Capri Holdings Limited · NYSE:CPRI
Capri — Michael Kors Holdings — Deutsche Bank dbAccess Global Consumer Conference 2015
71 slides from Capri's conference presentation, Jun 11, 2015
Slide 1: Michael Kors: The Growth of Luxury
MICHAEL KORS: THE GROWTH OF LUXURY JOHN IDOL, CHAIRMAN & CEO JOE PARSONS, CFO / COO / TREASURER
Slide 2: Disclaimer
2 DISCLAIMER FORWARD LOOKING STATEMENTS ! Certain information contained in this presentation, particularly information regarding future economic performance, finances, and expectations and objectives of management, constitutes forward-looking statements. Forward-looking statements can be identified
Slide 3: Michael Kors
JET SET SUMMIT 2013 4 MICHAEL KORS
Slide 4: Total Revenue
5 TOTAL REVENUE APPROX. APPROX. --5,000 --4,800 --4,900 Thousands --4,700 4,371 3,311 2,182 1,302 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 GUIDANCE GUIDANCE IN MILLIONS OF DOLLARS RANGE* RANGE* Constant currency *AS REPORTED IN THE COMPANY’S MAY 27, 2015 EARNINGS RELEASE
Slide 5: MKHL Revenue by Segment
6 MKHL REVENUE BY SEGMENT (IN MILLIONS) 4,371 Licensing 172 Wholesale Retail 3,311 140 2,065 2,182 1,578 87 1,032 2,135 1,593 1,063 FY 2013 FY 2014 FY 2015
Slide 6: Diluted Earnings Per Share
7 DILUTED EARNINGS PER SHARE APPROX. APPROX. --$4.70 --$4.50 --$4.60 $4.28 --$4.40 $3.22 $1.97 $0.78 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 GUIDANCE GUIDANCE RANGE* RANGE* Constant currency *AS REPORTED IN THE COMPANY’S MAY 27, 2015 EARNINGS RELEASE
Slide 7: Regional Growth
8 REGIONAL GROWTH
Slide 8: North America Revenue
9 NORTH AMERICA REVENUE 4,500 LICENSING WHOLESALE RETAIL 3,419 100 2,772 117 1,663 1,939 1,336 87 1,183 913 65 545 1,656 1,319 939 573 FY 2012 FY 2013 FY 2014 FY 2015 GOAL IN MILLIONS OF DOLLARS
Slide 9: North America Retail Store Count
10 NORTH AMERICA RETAIL STORE COUNT 400 373 343 288 231 191 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 GUIDANCE* GOAL *AS REPORTED IN THE COMPANY’S MAY 27, 2015 EARNINGS RELEASE
Slide 10: North America Growth in FY 2016
11 NORTH AMERICA GROWTH IN FY 2016 DOUBLE DIGIT RETAIL SALES GROWTH DRIVEN BY OUR DIGITAL FLAGSHIP STRATEGY AND NEW STORE OPENINGS SINGLE DIGIT WHOLESALE SALES GROWTH DRIVEN BY 500 SHOP-IN-SHOP CONVERSIONS AND CONTINUED DEVELOPMENT OF OUR ACCESSORIES, READY-TO-WEAR, FOOTWEAR AND MENS CATEGORIES MID-
Slide 11: New Flagship – 520 Broadway
NEW FLAGSHIP – 520 BROADWAY (22,000 SQ FT) 12
Slide 12: New Flagship – 520 Broadway
NEW FLAGSHIP – 520 BROADWAY (22,000 SQ FT) 13
Slide 13: New Flagship – 520 Broadway
NEW FLAGSHIP – 520 BROADWAY (22,000 SQ FT) 14
Slide 14: New Flagship – 520 Broadway
NEW FLAGSHIP – 520 BROADWAY (22,000 SQ FT) 15
Slide 15: New Flagship – 520 Broadway
NEW FLAGSHIP – 520 BROADWAY (22,000 SQ FT) 16
Slide 16: New Flagship – 520 Broadway
NEW FLAGSHIP – 520 BROADWAY (22,000 SQ FT) 17
Slide 17: Europe Revenue
18 EUROPE REVENUE 1,500 LICENSING WHOLESALE RETAIL 885 72 500 401 23 242 221 109 412 119 236 65 102 43 FY 2012 FY 2013 FY 2014 FY 2015 GOAL IN MILLIONS OF DOLLARS
Slide 18: Europe Retail Store Count
19 EUROPE RETAIL STORE COUNT 200 178 133 80 44 29 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 GUIDANCE* GOAL *AS REPORTED IN THE COMPANY’S MAY 27, 2015 EARNINGS RELEASE
Slide 19: Europe Growth in FY 2016
20 EUROPE GROWTH IN FY 2016 RETAIL GROWTH DRIVEN BY COMPARABLE STORE SALES AND NEW STORE OPENINGS WHOLESALE GROWTH DRIVEN BY ~100 SHOP-IN-SHOP CONVERSIONS CONTINUED DEVELOPMENT OF OUR ACCESSORIES, READY-TO- WEAR, FOOTWEAR AND MENS CATEGORIES LICENSING REVENUE GROWTH DRIVEN BY CONTINUED GAINS IN WATC
Slide 20: Frankfurt
FRANKFURT 21
Slide 21: Michael Kors Frankfurt
MICHAEL KORS FRANKFURT.
