Capri Holdings Limited · NYSE:CPRI
Capri — Michael Kors Holdings — Deutsche Bank dbAccess Global Consumer Conference 2016
77 slides from Capri's conference presentation, Jun 14, 2016
Slide 1: Michael Kors: The Growth of Luxury
1 MICHAEL KORS: THE GROWTH OF LUXURY JOHN IDOL, CHAIRMAN & CEO JOE PARSONS, CFO / COO / TREASURER MICHAEL KORS
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: Total Revenue
3 TOTAL REVENUE 6,000 Thousands APPROX. FLAT 4,712 4,371 3,311 2,182 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 GOAL GUIDANCE* IN MILLIONS OF DOLLARS *AS REPORTED IN THE COMPANY’S JUNE 1, 2016 EARNINGS RELEASE
Slide 4: MKHL Revenue by Segment
4 MKHL REVENUE BY SEGMENT (IN MILLIONS) 4,712 173 4,371 Licensing 172 Wholesale Retail 3,311 2,144 140 2,065 1,578 2,395 2,135 1,593 FY 2014 FY 2015 FY 2016
Slide 5: Diluted Earnings Per Share
5 DILUTED EARNINGS PER SHARE APPROX. -- $4.64 $4.44 $4.28 -- $4.56 $3.22 $1.97 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 NON-GAAP GUIDANCE RANGE* *AS REPORTED IN THE COMPANY’S JUNE 1, 2016 EARNINGS RELEASE (excluding $15 MM of one-time costs related to the acquisition of the Greater China licensee)
Slide 6: Regional Growth
6 REGIONAL GROWTH
Slide 7: The Americas Revenue
7 THE AMERICAS REVENUE LICENSING WHOLESALE 3,507 3,500 RETAIL 3,419 99 100 2,772 117 1,629 1,663 1,939 1,336 87 913 1,656 1,779 1,319 939 FY 2013 FY 2014 FY 2015 FY 2016 GOAL IN MILLIONS OF DOLLARS
Slide 8: The Americas Retail Store Count
8 THE AMERICAS RETAIL STORE COUNT 400 390 397 343 288 231 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 GOAL GUIDANCE* *AS REPORTED IN THE COMPANY’S JUNE 1, 2016 EARNINGS RELEASE (net of store closures)
Slide 9: The Americas: FY 2017
9 THE AMERICAS: FY 2017 GROW DIGITAL FLAGSHIP BUSINESS OPEN APPROXIMATELY 15 NEW RETAIL LOCATIONS DEVELOP MENS’ SPORTSWEAR AND LEATHER GOODS BUSINESS LAUNCH MICHAEL KORS ACCESS WEARABLE TECHNOLOGY LINE CONTINUE DEVELOPMENT OF ACCESSORIES, READY-TO-WEAR, FOOTWEAR, FRAGRANCE, JEWELRY AND EYEWEAR CATEG
Slide 10: 520 Broadway
520 BROADWAY (22,000 SQ FT) 10
Slide 11: 520 Broadway
520 BROADWAY (22,000 SQ FT) 11
Slide 12: 520 Broadway
520 BROADWAY (22,000 SQ FT) 12
Slide 13: Houston
HOUSTON 13
Slide 14: Houston
HOUSTON 14
Slide 15: Houston
HOUSTON 15
Slide 16: Scottsdale
fee re 1 j j fi| fi | } 7 —_« —F
Slide 17: Scottsdale
SCOTTSDALE 17
Slide 18: Garden State Plaza
GARDEN STATE PLAZA 18
Slide 19: Garden State Plaza
GARDEN STATE PLAZA 19
Slide 20: El Palacio
EL PALACIO 20
Slide 21: El Palacio
__... MICHAEL KORS ___—
Slide 22: El Palacio
EL PALACIO
Slide 23: Europe Revenue
23 EUROPE REVENUE 1,500 LICENSING WHOLESALE RETAIL 990 74 885 72 406 401 500 23 242 221 510 412 119 236 102 FY 2013 FY 2014 FY 2015 FY 2016 GOAL IN MILLIONS OF DOLLARS
Slide 24: Europe Retail Store Count
24 EUROPE RETAIL STORE COUNT 197 200 177 133 80 44 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 GOAL GUIDANCE* *AS REPORTED IN THE COMPANY’S JUNE 1, 2016 EARNINGS RELEASE
Slide 25: Europe: FY 2017
25 EUROPE: FY 2017 LAUNCH DIGITAL FLAGSHIPS IN 6 COUNTRIES ACROSS EUROPE OPEN APPROXIMATELY 20 RETAIL LOCATIONS DEVELOP MENS’ SPORTSWEAR AND LEATHER GOODS BUSINESS LAUNCH MICHAEL KORS ACCESS WEARABLE TECHNOLOGY LINE CONTINUE DEVELOPMENT OF ACCESSORIES, READY-TO-WEAR, FOOTWEAR, FRAGRANCE, JEWELRY AND
