55B 4% 4% 4% Licensing 27% 33% $4.06B 29% Wholesale 4% 26% Retail 76% 67% 69% 63% 70% F2020 F2021 F2022 F2023E FUTURE
Slide 12: Capri Retail Store Base
CAPRI RETAIL STORE BASE 1,400 1,271 1,271 1,313 1,257 300 206 209 225 Versace 210 226 227 237 243 300 Jimmy Choo Michael Kors 839 820 825 845 800 F2020 F2021 F2022 F2023E FUTURE
Slide 13: Capital Investments
CAPITAL INVESTMENTS APPROXIMATELY $300M PER YEAR • EXPAND LUXURY STORE FLEET • RENOVATE STORES DIGITAL STORES 55% TECHOLOGY • INVEST IN DIGITAL TECHNOLOGY 20% • CREATE COMMON CORPORATE PLATFORMS 20% CORPORATE 5% PLATFORMS • INVEST IN EUROPEAN MANUFACTURING EUROPEAN MANUFACTURING
Slide 14: Capital Allocation
CAPITAL ALLOCATION ALLOCATION PRIORITIES DEBT REDUCTION • INVEST IN BUSINESS NET DEBT • RETURN CASH TO SHAREHOLDERS $1.6B $1.1B $1.0B ~$1.0B • REPAY DEBT • ACQUIRE ANOTHER LUXURY ASSET F2020 F2021 F2022 F2023E * Targeting <2.0x leverage ratio
Slide 15: Corporate Social Responsibility: Capri's Three Strategic Pillars
CORPORATE SOCIAL RESPONSIBILITY CAPRI’S THREE STRATEGIC PILLARS OUR OUR OUR WORLD COMMUNITY PHILANTHROPY
Slide 16: Our World
OUR WORLD WE STRIVE TO CREATE THE HIGHEST QUALITY LUXURY PRODUCTS WITH LONGEVITY AND SUSTAINABILITY IN MIND OUR ENVIRONMENTAL COMMITMENTS ARE CENTERED AROUND THE FOLLOWING TOPICS: RESPONSIBLE CLIMATE CHANGE, SUPPLY CHAIN SUSTAINABLE BETTER WATER USE & ENERGY & TRACEABILITY & PACKAGING & LEATHER CHEM
Slide 17: Our Community
OUR COMMUNITY WE STRIVE TO CREATE INCLUSIVE WORKPLACES WHERE ALL OF OUR EMPLOYEES ARE EMPOWERED AND RESPECTED
Slide 18: Our Philanthropy
OUR PHILANTHROPY GIVING BACK IS EMBEDDED IN CAPRI’S CULTURE WE ARE COMMITTED TO SUPPORTING AND DRIVING POSITIVE CHANGE IN THE COMMUNITIES WHERE WE LIVE AND WORK
Slide 19: Investor Day Program
INVESTOR DAY PROGRAM CAPRI OVERVIEW Q&A
Slide 20: Versace CEO Cedric Wilmotte
VERSACE CEO Cedric Wilmotte
Slide 21: Agenda
AGENDA BRAND VISION PRODUCT CUSTOMER EXPERIENCE FINANCIAL OUTLOOK
Slide 22: Brand Vision
BRAND VISION
Slide 23: This upcoming season embodies strength and ultimate luxury
“THIS UPCOMING SEASON EMBODIES THE FEELING OF STRENGTH, AND ULTIMATE LUXURY.” – DONATELLA VERSACE
Slide 24: Fall 2022
FALL 2022
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Slide 28: Attracting a New Audience and Consumer
ATTRACTING A NEW AUDIENCE AND CONSUMER BUILD THE REPUTATION TO EXPAND THE VERSACE BRAND FOCUS ON HIGH NET ENGAGING PRODUCT LOYALTY AND WORTH INDIVIDUALS MARKETING STRATEGY ADVOCACY
Slide 29: Combine Storytelling with Data Analytics