Slide 22: Michael Kors Frankfurt
MICHAEL KORS FRANKFURT.
Slide 23: Hamburg
MiGHAEE KORS J gl KORSp { 32 he ae | A y™
Slide 24: Michael Kors Hamburg
25 MICHAEL KORS HAMBURG
Slide 25: Hamburg
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Slide 26: Asia Revenue
27 ASIA REVENUE 500 100 WHOLESALE 100 KOREA WHOLESALE 300 JAPAN 68 39 22 1 10 67 FY 2012 FY 2013 FY 2014 FY 2015 GOAL IN MILLIONS OF DOLLARS
Slide 27: Asia Retail Store Count
28 ASIA RETAIL STORE COUNT 175 75 KOREA 90 30 KOREA 50 100 37 29 JAPAN 60 17 JAPAN F2012 FY 2013 FY 2014 FY 2015 FY 2016 GUIDANCE* GOALJAPAN *AS REPORTED IN THE COMPANY’S MAY 27, 2015 EARNINGS RELEASE
Slide 28: Asia Growth in 2016
29 ASIA GROWTH IN 2016 RETAIL GROWTH DRIVEN BY COMPARABLE STORE SALES AND NEW STORE OPENINGS IN JAPAN CONTINUED DEVELOPMENT OF LICENSED RETAIL BUINESSES IN CHINA AND SOUTHEAST ASIA TRANSITION OF KOREA RETAIL BUSINESS WHOLESALE REVENUE DRIVEN BY EXPANSION OF OUR HONG KONG DISTRIBUTION FOR SELECT ASIA
Slide 29: Beijing Huamao (9596 sq ft)
BEIJING HUAMAO (9596 SQ FT) 30
Slide 30: Beijing Huamao (9596 sq ft)
BEIJING HUAMAO (9596 SQ FT) 31
Slide 31: Beijing Huamao (9596 sq ft)
BEIJING HUAMAO (9596 SQ FT) 32
Slide 32: Beijing Huamao (9596 sq ft)
BEIJING HUAMAO (9596 SQ FT) 33
Slide 33: Beijing Huamao (9596 sq ft)
BEIJING HUAMAO (9596 SQ FT) 34
Slide 34: What Are the Key Drivers to This Growth?
WHAT ARE THE KEY DRIVERS TO THIS GROWTH?
