Capri Holdings Limited · NYSE:CPRI
Capri — Q2 2022 Earnings Presentation
14 slides from Capri's earnings presentation, Nov 3, 2021
Slide 1: 2Q Fiscal Year 2022 Earnings Presentation
CAPRI HOLDINGS LIMITED a VERSACE JIMMY CHOO MICHAEL KORS 2Q Fiscal Year 2022 Earnings Presentation November 3, 2021
Slide 2: Second Quarter Fiscal 2022 Highlights
SECOND QUARTER FISCAL 2022 HIGHLIGHTS * Revenue increased 17%, with double digit growth across all three luxury houses * Retail sales increased approximately 20%, driven by strong E-commerce and store sales *« Adjusted gross margin expanded 440 bps to 67.6% « Adjusted operating margin expanded 210 b
Slide 3: Versace Growth Initiatives
VERSACE GROWTH INITIATIVES * COMMUNICATION STRATEGY * Capitalize on high brand engagement and awareness * Reinforce three house pillars * Accelerate database growth * PRODUCT STRATEGY * Expand accessories to $1 billion * More than double footwear revenue ¢ Further capitalize on iconic brand codes *
Slide 4: Versace 2Q 2022 Highlights
VERSACE 2Q 2022 HIGHLIGHTS *« Revenue increased 45% . E-commerce sales grew strong double digits . Meaningful gross margin expansion . Operating margin expanded 920 bps to 19.5% . Global database +26% year-over-year . Successful launch of La Greca Signature pattern in September
Slide 5: Jimmy Choo Growth Initiatives
JIMMY CHOO GROWTH INITIATIVES * COMMUNICATION STRATEGY * Own glamour through emotional brand storytelling * Combine storytelling with data analytics + Double database size * PRODUCT STRATEGY * Capitalize on iconic brand codes * Grow accessories to 30% of revenue * Maximize casual opportunity * Intro
Slide 6: Jimmy Choo 2Q 2022 Highlights
JIMMY CHOO 2Q 2022 HIGHLIGHTS Revenue increased 12% E-commerce sales increased double digits Significant gross margin expansion Operating margin substantially above expectations Global database +17% year-over-year
Slide 7: Michael Kors Growth Initiatives
MICHAEL KORS GROWTH INITIATIVES * COMMUNICATION STRATEGY * Emotional brand engagement * Combine storytelling with data analytics * Accelerate database growth * PRODUCT STRATEGY * Increase Signature to 50% of the business * Grow MKGO to $500M * Build Men’s to $500M * OMNI-CHANNEL STRATEGY * Leverage
Slide 8: Michael Kors 2Q 2022 Highlights
MICHAEL KORS 2Q 2022 HIGHLIGHTS *« Revenue increased 11% E-commerce sales increased double digits Significant gross margin expansion Operating margin expanded to 25% Global database +21% year-over-year
Slide 9: Non-GAAP financial measures notice
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, restructuring and other charges. The Company uses non-GAAP financial measures, among
Slide 10: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Three Months Ended September 25, 2021 Restructuring COVID-19 As Impairment and Other Related ERP Capri As Reported Charges Charges (1) Charges Implementation Transformation Adjusted Gross profit $ 884 $ — $ — $ (5) $ — $ — $ 879 Operating expense
Slide 11: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Six Months Ended September 25, 2021 Restructuring COVID-19 As Impairment and Other Related ERP Capri As Reported Charges Charges(1) Charges Implementation Transformation Adjusted Gross profit $ 1,740 $ — $ — $ (8) $ — $ — $ 1,732 Operating expens
Slide 12: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Three Months Ended September 26, 2020 Impairment Restructuring and COVID-19 Related Capri As Reported Charges Other Charges (1) Charges Transformation As Adjusted Gross profit $ 710 $ — $ — $ (9) $ — $ 701 Operating expenses $ 557 $ (20) $ (9) $
Slide 13: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Six Months Ended September 26, 2020 Restructuring COVID-19 Impairment and Other Related Capri ERP As Reported Charges Charges(1) Charges Transformation Implementation As Adjusted Gross profit $ 1,012 $ — $ — $ (8) $ — $ — $ 1,004 Total operating
Slide 14: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 Holdi