QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
British Virgin Islands | N/A |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on which Registered |
Ordinary Shares, no par value | CPRI | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Yes | ☐ | No | |
Indicate by check mark whether the registrant has submitted electronically | Yes | ☐ | No |
Large accelerated filer | Accelerated filer | |||||
Non-accelerated filer | Smaller reporting company | |||||
Emerging growth company | ||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). | Yes | ☒ | No |
Page No. | |||
PART I FINANCIAL INFORMATION | |||
Item 1. | Financial Statements | 3 | |
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 6. | |||
June 30, 2018 | March 31, 2018 | June 29, 2019 | March 30, 2019 | |||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 169.9 | $ | 163.1 | $ | 160 | $ | 172 | ||||||
Receivables, net | 262.5 | 290.5 | 310 | 383 | ||||||||||
Inventories | 697.0 | 660.7 | 1,016 | 953 | ||||||||||
Prepaid expenses and other current assets | 164.8 | 147.8 | 224 | 221 | ||||||||||
Total current assets | 1,294.2 | 1,262.1 | 1,710 | 1,729 | ||||||||||
Property and equipment, net | 560.7 | 583.2 | 608 | 615 | ||||||||||
Operating lease right-of-use assets | 1,718 | — | ||||||||||||
Intangible assets, net | 1,178.1 | 1,235.7 | 2,250 | 2,293 | ||||||||||
Goodwill | 806.2 | 847.7 | 1,652 | 1,659 | ||||||||||
Deferred tax assets | 46.2 | 56.2 | 149 | 112 | ||||||||||
Other assets | 75.4 | 74.1 | 221 | 242 | ||||||||||
Total assets | $ | 3,960.8 | $ | 4,059.0 | $ | 8,308 | $ | 6,650 | ||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | 279.3 | $ | 294.1 | $ | 355 | $ | 371 | ||||||
Accrued payroll and payroll related expenses | 67.9 | 93.0 | 96 | 133 | ||||||||||
Accrued income taxes | 33.1 | 77.6 | 36 | 34 | ||||||||||
Current operating lease liabilities | 384 | — | ||||||||||||
Short-term debt | 266.9 | 200.0 | 514 | 630 | ||||||||||
Accrued expenses and other current liabilities | 298.5 | 295.6 | 283 | 374 | ||||||||||
Total current liabilities | 945.7 | 960.3 | 1,668 | 1,542 | ||||||||||
Long-term operating lease liabilities | 1,754 | — | ||||||||||||
Deferred rent | 132.7 | 128.4 | — | 132 | ||||||||||
Deferred tax liabilities | 182.5 | 186.3 | 431 | 438 | ||||||||||
Long-term debt | 554.2 | 674.4 | 1,917 | 1,936 | ||||||||||
Other long-term liabilities | 104.2 | 88.1 | 210 | 166 | ||||||||||
Total liabilities | 1,919.3 | 2,037.5 | 5,980 | 4,214 | ||||||||||
Commitments and contingencies | ||||||||||||||
Redeemable noncontrolling interest | 4 | 4 | ||||||||||||
Shareholders’ equity | ||||||||||||||
Ordinary shares, no par value; 650,000,000 shares authorized; 212,209,545 shares issued and 149,168,595 outstanding at June 30, 2018; 210,991,091 shares issued and 149,698,407 outstanding at March 31, 2018 | — | — | ||||||||||||
Treasury shares, at cost (63,040,950 shares at June 30, 2018 and 61,292,684 shares at March 31, 2018) | (3,121.8 | ) | (3,015.9 | ) | ||||||||||
Ordinary shares, no par value; 650,000,000 shares authorized; 216,742,279 shares issued and 151,565,342 outstanding at June 29, 2019; 216,050,939 shares issued and 150,932,306 outstanding at March 30, 2019 | — | — | ||||||||||||
Treasury shares, at cost (65,176,937 shares at June 29, 2019 and 65,118,633 shares at March 30, 2019) | (3,225 | ) | (3,223 | ) | ||||||||||
Additional paid-in capital | 850.1 | 831.1 | 1,039 | 1,011 | ||||||||||
Accumulated other comprehensive (loss) income | (40.5 | ) | 50.5 | |||||||||||
Accumulated other comprehensive loss | (93 | ) | (66 | ) | ||||||||||
Retained earnings | 4,350.1 | 4,152.0 | 4,600 | 4,707 | ||||||||||
Total shareholders’ equity of MKHL | 2,037.9 | 2,017.7 | ||||||||||||
Total shareholders’ equity of Capri | 2,321 | 2,429 | ||||||||||||
Noncontrolling interest | 3.6 | 3.8 | 3 | 3 | ||||||||||
Total shareholders’ equity | 2,041.5 | 2,021.5 | 2,324 | 2,432 | ||||||||||
Total liabilities and shareholders’ equity | $ | 3,960.8 | $ | 4,059.0 | $ | 8,308 | $ | 6,650 |
Three Months Ended | Three Months Ended | |||||||||||||
June 30, 2018 | July 1, 2017 | June 29, 2019 | June 30, 2018 | |||||||||||
Total revenue | $ | 1,202.5 | $ | 952.4 | $ | 1,346 | $ | 1,203 | ||||||
Cost of goods sold | 451.7 | 377.7 | 512 | 452 | ||||||||||
Gross profit | 750.8 | 574.7 | 834 | 751 | ||||||||||
Selling, general and administrative expenses | 464.1 | 377.7 | 598 | 465 | ||||||||||
Depreciation and amortization | 55.9 | 47.6 | 60 | 56 | ||||||||||
Impairment of long-lived assets | 4.3 | — | 97 | 4 | ||||||||||
Restructuring and other charges (1) | 11.3 | — | 15 | 11 | ||||||||||
Total operating expenses | 535.6 | 425.3 | 770 | 536 | ||||||||||
Income from operations | 215.2 | 149.4 | 64 | 215 | ||||||||||
Other income, net | (0.8 | ) | (0.6 | ) | (2 | ) | (1 | ) | ||||||
Interest expense, net | 7.5 | 1.1 | 13 | 8 | ||||||||||
Foreign currency loss (gain) | 2.9 | (1.2 | ) | |||||||||||
Foreign currency loss | 2 | 3 | ||||||||||||
Income before provision for income taxes | 205.6 | 150.1 | 51 | 205 | ||||||||||
Provision for income taxes | 19.4 | 24.6 | 6 | 19 | ||||||||||
Net income | 186.2 | 125.5 | ||||||||||||
Less: Net loss attributable to noncontrolling interest | (0.2 | ) | — | |||||||||||
Net income attributable to MKHL | $ | 186.4 | $ | 125.5 | ||||||||||
Net income attributable to Capri | $ | 45 | $ | 186 | ||||||||||
Weighted average ordinary shares outstanding: | ||||||||||||||
Basic | 149,502,101 | 154,486,898 | 151,049,572 | 149,502,101 | ||||||||||
Diluted | 152,399,655 | 156,871,518 | 152,334,153 | 152,399,655 | ||||||||||
Net income per ordinary share attributable to MKHL: | ||||||||||||||
Net income per ordinary share attributable to Capri: | ||||||||||||||
Basic | $ | 1.25 | $ | 0.81 | $ | 0.30 | $ | 1.25 | ||||||
Diluted | $ | 1.22 | $ | 0.80 | $ | 0.30 | $ | 1.22 | ||||||
Statements of Comprehensive Income: | ||||||||||||||
Net income | $ | 186.2 | $ | 125.5 | $ | 45 | $ | 186 | ||||||
Foreign currency translation adjustments | (103.0 | ) | 22.1 | (25 | ) | (103 | ) | |||||||
Net gain (loss) on derivatives | 12.0 | (9.7 | ) | |||||||||||
Comprehensive income | 95.2 | 137.9 | ||||||||||||
Less: Net loss attributable to noncontrolling interest | (0.2 | ) | — | |||||||||||
Comprehensive income attributable to MKHL | $ | 95.4 | $ | 137.9 | ||||||||||
Net (loss) gain on derivatives | (2 | ) | 12 | |||||||||||
Comprehensive income attributable to Capri | $ | 18 | $ | 95 |
(1) | Restructuring and other charges includes store closure costs recorded in connection with the Michael Kors Retail Fleet Optimization Plan (as defined in Note 10) and |
Ordinary Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Equity of MKHL | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||||||||
Shares | Amounts | Shares | Amounts | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2018, as previously reported | 210,991 | $ | — | $ | 831.1 | (61,293 | ) | $ | (3,015.9 | ) | $ | 50.5 | $ | 4,152.0 | $ | 2,017.7 | $ | 3.8 | $ | 2,021.5 | |||||||||||||||||
Adoption of an accounting standards (See Note 2) | — | — | — | — | — | — | 11.7 | 11.7 | — | 11.7 | |||||||||||||||||||||||||||
