Capri Holdings Limited · NYSE:CPRI
Capri — Q4 FY2021 Earnings Presentation
15 slides from Capri's earnings presentation, May 26, 2021
Slide 1: 4Q Fiscal Year 2021 Earnings Presentation
4Q Fiscal Year 2021 Earnings Presentation May 26, 2021
Slide 2: Fourth Quarter Fiscal 2021 Highlights
FOURTH QUARTER FISCAL 2021 HIGHLIGHTS • Revenue was flat to prior year, a sequential improvement relative to 3Q21 o E-commerce sales improved sequentially, up 80% o Retail sales up 13% globally – with growth across all three luxury houses o Double digit retail sales growth in Asia, led by triple dig
Slide 3: Quarterly Retail Sales +13% in 4Q
QUARTERLY RETAIL SALES +13% IN 4Q 25% 0% Year-over-year percent change (25)% (50)% (75)% 4Q20 1Q21 2Q21 3Q21 4Q21 Total Sales Retail Sales 3
Slide 4: Quarterly Retail Sales Improving
QUARTERLY RETAIL SALES IMPROVING Total Global Asia 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 25% 50% Year-over-year percent change Year-over-year percent change 0% 25% (25)% 0% (50)% (25)% (75)% (50)% Americas EMEA 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 25% 0% Year-over-year perce
Slide 5: Liquidity and Net Debt
LIQUIDITY AND NET DEBT Liquidity Net Debt $1.9B $1.59B $1.56B $1.54B $1.5B $1.4B $1.14B $1.17B $1.2B $1.1B $0.9B $0.7B 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Liquidity = Cash and availability on credit facilities Net Debt = Total Debt less Cash and Cash Equivalents 5
Slide 6: Versace 4Q21 results
• Sequential revenue improvement in 4Q21, up 10% • Retail sales up strong double digits, with double digit growth in Asia and the Americas • E-commerce sales up triple digits • Operating margin increased >1,000 bps to 12.3% • Global database +22% year-over-year 6
Slide 7: Jimmy Choo 4Q21 results
• Sequential revenue improvement in 4Q21, up 16% • Retail sales up high single digits, with double digit growth in Asia and the Americas • E-commerce sales improved sequentially, increasing >50% • Operating margin reflects expense deleverage, partially offset by gross margin expansion • Global datab
Slide 8: Michael Kors 4Q21 results
• Sequential revenue improvement in 4Q21, down 4% • Retail sales up mid teens, with double digit growth in Asia and the Americas • E-commerce improved sequentially with sales up 75% • Operating margin up 460 bps to 20.5% • Global database +18% year-over-year 8
Slide 9: Fiscal Year 2022 Guidance
FISCAL YEAR 2022 GUIDANCE 1Q 2Q 3Q 4Q FY Revenue ~$1.1B ~$1.2B ~1.4B ~$1.4B ~$5.1B Versace ~$220M ~$925-975M Jimmy Choo ~$110M ~$500-525M Michael Kors ~$770M ~$3.5-3.6B Gross Margin (100) bps flat moderately above moderately above +50 bps Adjusted Operating Margin ~12% ~11% ~20% ~12% ~14% Versace HS
Slide 10: Non-GAAP Measures
NON-GAAP MEASURES 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, charitable donations, an inventory step-up adjustment, acquisition
Slide 11: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Three Months Ended March 27, 2021 As Impairment Restructuring and Charitable COVID-19 Capri As Reported Charges (1) Other Charges (2) Donations Related Charges Transformation Adjusted Gross profit $ 737 $ — $ — $ — $ 23 $ — $ 760 Operating expens
Slide 12: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Fiscal Year Ended March 27, 2021 As Impairment Restructuring and Charitable COVID-19 Related ERP Capri As Reported Charges (1) Other Charges (2) Donations Charges Implementation Transformation Adjusted Gross profit $ 2,597 $ — $ — $ — $ 10 $ — $
Slide 13: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Three Months Ended March 28, 2020 Restructuring COVID-19 Impairment and Other Related ERP Capri As Reported Charges (1) Charges (2) Charges Implementation Transformation As Adjusted Gross profit $ 631 $ — $ — $ 92 $ — $ 723 Total operating expens
Slide 14: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Fiscal Year Ended March 28, 2020 Restructuring Inventory Impairment and Other Step-up ERP Capri Acquisition Foreign COVID-19 Related As Reported Charges (1) Charges (2) Adjustment Implementation Transformation Currency Effects Charges As Adjusted
Slide 15: 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