Capri Holdings Limited · NYSE:CPRI
Capri — Investor Day (June 2019)
127 slides from Capri's investor day presentation, Jun 4, 2019
Slide 1: Investor Day
INVESTOR DAY John Idol, Chairman & Chief Executive Officer Tom Edwards, Chief Financial & Chief Operating Officer Jonathan Akeroyd, CEO Versace Pierre Denis, CEO Jimmy Choo June 4, 2019
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation 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
Slide 3: Investor Day Program
INVESTOR DAY PROGRAM CAPRI STRATEGY & OUTLOOK Q&A 3
Slide 4: Capri Global Fashion Luxury Group
CAPRI GLOBAL FASHION LUXURY GROUP OUR GROUP HAS A FOCUS ON INTERNATIONAL FASHION LUXURY BRANDS THAT ARE INDUSTRY LEADERS IN STYLE AND TREND • Runway collections are the foundation of our fashion authority and architecture • Craftsmanship and heritage are at our core • Creative inspiration is our gui
Slide 5: Luxury Heritage Brand Strength
LUXURY HERITAGE BRAND STRENGTH Rock & Roll Spirit Instinctively Seductive Jet Set Runway Glamour Playfully Daring Speed | Energy | Optimism 5
Slide 6: Brand Social Media Strength
BRAND SOCIAL MEDIA STRENGTH 34.5M 33.8M 31.6M 25.1M 19.3M 17.5M 14.5M 14.4M 14.0M 12.8M 12.6M 12.3M 10.1M Instagram followers. 6
Slide 7: Leadership Position in the Global Luxury Market
LEADERSHIP POSITION IN THE GLOBAL LUXURY MARKET ANNUAL SALES $900 MILLION $650 MILLION $4.45 BILLION $6 BILLION STORE COUNT 188 208 853 1,249 Americas EMEA 19% EMEA 20% Americas 25% 25% SALES BY EMEA EMEA Asia Americas GEOGRAPHY 43% 42% Americas 13% 68% Asia 56% Asia Asia 19% 37% 33% Note: Sales and
Slide 8: Capri Global Product Mix
CAPRI GLOBAL PRODUCT MIX 18% FOOTWEAR 13% MEN’S 51% 11% RTW ACCESSORIES 7% LICENSED / OTHER Note: Sales represent management projections for Fiscal 2020. 8
Slide 9: Global Luxury Sustained Long-Term Growth
GLOBAL LUXURY SUSTAINED LONG-TERM GROWTH $384B +4% CAGR $285B $291B $62 $64 Beauty $62 $64 Hard Luxury $68 $67 Apparel $93 $96 Accessories 2017 2018 2025E Source: Bain & Company Luxury Goods Worldwide Market Reports. 9
Slide 10: Regional Luxury Growth
REGIONAL LUXURY GROWTH $291B $384B Americas Asia Americas 25% 37% 31% Asia 50% EMEA EMEA 32% 25% 2018 2025E Source: Bain & Company Luxury Goods Worldwide Market Reports. 10
Slide 11: Future Revenue Growth to $8 Billion
FUTURE REVENUE GROWTH TO $8 BILLION $8B +33% $6B 5.0 4.5 2.0 0.9 0.6 1.0 F2020E GOAL Revenue in US Dollars, Billions 11
Slide 12: Brand Growth Drivers to $8 Billion
BRAND GROWTH DRIVERS TO $8 BILLION • $2B revenue goal • $1B revenue goal • $5B revenue goal • Build on Versace’s luxury • Expand global retail footprint • Renewed Runway 2020 Vision: runway momentum from ~200 to 300 stores SPEED. ENERGY. OPTIMISM. • Enhance Versace’s powerful • Accelerate Footwear g
Slide 13: Capri Revenue and Earnings Growth
CAPRI REVENUE AND EARNINGS GROWTH +MSD% +MSD% $6.0B $5.2B $4.5B $4.7B 20.0% 18.8% OPERATING 17.0% 17.0% MARGIN 16.0% 15.5% F17 F18 F19 F20E F21E F22E EPS $4.24 $4.52 $4.97 $4.95 +DD% +DD% Revenue in US Dollars, Billions 13