Balance as of April 1, 2018 | 210,991 | — | 831.1 | (61,293 | ) | (3,015.9 | ) | 50.5 | 4,163.7 | 2,029.4 | 3.8 | 2,033.2 | |||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 186.4 | 186.4 | (0.2 | ) | 186.2 | ||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (91.0 | ) | — | (91.0 | ) | — | (91.0 | ) | ||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | — | — | 95.4 | (0.2 | ) | 95.2 | ||||||||||||||||||||||||||
Vesting of restricted awards, net of forfeitures | 600 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Exercise of employee share options | 619 | — | 6.2 | — | — | — | — | 6.2 | — | 6.2 | |||||||||||||||||||||||||||
Equity compensation expense | — | — | 12.8 | — | — | — | — | 12.8 | — | 12.8 | |||||||||||||||||||||||||||
Purchase of treasury shares | — | — | — | (1,748 | ) | (105.9 | ) | — | — | (105.9 | ) | — | (105.9 | ) | |||||||||||||||||||||||
Balance at June 30, 2018 | 212,210 | $ | — | $ | 850.1 | (63,041 | ) | $ | (3,121.8 | ) | $ | (40.5 | ) | $ | 4,350.1 | $ | 2,037.9 | $ | 3.6 | $ | 2,041.5 |
Ordinary Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Equity of Capri | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||||||||
Shares | Amounts | Shares | Amounts | ||||||||||||||||||||||||||||||||||
Balance at March 30, 2019, as previously reported | 216,051 | $ | — | $ | 1,011 | (65,119 | ) | $ | (3,223 | ) | $ | (66 | ) | $ | 4,707 | $ | 2,429 | $ | 3 | $ | 2,432 | ||||||||||||||||
Adoption of accounting standards (See Note 2) | — | — | — | — | — | — | (152 | ) | (152 | ) | — | (152 | ) | ||||||||||||||||||||||||
Balance as of March 31, 2019 | 216,051 | — | 1,011 | (65,119 | ) | (3,223 | ) | (66 | ) | 4,555 | 2,277 | 3 | 2,280 | ||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 45 | 45 | — | 45 | |||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (27 | ) | — | (27 | ) | — | (27 | ) | ||||||||||||||||||||||||
Total comprehensive income | — | — | — | — | — | — | — | 18 | — | 18 | |||||||||||||||||||||||||||
Vesting of restricted awards, net of forfeitures | 691 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Equity compensation expense | — | — | 28 | — | — | — | — | 28 | — | 28 | |||||||||||||||||||||||||||
Purchase of treasury shares | — | — | — | (58 | ) | (2 | ) | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||||||||
Balance at June 29, 2019 | 216,742 | $ | — | $ | 1,039 | (65,177 | ) | $ | (3,225 | ) | $ | (93 | ) | $ | 4,600 | $ | 2,321 | $ | 3 | $ | 2,324 |
Ordinary Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Equity of MKHL | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||||||||
Shares | Amounts | Shares | Amounts | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2018, as previously reported | 210,991 | $ | — | $ | 831 | (61,293 | ) | $ | (3,016 | ) | $ | 51 | $ | 4,152 | $ | 2,018 | $ | 4 | $ | 2,022 | |||||||||||||||||
Adoption of accounting standard | — | — | — | — | — | — | 12 | 12 | — | 12 | |||||||||||||||||||||||||||
Balance as of April 1, 2018 | 210,991 | — | 831 | (61,293 | ) | (3,016 | ) | 51 | 4,164 | 2,030 | 4 | 2,034 | |||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 186 | 186 | — | 186 | |||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (91 | ) | — | (91 | ) | — | (91 | ) | ||||||||||||||||||||||||
Total comprehensive income | — | — | — | — | — | — | — | 95 | — | 95 | |||||||||||||||||||||||||||
Vesting of restricted awards, net of forfeitures | 600 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Exercise of employee share options | 619 | — | 6 | — | — | — | — | 6 | — | 6 | |||||||||||||||||||||||||||
Equity compensation expense | — | — | 13 | — | — | — | — | 13 | — | 13 | |||||||||||||||||||||||||||
Purchase of treasury shares | — | — | — | (1,748 | ) | (106 | ) | — | — | (106 | ) | — | (106 | ) | |||||||||||||||||||||||
Balance at June 30, 2018 | 212,210 | $ | — | $ | 850 | (63,041 | ) | $ | (3,122 | ) | $ | (40 | ) | $ | 4,350 | $ | 2,038 | $ | 4 | $ | 2,042 |
Three Months Ended | Three Months Ended | |||||||||||||
June 30, 2018 | July 1, 2017 | June 29, 2019 | June 30, 2018 | |||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | 186.2 | $ | 125.5 | $ | 45 | $ | 186 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 55.9 | 47.6 | 60 | 56 | ||||||||||
Equity compensation expense | 12.8 | 10.8 | 28 | 13 | ||||||||||
Losses on store lease exits | — | 2 | ||||||||||||
Deferred income taxes | 12.7 | 7.1 | 2 | 13 | ||||||||||
Impairment of long-lived assets | 4.3 | — | 97 | 4 | ||||||||||
Tax (benefit) deficit on exercise of share options | (10.8 | ) | 4.9 | |||||||||||
Changes to lease related balances, net | (16 | ) | — | |||||||||||
Tax deficit (benefit) on exercise of share options | 2 | (11 | ) | |||||||||||
Amortization of deferred financing costs | 0.9 | 0.2 | 1 | 1 | ||||||||||
Foreign currency (gains) losses | 2.9 | (1.2 | ) | |||||||||||
Other non-cash charges | 2.2 | 0.4 | ||||||||||||
Foreign currency losses | 2 | 3 | ||||||||||||
Change in assets and liabilities: | ||||||||||||||
Receivables, net | 24.4 | 98.2 | 73 | 24 | ||||||||||
Inventories | (52.4 | ) | (55.6 | ) | (63 | ) | (52 | ) | ||||||
Prepaid expenses and other current assets | (20.8 | ) | (4.7 | ) | (32 | ) | (21 | ) | ||||||
Accounts payable | (4.4 | ) | (23.7 | ) | (8 | ) | (4 | ) | ||||||
Accrued expenses and other current liabilities | (32.1 | ) | (18.1 | ) | (51 | ) | (32 | ) | ||||||
Other long-term assets and liabilities | 24.5 | 2.9 | 18 | 24 | ||||||||||
Net cash provided by operating activities | 206.3 | 194.3 | 158 | 206 | ||||||||||
Cash flows from investing activities | ||||||||||||||
Capital expenditures | (40.7 | ) | (14.8 | ) | (54 | ) | (41 | ) | ||||||
Cash paid for business acquisitions, net of cash acquired | — | (1.4 | ) | (1 | ) | — | ||||||||
Settlement of a net investment hedges | 23 | — | ||||||||||||
Net cash used in investing activities | (40.7 | ) | (16.2 | ) | (32 | ) | (41 | ) | ||||||
Cash flows from financing activities | ||||||||||||||
Debt borrowings | 433.6 | 409.6 | 390 | 434 | ||||||||||
Debt repayments | (487.2 | ) | (386.9 | ) | (526 | ) | (487 | ) | ||||||
Repurchase of treasury shares | (105.9 | ) | (160.3 | ) | (2 | ) | (106 | ) | ||||||
Exercise of employee share options | 6.2 | 0.1 | — | 6 | ||||||||||
Other financing activities | — | (0.2 | ) | |||||||||||
Net cash used in financing activities | (153.3 | ) | (137.7 | ) | (138 | ) | (153 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (5.5 | ) | 3.7 | — | (5 | ) | ||||||||
Net increase in cash and cash equivalents and restricted cash | 6.8 | 44.1 | ||||||||||||
Beginning of period (including restricted cash of $0.3 million at March 31, 2018 and $1.9 million at April 1, 2017) | 163.4 | 229.6 | ||||||||||||
End of period (including restricted cash of $0.3 million at June 30, 2018) | $ | 170.2 | $ | 273.7 | ||||||||||
Net (decrease) increase in cash and cash equivalents | (12 | ) | 7 | |||||||||||
Beginning of period | 172 | 163 | ||||||||||||
End of period | $ | 160 | $ | 170 | ||||||||||
Supplemental disclosures of cash flow information | ||||||||||||||
Cash paid for interest | $ | 12.7 | $ | 1.3 | $ | 30 | $ | 13 | ||||||
Cash paid for income taxes | $ | 23.8 | $ | 11.9 | $ | 12 | $ | 24 | ||||||