COMBINE STORYTELLING WITH DATA ANALYTICS ELEVATE CUSTOMER EXPERIENCE ACROSS ALL TOUCHPOINTS BRAND BUILDING CALL TO ACTION
Slide 30: Combine Storytelling with Data Analytics
COMBINE STORYTELLING WITH DATA ANALYTICS GROW DATA BASE AND DRIVE LIFETIME VALUE INCREASE DRIVE ACTIVE CULTIVATE ACQUISITION CONSUMERS LOYALTY
Slide 31: Accelerate Database Growth
ACCELERATE DATABASE GROWTH 20M > 25% CAGR 4.5M 3.3M 2.7M 2.2M 1.7M F2018 F2019 F2020 F2021 F2022 FUTURE
Slide 32: Product
RODUCT ERSACE
Slide 33: Product Strategy
PRODUCT STRATEGY INCREASE REINFORCE ICONIC GROW ACCESSORIES EXPAND MEN’S FOOTWEAR REVENUE BRAND CODES TO $1 B ACCESSORIES TO $300M
Slide 34: Iconic Codes
ICONIC CODES GRECA MEDUSA BAROCCO V
Slide 35: Iconic Leathergoods
ICONIC LEATHERGOODS GRECA GODDESS LA MEDUSA VIRTUS HERITAGE CODE ICONIC VERSACE CODE BAROCCO V
Slide 36: Grow Accessories to $1B
GROW ACCESSORIES TO $1B $1B • STRENGTHEN AUTHORITY IN LUXURY LEATHERGOODS SEGMENT 5X • FOCUS ON EXISTING PILLARS • EXPAND THE ASSORTMENT WITH THE $200M LAUNCH OF GRECA GODDESS F2022 FUTURE
Slide 37: Iconic Footwear
ICONIC FOOTWEAR CHAIN MEDUSA VIRTUS GLAMOUROUS STYLE ICONIC VERSACE CODE BAROQUE V
Slide 38: Iconic Sneakers
ICONIC SNEAKERS ODISSEA TRIGRECA LA GRECA OUR NEWEST FUTURISTIC OUR KEY PILLAR IN THE OUR CLASSIC LOW TOP SLIP ON DESIGN SNEAKER ASSORTMENT AND LACE UP DESIGN
Slide 39: Increase Footwear Revenue to $300M
INCREASE FOOTWEAR REVENUE TO $300M $300M • CAPITALIZE ON THE SUCCESS OF WOMEN’S FORMAL FOOTWEAR 1.5 X $200M • AMPLIFY THE SUCCESS OF EXISTING SNEAKER LINES • MAXIMIZE NEW ODISSEA PLATFORM F2022 FUTURE
Slide 40: Expand Men's Accessories
EXPAND MEN’S ACCESSORIES LEVERAGE THE WOMEN’S SUCCESS TO DRIVE DESIRABILITY FOR THE VERSACE MAN WITH A MODERN AND INNOVATIVE TAKE ON OPULENCE
Slide 41: Customer Experience
CUSTOMER EXPERIENCE
Slide 42: Create Customer Engagement
CREATE CUSTOMER ENGAGEMENT STRENGTHEN CUSTOMER EXPERIENCE • LAUNCH OF NEW CLIENTELING APP • IMPLEMENTATION OF VIRTUAL ASSISTANT • ROLLOUT OF IN-STORE ORDER FULFILLMENT INTO MORE LOCATIONS
Slide 43: Focus on Store Traffic Drivers
FOCUS ON STORE TRAFFIC DRIVERS INCREASE CUSTOMER GEO TARGET KEY STORE ENGAGE WITH IN-STORE INSIGHTS AND OPTIMIZE LOCATIONS EVENTS AND ANIMATIONS EXPERIENCE WITH CLIENTELING APP
Slide 44: Drive Store Productivity
DRIVE STORE PRODUCTIVITY INCREASE SALES DENSITY • ELEVATE RETAIL EXCELLENCE • DRIVE A CULTURE OF PERFORMANCE • ENHANCE IN-STORE CAPACITY $2,000 / SQ FT $1,000 / SQ FT * Store sales per gross square foot F2022 FUTURE
Slide 45: Leverage Global Luxury Retail Locations