Slide 14: Capri Financial Outlook
CAPRI FINANCIAL OUTLOOK FY 2020 FY 2021 FY 2022 REVENUE Approximately $6.0B Mid single-digit growth Mid single-digit growth MK REVENUE Approximately $4.45B Low single-digit growth Low single-digit growth JC REVENUE Approximately $650M Double-digit growth Double-digit growth VERSACE REVENUE Approxima
Slide 15: Synergies
SYNERGIES SAVINGS AREAS • Design & Prototyping • Raw Materials Leathers Procurement • Indirect Materials Procurement • Manufacturing synergies • Sourcing optimization 15
Slide 16: Transformation
TRANSFORMATION DISTRIBUTION CENTER, VENLO NETHERLANDS INITIATIVES • Warehousing and Logistics − Warehouse consolidation − Combined logistics management − Leverage scale for lower transportation rates • IT − Common IT platforms − Global IT management − ERP platform • Back office shared services 16
Slide 17: Capital Allocation
CAPITAL ALLOCATION ALLOCATION PRIORITIES DEBT REDUCTION Near-term: ~$2.6B • Invest in business • Repay debt ~$2.1B Longer-term: ~$1.6B • Return cash to shareholders ~$1.1B • Luxury acquisitions F19 F20 F21 F22 17
Slide 18: Capital Investments
CAPITAL INVESTMENTS APPROXIMATELY $300M PER YEAR IT / ECOMMERCE 23% 61% STORES / SHOPS 16% OPERATIONS / CORPORATE 18
Slide 19: Luxury Group Creating Shareholder Value
LUXURY GROUP CREATING SHAREHOLDER VALUE STRONG GLOBAL PORTFOLIO FINANCIAL LUXURY BRANDS DIVERSIFICATION OUTLOOK • Created true “house of • Expands luxury exposure • Accelerate long term luxury” revenue growth • Broader product offering • United three legendary (men’s, footwear, ready-to- • Expand op
Slide 20: Brand Values, Awareness & Engagement, Growth Initiatives
BRAND VALUES BRAND AWARENESS & ENGAGEMENT GROWTH INITIATIVES 20
Slide 21: The Power of the Versace Brand
THE POWER OF THE VERSACE BRAND ITALIAN FASHION HERITAGE LEADERSHIP FOUNDER LED STRONG BRAND AWARENESS SIGNATURE BAROQUE INNOVATIVE MARKETING LOYALTY & DEVOTION CELEBRITY ATTRACTION ICONIC LUXURY STYLE FOUNDATION RUNWAY GLAMOUR HAUTE COUTURE DARING SPIRIT ARTISAN SKILL THE UNEXPECTED UNCOMPROMISING Q
Slide 22: Brand Codes
BRAND CODES Leveraging the fashion house’s codes: signature hardware, prints, materials and aesthetic tropes. Medusa Barocco V Greek Key Safety Pin Barocco 22
Slide 23: Donatella Versace's Creative Vision
DONATELLA VERSACE’S CREATIVE VISION DONATELLA’S VISION “Fashion is about people. It is about how we express ourselves and show our strength and power.” • A signature and iconic style carefully cultivated over years but in constant evolution through an unparalleled drive for innovation • Creating the
Slide 24: Atelier Versace on the Red Carpet: Met Gala
ATELIER VERSACE ON THE RED CARPET: MET GALA 24
Slide 25: Atelier Versace on the Red Carpet: Met Gala
ATELIER VERSACE ON THE RED CARPET: MET GALA 25
Slide 26: Atelier Versace on the Red Carpet
ATELIER VERSACE ON THE RED CARPET 26
Slide 27: Unique & Authentic Celebrity Relationships