Supplemental disclosure of non-cash investing and financing activities | ||||||||||||||
Accrued capital expenditures | $ | 27.9 | $ | 12.8 | $ | 23 | $ | 28 |
Three Months Ended | ||||||||
June 29, 2019 | June 30, 2018 | |||||||
Numerator: | ||||||||
Net income attributable to Capri | $ | 45 | $ | 186 | ||||
Denominator: | ||||||||
Basic weighted average shares | 151,049,572 | 149,502,101 | ||||||
Weighted average dilutive share equivalents: | ||||||||
Share options and restricted shares/units, and performance restricted share units | 1,284,581 | 2,897,554 | ||||||
Diluted weighted average shares | 152,334,153 | 152,399,655 | ||||||
Basic net income per share (1) | $ | 0.30 | $ | 1.25 | ||||
Diluted net income per share (1) | $ | 0.30 | $ | 1.22 |
Three Months Ended | |||||||
June 30, 2018 | July 1, 2017 | ||||||
Numerator: | |||||||
Net income attributable to MKHL | $ | 186.4 | $ | 125.5 | |||
Denominator: | |||||||
Basic weighted average shares | 149,502,101 | 154,486,898 | |||||
Weighted average dilutive share equivalents: | |||||||
Share options and restricted shares/units, and performance restricted share units | 2,897,554 | 2,384,620 | |||||
Diluted weighted average shares | 152,399,655 | 156,871,518 | |||||
Basic net income per share | $ | 1.25 | $ | 0.81 | |||
Diluted net income per share | $ | 1.22 | $ | 0.80 |
(1) | Basic and diluted net income per share are calculated using unrounded numbers. |
March 31, 2018 As Reported under ASC 605 | ASC 606 Adjustments | April 1, 2018 As Reported Under ASC 606 | March 30, 2019 As Reported under ASC 840 | ASC 842 Adjustments | March 31, 2019 As Reported Under ASC 842 | |||||||||||||||||
Receivables, net | $ | 290.5 | $ | 3.8 | (1) | $ | 294.3 | |||||||||||||||
Assets | ||||||||||||||||||||||
Prepaid expenses and other current assets | $ | 221 | $ | (23 | ) | (1) | $ | 198 | ||||||||||||||
Operating lease right-of-use assets | — | 1,856 | (2) | 1,856 | ||||||||||||||||||
Intangible assets, net | 2,293 | (20 | ) | (3) | 2,273 | |||||||||||||||||
Deferred tax assets | 112 | 38 | (4) | 150 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||
Current portion of operating lease liabilities | — | 386 | (5) | 386 | ||||||||||||||||||
Accrued expenses and other current liabilities | 295.6 | (4.6 | ) | (2) | 291.0 | 374 | (72 | ) | (6) | 302 | ||||||||||||
Long-term portion of operating lease liabilities | — | 1,828 | (5) | 1,828 | ||||||||||||||||||
Deferred Rent | 132 | (132 | ) | (7) | — | |||||||||||||||||
Deferred tax liabilities | 186.3 | 1.7 | (3) | 188.0 | 438 | (7 | ) | (4) | 431 | |||||||||||||
Shareholders’ Equity | ||||||||||||||||||||||
Retained earnings | 4,152.0 | 6.7 | 4,158.7 | 4,707 | (152 | ) | (4) | 4,555 |
(1) |
(2) |
(3) |
(4) | Represents the initial impairment recognized through retained earnings for certain underperforming retail store locations for which fixed assets were previously impaired, net of |
(5) | Represents the recognition of current and non-current lease liabilities for fixed payments associated with the Company’s operating leases. |
(6) | Represents the reclassification of $54 million in sublease liabilities, primarily related to Michael Kors retail stores closed under the Company’s Retail Fleet Optimization Plan as described in Note 10, as well as the reclassification of $18 million of deferred rent and tenant allowances to operating lease right-of-use assets. |
(7) | Represents the reclassification of noncurrent deferred rent and tenant improvement allowances to operating lease right-of-use assets. |
Contractually Guaranteed Minimum Fees | ||||
Remainder of Fiscal 2020 | $ | 20 | ||
Fiscal 2021 | 27 | |||
Fiscal 2022 | 27 | |||
Fiscal 2023 | 20 | |||
Fiscal 2024 | 10 | |||
Fiscal 2025 and thereafter | 36 | |||
Total | $ | 140 |
Three Months Ended | |||||||
June 29, 2019 | June 30, 2018 | ||||||
Versace revenue - the Americas | $ | 44 | $ | — | |||
Versace revenue - EMEA | 92 | — | |||||
Versace revenue - Asia | 71 | — | |||||
Total Versace | 207 | — | |||||
Jimmy Choo revenue - the Americas | 30 | 26 | |||||
Jimmy Choo revenue - EMEA | 79 | 102 | |||||
Jimmy Choo revenue - Asia | 49 | 45 | |||||
Total Jimmy Choo | 158 | 173 | |||||
Michael Kors revenue - the Americas | 655 | 692 | |||||
Michael Kors revenue - the EMEA | 189 | 200 | |||||
Michael Kors revenue - the Asia | 137 | 138 | |||||
Total Michael Kors | 981 | 1,030 | |||||
Total revenue - the Americas | 729 | 718 | |||||
Total revenue - EMEA | 360 | 302 | |||||
Total revenue - Asia | 257 | 183 | |||||
Total revenue | $ | 1,346 | $ | 1,203 |
Balance Sheet Location | June 29, 2019 | |||||
Assets | ||||||
Operating leases | Operating lease right-of-use assets | $ | 1,718 | |||
Liabilities | ||||||
Current: | ||||||
Operating leases | Current portion of operating lease liabilities | $ | 384 | |||
Non-current: | ||||||
Operating leases | Long-term portion of operating lease liabilities | $ | 1,754 |
Three Months Ended | |||||||
June 30, 2018 | July 1, 2017 | ||||||
MK Retail revenue - the Americas | $ | 402.2 | $ | 392.1 | |||
MK Retail revenue - Europe | 119.5 | 122.1 | |||||
MK Retail revenue - Asia | 117.8 | 105.7 | |||||
Total MK Retail | 639.5 | 619.9 | |||||
MK Wholesale revenue - the Americas | 275.1 | 227.2 | |||||
MK Wholesale revenue - EMEA (1) | 68.4 | 65.0 | |||||
MK Wholesale revenue - Asia | 19.3 | 11.4 | |||||
Total MK Wholesale | 362.8 | 303.6 | |||||
MK Licensing revenue - the Americas | 15.3 | 14.8 | |||||
MK Licensing revenue - EMEA (1) | 12.2 | 14.1 | |||||
Total MK Licensing | 27.5 | 28.9 | |||||
Total Michael Kors | 1,029.8 | 952.4 | |||||
Jimmy Choo revenue - the Americas | 25.6 | — | |||||
Jimmy Choo revenue - EMEA (1) | 101.7 | — | |||||
Jimmy Choo revenue - Asia | 45.4 | — | |||||
Total Jimmy Choo | 172.7 | — | |||||
Total revenue - the Americas | 718.2 | 634.1 | |||||
Total revenue - EMEA (1) | 301.8 | 201.2 | |||||
Total revenue - Asia | 182.5 | 117.1 | |||||
Total revenue | $ | 1,202.5 | $ | 952.4 |
Three Months Ended | ||||||
Statement of Operations and Comprehensive Income Location | June 29, 2019 | |||||
Operating lease cost | Selling, general and administrative expenses | $ | 109 | |||
Short-term lease cost | Selling, general and administrative expenses | 10 | ||||
Variable lease cost | Selling, general and administrative expenses | 40 | ||||
Sublease income | Selling, general and administrative expenses | (1 | ) | |||
Total lease cost | $ | 158 |
Three Months Ended | ||||||
June 29, 2019 | ||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||
Operating cash flows from operating leases | $ | 120 | ||||
Non-cash transactions: | ||||||
Lease assets obtained in exchange for new lease liabilities | $ | 30 |
June 29, 2019 | |||||
Operating leases: | |||||
Weighted average remaining lease term (years) | 6.6 | ||||
Weighted average discount rate | 2.9 | % |
June 29, 2019 | ||||||
Remainder of Fiscal 2020 | $ | 352 | ||||
Fiscal 2021 | 432 | |||||
Fiscal 2022 | 373 | |||||
Fiscal 2023 | 320 | |||||
Fiscal 2024 | 268 | |||||
Thereafter | 659 | |||||
Total lease payments | 2,404 | |||||
Less: interest | (266 | ) | ||||
Total lease liabilities | $ | 2,138 |
June 29, 2019 | ||||||
Remainder of Fiscal 2020 | $ | 4 | ||||
