Capri Holdings Limited · NYSE:CPRI
Capri — Q1 2023 Earnings Presentation
13 slides from Capri's earnings presentation, Aug 9, 2022
Slide 1: 1Q Fiscal Year 2023 Earnings Presentation
1Q Fiscal Year 2023 Earnings Presentation August 9, 2022
Slide 2: First Quarter Fiscal 2023 Highlights
FIRST QUARTER FISCAL 2023 HIGHLIGHTS • Delivered record 1Q23 revenue and adjusted EPS • Revenue increased 9% (+15% Constant Currency) • Excluding Mainland China, revenue +15% (+22% CC) • Increased customer database by 20% versus prior year • Adjusted operating margin of 18.5%, ahead of expectations
Slide 3: Path to $2B+
PATH TO $2B+ • Lead with Versace runway glamour • Reinforce brand codes • Significantly grow accessories • Significantly grow footwear • Drive retail and Ecommerce to full potential 3
Slide 4: 1Q23 Highlights
1Q23 HIGHLIGHTS • Revenue increased 15% (+30% Constant Currency) • Excluding Mainland China, revenue +28% (+45% CC) • Global database +40% year-over-year • Women’s accessories retail sales increased ~80% • Operating margin of 18.9%, significantly ahead of expectations 4
Slide 5: Path to $1B
PATH TO $1B • Engage and excite new and existing consumers with glamorous Time to Dare campaign • Reinforce brand codes • Significantly grow accessories • Double size of casual footwear • Drive retail and Ecommerce to full potential 5
Slide 6: 1Q23 Highlights
1Q23 HIGHLIGHTS • Revenue increased 21% (+30% Constant Currency) • Excluding Mainland China, revenue +32% (+43% CC) • Global database +30% year-over-year • Women’s accessories retail sales increased ~50% • Operating margin of 11%, significantly above expectations 6
Slide 7: Runway to $5B
RUNWAY TO $5B • Continue to elevate the brand positioning • Engage and excite new and existing consumers • Reinforce brand codes • Double revenue in Asia • Significant opportunity in Men’s • Drive retail and Ecommerce to full potential
Slide 8: 1Q23 Highlights
1Q23 HIGHLIGHTS • Revenue increased 5% (+9% Constant Currency) • Excluding Mainland China, revenue +9% (+13% CC) • Global database +17% year-over-year • Operating margin of 24.3%, above expectations 8
Slide 9: Fiscal Year 2023 Outlook
FISCAL YEAR 2023 OUTLOOK 2Q 3Q 4Q FY23 Revenue ~$1.40B ~$1.65B ~$1.44B ~$5.85B Versace ~$300M ~$1.175B Jimmy Choo ~$140M ~$650M Michael Kors ~$960M ~$4.025B Adjusted Operating Margin ~17% ~22% ~14% ~18% Versace mid-teens ~16% Jimmy Choo slightly positive ~5% Michael Kors low-to-mid 20% ~24% Adjusted
Slide 10: Non-GAAP financial measures notice
This presentation includes certain non-GAAP financial measures that exclude certain costs associated with COVID-19 related charges, ERP implementation costs, Capri transformation costs, restructuring and other charges. The Company uses non-GAAP financial measures, among other things, to evaluate its
Slide 11: 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 July 2, 2022 COVID-19 As Restructuring and Related ERP Capri As Reported Other Charges (1) Charges Implementation Transformation Adjusted Gross profit $ 901 $ — $ (1) $ — $ — $ 900 Operating
Slide 12: 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 June 26, 2021 Restructuring and COVID-19 Related As Reported Other Charges (1) Charges ERP Implementation As Adjusted Gross profit $ 856 $ — $ (3) $ — $ 853 Operating expenses $ 598 $ (3) $
Slide 13: 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