UNIQUE & AUTHENTIC CELEBRITY RELATIONSHIPS 27
Slide 28: Brand Values, Awareness & Engagement, Growth Initiatives
BRAND VALUES BRAND AWARENESS & ENGAGEMENT GROWTH INITIATIVES 29
Slide 29: 360° Marketing Approach
360° MARKETING APPROACH A new organizational approach to marketing to ensure alignment around all customer touchpoints for brand moments and product pushes CONTENT & MEDIA PUBLIC SOCIAL DIRECT STORYTELLING STRATEGY RELATIONS EVENTS CELEBRITY MEDIA CRM WINDOWS VERSACE.COM MARKETING 29
Slide 30: Fall Winter 2019 Advertising Campaign Preview
FALL WINTER 2019 ADVERTISING CAMPAIGN PREVIEW 30
Slide 31: Virtus: 360° Launch Plan
VIRTUS: 360° LAUNCH PLAN A 3-wave launch strategy to build momentum around the handbag from September through December, activating all marketing and communication touchpoints. Launch with Echo with Sustain with Versace’s partner gift giving content content messaging SEP OCT NOV / DEC 31
Slide 32: The Spring Edit: Sneakers & Handbags
THE SPRING EDIT: SNEAKERS & HANDBAGS To support key accessories lines, a new suite of product-focused content was commissioned. The content is being leveraged across all digital platforms as well as in store in select locations. 32
Slide 33: Social Media Strength
SOCIAL MEDIA STRENGTH 34.5M 33.8M 31.6M 25.1M 19.3M 17.5M 14.5M 14.4M 14.0M 12.8M 12.6M 12.3M 10.1M Instagram followers. 33
Slide 34: Strong and Growing Global Social Following
STRONG AND GROWING GLOBAL SOCIAL FOLLOWING GLOBAL FOLLOWING GLOBAL PLATFORMS 27.4M Followers Globally Followers... (Facebook, Instagram, Twitter) 17.5M Instagram +28% 5.3M Facebook Growth YoY 4.6M Twitter 838K Weibo 136K WeChat 2016 2017 2018 2019 34
Slide 35: Brand Values, Awareness & Engagement, Growth Initiatives
BRAND VALUES BRAND AWARENESS & ENGAGEMENT GROWTH INITIATIVES 36
Slide 36: Growth Opportunity
GROWTH OPPORTUNITY OPPORTUNITY TO GROW VERSACE TO $2B IN SALES • Build on Versace’s luxury runway momentum • Expand men’s and women’s accessories and footwear from 35% to 60% of revenues • Enhance Versace’s powerful and iconic marketing • Increase global retail footprint from approximately 200 to 30
Slide 37: Women's Ready-to-Wear
WOMEN’S READY-TO-WEAR INITIATIVES • Leverage our red carpet expertise to own modern glamour in dresses • Go bold with signature house codes and logo each season • Expand breadth of offer on key volume products to establish category leadership 37
Slide 38: Men's Ready-to-Wear
MEN’S READY-TO-WEAR INITIATIVES • Continue to capitalize on menswear market share • Expand on core classifications • Relaunch the men’s underwear business 38
Slide 39: Expand Men's & Women's Accessories & Footwear Penetration
EXPAND MEN’S & WOMEN’S ACCESSORIES & FOOTWEAR PENETRATION INITIATIVES • New organizational resources recently 60% onboarded in the design and merchandising departments 42%-47% • Improving category presence and SKU 35% exposure in the retail environment • Expand product marketing initiatives around k
Slide 40: Men's & Women's Accessories Product Strategy