Fiscal 2021 | 6 | |||||
Fiscal 2022 | 5 | |||||
Fiscal 2023 | 5 | |||||
Fiscal 2024 | 4 | |||||
Thereafter | 16 | |||||
Total sublease income | $ | 40 |
June 29, 2019 | March 30, 2019 | ||||||
Trade receivables (1) | $ | 387 | $ | 459 | |||
Receivables due from licensees | 16 | 23 | |||||
403 | 482 | ||||||
Less: allowances | (93 | ) | (99 | ) | |||
$ | 310 | $ | 383 |
(1) |
June 30, 2018 | March 31, 2018 | ||||||
Trade receivables (1) | $ | 329.3 | $ | 383.3 | |||
Receivables due from licensees | 16.2 | 15.8 | |||||
345.5 | 399.1 | ||||||
Less: allowances | (83.0 | ) | (108.6 | ) | |||
$ | 262.5 | $ | 290.5 |
As of June |
June 29, 2019 | March 30, 2019 | ||||||
Leasehold improvements | $ | 654 | $ | 639 | |||
Computer equipment and software | 305 | 292 | |||||
Furniture and fixtures | 297 | 292 | |||||
In-store shops | 272 | 270 | |||||
Equipment | 125 | 123 | |||||
Building | 48 | 47 | |||||
Land | 18 | 15 | |||||
1,719 | 1,678 | ||||||
Less: accumulated depreciation and amortization | (1,169 | ) | (1,115 | ) | |||
550 | 563 | ||||||
Construction-in-progress | 58 | 52 | |||||
$ | 608 | $ | 615 |
June 30, 2018 | March 31, 2018 | ||||||
Leasehold improvements | $ | 546.6 | $ | 551.0 | |||
Furniture and fixtures | 266.4 | 270.9 | |||||
In-store shops | 265.4 | 273.9 | |||||
Computer equipment and software | 264.1 | 266.3 | |||||
Equipment | 117.3 | 116.7 | |||||
Building | 50.4 | 51.6 | |||||
Land | 15.4 | 16.2 | |||||
1,525.6 | 1,546.6 | ||||||
Less: accumulated depreciation and amortization | (1,007.6 | ) | (1,001.6 | ) | |||
518.0 | 545.0 | ||||||
Construction-in-progress | 42.7 | 38.2 | |||||
$ | 560.7 | $ | 583.2 |
June 29, 2019 | March 30, 2019 | ||||||
Definite-lived intangible assets: | |||||||
Reacquired Rights | $ | 400 | $ | 400 | |||
Trademarks | 23 | 23 | |||||
Key Money (1) | 71 | 96 | |||||
Customer Relationships | 412 | (2) | 415 | ||||
Total definite-lived intangible assets | 906 | 934 | |||||
Less: accumulated amortization | (155 | ) | (143 | ) | |||
Net definite-lived intangible assets | 751 | 791 | |||||
Indefinite-lived intangible assets: | |||||||
Jimmy Choo brand | 557 | (2) | 572 | ||||
Versace brand | 942 | (2) | 930 | ||||
1,499 | 1,502 | ||||||
Total intangible assets, excluding goodwill | $ | 2,250 | $ | 2,293 | |||
Goodwill | $ | 1,652 | (2) | $ | 1,659 |
June 30, 2018 | March 31, 2018 | ||||||
Definite-lived intangible assets: | |||||||
Reacquired Rights | $ | 400.4 | $ | 400.4 | |||
Trademarks | 23.0 | 23.0 | |||||
Lease Rights | 71.2 | 80.1 | |||||
Customer Relationships | 218.3 | 231.3 | |||||
Total definite-lived intangible assets | 712.9 | 734.8 | |||||
Less: accumulated amortization | (114.0 | ) | (113.2 | ) | |||
Net definite-lived intangible assets | 598.9 | 621.6 | |||||
Indefinite-lived intangible assets: | |||||||
Jimmy Choo brand | 579.2 | 614.1 | |||||
Total intangible assets, excluding goodwill | $ | 1,178.1 | $ | 1,235.7 |
June 30, 2018 | March 31, 2018 | ||||||
Prepaid taxes | $ | 80.0 | $ | 78.5 | |||
Prepaid rent | 22.8 | 22.7 | |||||
Leasehold incentive receivable | 11.1 | 9.4 | |||||
Prepaid insurance | 5.8 | 1.5 | |||||
Unrealized gains on forward foreign exchange contracts | 3.8 | — | |||||
Prepaid duties | 7.0 | 7.0 | |||||
Other | 34.3 | 28.7 | |||||
$ | 164.8 | $ | 147.8 |
June 30, 2018 | March 31, 2018 | ||||||
Other taxes payable | $ | 64.0 | $ | 54.3 | |||
Restructuring liability | 38.8 | 44.8 | |||||
Accrued rent | 35.7 | 34.5 | |||||
Return liabilities | 28.5 | 12.1 | |||||
Accrued capital expenditures | 27.9 | 26.4 | |||||
Accrued advertising and marketing | 20.5 | 22.6 | |||||
Professional services | 12.5 | 14.1 | |||||
Gift cards and retail store credits | 11.2 | 16.0 | |||||
Deferred loyalty program liabilities | 4.7 | 2.2 | |||||
Accrued interest | 3.8 | 8.7 | |||||
Deferred income | 3.2 | 4.3 | |||||
Advance royalties | 3.1 | 4.1 | |||||
Unrealized loss on forward foreign currency exchange contracts | 0.1 | 7.7 | |||||
Other | 44.5 | 43.8 | |||||
$ | 298.5 | $ | 295.6 |
Severance and benefit costs | Lease-related costs | Total | |||||||||
Balance at March 31, 2018 | $ | 0.2 | $ | 44.6 | $ | 44.8 | |||||
Additions charged to expense | 0.1 | 4.1 | 4.2 | ||||||||
Balance sheet reclassifications (1) | — | 0.4 | 0.4 | ||||||||
Payments | — | (10.6 | ) | (10.6 | ) | ||||||
Balance at June 30, 2018 | $ | 0.3 | $ | 38.5 | $ | 38.8 |
(1) |
(2) | The change in the carrying values since March 30, 2019 reflects currency translation. |
June 29, 2019 | March 30, 2019 | ||||||
Prepaid taxes | $ | 154 | $ | 125 | |||
Prepaid rent (1) | — | 24 | |||||
Interest receivable related to net investment hedges | 7 | 11 | |||||
Prepaid fixed assets | 7 | 7 | |||||
Prepaid advertising | 5 | 5 | |||||
Other | 51 | 49 | |||||
$ | 224 | $ | 221 |
June 29, 2019 | March 30, 2019 | ||||||
Other taxes payable | $ | 61 | $ | 47 | |||
Return liabilities | 36 | 35 | |||||
Accrued capital expenditures | 23 | 25 | |||||
Accrued rent (2) | 17 | 34 | |||||
Gift cards and retail store credits | 12 | 13 | |||||
Professional services | 12 | 12 | |||||
Accrued litigation | 12 | 11 | |||||
Accrued advertising and marketing | 9 | 10 | |||||
Accrued purchases and samples | 9 | 29 | |||||
Advance royalties | 9 | 6 | |||||
Accrued interest | 5 | 10 | |||||
Restructuring liability (1) | 5 | 64 | |||||
Other | 73 | 78 | |||||
$ | 283 | $ | 374 |
(1) | In connection with the adoption of ASU 2016-02, certain lease related assets and liabilities were reflected within operating lease right-of-use assets and liabilities as of June 29, 2019. See Note 2 and Note 4 for additional information. |
(2) | The accrued rent balance relates to variable lease payments. |
Severance and benefit costs | Lease-related and other costs | Total | |||||||||
Balance at March 30, 2019 | $ | 2 | $ | 53 | $ | 55 | |||||
ASC 842 (Leases) Adjustment (1) | — | (46 | ) | (46 | ) | ||||||
Balance at March 31, 2019 | 2 | 7 | 9 | ||||||||
Additions charged to expense | — | 1 | 1 | ||||||||
Payments | — | (5 | ) | (5 | ) | ||||||
Balance at June 29, 2019 | $ | 2 | $ | 3 | $ | 5 |
(1) | Consists of the reclassification of |
June 29, 2019 | March 30, 2019 | ||||||
Term Loan | $ | 1,560 | $ | 1,580 | |||
Revolving Credit Facilities | 434 | 550 | |||||
4.000% Senior Notes due 2024 | 450 | 450 | |||||
Other | 1 | 1 | |||||
Total debt | 2,445 | 2,581 | |||||
Less: Unamortized debt issuance costs | 12 | 13 | |||||
Less: Unamortized discount on long-term debt | 2 | 2 | |||||
Total carrying value of debt | 2,431 | 2,566 | |||||
Less: Short-term debt | 514 | 630 | |||||
Total long-term debt | $ | 1,917 | $ | 1,936 |
June 30, 2018 | March 31, 2018 | ||||||
Term Loan | $ | 109.0 | $ | 229.8 | |||
4.000% Senior Notes due 2024 | 450.0 | 450.0 | |||||
Revolving Credit Facilities | 266.9 | 200.0 | |||||
Other | 0.9 | 0.9 | |||||
Total debt | 826.8 | 880.7 | |||||
Less: Unamortized debt issuance costs | 3.7 | 4.2 | |||||
Less: Unamortized discount on long-term debt | 2.0 | 2.1 | |||||
Total carrying value of debt | 821.1 | 874.4 | |||||
Less: Short-term debt | 266.9 | 200.0 | |||||
Total long-term debt | $ | 554.2 | $ | 674.4 |
Fair value at June 29, 2019 using: | Fair value at March 30, 2019 using: | ||||||||||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||
