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4Q Fiscal Year 2025 Earnings Presentation May 28, 2025
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PENDING VERSACE SALE As previously announced, Capri Holdings entered into a definitive agreement to sell Versace to Prada Group for $1.375B in cash subject to certain adjustments. The transaction is expected to close in the second half of calendar 2025, subject to customary closing conditions including regulatory approvals. Capri plans to use the proceeds to: • Invest in future growth • Substantially reduce debt levels • Reinstate a share repurchase program in the future Beginning in fiscal 2026 Versace will be classified as a discontinued operation.
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FOURTH QUARTER FISCAL 2025 HIGHLIGHTS • Revenue decreased 15% • Increased customer database by 10% versus prior year • Adjusted operating margin of (3.2)% • Delivered adjusted EPS of $(4.90) primarily due to a non-cash tax valuation allowance charge For a reconciliation of GAAP to non-GAAP financial information, see appendix.
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4Q25 RESULTS • Revenue decreased 16% • Global database increased 10% year-over-year • New accessories groups (including Laila, Dakota and Bryant) experiencing strong full priced sell- throughs and attracting new consumers to the brand • Operating margin of 4.6%
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MICHAEL KORS STRATEGIC INITIATIVES COMMUNICATION STRATEGY • Celebrate a modern interpretation of the jet set lifestyle • Engage and excite new and existing consumers • Combine storytelling with data analytics PRODUCT STRATEGY • Create exciting fashion product with compelling value • Reinforce brand codes • Emphasize lifestyle categories CONSUMER EXPERIENCE STRATEGY • Improve retail store sales densities • Renovate approximately 50% of store fleet • Leverage digital capabilities to grow E-Commerce • Stabilize and grow wholesale revenue
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1Q26 QTD HIGHLIGHTS • First quarter retail trends to date reflect an improvement in sales momentum • Continued growth in customer database, with more robust growth in the VIP loyalty consumer base • Moderation in the store traffic decline rate • Full price retail AUR turned positive
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NEW VIENNA GRABEN STORE
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NEW VIENNA GRABEN STORE
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4Q25 RESULTS • Revenue decreased 3% • Global database increased 11% year-over-year • Operating margin of (7.5)%
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JIMMY CHOO STRATEGIC INITIATIVES COMMUNICATION STRATEGY • Excite and engage clients through product • Attract new audiences and nurture the core • Augment storytelling with data analytics PRODUCT STRATEGY • Reinforce brand codes • Drive accessories • Expand footwear • Unlock men’s opportunity CLIENT EXPERIENCE STRATEGY • Drive sales densities in existing fleet • Leverage clientelling & omnichannel capabilities • Growth in wholesale channel
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FISCAL YEAR 2026 OUTLOOK 1Q26 FY26 Revenue ~$765 - $780M ~$3.3 - $3.4B Michael Kors ~$615 - $625M ~$2.75 - $2.85B Jimmy Choo ~$150 - $155M ~$540 - $550M Operating Income break-even ~$100M Operating Margin – Michael Kors MSD% HSD% Operating Margin – Jimmy Choo break-even (MSD)% Net Interest Income ~$15M ~$85 - $90M Effective Tax Rate ~15% ~15% Weighted Average Diluted Shares Outstanding ~119M ~119M Diluted Earnings Per Share (Continuing Operations) ~$0.10 - $0.15 ~$1.20 - $1.40 The following guidance is provided on an adjusted, non-GAAP basis. Financial results could differ materially from the current outlook due to a number of external events which are not reflected in our guidance, including changes in global macroeconomic conditions, changes in tariff rates, greater than anticipated inflationary pressures or weakening consumer confidence, and further considerable fluctuations in foreign currency exchange rates.