MEN’S & WOMEN’S ACCESSORIES PRODUCT STRATEGY INITIATIVES • Emphasize signature house codes and explore new logo • Expand offer in key fashion and trend categories (backpacks, bum bags, etc.) • Increase and refresh the small leather goods offer 40
Slide 41: Footwear Product Strategy
FOOTWEAR PRODUCT STRATEGY INITIATIVES • Leverage key house codes in footwear • Enhanced women’s core shoe offer • Grow active business 41
Slide 42: Continue Strong Licensed Product Growth
CONTINUE STRONG LICENSED PRODUCT GROWTH INITIATIVES • Top ranking fragrances in key markets: continuing momentum with new launches • Eyewear category is powerful and growing • Expand watch offer 42
Slide 43: Increase Global Retail Footprint
INCREASE GLOBAL RETAIL FOOTPRINT NUMBER OF STORES RETAIL EXPANSION Asia • Focus on lifestyle first line EMEA Americas 300 • Growth in all regions 260-270 • Target premium luxury locations 188 • Renovate existing network F2019 F2022 GOAL 43
Slide 44: Significantly Improve Store Productivity
SIGNIFICANTLY IMPROVE STORE PRODUCTIVITY SALES PRODUCTIVITY $/SQ FT INITIATIVES $2,500 • Store renovations $1,500 • Expand accessories $1,300 • Focused merchandising 2017 F2019 GOAL 44
Slide 45: Florence Boutique
FLORENCE BOUTIQUE VERSACE
Slide 46: Florence Boutique
uw > g E > fe] a ul V r4 TT] x g Te VERSACE
Slide 47: Munich Boutique
MUNICH BOUTIQUE VERSACE 47
Slide 48: Munich Boutique
MUNICH BOUTIQUE VERSACE
Slide 49: Miami Bal Harbour Boutique
MIAMI BAL HARBOUR BOUTIQUE 49
Slide 50: Miami Bal Harbour Boutique
MIAMI BAL HARBOUR BOUTIQUE 50
Slide 51: Ecommerce & Retail Store Network
ECOMMERCE & RETAIL STORE NETWORK Asia 107 Stores 1 Website, Americas 1 Country 28 Stores EMEA 1 Website, 53 Stores 2 Countries 1 Website, 23 Countries 51
Slide 52: Accelerate Ecommerce and Omni-Channel
ACCELERATE ECOMMERCE AND OMNI-CHANNEL INITIATIVES • Update eCommerce platform • Launch omni-channel services: 2019 EMEA, 2020 USA • Increase customer database size and quality • Offer global delivery 52
Slide 53: Future Business Profile by Geography
FUTURE BUSINESS PROFILE BY GEOGRAPHY F2019 F2022 Americas Americas 18% 23% EMEA DOUBLE EMEA 43% DIGIT 40% GROWTH Asia Asia 39% 37% 53
Slide 54: Product Mix Progression
PRODUCT MIX PROGRESSION ACCESSORIES ACCESSORIES 25% 30% FOOTWEAR LICENSING LICENSING 13% 13% 11% DOUBLE F2019 DIGIT FOOTWEAR F2022 GROWTH 17% WOMEN RTW MEN RTW 19% 25% MEN RTW 30% WOMEN RTW 17% 54
Slide 55: Versace Financial Outlook
VERSACE FINANCIAL OUTLOOK REVENUE & OPERATING MARGIN OPERATING MARGIN DRIVERS +DD% (Basis Points) F20 to F22 +DD% GROW 250 – 300 $890M $900M ACCESSORIES IMPROVE STORE PRODUCTIVITY 200 – 250 LOW LEVERAGE LOW MID SALES GROWTH 200 – 250 OPERATING SINGLE DOUBLE SINGLE DIGITS MARGIN DIGITS DIGITS NORMALI
Slide 56: Jimmy Choo
JIMMY CHOO
Slide 57: Jimmy Choo Brand Position
JIMMY CHOO BRAND POSITION BRAND AWARENESS AND ENGAGEMENT ECOMMERCE AND RETAIL NETWORK FUTURE GROWTH INITIATIVES
Slide 58: Dare to Stand Out
