Capri Holdings Limited · NYSE:CPRI
Capri — Q4 2022 Earnings Presentation
17 slides from Capri's earnings presentation, Jun 1, 2022
Slide 1: 4Q Fiscal Year 2022 Earnings Presentation
4Q Fiscal Year 2022 Earnings Presentation June 1, 2022
Slide 2: Fiscal Year 2022 Highlights
FISCAL YEAR 2022 HIGHLIGHTS • Revenue increased 39%, to the highest level in the Company’s history • Increased customer database by 11.5M versus prior year • Record adjusted gross margin expanded 180 bps to 66.0% • Adjusted operating margin expanded 830 bps to 19.0% • Adjusted EPS increased 230% to
Slide 3: Fourth Quarter Fiscal 2022 Highlights
FOURTH QUARTER FISCAL 2022 HIGHLIGHTS • Revenue increased 25% (+28% constant currency) • Record adjusted 4Q gross margin expanded 20 bps to 63.7% • Adjusted operating margin expanded 230 bps to 14.2% • Adjusted EPS increased 170% to $1.02 3
Slide 4: FY 2022 Highlights (Versace)
FY 2022 HIGHLIGHTS • Revenue increased over 50%, surpassing $1B • Global retail AUR increased low double digits • Global database +35% year-over-year • Accessories sales increased ~90% • Operating margin expanded over 1,000 bps to 17.0%, the highest level in Versace’s history 4
Slide 5: 4Q 2022 Highlights (Versace)
4Q 2022 HIGHLIGHTS • Revenue increased 34% (+44% constant currency) • Global retail AUR increased high single digits • Accessories sales increased ~75% • Operating margin expanded 360 bps to 15.9% 5
Slide 6: FY 2022 Highlights (Jimmy Choo)
FY 2022 HIGHLIGHTS • Revenue increased 47% to record level • Global retail AUR increased low double digits • Global database +30% year-over-year • Accessories sales increased ~60% • Operating margin expanded over 1,000 bps to 2.1%, substantially above original expectations 6
Slide 7: 4Q 2022 Highlights (Jimmy Choo)
4Q 2022 HIGHLIGHTS • Revenue increased 26% (+29% constant currency) • Global retail AUR increased high teens • Accessories sales increased ~30% • Expanded lifestyle positioning with successful launch of jewelry collection • Operating margin improved 490 bps 7
Slide 8: FY 2022 Highlights (Michael Kors)
FY 2022 HIGHLIGHTS • Revenue increased 35% • Global retail AUR increased low double digits • Global database +18% year-over-year • Operating margin expanded 510 bps to 25.4%, substantially above original expectations 8
Slide 9: 4Q 2022 Highlights (Michael Kors)
4Q 2022 HIGHLIGHTS • Revenue increased 22% (+24% constant currency) • Global retail AUR increased low double digits • Signature represented ~45% of the assortment across all categories, compared to ~35% LY • Operating margin expanded 10 bps to 20.6% 9
Slide 10: Highest Revenue & EPS in Company History
HIGHEST REVENUE & EPS IN COMPANY HISTORY $7.0B 50.0% 45.0% ~ $5.95B $5.65B $6.0B $5.55B 40.0% $5.24B 35.0% $5.0B 30.0% $4.06B $4.0B 25.0% ADJUSTED 19.0% ~18.0% 20.0% 17.0% OPERATING $3.0B 13.6% 15.0% MARGIN 10.7% 10.0% $2.0B 5.0% $1.0B 0.0% FY2019 FY2020 FY2021 FY2022 FY2023E Adj. EPS $4.97 $3.89 $1
Slide 11: Fiscal Year 2023 Outlook
FISCAL YEAR 2023 OUTLOOK 1Q 2Q 3Q 4Q FY Revenue ~$1.30B ~$1.425B ~$1.725B ~$1.50B ~$5.95B Versace ~$265M ~$1.225B Jimmy Choo ~$155M ~$650M Michael Kors ~$880M ~$4.075B Adjusted Operating Margin ~16.5% ~17.0% ~23.5% ~14.5% ~18% Versace LDD ~16% Jimmy Choo MSD ~5% Michael Kors low-mid 20% ~24% Adjuste
Slide 12: 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, charitable donations and the war in Ukraine. The Co
Slide 13: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share data) Three Months 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 Adjus
Slide 14: 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 15: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share data) Three Months Ended March 27, 2021 Restructuring COVID-19 Impairment and Other Charitable Related Capri As Reported Charges (1) Charges (2) Donations Charges Transformation As Adjusted Gross profit $ 737 $ — $
Slide 16: 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 17: 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