Forward foreign currency exchange contracts | $ | — | $ | 2 | $ | — | $ | — | $ | 5 | $ | — | |||||||||||
Net investment hedges | — | 12 | — | — | 37 | — | |||||||||||||||||
Other undesignated derivative contracts | — | 1 | — | — | — | — | |||||||||||||||||
Total derivative assets | $ | — | $ | 15 | $ | — | $ | — | $ | 42 | $ | — | |||||||||||
Derivative liabilities: | |||||||||||||||||||||||
Net investment hedges | $ | — | $ | 24 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Other undesignated derivative contracts | — | 4 | — | — | 5 | — | |||||||||||||||||
Total derivative liabilities | $ | — | $ | 28 | $ | — | $ | — | $ | 5 | $ | — |
Fair value at June 30, 2018 using: | Fair value at March 31, 2018 using: | ||||||||||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||
Forward foreign currency exchange contracts | $ | — | $ | 3.8 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Net investment hedges | — | 4.8 | — | — | — | — | |||||||||||||||||
Total derivative assets | $ | — | $ | 8.6 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Derivative liabilities: | |||||||||||||||||||||||
Forward foreign currency exchange contracts | $ | — | $ | 0.1 | $ | — | $ | — | $ | 7.7 | $ | — |
June 29, 2019 | March 30, 2019 | ||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||
4.000% Senior Notes | $ | 445 | $ | 456 | $ | 445 | $ | 438 | |||||||
Term Loan | $ | 1,551 | $ | 1,563 | $ | 1,570 | $ | 1,574 | |||||||
Revolving Credit Facilities | $ | 434 | $ | 434 | $ | 550 | $ | 550 |
June 30, 2018 | March 31, 2018 | |||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||
4.000% Senior Notes | $ | 444.7 | $ | 437.4 | $ | 444.5 | $ | 448.1 | ||||||||
Term Loan | $ | 108.6 | $ | 109.7 | $ | 229.0 | $ | 231.2 | ||||||||
Revolving Credit Facilities | $ | 266.9 | $ | 266.9 | $ | 200.0 | $ | 200.0 |
Three Months Ended June 29, 2019 | |||||||||||
Carrying Value Prior to Impairment | Fair Value | Impairment Charge | |||||||||
Operating Lease Right-of-Use Assets | $ | 132 | $ | 53 | $ | 79 | |||||
Fixed Assets | $ | 20 | $ | 7 | $ | 13 | |||||
Key Money | 8 | 3 | 5 | ||||||||
Total | $ | 160 | $ | 63 | $ | 97 |
Three Months Ended June 30, 2018 | |||||||||||
Carrying Value Prior to Impairment | Fair Value | Impairment Charge | |||||||||
Fixed Assets | $ | 5 | $ | 2 | $ | 3 | |||||
Lease Rights | 2 | 1 | 1 | ||||||||
Total | $ | 7 | $ | 3 | $ | 4 |
Carrying Value Prior to Impairment | Fair Value | Impairment Charge | |||||||||
Fixed Assets | $ | 5.4 | $ | 1.7 | $ | 3.7 | |||||
Lease Rights | 1.4 | 0.8 | 0.6 | ||||||||
Total | $ | 6.8 | $ | 2.5 | $ | 4.3 |
Fair Values | Fair Values | |||||||||||||||||||||||||||||||||||||||||||||||
Notional Amounts | Assets | Liabilities | Notional Amounts | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 | March 31, 2018 | June 30, 2018 | March 31, 2018 | June 30, 2018 | March 31, 2018 | June 29, 2019 | March 30, 2019 | June 29, 2019 | March 30, 2019 | June 29, 2019 | March 30, 2019 | |||||||||||||||||||||||||||||||||||||
Designated forward currency exchange contracts | $ | 132.1 | $ | 161.7 | $ | 3.5 | (1) | $ | — | $ | 0.1 | (2) | $ | 7.7 | (2) | |||||||||||||||||||||||||||||||||
Designated forward foreign currency exchange contracts | $ | 156 | $ | 166 | $ | 2 | (1) | $ | 5 | (1) | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Designated net investment hedge | 334.0 | — | 4.8 | (3) | — | — | — | 3,234 | 2,234 | 12 | (2) | 37 | (2) | 24 | (3) | — | ||||||||||||||||||||||||||||||||
Total designated hedges | $ | 466.1 | $ | 161.7 | $ | 8.3 | $ | — | $ | 0.1 | $ | 7.7 | $ | 3,390 | $ | 2,400 | $ | 14 | $ | 42 | $ | 24 | $ | — | ||||||||||||||||||||||||
Undesignated forward currency exchange contracts | 21.3 | — | 0.3 | (1) | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Undesignated derivative contracts (5) | 191 | 199 | 1 | (1) | — | 4 | (4) | 5 | (4) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 487.4 | $ | 161.7 | $ | 8.6 | $ | — | $ | 0.1 | $ | 7.7 | $ | 3,581 | $ | 2,599 | $ | 15 | $ | 42 | $ | 28 | $ | 5 |
(1) | Recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets. |
(2) | Recorded within other assets in the Company’s consolidated balance sheets. |
(3) | Recorded within other long-term liabilities in the Company’s consolidated balance sheets. |
(4) | Recorded within accrued expenses and other current liabilities in the Company’s consolidated balance sheets. |
Forward Currency Exchange Contracts | Net Investment Hedges | ||||||||||||||
June 29, 2019 | March 30, 2019 | June 29, 2019 | March 30, 2019 | ||||||||||||
Assets subject to master netting arrangements | $ | 3 | $ | 5 | $ | 12 | $ | 37 | |||||||
Liabilities subject to master netting arrangements | $ | 4 | $ | 5 | $ | 24 | $ | — | |||||||
Derivative assets, net | $ | 3 | $ | 5 | $ | 7 | $ | 37 | |||||||
Derivative liabilities, net | $ | 4 | $ | 5 | $ | 19 | $ | — |
Forward Currency Exchange Contracts | Net Investment Hedges | ||||||||||||||
June 30, 2018 | March 31, 2018 | June 30, 2018 | March 31, 2018 | ||||||||||||
Assets subject to master netting arrangements | $ | 3.8 | $ | — | $ | 4.8 | $ | — | |||||||
Liabilities subject to master netting arrangements | $ | 0.1 | $ | 7.7 | $ | — | $ | — | |||||||
Derivative assets, net | $ | 3.7 | $ | — | $ | 4.8 | $ | — | |||||||
Derivative liabilities, net | $ | — | $ | 7.7 | $ | — | $ | — |
Three Months Ended | Three Months Ended | |||||||||||||
June 30, 2018 | July 1, 2017 | June 29, 2019 | June 30, 2018 | |||||||||||
Pre-Tax Gains Recognized in OCI | Pre-Tax Losses Recognized in OCI | Pre-Tax Losses Recognized in OCI | Pre-Tax Gains Recognized in OCI | |||||||||||
Designated forward foreign currency exchange contracts | $ | 8.7 | $ | (9.3 | ) | $ | — | $ | 9 | |||||
Designated net investment hedges | $ | 4.8 | $ | — | $ | (25 | ) | $ | 5 |
Three Months Ended | |||||||||||||||||||
Pre-Tax (Gain) Loss Reclassified from Accumulated OCI | Location of (Gain) Loss recognized | Total Cost of Sales | |||||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||||||
Designated forward currency exchange contracts | $ | (3 | ) | $ | 5 | Cost of Sales | $ | 512 | $ | 452 |
Pre-Tax (Gain) Loss Reclassified from Accumulated OCI | Location of (Gain) Loss recognized | Total Cost of Sales | |||||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | ||||||||||||||||
Designated forward currency exchange contracts | $ | 4.9 | $ | (1.9 | ) | Cost of Sales | $ | 451.7 | $ | 377.7 |
Foreign Currency Translation (Losses) Gains (1) | Net Gains (Losses) on Derivatives (2) | Other Comprehensive (Loss) Income Attributable to MKHL | Other Comprehensive (Loss) Income Attributable to Noncontrolling Interest | Total Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||||||||||||
Balance at April 1, 2017 | $ | (86.1 | ) | $ | 5.5 | $ | (80.6 | ) | $ | (0.3 | ) | $ | (80.9 | ) | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | 22.1 | (8.0 | ) | 14.1 | — | 14.1 | ||||||||||||||||||||||||
Less: amounts reclassified from AOCI to earnings | — | 1.7 | 1.7 | — | 1.7 | |||||||||||||||||||||||||
Other comprehensive income (loss) net of tax | 22.1 | (9.7 | ) | 12.4 | — | 12.4 | ||||||||||||||||||||||||