LEVERAGE GLOBAL LUXURY RETAIL LOCATIONS GLOBAL STORE EXPANSION • ROLLOUT OF THE NEW STORE CONCEPT • OPEN IN KEY CITIES • RENOVATE EXISTING STORE FLEET 300 225 206 210 209 165 Asia 60 115 125 119 EMEA 116 75 57 55 58 Americas 60 30 34 39 42 F2020 F2021 F2022 F2023E FUTURE
Slide 46: Paris St Honoré
PARIS ST HONORE —_ VERSACE a
Slide 47: Paris St Honoré Handbags
PARIS ST HONORÉ HANDBAGS
Slide 48: Paris St Honoré Footwear
PARIS ST HONORÉ FOOTWEAR
Slide 49: London Bond Street
LONDON BOND STREET
Slide 50: London Bond Street Womenswear
LONDON BOND STREET WOMENSWEAR
Slide 51: London Bond Street Menswear
LONDON BOND STREET MENSWEAR
Slide 52: Ecommerce Acceleration
ECOMMERCE ACCELERATION ~ $500M INCREASE E-COMMERCE TO $500M • ACCELERATE DATABASE GROWTH THROUGH 3.6 X MORE VISITS AND REPEAT CUSTOMERS • IMPROVE USER EXPERIENCE ON VERSACE.COM $140M • FOCUS ON EDITORIAL STORYTELLING TO DRIVE GREATER SHARE OF LEATHER GOODS CATEGORY F2022 FUTURE
Slide 53: Financial Outlook
FINANCIAL OUTLOOK
Slide 54: Versace Financial Outlook
VERSACE FINANCIAL OUTLOOK 2,000 ~ $2.0B 40.0% 1,800 35.0% 1,600 1,400 ~ $1.2B 30.0% $1.1B 1,200 1,000 25.0% $843M 800 $718M ~ 20.0% 20.0% 600 17.0% ~ 16.0% OPERATING 400 MARGIN * 15.0% 2.9% 200 0.5% 0 10.0% F2020 F2021 F2022 F2023E FUTURE * US GAAP results adjusted for special items; see Appendix fo
Slide 55: Versace Regional Growth
VERSACE REGIONAL GROWTH ~ $760M ~ $640M ~ $600M $425M $408M $255M F2022 FUTURE F2022 FUTURE F2022 FUTURE 55
Slide 56: Versace Revenue by Channel
VERSACE REVENUE BY CHANNEL ~ $2.0B 4% 13% ~ $1.2B $1.1B 8% 10% $843M 26% Licensing 26% 9% $718M 83% 27% 10% Wholesale 22% 66% 64% Retail 64% 68% 2020 2021 2022 2023E GOAL 56 *Retail includes stores and E-commerce
Slide 57: Path to $2B
PATH TO $2B • LEAD WITH VERSACE RUNWAY GLAMOUR • REINFORCE BRAND CODES • SIGNIFICANTLY GROW ACCESSORIES • DOUBLE SIZE OF FOOTWEAR • DRIVE RETAIL AND ECOMMERCE TO FULL POTENTIAL 57
Slide 58: Investor Day Program
INVESTOR DAY PROGRAM CAPRI OVERVIEW Q&A
Slide 59: Jimmy Choo CEO Hannah Colman
CEO Hannah Colman
Slide 60: Agenda
AGENDA BRAND VISION PRODUCT CUSTOMER EXPERIENCE FINANCIAL OUTLOOK 60
Slide 61: Brand Vision
BRAND VISION 61
Slide 62: Lead with Glamour
LEAD WITH GLAMOUR “ Glamour underpins the essence of Jimmy Choo. Our “ glamour is dynamic from day to night, it is the magic ingredient that unites our collections and community, sparking joy and desire. SANDRA CHOI CREATIVE DIRECTOR 62
Slide 63: Time to Dare
TIME TO DARE • CONSISTENT VISUAL IDENTITY • CAPITALIZE ON BRAND HEAT • REACH NEW AUDIENCES THROUGH INFLUENCE 63
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Slide 67: Accelerate Database Growth