Slide 35: Runway Collection
RUNWAY COLLECTION
Slide 36: Luxury Product
ON i > ioe vd oe: * eas O 2 (a) O a fa > a =) x a) ow
Slide 37: Jet Set Brand Imaging
JET SET BRAND IMAGING
Slide 38: Retail Strategy
39 RETAIL STRATEGY
Slide 39: There Is a Channel Shift
THERE IS A CHANNEL SHIFT ! from STORES to ONLINE E-COM MOBILE SOCIAL ---- GOOGLE FACEBOOK/INSTAGRAM TWITTER
Slide 40: Digital Flagship
O + & 4) BE Mon 10:50AM Q MICHAEL KORS WOMEN MEN BAGS SHOES WATCHES ACCESSORIES GiFrs SALE DESTINATION KORS, a on CURRENTLY COVETING ROSE-GOLDEN HARDWARE ELEVATES THE CYNTHIA TO NEXT-LEVEL GLAM CAND JUST IN TIME FOR MOTHER'S DAY). SHOP THE CYNTHIA COLLECTION > SHOP SATCHELS > DIGITAL FLAGSHIP
Slide 41: KORSConcierge
KORSCONCIERGE PERSONAL STYLIST IN-STORE CONNECTING THE PHYSICAL TO THE DIGITAL MICHAEL KORS
Slide 42: Garden State Plaza – Mens
GARDEN STATE PLAZA – MENS 43
Slide 43: Retail Growth Initiatives
44 RETAIL GROWTH INITIATIVES FURTHER DEVELOP GLOBAL DIGITAL FLAGSHIP STRATEGY AND PROVIDE TRUE OMNICHANNEL CUSTOMER EXPERIENCE EXPAND OUR GLOBAL STORE PRESENCE UPSIZE HIGHLY PRODUCTIVE STORE LOCATIONS ACROSS NORTH AMERICA, EUROPE AND JAPAN OPEN FREE STANDING MEN’S STORES GLOBALLY INCREASE GLOBAL COM
Slide 44: Wholesale Strategy
45 WHOLESALE STRATEGY
Slide 45: Global Wholesale Customers
46 GLOBAL WHOLESALE CUSTOMERS NORTH AMERICA EUROPE ASIA AMERICAS
Slide 46: Macy's HSQ Shoes (1925 sq ft)
MACY’S HSQ SHOES (1925 SQ FT) 47
Slide 47: Harrod's (1065 sq ft)
MICHAEL KORS HARROD’S (1065 SQ FT)
Slide 48: Manchester – Selfridges Trafford Centre
MANCHESTER – SELFRIDGES TRAFFORD CENTRE 49
Slide 49: Selfridges Birmingham - Menswear
SELFRIDGES BIRMINGHAM - MENSWEAR 50
Slide 50: Wholesale Growth Initiatives
51 WHOLESALE GROWTH INITIATIVES CONTINUE TO TRANSFORM NORTH AMERICAN AND EUROPEAN DEPARTMENT STORE LOCATIONS INTO BRANDED SHOP-IN-SHOPS WITH CUSTOM FIXTURES EXPAND SIZE OF HIGHLY PRODUCTIVE EXISTING DEPARTMENT STORE SHOP-IN-SHOPS EXPAND MARKET SHARE ACROSS CATEGORIES INCLUDING FOOTWEAR, WOMEN’S READ
Slide 51: Shop-in-Shop Count
52 SHOP-IN-SHOP COUNT NORTH AMERICA INTERNATIONAL 2,732 2,132 401 1,562 301 203 956 2,331 176 1,831 1,359 780 FY 2013 FY 2014 FY 2015 FY 2016 ESTIMATE
Slide 52: Licensing Strategy
53 LICENSING STRATEGY
Slide 53: Licensing Partners
54 LICENSING PARTNERS WATCHES JEWELRY FRAGRANCES EYEWEAR (FOSSIL) (FOSSIL) (ESTEE LAUDER) (LUXOTTICA) 54
Slide 54: New Launch of Gold Fragrance
NEW LAUNCH OF GOLD 55 Relaunch of! GOLD FRAGRANCE
Slide 55: Macy's Herald Square – Beauty & Fragrance Shop
MACY’S HERALD SQUARE – BEAUTY & FRAGRANCE SHOP 56 56
Slide 56: Macy's Herald Square, New York
MACY’S HERALD SQUARE, NEW YORK 57
Slide 57: Licensing Growth Initiatives