Balance at July 1, 2017 | $ | (64.0 | ) | $ | (4.2 | ) | $ | (68.2 | ) | $ | (0.3 | ) | $ | (68.5 | ) | |||||||||||||||
Foreign Currency Translation Gains (Losses) (1) | Net (Losses) Gains on Derivatives (2) | Other Comprehensive Income (Loss) Attributable to Capri | ||||||||||||||||||||||||||||
Balance at March 31, 2018 | $ | 61.2 | $ | (10.7 | ) | $ | 50.5 | $ | (0.2 | ) | $ | 50.3 | $ | 61 | $ | (10 | ) | $ | 51 | |||||||||||
Other comprehensive (loss) income before reclassifications | (103.0 | ) | 7.8 | (95.2 | ) | — | (95.2 | ) | (103 | ) | 8 | (95 | ) | |||||||||||||||||
Less: amounts reclassified from AOCI to earnings | — | (4.2 | ) | (4.2 | ) | — | (4.2 | ) | — | (4 | ) | (4 | ) | |||||||||||||||||
Other comprehensive (loss) income net of tax | (103.0 | ) | 12.0 | (91.0 | ) | — | (91.0 | ) | ||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (103 | ) | 12 | (91 | ) | |||||||||||||||||||||||||
Balance at June 30, 2018 | $ | (41.8 | ) | $ | 1.3 | $ | (40.5 | ) | $ | (0.2 | ) | $ | (40.7 | ) | $ | (42 | ) | $ | 2 | $ | (40 | ) | ||||||||
Balance at March 30, 2019 | $ | (73 | ) | $ | 7 | $ | (66 | ) | ||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (25 | ) | — | (25 | ) | |||||||||||||||||||||||||
Less: amounts reclassified from AOCI to earnings | — | 2 | 2 | |||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (25 | ) | (2 | ) | (27 | ) | ||||||||||||||||||||||||
Balance at June 29, 2019 | $ | (98 | ) | $ | 5 | $ | (93 | ) |
(1) | Foreign currency translation gains and losses for the three months ended June 29, 2019 and June 30, 2018 |
(2) | Reclassified amounts relate to the Company’s forward foreign currency exchange contracts for inventory purchases and are recorded within cost of goods sold in the Company’s consolidated statements of operations and comprehensive income. |
Options | Service-Based RSUs | Performance-Based RSUs | ||||||
Outstanding/Unvested at March 30, 2019 | 2,131,259 | 3,839,862 | 737,074 | |||||
Granted | — | 1,820,790 | 169,817 | |||||
Exercised/Vested | — | (638,315 | ) | (53,025 | ) | |||
Decrease due to performance condition | — | — | (39,999 | ) | ||||
Canceled/forfeited | (1,063 | ) | (71,009 | ) | — | |||
Outstanding/Unvested at June 29, 2019 | 2,130,196 | 4,951,328 | 813,867 |
Options | Restricted Shares | Service-Based RSUs | Performance-Based RSUs | ||||||||
Outstanding/Unvested at March 31, 2018 | 3,796,620 | 64,148 | 2,127,517 | 657,532 | |||||||
Granted | 224,582 | — | 757,231 | 166,617 | |||||||
Exercised/Vested | (619,465 | ) | (52,786 | ) | (493,541 | ) | (105,900 | ) | |||
Decrease due to performance condition | — | — | — | (101,744 | ) | ||||||
Canceled/forfeited | (4,600 | ) | (344 | ) | (45,437 | ) | (3,397 | ) | |||
Outstanding/Unvested at June 30, 2018 | 3,397,137 | 11,018 | 2,345,770 | 613,108 |
Three Months Ended | |||||
June 30, 2018 | July 1, 2017 | ||||
Expected dividend yield | 0.0 | % | 0.0 | % | |
Volatility factor | 36.9 | % | 36.3 | % | |
Weighted average risk-free interest rate | 2.8 | % | 1.8 | % | |
Expected life of option | 4.85 years | 4.69 years |
Three Months Ended | |||||||
June 29, 2019 | June 30, 2018 | ||||||
Share-based compensation expense | $ | 28 | $ | 13 | |||
Tax benefit (deficit) related to share-based compensation expense | $ | 5 | $ | 2 |
Three Months Ended | |||||||
June 30, 2018 | July 1, 2017 | ||||||
Share-based compensation expense | $ | 12.8 | $ | 10.8 | |||
Tax benefit related to share-based compensation expense | $ | 2.2 | $ | 3.6 |
Three Months Ended | |||||||
June 29, 2019 | June 30, 2018 | ||||||
Total revenue: | |||||||
Versace | $ | 207 | $ | — | |||
Jimmy Choo | 158 | 173 | |||||
Michael Kors | 981 | 1,030 | |||||
Total revenue | $ | 1,346 | $ | 1,203 | |||
Income from operations: | |||||||
Versace | $ | (3 | ) | $ | — | ||
Jimmy Choo | 11 | 22 | |||||
Michael Kors | 201 | 230 | |||||
Total segment income from operations | 209 | 252 | |||||
Less: Corporate expenses | (33 | ) | (22 | ) | |||
Restructuring and other charges | (15 | ) | (11 | ) | |||
Impairment of long-lived assets | (97 | ) | (4 | ) | |||
Total income from operations | $ | 64 | $ | 215 |
Three Months Ended | |||||||
June 30, 2018 | July 1, 2017 | ||||||
Total revenue: | |||||||
MK Retail | $ | 639.5 | $ | 619.9 | |||
MK Wholesale | 362.8 | 303.6 | |||||
MK Licensing | 27.5 | 28.9 | |||||
Michael Kors | 1,029.8 | 952.4 | |||||
Jimmy Choo | 172.7 | — | |||||
Total revenue | $ | 1,202.5 | $ | 952.4 | |||
Income from operations: | |||||||
MK Retail | $ | 92.5 | $ | 92.2 | |||
MK Wholesale | 97.5 | 43.5 | |||||
MK Licensing | 9.1 | 13.7 | |||||
Michael Kors | 199.1 | 149.4 | |||||
Jimmy Choo | 16.1 | — | |||||
Income from operations | $ | 215.2 | $ | 149.4 |
Three Months Ended | |||||||
June 29, 2019 | June 30, 2018 | ||||||
Depreciation and amortization: | |||||||
Versace | $ | 14 | $ | — | |||
Jimmy Choo | 8 | 8 | |||||
Michael Kors | 38 | 48 | |||||
Total depreciation and amortization | $ | 60 | $ | 56 |
Three Months Ended | |||||||
June 30, 2018 | July 1, 2017 | ||||||
Depreciation and amortization: | |||||||
MK Retail | $ | 33.3 | $ | 32.0 | |||
MK Wholesale | 13.8 | 15.0 | |||||
MK Licensing | 0.6 | 0.6 | |||||
Michael Kors | 47.7 | 47.6 | |||||
Jimmy Choo | 8.2 | — | |||||
Total depreciation and amortization | $ | 55.9 | $ | 47.6 |
Three Months Ended | |||||||
June 29, 2019 | June 30, 2018 | ||||||
Total revenue: | |||||||
The Americas (1) | $ | 729 | $ | 718 | |||
EMEA | 360 | 302 | |||||
Asia | 257 | 183 | |||||
Total revenue | $ | 1,346 | $ | 1,203 |
Three Months Ended | |||||||
June 30, 2018 | July 1, 2017 | ||||||
Total revenue: | |||||||
The Americas (U.S., Canada and Latin America) (1) | $ | 718.2 | $ | 634.1 | |||
EMEA | 301.8 | 201.2 | |||||
Asia | 182.5 | 117.1 | |||||
Total revenue | $ | 1,202.5 | $ | 952.4 |
As of | |||||||
June 30, 2018 | March 31, 2018 | ||||||
Long-lived assets, excluding goodwill: | |||||||
The Americas (U.S., Canada and Latin America)(1) | $ | 319.5 | $ | 327.3 | |||
EMEA | 984.8 | 1,050.3 | |||||
Asia | 434.5 | 441.3 | |||||
Total long-lived assets, excluding goodwill | $ | 1,738.8 | $ | 1,818.9 |
(1) | Total revenue earned in the U.S. were |
As of | |||||||
June 30, 2018 | March 31, 2018 | ||||||
MK Retail | $ | 91.9 | $ | 91.9 | |||
MK Wholesale | 25.9 | 25.9 | |||||
MK Licensing | 1.9 | 1.9 | |||||
Jimmy Choo | 686.5 | 728.0 | |||||
Total goodwill | $ | 806.2 | $ | 847.7 |
Three Months Ended | ||||||||
June 29, 2019 | June 30, 2018 | |||||||
Total revenue: | ||||||||
Versace | $ | 207 | $ | — | ||||
Jimmy Choo | 158 | 173 | ||||||
Michael Kors | 981 | 1,030 | ||||||
Total revenue | $ | 1,346 | $ | 1,203 | ||||
Income (loss) from operations: | ||||||||
Versace | $ | (3 | ) | $ | — | |||
Jimmy Choo | 11 | 22 | ||||||
Michael Kors | 201 | 230 | ||||||
Total segment income from operations | 209 | 252 | ||||||
Less: | Corporate expenses | (33 | ) | (22 | ) | |||
Restructuring and other charges | (15 | ) | (11 | ) | ||||
Impairment of long-lived assets | (97 | ) | (4 | ) | ||||
Total income from operations | $ | 64 | $ | 215 |
As of | |||||
June 29, 2019 | June 30, 2018 | ||||
Number of full price retail stores (including concessions): | |||||