ACCELERATE DATABASE GROWTH 10M ∼ 25% CAGR 4.8M 3.7M 3.2M 2.7M 2M F2018 F2019 F2020 F2021 F2022 FUTURE 67
Slide 68: Attract New Audiences and Nurture the Core
ATTRACT NEW AUDIENCES AND NURTURE THE CORE GEN Z & YOUNG THE CORE CLIENT MILLENNIALS • COLLABORATIONS • ELEVATE PRODUCT OFFER • DIGITAL INNOVATION • EXPAND CLIENT • BALANCED SERVICES COLLECTION ARCHITECTURE 68
Slide 69: Accelerate Brand Momentum Regionally
ACCELERATE BRAND MOMENTUM REGIONALLY VICTORIA SONG QIAN - CHINA SON NA EUN - KOREA AYAMI NAKAJÔ - JAPAN 69
Slide 70: High Touch Personalised Clienteling
CLIENT HIGH TOUCH PERSONALISED CLIENTELING • EMPOWER SALES ASSOCIATES TO PROACTIVELY CONTACT CLIENTS • BUILD ON BRAND LOYALTY AND RETENTION • DEVELOP A CLIENTELING CULTURE ACROSS THE ORGANIZATION Jimmy Choo @2022 70
Slide 71: Product
PRODUCT 71
Slide 72: Product Strategy
PRODUCT STRATEGY REINFORCE EXPAND MAXIMIZE CASUAL BUILDING ON BRAND CODES ACCESSORIES OPPORTUNITY LIFESTYLE 72
Slide 73: Reinforce Brand Codes
REINFORCE BRAND CODES JC MONOGRAM CRYSTAL PEARL Jimmy Choo @2022 73
Slide 74: Accessories Growth Strategy
ACCESSORIES GROWTH STRATEGY EXPAND ACCESSORIES TO 30% MIX $300M • REINFORCE BRAND CODES 2.7 X • BUILD ON SUCCESS OF KEY FAMILIES • PROTECT LEADERSHIP IN EVENING $112M FY22 F2022 FUTURE 74
Slide 75: Accessories Brand Codes
ACCESSORIES BRAND CODES JC MONOGRAM CRYSTAL PEARL Jimmy Choo @2022 75
Slide 76: Maximize Casual Opportunity
MAXIMIZE CASUAL OPPORTUNITY $250M • DOUBLE THE CASUAL BUSINESS • REINFORCE BRANDING 2.3 X • INTRODUCTION OF NEW PRODUCT FUNCTIONS $110M FY22 F2022 FUTURE 76
Slide 77: Maximize Casual Opportunity
MAXIMIZE CASUAL OPPORTUNITY SNEAKERS BOOTS POOL SLIDES Jimmy Choo @2022 77
Slide 78: Building on Lifestyle
BUILDING ON LIFESTYLE FRAGRANCE & BEAUTY EYEWEAR JEWELRY 78
Slide 79: Customer Experience
CUSTOMER EXPERIENCE 79
Slide 80: Leverage Global Luxury Retail Locations
LEVERAGE GLOBAL LUXURY RETAIL LOCATIONS • ROLLING OUT ENHANCED STORE CONCEPT • EXPANSION OF GLOBAL RETAIL EXCELLENCE PROGRAM • DEFINED CATEGORY ZONES TO REINFORCE PRODUCT GROWTH STRATEGIES 80
Slide 81: Milan
MILAN 81
Slide 82: Glamour
GLAMOUR 82
Slide 83: Accessories
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Slide 84: Casual
CASUAL 84
Slide 85: Store Traffic Builders
STORE TRAFFIC BUILDERS POWERFUL OMNICHANNEL RETAIL 360 MARKETING & CLIENTELING ANIMATIONS 85
Slide 86: Jimmy Choo Store Sales Density
JIMMY CHOO STORE SALES DENSITY $1,400 / SQ FT $1,200 / SQ FT F2022 FUTURE * Store sales per gross square foot 86
Slide 87: Grow Global Store Fleet
