Capri Holdings Ltd. Files 10-Q for Period Ending December 30, 2023

TL;DR

<b>Capri Holdings Ltd. filed its Q3 FY2024 10-Q report on February 8, 2024.</b>

AI Summary

Capri Holdings Ltd (CPRI) filed a Quarterly Report (10-Q) with the SEC on February 8, 2024. Capri Holdings Ltd. filed a 10-Q report for the period ending December 30, 2023. The filing covers the third quarter of fiscal year 2024. The company's fiscal year ends on March 30. The previous fiscal year end was March 30, 2023. The filing was made on February 8, 2024.

Why It Matters

For investors and stakeholders tracking Capri Holdings Ltd, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational updates for Capri Holdings Ltd. for the quarter ending December 30, 2023. Understanding the details within this report is crucial for assessing the company's current financial health, strategic direction, and potential future performance in the luxury goods market.

Risk Assessment

Risk Level: low — Capri Holdings Ltd shows low risk based on this filing. The filing is a standard 10-Q, which is a routine quarterly report and does not contain any immediate red flags or significant deviations from typical reporting.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to understand Capri Holdings' performance and outlook.

Key Numbers

• 2023-12-30 — Period End Date (Conformed Period of Report)
• 2024-02-08 — Filing Date (Filed as of Date)
• 2023-03-30 — Fiscal Year End (Fiscal Year End)

Key Players & Entities

• Capri Holdings Ltd. (company) — Filer
• Michael Kors Holdings Ltd (company) — Former company name

Forward-Looking Statements

• Capri Holdings will maintain a stable share repurchase program, with no significant increases in treasury stock in the next quarter. (Capri Holdings Ltd.) — medium confidence, target: 2024-03-30

FAQ

Industry Context

Capri Holdings operates in the luxury goods industry, which is subject to consumer spending trends and global economic conditions.

Regulatory Implications

The company is subject to SEC regulations for public filings, including the requirement to submit 10-Q reports quarterly.

What Investors Should Do

1. Analyze revenue and net income trends from the detailed financial statements.
2. Examine any disclosed risk factors or management commentary regarding market conditions.
3. Compare key financial metrics to previous periods to identify performance changes.

Key Dates

• 2023-12-30: Period End Date — End of the reporting quarter for the 10-Q filing.
• 2024-02-08: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the quarterly update for the period ending December 30, 2023, following previous filings for the company.

Filing Documents

• cpri-20231230.htm (10-Q) — 1813KB
• cpri10-q12302023ex311.htm (EX-31.1) — 10KB
• cpri10-q12302023ex312.htm (EX-31.2) — 10KB
• cpri10-q12302023ex321.htm (EX-32.1) — 5KB
• cpri10-q12302023ex322.htm (EX-32.2) — 5KB
• cpri-20231230_g1.jpg (GRAPHIC) — 21KB
• 0001530721-24-000018.txt (&nbsp;) — 9305KB
• cpri-20231230.xsd (EX-101.SCH) — 54KB
• cpri-20231230_cal.xml (EX-101.CAL) — 86KB
• cpri-20231230_def.xml (EX-101.DEF) — 292KB
• cpri-20231230_lab.xml (EX-101.LAB) — 746KB
• cpri-20231230_pre.xml (EX-101.PRE) — 524KB
• cpri-20231230_htm.xml (XML) — 1528KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 3 Consolidated Balance Sheets (unaudited) as of December 30, 2023 and April 1, 2023 4 Consolidated Statements of Operations and Comprehensive Income (unaudited) for the three and nine months ended De cemb er 30, 2023 and December 3 1, 2022 5 Consolidated Statements of Shareholders' Equity (unaudited) for the three and nine months ended Dece mber 30, 2023 and December 3 1, 2022 6 Consolidated Statements of Cash Flows (unaudited) for the nine months ended December 3 0 , 2023 and Decem ber 3 1, 2022 8