Versace | 152 | — | |||
Jimmy Choo | 173 | 160 | |||
Michael Kors | 583 | 593 | |||
908 | 753 | ||||
Number of outlet stores: | |||||
Versace | 44 | — | |||
Jimmy Choo | 42 | 31 | |||
Michael Kors | 270 | 254 | |||
356 | 285 | ||||
Total number of retail stores | 1,264 | 1,038 | |||
Total number of wholesale doors | |||||
Versace | 795 | — | |||
Jimmy Choo | 581 | 623 | |||
Michael Kors | 3,191 | 3,470 | |||
4,567 | 4,093 |
As of | As of | |||||||||||||
June 29, 2019 | June 30, 2018 | |||||||||||||
Versace | Jimmy Choo | Michael Kors | Jimmy Choo | Michael Kors | ||||||||||
Store count by region: | ||||||||||||||
The Americas | 28 | 44 | 387 | 38 | 395 | |||||||||
EMEA | 56 | 73 | 184 | 66 | 192 | |||||||||
Asia | 112 | 98 | 282 | 87 | 260 | |||||||||
196 | 215 | 853 | 191 | 847 |
Three Months Ended | |||||||
June 29, 2019 | June 30, 2018 | ||||||
Total revenue | $ | 1,346 | $ | 1,203 | |||
Gross profit as a percent of total revenue | 62.0 | % | 62.4 | % | |||
Income from operations | $ | 64 | $ | 215 | |||
Income from operations as a percent of total revenue | 4.8 | % | 17.9 | % |
Three Months Ended | ||||||||
June 30, 2018 | July 1, 2017 | |||||||
Total revenue: | ||||||||
MK Retail | $ | 639.5 | $ | 619.9 | ||||
MK Wholesale | 362.8 | 303.6 | ||||||
MK Licensing | 27.5 | 28.9 | ||||||
Michael Kors | 1,029.8 | 952.4 | ||||||
Jimmy Choo | 172.7 | — | ||||||
Total revenue | $ | 1,202.5 | $ | 952.4 | ||||
Income from operations: | ||||||||
MK Retail | $ | 92.5 | $ | 92.2 | ||||
MK Wholesale | 97.5 | 43.5 | ||||||
MK Licensing | 9.1 | 13.7 | ||||||
Michael Kors | 199.1 | 149.4 | ||||||
Jimmy Choo | 16.1 | — | ||||||
Income from operations | $ | 215.2 | $ | 149.4 |
Three Months Ended | |||||||
June 30, 2018 | July 1, 2017 | ||||||
Full price retail stores including concessions: | |||||||
Number of stores | 593 | 620 | |||||
(Decrease) increase during period | (3 | ) | 6 | ||||
Percentage (decrease) increase vs. prior year | (4.4 | )% | 7.8 | % | |||
Total gross square footage | 1,341,556 | 1,425,232 | |||||
Average square footage per store | 2,262 | 2,299 | |||||
Outlet stores: | |||||||
Number of stores | 254 | 218 | |||||
Increase during period | 21 | 5 | |||||
Percentage increase vs. prior year | 16.5 | % | 11.2 | % | |||
Total gross square footage | 1,075,597 | 869,956 | |||||
Average square footage per store | 4,235 | 3,991 | |||||
MK Retail revenue - the Americas | $ | 402.2 | $ | 392.1 | |||
MK Retail revenue - Europe | $ | 119.5 | $ | 122.1 | |||
MK Retail revenue - Asia | $ | 117.8 | $ | 105.7 |
As of | |||||
June 30, 2018 | July 1, 2017 | ||||
Store count by region: | |||||
The Americas | 395 | 399 | |||
Europe | 192 | 203 | |||
Asia | 260 | 236 | |||
Total | 847 | 838 |
Three Months Ended | |||||||
June 30, 2018 | July 1, 2017 | ||||||
Number of full-price wholesale doors | 3,470 | 3,559 | |||||
Decrease during period | (74 | ) | (48 | ) | |||
MK Wholesale revenue - the Americas | $ | 275.1 | $ | 227.2 | |||
MK Wholesale revenue - EMEA | $ | 68.4 | $ | 65.0 | |||
MK Wholesale revenue - Asia | $ | 19.3 | $ | 11.4 |
Three Months Ended | |||
June 30, 2018 | |||
Jimmy Choo revenue: | |||
The Americas | $ | 25.6 | |
EMEA | 101.7 | ||
Asia | 45.4 | ||
Total Jimmy Choo revenue | $ | 172.7 |
Three Months Ended | ||||||||
June 30, 2018 | July 1, 2017 | |||||||
Total revenue | $ | 1,202.5 | $ | 952.4 | ||||
Increase (decrease) in comparable store sales | 0.2 | % | (5.9 | )% | ||||
Gross profit as a percent of total revenue | 62.4 | % | 60.3 | % | ||||
Income from operations | $ | 215.2 | $ | 149.4 | ||||
Income from operations as a percent of total revenue | 17.9 | % | 15.7 | % |
Three Months Ended | $ Change | % Change | % of Total Revenue for the Three Months Ended | Three Months Ended | $ Change | % Change | % of Total Revenue for the Three Months Ended | |||||||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||
Statements of Operations Data: | ||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 1,202.5 | $ | 952.4 | $ | 250.1 | 26.3 | % | $ | 1,346 | $ | 1,203 | $ | 143 | 11.9 | % | ||||||||||||||||||||||||
Cost of goods sold | 451.7 | 377.7 | 74.0 | 19.6 | % | 37.6 | % | 39.7 | % | 512 | 452 | 60 | 13.3 | % | 38.0 | % | 37.6 | % | ||||||||||||||||||||||
Gross profit | 750.8 | 574.7 | 176.1 | 30.6 | % | 62.4 | % | 60.3 | % | 834 | 751 | 83 | 11.1 | % | 62.0 | % | 62.4 | % | ||||||||||||||||||||||
Selling, general and administrative expenses | 464.1 | 377.7 | 86.4 | 22.9 | % | 38.6 | % | 39.7 | % | 598 | 465 | 133 | 28.6 | % | 44.4 | % | 38.7 | % | ||||||||||||||||||||||
Depreciation and amortization | 55.9 | 47.6 | 8.3 | 17.4 | % | 4.6 | % | 5.0 | % | 60 | 56 | 4 | 7.1 | % | 4.5 | % | 4.7 | % | ||||||||||||||||||||||
Impairment of long-lived assets | 4.3 | — | 4.3 | NM | 0.4 | % | — | % | 97 | 4 | 93 | NM | 7.2 | % | 0.3 | % | ||||||||||||||||||||||||
Restructuring and other charges (1) | 11.3 | — | 11.3 | NM | 0.9 | % | — | % | 15 | 11 | 4 | 36.4 | % | 1.1 | % | 0.9 | % | |||||||||||||||||||||||
Total operating expenses | 535.6 | 425.3 | 110.3 | 25.9 | % | 44.5 | % | 44.7 | % | 770 | 536 | 234 | 43.7 | % | 57.2 | % | 44.6 | % | ||||||||||||||||||||||
Income from operations | 215.2 | 149.4 | 65.8 | 44.0 | % | 17.9 | % | 15.7 | % | 64 | 215 | (151 | ) | (70.2 | )% | 4.8 | % | 17.9 | % | |||||||||||||||||||||
Other income, net | (0.8 | ) | (0.6 | ) | (0.2 | ) | (33.3 | )% | (0.1 | )% | (0.1 | )% | (2 | ) | (1 | ) | (1 | ) | (100.0 | )% | 0.1 | % | (0.1 | )% | ||||||||||||||||
Interest expense, net | 7.5 | 1.1 | 6.4 | NM | 0.6 | % | 0.1 | % | 13 | 8 | 5 | 62.5 | % | 1.0 | % | 0.7 | % | |||||||||||||||||||||||
Foreign currency loss (gain) | 2.9 | (1.2 | ) | 4.1 | NM | 0.2 | % | (0.1 | )% | |||||||||||||||||||||||||||||||
Foreign currency loss | 2 | 3 | (1 | ) | (33.3 | )% | 0.1 | % | 0.2 | % | ||||||||||||||||||||||||||||||
Income before provision for income taxes | 205.6 | 150.1 | 55.5 | 37.0 | % | 17.1 | % | 15.8 | % | 51 | 205 | (154 | ) | (75.1 | )% | 3.8 | % | 17.0 | % | |||||||||||||||||||||
Provision for income taxes | 19.4 | 24.6 | (5.2 | ) | (21.1 | )% | 1.6 | % | 2.6 | % | 6 | 19 | (13 | ) | (68.4 | )% | 0.4 | % | 1.6 | % | ||||||||||||||||||||
Net income | 186.2 | 125.5 | 60.7 | 48.4 | % | |||||||||||||||||||||||||||||||||||
Less: Net loss attributable to noncontrolling interest | (0.2 | ) | — | (0.2 | ) | NM | ||||||||||||||||||||||||||||||||||
Net income attributable to MKHL | $ | 186.4 | $ | 125.5 | $ | 60.9 | 48.5 | % | ||||||||||||||||||||||||||||||||
Net income attributable to Capri | $ | 45 | $ | 186 | $ | (141 | ) | (75.8 | )% |
(1) | Includes store closure costs recorded in connection with the Michael Kors Retail Fleet Optimization Plan (as defined in Note 10) and |
Three Months Ended | % Change | % of Total Revenue for the Three Months Ended | |||||||||||||||||||||
June 30, 2018 | July 1, 2017 | $ Change | As Reported | Constant Currency | June 30, 2018 | July 1, 2017 | |||||||||||||||||
Total revenue: | |||||||||||||||||||||||
MK Retail | $ | 639.5 | $ | 619.9 | $ | 19.6 | 3.2 | % | 0.7 | % | 53.2 | % | 65.1 | % | |||||||||
MK Wholesale | 362.8 | 303.6 | 59.2 | 19.5 | % | 17.8 | % | 30.1 | % | 31.9 | % | ||||||||||||