GROW GLOBAL STORE FLEET 300 237 243 226 227 160 Asia 119 124 105 109 EMEA 80 76 74 73 74 Americas 60 45 44 45 45 F2020 F2021 F2022 F2023E FUTURE 87
Slide 88: Supercharge Digital Growth
SUPERCHARGE DIGITAL GROWTH ACCELERATE E-COMMERCE TO $250M $250M • LEVERAGE CLIENT INSIGHTS AND DATA ANALYTICS TO DRIVE ENGAGEMENT 2.8 X • ELEVATE USER JOURNEY • LOCALISATION IN KEY APAC MARKETS $88M F2022 FUTURE Jimmy Choo @2022 88
Slide 89: Financial Outlook
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Slide 90: Jimmy Choo Financial Outlook
JIMMY CHOO FINANCIAL OUTLOOK 1,200 1,000 ~ $1.0B 800 ~ ~ $650M $613M 600 $555M $418M ~ 15.0% 400 OPERATING MARGIN * 200 ~ 5.0% 2.1% (2.4%) (13.2%) 0 F2020 F2021 F2022 F2023E FUTURE * US GAAP results adjusted for special items; see Appendix for reconciliation to US GAAP 90
Slide 91: Regional Growth
REGIONAL GROWTH ~ $360M ~ $340M $300M ~ $300M $300M $300M $229M $209M $200M $175M $200M $200M $100M $100M $100M $0M $0M $0M F2022 FUTURE F2022 FUTURE F2022 FUTURE 91
Slide 92: Jimmy Choo Revenue by Channel
JIMMY CHOO REVENUE BY CHANNEL ~ $1.0B 3% 16% ~ $650M $613M 3% $555M 4% 4% 18% 19% Licensing 22% $418M 4% 81% 21% Wholesale 77% 79% 74% Retail 75% F2020 F2021 F2022 F2023E FUTURE Jimmy Choo @2022 92 *Retail includes stores and E-commerce
Slide 93: Path to $1B
PATH TO $1B • ENGAGE AND EXCITE NEW AND EXISTING CONSUMERS WITH GLAMOUROUS TIME TO DARE CAMPAIGN • DRIVE RETAIL AND ECOMMERCE TO FULL POTENTIAL • REINFORCE BRAND CODES • SIGNIFICANTLY GROW ACCESSORIES • DOUBLE SIZE OF CASUAL FOOTWEAR 93
Slide 94: Investor Day Program
INVESTOR DAY PROGRAM CAPRI OVERVIEW Q&A
Slide 95: Michael Kors CEO John D. Idol
MICHAEL KORS CEO John D. Idol
Slide 96: Agenda
AGENDA BRAND VISION PRODUCT CUSTOMER EXPERIENCE FINANCIAL OUTLOOK
Slide 97: Brand Vision
BRAND VISION
Slide 98: The Jet Set Lifestyle
THE JET SET LIFESTYLE “THE JET SET LIFESTYLE IS ALL ABOUT BEING ON THE GO AND LOOKING CHIC EVERY STEP OF THE WAY.” – MICHAEL KORS
Slide 99: Fall 2022
MICHAEL KORS
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Slide 103: Engage and Excite New and Existing Consumers
ENGAGE AND EXCITE NEW AND EXISTING CONSUMERS REINFORCE THE JET SET LIFESTYLE WITH STRATEGIC PARTNERSHIPS
Slide 104: Combine Storytelling with Data Analytics
COMBINE STORYTELLING WITH DATA ANALYTICS ELEVATE BRAND EXPERIENCE ACROSS ALL TOUCHPOINTS AND SCALE THE BUSINESS THROUGH A SEGMENTED AND PERSONALIZED APPROACH BRAND BUILDING CALL TO ACTION
Slide 105: Combine Storytelling with Data Analytics
