Capri Holdings Ltd. Files Q2 FY25 10-Q Report

TL;DR

Capri Holdings filed its Q2 FY25 10-Q. Financials look steady.

AI Summary

Capri Holdings Ltd. reported its second quarter results for fiscal year 2025, ending September 28, 2024. The company's financial statements indicate a period of financial reporting with various balance sheet and income statement items. Specific dollar amounts and revenue figures for the quarter are detailed within the filing.

Why It Matters

This filing provides investors with the latest financial performance data for Capri Holdings, crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• 20240928 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 20241107 — Filing Date (The date the report was officially submitted to the SEC.)

Key Players & Entities

• Capri Holdings Ltd (company) — Filer of the 10-Q report
• Michael Kors Holdings Ltd (company) — Former name of Capri Holdings Ltd
• 20240928 (date) — End date of the reporting period
• 20241107 (date) — Filing date of the report

FAQ

Filing Documents

• cpri-20240928.htm (10-Q) — 1809KB
• cpri10-q09282024ex311.htm (EX-31.1) — 10KB
• cpri10-q09282024ex312.htm (EX-31.2) — 10KB
• cpri10-q09282024ex321.htm (EX-32.1) — 5KB
• cpri10-q09282024ex322.htm (EX-32.2) — 5KB
• cpri-20240928_g1.jpg (GRAPHIC) — 21KB
• 0001530721-24-000125.txt ( ) — 9570KB
• cpri-20240928.xsd (EX-101.SCH) — 57KB
• cpri-20240928_cal.xml (EX-101.CAL) — 87KB
• cpri-20240928_def.xml (EX-101.DEF) — 310KB
• cpri-20240928_lab.xml (EX-101.LAB) — 705KB
• cpri-20240928_pre.xml (EX-101.PRE) — 552KB
• cpri-20240928_htm.xml (XML) — 1551KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 3 Consolidated Balance Sheets (unaudited) as of September 28 , 2024 and March 30, 2024 4 Consolidated Statements of Operations and Comprehensive (Loss) Income (unaudited) for the three and six months ended September 28 , 2024 and September 30 , 2023 5 Consolidated Statements of Shareholders' Equity (unaudited) for the three and six months ended September 28 , 2024 and September 30 , 2023 6 Consolidated Statements of Cash Flows (unaudited) for the six months ended September 28 , 2024 and September 30 , 2023 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 34

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 52

Controls and Procedures

Item 4. Controls and Procedures 54

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 55

Risk Factors

Item 1A. Risk Factors 55

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 56

Other Information

Item 5. Other Information 56

Exhibits

Item 6. Exhibits 57

Signatures

Signatures 58 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 proposed 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 execute its growth strategies; departure of key employees or

- 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) September 28, 2024 March 30, 2024 Assets Current assets Cash and cash equivalents $ 182 $ 199 Receivables, net 298 332 Inventories, net 984 862 Prepaid expenses and other current assets 203 215 Total current assets 1,667 1,608 Property and equipment, net 565 579 Operating lease right-of-use assets 1,375 1,438 Intangible assets, net 1,418 1,394 Goodwill 1,153 1,106 Deferred tax assets 410 352 Other assets 204 212 Total assets $ 6,792 $ 6,689 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 472 $ 352 Accrued payroll and payroll related expenses 108 107 Accrued income taxes 37 64 Short-term operating lease liabilities 377 400 Short-term debt 471 462 Accrued expenses and other current liabilities 325 310 Total current liabilities 1,790 1,695 Long-term operating lease liabilities 1,387 1,452 Deferred tax liabilities 356 362 Long-term debt 1,237 1,261 Other long-term liabilities 536 319 Total liabilities 5,306 5,089 Commitments and contingencies Shareholders' equity Ordinary shares, no par value; 650,000,000 shares authorized; 227,571,175 shares issued and 117,824,265 outstanding at September 28, 2024; 226,271,074 shares issued and 116,629,634 outstanding at March 30, 2024 — — Treasury shares, at cost ( 109,746,910 shares at September 28, 2024 and 109,641,440 shares at March 30, 2024) ( 5,462 ) ( 5,458 ) Additional paid-in capital 1,454 1,417 Accumulated other comprehensive income 3 161 Retained earnings 5,489 5,479 Total shareholders' equity of Capri 1,484 1,599 Noncontrolling interest 2 1 Total shareholders' equity 1,486 1,600 Total liabilities and shareholders' equity $ 6,792 $ 6,689 See accompanying notes to consolidated financial statements. 4 CAPRI HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCO

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Business and Basis of Presentation The Company was incorporated in the British Virgin Islands on December 13, 2002 as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited ("Capri," and together with its subsidiaries, the "Company") on December 31, 2018. 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, apparel and footwear 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 September 28, 2024 and for the three and six months ended September 28, 2024 and September 30, 2023 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 March 30, 2024, as filed with the Securities and Exchange Commission on May 29, 2024, in the Company's Annual Repo