A 21ST CENTURY LUXURY ACCESSORY BRAND Inspiring our customers to DARE TO STAND OUT Confident Glamorous Daring Playful Instinctively Seductive Rebellious Spirit 58
Slide 59: Sandra Choi's Design Vision
SANDRA CHOI’S DESIGN VISION SANDRA’S VISION • Fashion Forward • Engineered for Ease • Effortlessly Sexy • Couture Finesse • Glamorous • Feminine yet Strong 59
Slide 60: Brand DNA Translates into Collections
BRAND DNA TRANSLATES INTO COLLECTIONS 24:7 FASHION CHOO 08 WEEKEND THE PERFECT WARDROBE ON TREND ROCK RELAXED ICONIC SHAPES EVOLUTION EDGY ACTIVE 60
Slide 61: Born on the Red Carpet
BORN ON THE RED CARPET JIMMY CHOO, 61
Slide 62: The World's Most Influential Women Wear Jimmy Choo
THE WORLD’S MOST INFLUENTIAL WOMEN WEAR JIMMY CHOO 62
Slide 63: Jimmy Choo Brand Position
JIMMY CHOO BRAND POSITION BRAND AWARENESS AND ENGAGEMENT ECOMMERCE AND RETAIL NETWORK FUTURE GROWTH INITIATIVES
Slide 64: 360° Marketing Approach
360° MARKETING APPROACH A new organizational approach to marketing to ensure alignment around all customer touchpoints for brand moments and product pushes CONTENT & MEDIA PUBLIC SOCIAL JIMMY DIRECT STORYTELLING STRATEGY RELATIONS EVENTS CELEBRITY MEDIA CRM WINDOWS CHOO.COM MARKETING 64
Slide 65: Fall/Winter Advertising Campaign
FALL/WINTER 19 ADVERTISING CAMPAIGN 65
Slide 66: Dedicated Asia Strategy
DEDICATED ASIA STRATEGY DIAMOND DANCE PARTY – SEOUL STAR STUD ANNIVERSARY – TOKYO 66
Slide 67: Social Media Strength
SOCIAL MEDIA STRENGTH 34.5M 33.8M 31.6M 25.1M 19.3M 17.5M 14.5M 14.4M 14.0M 12.8M 12.6M 12.3M 10.1M Instagram followers. 67
Slide 68: Strong and Growing Global Social Following
STRONG AND GROWING GLOBAL SOCIAL FOLLOWING GLOBAL FOLLOWER GROWTH GLOBAL PLATFORMS 16M Followers... Followers Globally 10.3M Instagram +13% 3.6M Facebook Growth YoY 1.5M Twitter 473K Weibo 192K WeChat 2016 2017 2018 2019 43K Line 68
Slide 69: Jimmy Choo Brand Position
JIMMY CHOO BRAND POSITION BRAND AWARENESS AND ENGAGEMENT ECOMMERCE AND RETAIL NETWORK FUTURE GROWTH INITIATIVES
Slide 70: Ecommerce & Retail Store Network
ECOMMERCE & RETAIL STORE NETWORK Asia 94 Stores Chinese Website Americas Japan Website 43 Stores EMEA US Website 71 Stores UK Website Rest of World Website 70
Slide 71: Key Customer Experience Initiatives
KEY CUSTOMER EXPERIENCE INITIATIVES EXPANDING OUR REACH PERSONALIZATION/ EXPERIENCE SEGMENTATION 71
Slide 72: Ecommerce & Omni-Channel Capabilities
ECOMMERCE & OMNI-CHANNEL CAPABILITIES EMEA & USA ASIA • eCommerce reskin and optimization • China eCommerce launched May 2019 • Cohesive storytelling and content • LINE launched in Japan 1st March 2019 across omni-channel platforms 72
Slide 73: Jimmy Choo Brand Position
JIMMY CHOO BRAND POSITION BRAND AWARENESS AND ENGAGEMENT ECOMMERCE AND RETAIL NETWORK FUTURE GROWTH INITIATIVES
Slide 74: Jimmy Choo Growth Initiatives
JIMMY CHOO GROWTH INITIATIVES GROW JIMMY CHOO TO $1B IN SALES • Accelerate footwear growth • Grow accessories to 50% of revenues • Build men’s offering globally • Expand global retail footprint from approximately 200 to 300 stores 74