Slide 26: Regent Street
REGENT STREET 26
Slide 27: Regent Street
REGENT STREET 27
Slide 28: Regent Street
REGENT STREET 28
Slide 29: Regent Street
REGENT STREET 29
Slide 30: Stockholm
YPC EL BOO RENE | pyar has Buue hal Pha ile ® Te
Slide 31: Stockholm
STOCKHOLM 31
Slide 32: Vienna
VIENNA 32
Slide 33: Vienna
VIENNA 33
Slide 34: Asia Revenue
34 ASIA REVENUE WHOLESALE RETAIL 1,000 100 WHOLESALE 100 KOREA 500 CHINA 215 300 109 68 JAPAN 22 39 106 FY 2013 FY 2014 FY 2015 FY 2016 GOAL IN MILLIONS OF DOLLARS
Slide 35: Asia Retail Store Count
35 ASIA RETAIL STORE COUNT 300 50 KOREA 226 33 KOREA 150 CHINA 116 CHINA 101 36 KOREA 50 37 100 29 77 JAPAN 65 JAPAN JAPAN FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 GOALJAPAN GUIDANCE* *AS REPORTED IN THE COMPANY’S JUNE 1, 2016 EARNINGS RELEASE
Slide 36: Asia: FY 2017
36 ASIA: FY 2017 DRIVE GROWTH OF NEWLY ACQUIRED GREATER CHINA & KOREA BUSINESSES ESTABLISH DIGITAL FLAGSHIPS THROUGH 3RD PARTIES OPEN APPROXIMATELY 40 RETAIL LOCATIONS DEVELOP MENS’ SPORTSWEAR AND LEATHER GOODS BUSINESS LAUNCH MICHAEL KORS ACCESS WEARABLE TECHNOLOGY LINE CONTINUE EXPANSION OF SOUTHE
Slide 37: Ginza
MICHAEL KORS —_ ; a Hay altaletarty i
Slide 38: Ginza
GINZA 38
Slide 39: Ginza
GINZA 39
Slide 40: Ginza
GINZA 40
Slide 41: Taipei
MICHAEL Kors jars = : at ie rae sl ih | et
Slide 42: DFS Shilla Incheon Airport, Korea
DFS SHILLA INCHEON AIRPORT, KOREA 42
Slide 43: King Power Phuket, Thailand
KING POWER PHUKET, THAILAND 43
Slide 44: What Are the Key Drivers to This Growth?
WHAT ARE THE KEY DRIVERS TO THIS GROWTH?
Slide 45: Runway Collection
RUNWAY COLLECTION RUNWAY COLLECTION RUNWAY COLLECTION
Slide 46: Luxury Product
pes mat SX aces Riecanen YY 100: | O > a) O a oO > or =) x =) —
Slide 47: Jet Set Brand Imaging
JET SET BRAND IMAGING
Slide 48: Retail Strategy
RETAIL STRATEGY
Slide 49: Digital Flagship
FREE GROUND SHIPPING ENDS TOMORROW. DET, MICHAEL KORS MEN HANDBAGS = SHOES_-—s« WATCHES =— ACCESSORIES -~—GIFTS VIEW ALL NEWARRIVALS TOTES SATCHELS SHOULDER BAGS DESTINATION KORS SEARCH @ THE DALIA BACKPACK (OUR NEWEST LEADER OF THE PACK IS ROOMY ESSENTIALS, AND STYLISH ENOUGH TO TAKE EVERYWHERE. ‘S
Slide 50: KorsConcierge
KORSCONCIERGE PERSONAL STYLIST IN-STORE CONNECTING THE PHYSICAL TO THE DIGITAL ENHANCE CUSTOMER ENGAGEMENT MICHAEL KORS
Slide 51: Retail Initiatives
51 RETAIL INITIATIVES FURTHER DEVELOP GLOBAL DIGITAL FLAGSHIP STRATEGY AND PROVIDE AN OMNICHANNEL CUSTOMER EXPERIENCE EXPAND OUR GLOBAL STORE PRESENCE OPEN FREE STANDING MEN’S STORES GLOBALLY
Slide 52: Wholesale Strategy
52 WHOLESALE STRATEGY
Slide 53: Global Wholesale Customers
53 GLOBAL WHOLESALE CUSTOMERS NORTH AMERICA EUROPE ASIA AMERICAS
Slide 54: Selfridges | London
SELFRIDGES | LONDON 54
Slide 55: Macy's Herald Square | New York
MACY’S HERALD SQUARE | NEW YORK 55
Slide 56: Illum | Copenhagen
ILUM | COPENHAGEN 56
Slide 57: Steen & Strøm | Oslo
STEEM & STROM | OSLO 57
Slide 58: Galeries Lafayette | Paris
GALLERIES LAFAYETTE | PARIS 58
Slide 59: Wholesale Initiatives