58 LICENSING GROWTH INITIATIVES CONTINUE NEW FRAGRANCE AND BEAUTY PRODUCT ROLLOUT TO BECOME ONE OF THE MOST SIGNIFICANT BRANDS IN THE LUXURY FRAGRANCE AND BEAUTY MARKET GLOBALLY GROW WATCH BUSINESS INTERNATIONALLY THROUGH RETAIL STORES AND SHOP-IN-SHOPS AND EXPAND MEN’S BUSINESS WITH BROADER OFFERIN
Slide 58: Marketing Strategy
59 MARKETING STRATEGY
Slide 59: Marketing Strategy: Traffic, Purchase, Repeat
360 COMMUNICATION DIGITAL FLAGSHIP STRATEGY IN-STORE NATIONAL ADVERTISING EXPERIENCE BUZZ CATALOG CUSTOMER-CENTRIC VISUAL MERCHANDISING CONTINUOUSLY ENGAGED EMAILS TRAFFIC ACROSS ALL CHANNELS REPEAT OUTDOOR SOCIAL MEDIA DIGITAL BANNERS PAID SEARCH GLOBAL PR PURCHASE VIPS GLOBAL EVENTS
Slide 60: Digital Flagship
O + & 4) BE Mon 10:50AM Q MICHAEL KORS WOMEN MEN BAGS SHOES WATCHES ACCESSORIES GiFrs SALE DESTINATION KORS, a on CURRENTLY COVETING ROSE-GOLDEN HARDWARE ELEVATES THE CYNTHIA TO NEXT-LEVEL GLAM CAND JUST IN TIME FOR MOTHER'S DAY). SHOP THE CYNTHIA COLLECTION > SHOP SATCHELS > DIGITAL FLAGSHIP
Slide 61: National Advertising
NATIONAL ADVERTISING
Slide 62: E-Mail
MICHAEL KORS MICHAEL KORS HE CHANNING OU epanars new neurage anor waren * oo DOUBLE UP © DESTINATION KORS fv © nD 5 E-MAIL MICHAEL KORS WOMEN TIME TRAVELER The ultimate travel accessories— gilded accents to mix and match, from one country to the next, MEN | GIFTS | SALE | STORELOCATOR @pestinationko
Slide 63: Built a Global Social Audience of Over 24M Engaged Fans
BUILT A GLOBAL SOCIAL AUDIENCE of over 24M ENGAGED fans. GOOGLE+ HIGH GROWTH PLATFORM 16.2M 2.8M 4.1M 484K 15.5K 534K
Slide 64: PR & VIP
65 PR & VIP JENNIFER LOPEZ JESSICA ALBA MIRANDA KERR
Slide 65: Events
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Slide 66: Print Advertising
67 PRINT ADVERTISING A LEADING ADVERTISER IN GLOBAL FASHION PUBLICATIONS INCLUDING VOGUE, GLAMOUR, MARIE CLAIRE, INSTYLE, AND ALLURE.
Slide 67: Outdoor Advertising
68 OUTDOOR ADVERTISING MAJOR OUTDOOR LOCATIONS HAVE RECENTLY INCLUDED A BILLBOARD ON SUNSET BLVD., PHONE KIOSKS OUTSIDE ROCKEFELLER CENTER, BUS SHELTERS THROUGHOUT NEW YORK CITY, T-BUSES IN THE UK AND WALLSCAPES IN ITALY.
Slide 68: Positioned for Future Growth
69 POSITIONED FOR FUTURE GROWTH
Slide 69: Growth Strategies
70 GROWTH STRATEGIES EXPAND GLOBAL RETAIL PRESENCE THROUGH OUR DIGITAL FLAGSHIP STRATEGY AND NEW STORE OPENINGS CONTINUE TO TRANSFORM DEPARTMENT STORE LOCATIONS INTO BRANDED SHOP-IN-SHOPS WITH CUSTOM FIXTURES GROW INTERNATIONAL PRESENCE EXPAND MARKET SHARE ACROSS CATEGORIES INCLUDING FOOTWEAR, WOMEN
Slide 70: Strong Financial Position
71 STRONG FINANCIAL POSITION DELIVERING STRONG TOP AND BOTTOM LINE PERFORMANCE GENERATING STRONG FREE CASH FLOW, ENDING FISCAL 2015 WITH CASH AND CASH EQUIVALENTS OF ~ $1 BILLION CONTINUED STRATEGIC INVESTMENT IN CORPORATE INFRASTRUCTURE, INCLUDING DISTRIBUTION AND INFORMATION SYSTEMS, TO SUPPORT GL
Slide 71: Michael Kors
MICHAEL KORS
Michael Kors Holdings — Deutsche Bank dbAccess Global Consumer Conference 2015 on 6ix