Slide 75: Continue to Grow Core Women's Fashion Footwear
CONTINUE TO GROW CORE WOMEN’S FASHION FOOTWEAR INITIATIVES • Launch of the new JC Logo • Continued expansion of the sneaker business to 20% of the footwear business • Factory purchases enabling an increased speed to market 75
Slide 76: Expand Accessories to 50% of Business
EXPAND ACCESSORIES TO 50% OF BUSINESS INITIATIVES 50% • Launch new logo • Expand breadth of offering • Improve retail presence and visual 30%-35% merchandising 22% • Increase marketing • New accessories design team F2019 F2022 GOAL *Total Accessories - Includes Men’s 76
Slide 77: Build Men's Line Globally
BUILD MEN’S LINE GLOBALLY GROWTH INITIATIVES • Expand sneaker offering • Grow men’s bag line • Build distribution network • New approach to marketing 77
Slide 78: Expand Global Retail Footprint
EXPAND GLOBAL RETAIL FOOTPRINT NUMBER OF STORES RETAIL EXPANSION Americas • Growth in all regions EMEA Asia 300 • $2,200/SQ FT productivity 245-250 208 • Complete fleet renovations • Reacquire franchisees F2019 F2022 GOAL 78
Slide 79: Continue to Improve Store Productivity
CONTINUE TO IMPROVE STORE PRODUCTIVITY SALES PRODUCTIVITY $/SQ FT INITIATIVES $2,750 • Expand accessories • Store renovations to be $2,200 completed by 2022 • Improved merchandising F2019 GOAL 79
Slide 80: Renovated Store Concept
RENOVATED STORE CONCEPT RENOVATION PROGRESS • 77% of portfolio in new store concept • All key cities and flagships completed 80
Slide 81: Future Business Profile by Geography
FUTURE BUSINESS PROFILE BY GEOGRAPHY F2019 F2022 Americas Americas 26% 26% EMEA EMEA DOUBLE 38% 43% DIGIT GROWTH Asia Asia 31% 36% 81
Slide 82: Growth Potential in Accessories
GROWTH POTENTIAL IN ACCESSORIES LICENSING LICENSING 1% 1% MEN'S MEN'S 9% 10% WOMEN'S ACCESSORIES 18% DOUBLE WOMEN'S F2019 DIGIT ACCESSORIES F2022 GROWTH 30% WOMEN'S WOMEN'S FOOTWEAR FOOTWEAR 59% 72% 82
Slide 83: Jimmy Choo Financial Outlook
JIMMY CHOO FINANCIAL OUTLOOK REVENUE AND OPERATING MARGIN OPERATING MARGIN DRIVERS +DD% (Basis Points) F20 to F22 +DD% GROW ACCESSORIES 200 – 300 $650M $590M INCREASE STORE MID PRODUCTIVITY 200 – 300 HIGH TEENS MID SINGLE MID CORPORATE SG&A OPERATING SINGLE DIGITS EXPENSE LEVERAGE 200 – 300 SINGLE D
Slide 84: Michael Kors Brand
MICHAEL KORS BRAND BRAND AWARENESS AND ENGAGEMENT ECOMMERCE AND RETAIL NETWORK FUTURE GROWTH INITIATIVES
Slide 85: This Is Jet Set
THE MICHAEL KORS BRAND THIS IS JET SET The new jet set encompasses a generation of women and men who travel the globe, are plugged in and on the go 24/7. They are confident, in control and telling their own stories. Jet set is more than a lifestyle, it’s a mood and an attitude. SPEED | ENERGY | OPTI
Slide 86: The Power of the Michael Kors Brand
THE POWER OF THE MICHAEL KORS BRAND 86
Slide 87: Michael Kors
MICHAEL KORS Sophisticated, Luxurious, Bold, Chic, Fun, Confident, Adventurous, Effortless, Glamorous Self-assured Polished, At Ease 87
