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2Q Fiscal Year 2027 Earnings Presentation October 30, 2026
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Iconic Founder-Led Brands CAPRI HOLDINGS is a global fashion luxury group consisting of iconic brands Michael Kors and Jimmy Choo. Our commitment to creativity, fashion, 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 designs inspire consumers to embrace the feeling of luxury in every moment.
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For a reconciliation of GAAP to Non-GAAP financial information, see appendix. 2Q27 HIGHLIGHTS • Revenue decreased 5.5% (-4.9% constant currency), above expectations • Gross margin expanded 230 bps to 63.3% • Adjusted operating income increased 55% to $31 M • Adjusted EPS of $0.42 vs $(0.03) LY • Repurchased $150 M worth of shares • Increased consumer database by 8% versus prior year • Raising full year revenue and EPS guidance • Expect to return to revenue growth in 2H27
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• Strengthen brand desirability through a modern interpretation of the Jet Set lifestyle to engage and excite new and existing consumers • Create exciting fashion product with compelling value, leveraging our strength in accessories • Deliver elevated customer experience across all touchpoints including digital, stores and wholesale • Drive operational excellence to support sustainable revenue and earnings growth STRATEGIC INITIATIVES
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2Q27 HIGHLIGHTS • Revenue decreased 8.6% (-8.0% constant currency) • Retail sales improved sequentially each month • Gross margin expanded 220 bps to 61.5% • Operating margin of 10.3% • Renovated stores generating significant increases in traffic and sales • Increased consumer database by 8% versus prior year • Expect revenue trends to improve sequentially in 3Q and return to growth in 4Q
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STRATEGIC INITIATIVES • Strengthen brand desirability through Jimmy Choo’s effortlessly alluring spirit to engage and excite new and existing consumers • Create innovative fashion luxury product accelerating growth in accessories while maintaining our leadership position in footwear • Deliver elevated customer experience across all touchpoints including digital, stores and wholesale • Drive operational excellence to support sustainable revenue and earnings growth
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2Q27 HIGHLIGHTS • Revenue increased 11.5% (+12.2% in constant currency), above expectations • Accessories +DD and footwear +HSD • Gross margin expanded 100bps to 71.2% • Operating margin expanded 830 bps to 1.4%, above expectations • Increased consumer database by 7% versus prior year • Anticipate a return to revenue growth and profitability for FY27
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OUTLOOK The following guidance is provided on an adjusted, non-GAAP basis. Guidance continues to assume an incremental 10% tariff rate on imports into the United States through July 24, 2026 and 10% to 12.5% thereafter. Financial results could differ materially from the current outlook due to a number of external factors which are not reflected in our guidance, including changes in global macroeconomic conditions, incremental tariff rates in excess of our assumptions, greater than anticipated inflationary pressures or weakening consumer confidence, and further considerable fluctuations in foreign currency exchange rates. 3Q27 FY27 Revenue ~ $1.005 B ~ $3.42 B Michael Kors ~ $830 M ~ $2.77 B Jimmy Choo ~ $175 M ~ $650 M Adjusted Operating Income ~ $90 M ~ $175 M Operating Margin - Michael Kors ~ mid-teens% ~ LDD % Operating Margin - Jimmy Choo ~ LSD-MSD% ~ LSD % Net Interest & Other Income ~ $25 M ~ $100 M Effective Tax Rate ~ mid-teens % ~ low-teens % Weighted Avg Shares Outstanding ~ 103 M ~ 108 M Adjusted Diluted EPS ~ $0.95 ~ $2.20
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This presentation includes certain non-GAAP financial measures. Constant currency effects are non-GAAP financial measures, which are provided to supplement our reported operating results to facilitate comparisons of our operating results and trends in our business, excluding the effects of foreign currency rate fluctuations. Because we are a global company, foreign currency exchange rates may have a significant effect on our reported results. The Company believes presenting metrics on a constant currency basis will help investors to understand the effect of significant year-over-year foreign currency exchange rate fluctuations and provide a framework to assess how the business is performing and expected to perform excluding these effects. We calculate constant currency measures and the related foreign currency impacts by translating the current year's reported amounts into comparable amounts using prior year's foreign exchange rates for each currency. All constant currency performance measures discussed in this presentation should be considered a supplement to and not in lieu of our operating performance measures calculated in accordance with U.S. GAAP. The Company also presents free cash flow, which is a non-GAAP measure and is calculated by taking net cash provided by operating activities less capital expenditures for the period. The Company believes that free cash flow is an important liquidity measure of cash that is available after giving effect to our capital and strategic plans, and that it is useful to investors because it measures the Company’s ability to generate cash. Additionally, this presentation includes certain non-GAAP financial measures that exclude certain one-time, non-recurring costs associated with impairment charges, Capri transformation initiatives, certain store renovation plan expenses, transaction related costs and restructuring and other activities. 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, which are not comparable from period to period, helps investors compare operating and financial performance in a manner consistent with management's evaluation of ongoing business performance. 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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RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share data) (1) Primarily relates to costs associated with the transition services agreement in connection with the sale of Versace. (2) Primarily relates to fixed asset costs expensed as incurred associated with the Company's Store Renovation Plan for cert ain stores considered strategic investments and are not capitalizable. (3) For the three and six months ended September 26, 2026, this relates to severance costs. For the three and six months end ed September 27, 2025, this relates to costs incurred in connection with the Company's Global Optimization Plan which primarily relate to severance, lease termination and store closure costs. (4) The Capri transformation program represented a multi -year, multi-project initiative intended to improve the operating effec tiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives covered multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure. (5) Represents transition services agreement related income. (6) Diluted per share amounts are calculated using unrounded numbers.
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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; extreme weather conditions and natural disasters; acts of war and other geopolitical conflicts; risks related to the pending federal securities law class action; as well as the risk factors identified in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K 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