59 WHOLESALE INITIATIVES STRATEGICALLY DECREASE EXPOSURE TO NORTH AMERICAN WHOLESALE CHANNEL BY REDUCING INVENTORY TO PROTECT BRAND CONTINUE TO TRANSFORM DEPARTMENT STORE LOCATIONS INTO BRANDED SHOP-IN-SHOPS GLOBALLY EXPAND MARKET SHARE ACROSS CATEGORIES INCLUDING FOOTWEAR, WOMEN’S READY TO WEAR AND
Slide 60: Shop-in-Shop Count
60 SHOP-IN-SHOP COUNT NORTH AMERICA INTERNATIONAL 2,975 2,699 475 410 2,132 301 1,562 203 2,500 2,289 1,831 1,359 FY 2014 FY 2015 FY 2016 FY 2017 GUIDANCE* *AS REPORTED IN THE COMPANY’S JUNE 1, 2016 EARNINGS RELEASE
Slide 61: Licensing Strategy
61 LICENSING STRATEGY
Slide 62: Licensing Partners
62 LICENSING PARTNERS WATCHES JEWELRY FRAGRANCES EYEWEAR (FOSSIL) (FOSSIL) (ESTEE LAUDER) (LUXOTTICA)
Slide 63: Launch of Michael Kors Access
Launch of MICHAEL KORS ACCESS
Slide 64: Launch of Michael Kors Wonderlust
64 Launch of MICHAEL KORS WONDERLUST
Slide 65: Licensing Initiatives
65 LICENSING INITIATIVES DEBUT MICHAEL KORS ACCESS CONNECTED ACCESSORIES LINE INTRODUCE SMART JEWELRY AS PART OF OUR UNIFIED WEARABLE STRATEGY CONTINUE FRAGRANCE AND BEAUTY EXPANSION TO BECOME ONE OF THE MOST SIGNIFICANT BRANDS IN THE LUXURY FRAGRANCE AND BEAUTY MARKET GLOBALLY CAPITALIZE ON EXPANDI
Slide 66: Marketing Strategy
66 MARKETING STRATEGY
Slide 67: 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 68: Digital Flagship
HANDBAGS Jer ser MICHAEL KORS WATCHES MICHAEL’S EDIT ACCESSORIES GIFTS RUNWAY EASY OPULENCE MacBook Air SALE DESTINATION KoRS KORS CARES wy SEARCH Q CULOTTES TO COVET DIGITAL FLAGSHIP
Slide 69: National Advertising
NATIONAL ADVERTISING
Slide 70: E-Mail
MICHAEL KORS jevesrinationxors of Ww ® WMD & E-MAIL MICHAEL KORS WOMEN | HANDBAGS | SHOES | WATCHES JEWELRY TIME TRAVELER The ultimate travel accessories— gilded accents to mix and match, from one country to the next. MEN | GIFTS | SALE | STORELOCATOR © DESTINATION KORS f v9 ® wid MICHAEL KORS Vibra
Slide 71: Built a Global Social Audience of Over 44M Engaged Fans
BUILT A GLOBAL SOCIAL AUDIENCE of over 44M ENGAGED fans. GOOGLE+ HIGH GROWTH PLATFORM 16.7M 3.3M 7.6M 530K 16.1M 533K
Slide 72: PR & VIP
72 PR & VIP KATE HUDSON ZENDAYA BLAKE LIVELY
Slide 73: Young China
73 YOUNG CHINA MICHAEL KORS AND VOGUE CHINA CELEBRATE THE OPENING OF PACE BEIJING’S NEWEST EXHIBIT MICHAEL KORS WITH ACTRESS YANG MI
Slide 74: Positioned for Future Growth
74 POSITIONED FOR FUTURE GROWTH
Slide 75: Growth Strategies
75 GROWTH STRATEGIES FURTHER DEVELOP GLOBAL DIGITAL FLAGSHIP STRATEGY AND PROVIDE AN OMNICHANNEL CUSTOMER EXPERIENCE EXPAND GLOBAL PRESENCE ACROSS EUROPE AND ASIA EXTEND LIFESTYLE PRESENCE THROUGH EXPANSION OF MEN’S BUSINESS GROW LICENSED PRODUCT CATEGORY THROUGH THE EXPANSION OF EYEWEAR, FRAGRANCE,
Slide 76: Strong Financial Position
76 STRONG FINANCIAL POSITION CONTINUED EPS GROWTH GENERATING STRONG FREE CASH FLOW, ENDING FISCAL 2016 WITH CASH AND CASH EQUIVALENTS OF ~ $700 MILLION CONTINUED STRATEGIC INVESTMENT IN CORPORATE INFRASTRUCTURE, INCLUDING DISTRIBUTION AND INFORMATION SYSTEMS, TO SUPPORT GLOBAL LONG TERM GROWTH STRAT
Slide 77: Michael Kors
77 MICHAEL KORS
Michael Kors Holdings — Deutsche Bank dbAccess Global Consumer Conference 2016 on 6ix