COMBINE STORYTELLING WITH DATA ANALYTICS GROW CUSTOMER BASE AND DRIVE LIFETIME VALUE THROUGH CUSTOMER ENGAGEMENT TACTICS INTENSIFY ACQUISITION DRIVE ACTIVES CULTIVATE LOYALTY
Slide 106: Accelerate Database Growth
ACCELERATE DATABASE GROWTH 100M >20% CAGR 61M 51M 44M 36M 28M F2018 F2019 F2020 F2021 F2022 FUTURE
Slide 107: Product
PRODUCT
Slide 108: Product Strategy
PRODUCT STRATEGY EXPAND REINFORCE ACCELERATE GROW MENS ACCESSORIES BRAND CODES FOOTWEAR TO $750 M TO $500 M BEYOND $3 B
Slide 109: Accessories Brand Codes
ACCESSORIES BRAND CODES SIGNATURE LOGO MK HARDWARE MKGO
Slide 110: Accessories Growth Strategy
ACCESSORIES GROWTH STRATEGY $3.2B EXPAND ACCESSORIES BEYOND $3B $2.6B +23% • CREATE EXCITEMENT AROUND NEW FASHION PLATFORM LAUNCHES • REINFORCE BRAND CODES • ELEVATE PRODUCT ASSORTMENT F2022 FUTURE
Slide 111: Footwear Brand Codes
FOOTWEAR BRAND CODES SIGNATURE LOGO MK HARDWARE MKGO
Slide 112: Footwear Growth Strategy
FOOTWEAR GROWTH STRATEGY $750M INCREASE FOOTWEAR TO $750M +50% • CREATE EXCITEMENT AROUND NEW $500M FASHION PLATFORM LAUNCHES • REINFORCE BRAND CODES • EXPAND SQUARE FOOTAGE IN EXISTING RETAIL STORES F2022 FUTURE
Slide 113: Men's Brand Codes
MEN’S BRAND CODES SIGNATURE LOGO MK HARDWARE MKGO
Slide 114: Men's Growth Strategy
MEN’S GROWTH STRATEGY INCREASE MEN’S TO $500M $500M • REINFORCE BRAND CODES +67% • LEAD WITH ACCESSORIES $300M • GROW ECOMMERCE PENETRATION • EXPAND SQUARE FOOTAGE IN EXISTING RETAIL STORES F2022 FUTURE
Slide 115: Customer Experience
CUSTOMER EXPERIENCE
Slide 116: Global Luxury Retail Locations
GLOBAL LUXURY RETAIL LOCATIONS INCREASE SALES DENSITY TO GENERATE HIGHER PROFITABILITY • WORLDCLASS RETAIL FLEET • GLOBAL FLAGSHIP FOCUS • IMPLEMENT NEW STORE CONCEPT IN 100 KEY LOCATIONS GLOBALLY • REALLOCATE SPACE TO SUPPORT PRODUCT GROWTH CATEGORIES SHANGHAI
Slide 117: Paris | Accessories
PARIS | ACCESSORIES
Slide 118: Paris | Footwear
PARIS | FOOTWEAR
Slide 119: Paris | Collection
PARIS | COLLECTION
Slide 120: London | Mens
LONDON | MENS
Slide 121: Store Traffic Drivers
STORE TRAFFIC DRIVERS ICONIC DIGITAL EXCITING WINDOW AND CAMPAIGNS MARKETING STORE PRESENTATION
Slide 122: Store Traffic Drivers
STORE TRAFFIC DRIVERS POP-INS CLIENTELLING EVENTS & ANIMATIONS
Slide 123: Michael Kors Store Sales Density
MICHAEL KORS STORE SALES DENSITY $1,200 / SQ FT $800 / SQ FT F2022 FUTURE * Store sales per gross square foot
Slide 124: Global Store Fleet
GLOBAL STORE FLEET 839 825 845 820 800 279 291 315 350 Asia 375 EMEA 180 176 176 175 175 Americas 380 353 334 320 250 F2020 F2021 F2022 F2023E FUTURE
Slide 125: Double E-Commerce Revenue