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 51

Controls and Procedures

Item 4. Controls and Procedures 53

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 54

Risk Factors

Item 1A. Risk Factors 54

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 55

Other Information

Item 5. Other Information 55

Exhibits

Item 6. Exhibits 56

Signatures

Signatures 57 2 Special Note on Forward-Looking Statements This report 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 management of Capri Holdings Limited ("Capri" or the "Company") about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. All statements other than statements of historical facts included herein, may be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words "plans", "believes", "expects", "intends", "will", "should", "could", "would", "may", "anticipates", "might" or similar words or phrases, are forward-looking statements. These forward-looking statements are not guarantees of future financial performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions, which could cause actual results to differ materially from those projected or implied in any forward-looking statements, including regarding the pending merger with a wholly-owned subsidiary Tapestry, Inc. (the "Merger"). These risks, uncertainties and other factors include, but are not limited to, changes in consumer traffic and retail trends; fluctuations in demand for Capri's products; high consumer debt levels, recession and inflationary pressures; loss of market share and industry competition; the impact of the COVID-19 pandemic, or other unforeseen epidemics, pandemics, disasters or catastrophes, levels of cash flow and future availability of credit, Capri's ability to successfully execute its growth strategies; risks associated with operating in international markets and global sou

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CAPRI HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except share data) (Unaudited) December 30, 2023 April 1, 2023 Assets Current assets Cash and cash equivalents $ 249 $ 249 Receivables, net 339 369 Inventories, net 1,020 1,057 Prepaid expenses and other current assets 310 195 Total current assets 1,918 1,870 Property and equipment, net 560 552 Operating lease right-of-use assets 1,485 1,330 Intangible assets, net 1,727 1,728 Goodwill 1,319 1,293 Deferred tax assets 371 296 Other assets 237 226 Total assets $ 7,617 $ 7,295 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 370 $ 475 Accrued payroll and payroll related expenses 105 154 Accrued income taxes 74 73 Short-term operating lease liabilities 408 429 Short-term debt 461 5 Accrued expenses and other current liabilities 397 314 Total current liabilities 1,815 1,450 Long-term operating lease liabilities 1,459 1,348 Deferred tax liabilities 519 508 Long-term debt 1,383 1,822 Other long-term liabilities 506 318 Total liabilities 5,682 5,446 Commitments and contingencies Shareholders' equity Ordinary shares, no par value; 650,000,000 shares authorized; 225,904,103 shares issued and 116,262,663 outstanding at December 30, 2023; 224,166,250 shares issued and 117,347,045 outstanding at April 1, 2023 — — Treasury shares, at cost ( 109,641,440 shares at December 30, 2023 and 106,819,205 shares at April 1, 2023) ( 5,458 ) ( 5,351 ) Additional paid-in capital 1,410 1,344 Accumulated other comprehensive income 31 147 Retained earnings 5,951 5,708 Total shareholders' equity of Capri 1,934 1,848 Noncontrolling interest 1 1 Total shareholders' equity 1,935 1,849 Total liabilities and shareholders' equity $ 7,617 $ 7,295 See accompanying notes to consolidated financial statements. 4 CAPRI HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In mi

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Business and Basis of Presentation Capri Holdings Limited ("Capri", and together with its subsidiaries, the "Company") was incorporated in the British Virgin Islands on December 13, 2002. The Company is a holding company that owns brands that are leading designers, marketers, distributors and retailers of branded women's and men's accessories, footwear and ready-to-wear bearing the Versace, Jimmy Choo and Michael Kors tradenames and related trademarks and logos. The Company operates in three reportable segments: Versace, Jimmy Choo and Michael Kors. See Note 17 for additional information. The interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and include the accounts of the Company and its wholly-owned or controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The interim consolidated financial statements as of December 30, 2023 and for the three and nine months ended December 30, 2023 and December 31, 2022 are unaudited. The Company consolidates the results of its Versace business on a one-month lag, as consistent with prior periods. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, necessary for a fair presentation in conformity with U.S. GAAP. The interim consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended April 1, 2023, as filed with the Securities and Exchange Commission on May 31, 2023, in the Company's Annual Report on Form 10-K. The results of operations for the interim periods should not be consid