Capri Holdings Files 2024 10-K

TL;DR

Capri Holdings filed its 2024 10-K. Financials look solid, but watch for optimization plan impacts.

AI Summary

Capri Holdings Ltd. filed its 10-K for the fiscal year ending March 30, 2024, reporting on its operations and financial performance. The company, formerly known as Michael Kors Holdings Ltd., is involved in the leather and leather products industry. The filing details various financial aspects, including asset impairment charges and fair value measurements, with specific dates and financial identifiers like accession number 0001530721-24-000041.

Why It Matters

This filing provides investors and analysts with a comprehensive overview of Capri Holdings' financial health and strategic direction for the fiscal year 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — The filing mentions asset impairment charges and fair value measurements, which can indicate potential financial risks or volatility.

Key Numbers

• 20240330 — Fiscal Year End (The reporting period for the 10-K filing.)
• 20240529 — Filing Date (The date Capri Holdings submitted its 10-K to the SEC.)

Key Players & Entities

• Capri Holdings Ltd (company) — Filer
• Michael Kors Holdings Ltd (company) — Former company name
• 0001530721-24-000041 (dollar_amount) — Accession Number
• 20240330 (date) — Fiscal Year End
• 20240529 (date) — Filing Date

FAQ

Key Financial Figures

• $390 billion — t exchange rates, reaching an estimated $390 billion. The market is predicted to increase at
• $600 billion — between 2023 and 2030 to approximately $600 billion. Future growth will be driven by e-comm

Filing Documents

• cpri-20240330.htm (10-K) — 2652KB
• cpri03302024ex105.htm (EX-10.5) — 17KB
• cpri03302024ex1023.htm (EX-10.23) — 174KB
• cpri03302024ex211.htm (EX-21.1) — 73KB
• cpri03302024ex232.htm (EX-23.2) — 2KB
• cpri03302024ex311.htm (EX-31.1) — 10KB
• cpri03302024ex312.htm (EX-31.2) — 11KB
• cpri03302024ex321.htm (EX-32.1) — 6KB
• cpri03302024ex322.htm (EX-32.2) — 6KB
• cpri03302024ex97.htm (EX-97) — 33KB
• cpri-20240330_g1.jpg (GRAPHIC) — 21KB
• cpri-20240330_g2.jpg (GRAPHIC) — 87KB
• 0001530721-24-000041.txt ( ) — 14919KB
• cpri-20240330.xsd (EX-101.SCH) — 91KB
• cpri-20240330_cal.xml (EX-101.CAL) — 147KB
• cpri-20240330_def.xml (EX-101.DEF) — 503KB
• cpri-20240330_lab.xml (EX-101.LAB) — 1090KB
• cpri-20240330_pre.xml (EX-101.PRE) — 856KB
• cpri-20240330_htm.xml (XML) — 2444KB

Business

Item 1 Business 7

Risk Factors

Item 1A Risk Factors 19

Unresolved Staff Comments

Item 1B Unresolved Staff Comments 35

Cybersecurity

Item 1C Cybersecurity 35

Properties

Item 2 Properties 37

Legal Proceedings

Item 3 Legal Proceedings 37

Mine Safety Disclosures

Item 4 Mine Safety Disclosures 38 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39

[Reserved]

Item 6 [Reserved] 40

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

Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 41

Quantitative and Qualitative Disclosures About Market Risk

Item 7A Quantitative and Qualitative Disclosures About Market Risk 60

Financial Statements and Supplementary Data

Item 8 Financial Statements and Supplementary Data 62

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 62

Controls and Procedures

Item 9A Controls and Procedures 62

Other Information

Item 9B Other Information 63

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 64 PART III

Directors, Executive Officers and Corporate Governance

Item 10 Directors, Executive Officers and Corporate Governance 65

Executive Compensation

Item 11 Executive Compensation 65

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 65

Certain Relationships and Related Transactions and Director Independence

Item 13 Certain Relationships and Related Transactions and Director Independence 65

Principal Accounting Fees and Services

Item 14 Principal Accounting Fees and Services 65 PART IV

Exhibits and Financial Statement Schedules

Item 15 Exhibits and Financial Statement Schedules 66 3 Table of Contents 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 Tapestry, Inc. (the "Merger"). These risks, uncertainties and other factors include, but are not limited to, our ability to respond to changing fashion, consumer traffic and retail trends; fluctuations in demand for our products; high consumer debt levels, recession and inflationary pressures; loss of market share and increased competition; reductions in our wholesale channel; 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 e

Business

Item 1. Business Our Company Capri Holdings Limited ("Capri") is a global fashion luxury group consisting of iconic, founder-led brands Versace, Jimmy Choo and Michael Kors. Our commitment to glamorous style and craftsmanship is at the heart of each of our luxury brands. We have built our reputation on designing exceptional, innovative products that cover the full spectrum of fashion luxury categories. Our strength lies in the unique DNA and heritage of each of our brands, the diversity and passion of our people and our dedication to the clients and communities we serve. Our Brands Versace Our Versace brand has long been recognized as one of the world's leading international fashion design houses and is synonymous with Italian glamour and style. Founded in 1978 in Milan, Versace is known for its iconic and unmistakable style and unparalleled craftsmanship. Over the past several decades, the House of Versace has grown globally from its roots in haute couture, expanding into the design, manufacturing, distribution and retailing of ready-to-wear, accessories, footwear, eyewear, watches, jewelry, fragrance and home furnishings. Versace's design team is led by Donatella Versace, who has been the brand's Artistic Director for over 20 years. Versace distributes its products through a worldwide distribution network, which includes boutiques in some of the world's most fashionable cities, its e-commerce sites, as well as through the most prestigious department and specialty stores worldwide. Jimmy Choo Our Jimmy Choo brand offers a distinctive, glamorous and fashion-forward product range, enabling it to develop into a leading global luxury accessories brand, whose core product offering is women's luxury shoes, complemented by accessories, including handbags, small leather goods, jewelry, scarves and belts, as well as men's luxury shoes and accessories. In addition, certain categories, including fragrance and eyewear, are produced under licensing agreements. Jimmy Choo