Slide 88: A Brand Built on Three Essential Pillars
A BRAND BUILT ON THREE ESSENTIAL PILLARS PRODUCT INNOVATION BRAND ENGAGEMENT CUSTOMER EXPERIENCE 88
Slide 89: Michael Kors Brand
MICHAEL KORS BRAND BRAND AWARENESS AND ENGAGEMENT ECOMMERCE AND RETAIL NETWORK FUTURE GROWTH INITIATIVES
Slide 90: 360° Marketing Approach
360° MARKETING APPROACH An integrated approach to marketing that ensures consistency across all customer touchpoints for brand moments and product pushes CONTENT & MEDIA PUBLIC SOCIAL MICHAELKORS DIRECT STORYTELLING STRATEGY RELATIONS EVENTS CELEBRITY MEDIA CRM WINDOWS .COM MARKETING 90
Slide 91: Michael Kors Collection Campaign
MICHAEL KORS COLLECTION CAMPAIGN 91
Slide 92: Michael Michael Kors Campaign
MICHAEL MICHAEL KORS CAMPAIGN 92
Slide 93: Michael Michael Kors Campaign
MICHAEL MICHAEL KORS CAMPAIGN 93
Slide 94: Michael Kors Men Campaign
MICHAEL KORS MEN CAMPAIGN MICHAEL KORS Fy = S x SS m r x 9 in 94
Slide 95: Michael Kors Men Campaign
MICHAEL KORS MEN CAMPAIGN —_— MICHAEL KORS 95
Slide 96: Social Leadership
SOCIAL LEADERSHIP WITH A GLOBAL AUDIENCE OF 45 MILLION ENGAGED FANS INSTAGRAM FACEBOOK YOUTUBE TWITTER SNAPCHAT PINTEREST TUMBLR GOOGLE+ WEIBO WECHAT KAKAO LINE TOP MOST BEAUTIFUL TOP WATCHES, WATCH- CHINESE CHINESE KOREAN JAPANESE PRODUCT CONTENT FASHION ENGAGED VIDEO LIVING FRAGRANCE, FOCUSED SOCI
Slide 97: Social Initiatives and Innovations
SOCIAL INITIATIVES AND INNOVATIONS GLOBAL FOLLOWING • Facebook Messenger Chatbot − Increased awareness 45M − Lookbooks & shopping − Travel guides Followers Globally − Account & Loyalty • Instagram Shopping +9% − eCommerce transactions are now supported directly in IG (US only) Growth YoY − In additi
Slide 98: Global Brand Ambassador Highlights
GLOBAL BRAND AMBASSADOR HIGHLIGHTS GLOBAL JAPAN KOREA 100M WEIBO 598K INSTAGRAM 2.1M INSTAGRAM 9.5M INSTAGRAM YANG MI TSUBASA HONDA YOON - A 98
Slide 99: Red Carpet Leader
RED CARPET LEADER NICOLE KIDMAN RITA ORA BLAKE LIVELY EMILIA CLARKE ISSA RAE EMILY BLUNT SAOIRSE RONAN 99
Slide 100: Michael Kors Philanthropy
MICHAEL KORS PHILANTHROPY MICHAEL KORS WATCH HUNGER STOP CAMPAIGN DONATED 19 MILLION MEALS TO DATE MICHAEL KORS & GODS LOVE WE DELIEVER RAISED OVER $24 MILLION TO DATE GOAL: 20 MILLION MEALS IN 2020… 100
Slide 101: Michael Kors Brand
MICHAEL KORS BRAND BRAND AWARENESS AND ENGAGEMENT ECOMMERCE AND RETAIL NETWORK FUTURE GROWTH INITIATIVES
Slide 102: Ecommerce & Retail Store Network
ECOMMERCE & RETAIL STORE NETWORK Asia 277 Stores 3 Websites Americas 390 Stores EMEA 2 Websites 186 Stores 7 Websites 102
Slide 103: Key Digital Initiatives
KEY DIGITAL INITIATIVES LOYALTY & CLIENTELING PERSONALIZATION & DATABASE GROWTH OMNI-CHANNEL 103
Slide 104: Achievements & Goals
ACHIEVEMENTS & GOALS DATABASE • Database grew by 26% in FY19 GROWTH • Grow database 50M by the end of FY21 • Year 1 KORSVIP reached 1.6M member LOYALTY • Grow membership to 2.3M by FY20 • Global clienteling initiative launching Fall 2019 in North America CLIENTELING • Empower our sales associates vi