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This presentation includes certain non-GAAP financial measures that exclude certain costs associated with impairment charges, restructuring and other charges, ERP implementation costs, Capri transformation costs and transaction related expenses. The Company uses non-GAAP financial measures, among other things, to evaluate its operating performance and in order to represent the manner in which the Company conducts and views its business. The Company believes that excluding these items helps its management and investors compare operating performance based on its ongoing operations. While the Company considers the non-GAAP measures to be useful supplemental measures in analyzing its results, they are not intended to replace, nor act as a substitute for, any amounts presented in its consolidated financial statements prepared in conformity with U.S. GAAP and may be different from non-GAAP measures reported by other companies. NON-GAAP MEASURES
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8 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1) Amounts impacting operating expenses primarily relate to Global Optimization Plan lease termination gains and other store closure costs. (In millions, except per share data) (2) Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. (3) The Capri transformation program represents a multi-year, multi-project initiative intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure. During Fiscal 2024, the majority of our operational and IT projects were paused and we will continue to reassess these projects, along with related timing, in Fiscal 2026. Relates to costs incurred by the Company in connection with the previously terminated merger agreement with Tapestry, Inc as well as the previously announced sale of Versace to Prada. (4)
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8 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1) Amounts impacting operating expenses primarily relate to Global Optimization Plan lease termination gains and other store closure costs. (In millions, except per share data) (2) Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. (3) The Capri transformation program represents a multi-year, multi-project initiative intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure. During Fiscal 2024, the majority of our operational and IT projects were paused and we will continue to reassess these projects, along with related timing, in Fiscal 2026. (4) Relates to costs incurred by the Company in connection with the previously terminated merger agreement with Tapestry, Inc as well as the previously announced sale of Versace to Prada. In November 2024, the Company received approximately $45 million from Tapestry, Inc. as reimbursement for merger related costs.
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8 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1) Asset impairment charges primarily relate to the impairment of the Jimmy Choo Retail and Wholesale reporting units goodwill and Versace and Jimmy Choo brand intangible assets, as well as the impairment of certain operating lease right-of-use assets. (In millions, except per share data) (2) Amounts impacting operating expenses primarily relate to Global Optimization Plan costs, equity awards associated with Capri’s acquisition of Gianni Versace S.r.l and severance expenses incurred during the fourth quarter. (3) Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. (4) The Capri transformation program represents a multi-year, multi-project initiative intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure.
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8 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1) Asset impairment charges primarily relate to the impairment of the Jimmy Choo Retail and Wholesale reporting units goodwill and Versace and Jimmy Choo brand intangible assets, as well as the impairment of certain operating lease right-of-use assets. (In millions, except per share data) (2) Amounts impacting operating expenses primarily relate to Global Optimization Plan costs, equity awards associated with Capri’s acquisition of Gianni Versace S.r.l and severance expenses incurred during the fourth quarter. (3) Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. (4) The Capri transformation program represents a multi-year, multi-project initiative intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure.
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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 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. 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. These risks, uncertainties and other factors include but are not limited to, macroeconomic pressures and general uncertainty regarding the overall future economic environment, the imposition or threat of imposition of new or additional duties, tariffs or trade restrictions on the importation of our products; changes in fashion, consumer traffic and retail trends; fluctuations in demand for our products; loss of market share and increased competition; risks associated with operating in international markets and global sourcing activities, including currency fluctuations, disruptions or delays in manufacturing or shipments; departure of key employees or failure to attract and retain highly qualified personnel; levels of cash flow and future availability of credit, Capri's ability to successfully execute its growth strategies or cost reduction measures; the risk of cybersecurity threats and privacy or data security breaches; reductions in our wholesale channel; high consumer debt levels, recession and inflationary pressures and general economic, political, business or market conditions; the impact of epidemics, pandemics, disasters or catastrophes; our ability to successfully execute the proposed sale of Versace to the Prada Group and other risks related to the transaction; extreme weather conditions and natural disasters; acts of war and other geopolitical conflicts; the risk of any litigation relating to the Company's previously proposed merger with Tapestry, Inc., the termination of the merger agreement and/or public disclosures related thereto; as well as the risk factors identified in the Company's Annual Report on Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission. Please consult these documents for a more complete understanding of these risks and uncertainties. Any forward-looking statement in this presentation speaks only as of the date made and Capri disclaims any obligation to update or revise any forward-looking or other statements contained herein other than in accordance with legal and regulatory obligations. SAFE HARBOR STATEMENT