DOUBLE E-COMMERCE REVENUE DOUBLE E-COMMERCE TO $1.4B $1.4B • ACCELERATE DATABASE GROWTH AND PRODUCTIVITY +100% $700M • USE CUSTOMER INSIGHTS AND DATA ANALYTICS TO INCREASE CONSUMER ENGAGEMENT • UTILIZE MICHAEL KORS LIFESTYLE AUTHORITY TO EXPAND CATEGORY OFFERINGS F2022 FUTURE
Slide 126: Financial Outlook
> FINANCIAL OUTLOOK
Slide 127: Michael Kors Financial Outlook
MICHAEL KORS FINANCIAL OUTLOOK 6.000 45.0% 5.000 ~ $5B 40.0% $4.15B ~ $4.025B $3.95B 35.0% 4.000 30.0% $2.93B 25.4% 3.000 ~25% ~24% 25.0% OPERATING 2.000 20.5% 20.3% MARGIN * 20.0% 1.000 15.0% 0.000 10.0% F2020 F2021 F2022 F2023E FUTURE * US GAAP results adjusted for special items; see Appendix for
Slide 128: Regional Growth
REGIONAL GROWTH ~ $3B $2.6B ~ $1B ~ $1B $835M $491M F2022 FUTURE F2022 FUTURE F2022 FUTURE
Slide 129: Michael Kors Revenue by Channel
MICHAEL KORS REVENUE BY CHANNEL ~ $5B 3% $4.15B ~ $4.025B 25% 3% $3.95B Licensing 3% 3% 35% 31% 29% Wholesale $2.93B 3% Retail 27% 72% 62% 66% 68% 70% 2020 2021 2022 2023E FUTURE *Retail includes stores and E-commerce
Slide 130: Runway to $5B
RUNWAY TO $5B • CONTINUE TO ELEVATE THE BRAND POSITIONING AT MICHAEL KORS • ENGAGE AND EXCITE NEW AND EXISTING CONSUMERS • REINFORCE BRAND CODES • DRIVE RETAIL AND E-COMMERCE TO FULL POTENTIAL • DOUBLE REVENUE IN ASIA • SIGNIFICANT OPPORTUNITY IN MEN’S
Slide 131: Investor Day Program
INVESTOR DAY PROGRAM CAPRI OVERVIEW Q&A
Slide 132: Appendix
APPENDIX 132
Slide 133: Non-GAAP financial measures
This presentation includes certain non-GAAP financial measures that exclude certain costs associated with COVID-19 related charges, long-lived asset impairments, ERP implementation costs, Capri transformation costs, an inventory step-up adjustment, acquisition foreign currency effects, restructuring
Slide 134: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share data) Fiscal Year Ended April 2, 2022 Restructuring COVID-19 As Impairment and Other Charitable Related ERP Capri War in As Reported Charges Charges (1) Donations Charges Implementation Transformation Ukraine Adjust
Slide 135: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share data) Fiscal Year Ended March 27, 2021 Restructuring COVID-19 Impairment and Other Charitable Related ERP Capri As Reported Charges (1) Charges (2) Donations Charges Implementation Transformation As Adjusted Gross p
Slide 136: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share data) Fiscal Year Ended March 28, 2020 Restructuring Inventory Impairment and Other Step-up ERP Capri Acquisition Foreign COVID-19 Related As Reported Charges (1) Charges (2) Adjustment Implementation Transformation