Slide 105: Retail Network
RETAIL NETWORK GLOBAL STORE ANIMATION • Amplification of brand messaging through innovative in-store visual strategies both interior and exterior 105
Slide 106: Palm Beach
PALM BEACH MICHAEL KORS 106
Slide 107: Palm Beach
PALM BEACH MICHAEL KORS 107
Slide 108: London Regent Street
LONDON REGENT STREET MICHAEL MICHAEL KORS 108
Slide 109: Bella Hadid Window Activation
BELLA HADID WINDOW ACTIVATION 109
Slide 110: Bond Street
BOND STREET COL MICHAEL KORS 110
Slide 111: Soho
SOHO MICHAEL KORS 111
Slide 112: Slide 112
Slide 113: Slide 113
Slide 114: Michael Kors Brand
MICHAEL KORS BRAND BRAND AWARENESS AND ENGAGEMENT ECOMMERCE AND RETAIL NETWORK FUTURE GROWTH INITIATIVES
Slide 115: Future Growth Initiatives
FUTURE GROWTH INITIATIVES GROW MICHAEL KORS TO $5B IN SALES • Grow Asia business to $1B revenue • Build Men’s business • Stabilize retail comparable store sales 115
Slide 116: Grow Asia Business
GROW ASIA BUSINESS GOAL $1B REVENUE • Expand Asia stores • Regional marketing campaigns • Innovative social media initiatives 116
Slide 117: Grow Asia Business
GROW ASIA BUSINESS STRONG REVENUE GROWTH $1B $650-700M $530M $555M F18 F19 F22 GOAL 117
Slide 118: Expand Asia Stores
EXPAND ASIA STORES RETAIL STORE EXPANSION ~450 ~350 277 252 F18 F19 F22 GOAL 118
Slide 119: Regional Marketing Campaigns
REGIONAL MARKETING CAMPAIGNS • Global brand ambassador − Japan − China • Integrated marketing • WeChat commerce 119
Slide 120: Build Men's Business
BUILD MEN’S BUSINESS $500M $300-400M $210M $175M F18 F19 F22 GOAL 120
Slide 121: Build Men's Business
BUILD MEN’S BUSINESS GROWTH STRATEGIES PRODUCT • Accelerate accessories with iconic, stylish, and functional product • Innovate and grow Outerwear as a year-round product opportunity MARKETING • Implementing 360° marketing plan 121
Slide 122: Stabilize Retail Comparable Store Sales
STABILIZE RETAIL COMPARABLE STORE SALES STABILIZE CONTINUE EXPAND GROW MEN’S INCREASE ACCESSORIES FOOTWEAR WOMEN’S RTW JEWELRY GROWTH PENETRATION 122
Slide 123: Michael Kors Future Business Profile by Geography
MICHAEL KORS FUTURE BUSINESS PROFILE BY GEOGRAPHY F2019 GOAL EMEA EMEA 20% 20% Asia LSD 12% GROWTH Asia Americas Americas 20% 60% 68% 123
Slide 124: Product Mix Progression
PRODUCT MIX PROGRESSION LICENSING LICENSING 7% 5% MEN'S 5% MEN'S 10% RTW 11% RTW 13% LSD F2019 GROWTH GOAL FTW 12% ACCESSORIES 65% ACCESSORIES FTW 58% 14% 124
Slide 125: Michael Kors Financial Outlook
MICHAEL KORS FINANCIAL OUTLOOK REVENUE AND OPERATING MARGIN OPERATING MARGIN DRIVERS $4.5B $4.45B +LSD% +LSD% (Basis Points) GOAL GROWTH IN ASIA +100 GROW ACCESSORIES MARGINS +100 LOWER WHOLESALE/ OPERATING 21% STABLE STABLE STABLE LICENSING MIX (100) MARGIN GROW FOOTWEAR, F19 F20 F21 F22 RTW & MEN’
Slide 126: Investor Day Program
INVESTOR DAY PROGRAM CAPRI STRATEGY & OUTLOOK Q&A 126
Slide 127: Investor Day
CAPRI HOLDINGS LIMITED y a INVESTO UZ R DAY VERSACE JIMMYCHOO MICHAEL KORS