MK Licensing | 27.5 | 28.9 | (1.4 | ) | (4.8 | )% | (4.8 | )% | 2.3 | % | 3.0 | % | |||||||||||
Michael Kors | 1,029.8 | 952.4 | 77.4 | 8.1 | % | 6.0 | % | ||||||||||||||||
Jimmy Choo | 172.7 | — | 172.7 | NM | NM | 14.4 | % | — | % | ||||||||||||||
Total revenue | $ | 1,202.5 | $ | 952.4 | $ | 250.1 | 26.3 | % | 24.1 | % |
Three Months Ended | % of Total Revenue for the Three Months Ended | |||||||||||||||||||
June 30, 2018 | July 1, 2017 | $ Change | % Change | June 30, 2018 | July 1, 2017 | |||||||||||||||
Income from operations: | ||||||||||||||||||||
MK Retail | $ | 92.5 | $ | 92.2 | $ | 0.3 | 0.3 | % | 14.5 | % | 14.9 | % | ||||||||
MK Wholesale | 97.5 | 43.5 | 54.0 | 124.1 | % | 26.9 | % | 14.3 | % | |||||||||||
MK Licensing | 9.1 | 13.7 | (4.6 | ) | (33.6 | )% | 33.1 | % | 47.4 | % | ||||||||||
Michael Kors | 199.1 | 149.4 | 49.7 | 33.3 | % | 19.3 | % | 15.7 | % | |||||||||||
Jimmy Choo | 16.1 | — | 16.1 | NM | 9.3 | % | — | % | ||||||||||||
Income from operations | $ | 215.2 | $ | 149.4 | $ | 65.8 | 44.0 | % | 17.9 | % | 15.7 | % |
Fiscal Years Ended | |||||||||
June 29, 2019 | June 30, 2018 | $ Change | |||||||
Revenues | $ | 207 | $ | — | NM | ||||
Loss from operations | (3 | ) | — | NM | |||||
Operating margin | (1.4 | )% | — | % |
Fiscal Years Ended | % Change | ||||||||||||||||
June 29, 2019 | June 30, 2018 | $ Change | As Reported | Constant Currency | |||||||||||||
Revenues | $ | 158 | $ | 173 | $ | (15 | ) | (8.7 | )% | (5.8 | )% | ||||||
Income from operations | 11 | 22 | (11 | ) | (50.0 | )% | |||||||||||
Operating margin | 7.0 | % | 12.7 | % |
Fiscal Years Ended | % Change | ||||||||||||||||
June 29, 2019 | June 30, 2018 | $ Change | As Reported | Constant Currency | |||||||||||||
Revenues | $ | 981 | $ | 1,030 | $ | (49 | ) | (4.8 | )% | (3.0 | )% | ||||||
Income from operations | 201 | 230 | (29 | ) | (12.6 | )% | |||||||||||
Operating margin | 20.5 | % | 22.3 | % |
As of | As of | |||||||||||||
June 30, 2018 | March 31, 2018 | June 29, 2019 | March 30, 2019 | |||||||||||
Balance Sheet Data: | ||||||||||||||
Cash and cash equivalents | $ | 169.9 | $ | 163.1 | $ | 160 | $ | 172 | ||||||
Working capital | 348.5 | 301.8 | $ | 42 | $ | 187 | ||||||||
Total assets | 3,960.8 | 4,059.0 | $ | 8,308 | $ | 6,650 | ||||||||
Short-term debt | 266.9 | 200.0 | $ | 514 | $ | 630 | ||||||||
Long-term debt | 554.2 | 674.4 | $ | 1,917 | $ | 1,936 |
Three Months Ended | Three Months Ended | |||||||||||||
June 30, 2018 | July 1, 2017 | June 29, 2019 | June 30, 2018 | |||||||||||
Cash Flows Provided By (Used In): | ||||||||||||||
Operating activities | $ | 206.3 | $ | 194.3 | $ | 158 | $ | 206 | ||||||
Investing activities | (40.7 | ) | (16.2 | ) | (32 | ) | (41 | ) | ||||||
Financing activities | (153.3 | ) | (137.7 | ) | (138 | ) | (153 | ) | ||||||
Effect of exchange rate changes | (5.5 | ) | 3.7 | — | (5 | ) | ||||||||
Net increase in cash and cash equivalents and restricted cash | $ | 6.8 | $ | 44.1 | ||||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (12 | ) | $ | 7 |
As of | As of | |||||||||||||
June 30, 2018 | March 31, 2018 | June 29, 2019 | March 30, 2019 | |||||||||||
Senior Unsecured Revolving Credit Facility: | ||||||||||||||
Revolving Credit Facility (excluding up to a $500 million accordion feature) (1) | ||||||||||||||
Total Availability | $ | 1,000.0 | $ | 1,000.0 | $ | 1,000 | $ | 1,000 | ||||||
Borrowings outstanding (2) | 266.9 | 200.0 | 422 | 539 | ||||||||||
Letter of credit outstanding | 16.3 | 15.9 | 17 | 17 | ||||||||||
Remaining availability | $ | 716.8 | $ | 784.1 | $ | 561 | $ | 444 | ||||||
Term Loan Facility ($1.0 billion) (3) | ||||||||||||||
Term Loan Facility ($1.6 billion) | ||||||||||||||
Borrowings Outstanding, net of debt issuance costs | $ | 108.6 | $ | 229.0 | $ | 1,551 | $ | 1,570 | ||||||
Remaining availability | $ | — | $ | — | $ | — | $ | — | ||||||
4.000% Senior Notes | ||||||||||||||
Borrowings Outstanding, net of debt issuance costs and discount amortization | $ | 444.7 | $ | 444.5 | $ | 445 | $ | 445 | ||||||
Other Borrowings | $ | 0.9 | $ | 0.9 | $ | 1 | $ | 1 | ||||||
Hong Kong Uncommitted Credit Facility: | ||||||||||||||
Total availability (100.0 million Hong Kong Dollars) | $ | 12.7 | $ | 12.7 | ||||||||||
Borrowings outstanding (45.0 million Hong Kong Dollars) | — | — | ||||||||||||
Bank guarantees outstanding (11.8 million Hong Kong Dollars) | 1.5 | 1.5 | ||||||||||||
Total availability (100 million Hong Kong Dollars) | $ | 13 | $ | 13 | ||||||||||
Borrowings outstanding | — | — | ||||||||||||
Bank guarantees outstanding (12 million Hong Kong Dollars) | 2 | 2 | ||||||||||||
Remaining availability | $ | 11.2 | $ | 11.2 | $ | 11 | $ | 11 | ||||||
China Uncommitted Credit Facility: | ||||||||||||||
Borrowings outstanding | $ | — | $ | — | ||||||||||
Total and remaining availability (100 million Chinese Yuan) | $ | 15 | $ | 14 | ||||||||||
Japan Credit Facility: | ||||||||||||||
Borrowings outstanding | $ | — | $ | — | $ | — | $ | — | ||||||
Total and remaining availability (1.0 billion Japanese Yen) | $ | 9.0 | $ | 9.4 | $ | 9 | $ | 9 | ||||||
Versace Uncommitted Credit Facility: | ||||||||||||||
Total availability (20 million Euro) | $ | 23 | $ | 22 | ||||||||||
Borrowings outstanding (10 million Euro) (2) | 12 | 11 | ||||||||||||
Remaining availability | $ | 11 | $ | 11 | ||||||||||
Total borrowings outstanding (1) | $ | 821.1 | $ | 874.4 | $ | 2,431 | $ | 2,566 | ||||||
Total remaining availability | $ | 737.0 | $ | 804.7 | $ | 607 | $ | 489 |
(1) | The |
(2) | Recorded as short-term debt in our consolidated balance sheets as of June |
(3) |
Recorded as long-term debt in our consolidated balance sheets as of June 30, 2019, except for the current portion of $80 million outstanding under the 2018 Term Loan Facility, which was recorded within short-term debt at June 29, 2019 and March 30, 2019. |
Three Months Ended | Three Months Ended | |||||||||||||
June 30, 2018 | July 1, 2017 | June 29, 2019 | June 30, 2018 | |||||||||||
Cost of shares repurchased under share repurchase program | $ | 100.0 | $ | 157.8 | $ | — | $ | 100 | ||||||
Fair value of shares withheld to cover tax obligations for vested restricted share awards | 5.9 | 2.5 | 2 | 6 | ||||||||||
Total cost of treasury shares repurchased | $ | 105.9 | $ | 160.3 | $ | 2 | $ | 106 | ||||||
Shares repurchased under share repurchase program | 1,659,941 | 4,543,500 | — | 1,659,941 | ||||||||||
Shares withheld to cover tax withholding obligations | 88,325 | 77,155 | 58,304 | 88,325 | ||||||||||
1,748,266 | 4,620,655 | 58,304 | 1,748,266 |
(1) | The share-repurchase program expired on May 25, 2019. |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximated Dollar Value) of Shares (or Units) That May Yet Be Purchased Under the Plans or Programs (in millions) | ||||||||||
April 1 – April 28 | — | $ | — | — | $ | 642.2 | |||||||
April 29 – May 26 | 8,334 | $ | 66.40 | — | $ | 642.2 | |||||||
May 27 – June 30 | 1,739,932 | $ | 60.54 | 1,659,941 | $ | 542.2 | |||||||
1,748,266 | 1,659,941 |
Total Number of Shares Purchased | Average Price Paid per Share | |||||
March 31 – April 27 | — | $ | — | |||
April 28 – May 25 | 9,262 | $ | 43.19 | |||
May 26 – June 29 | 49,042 | $ | 33.86 | |||
58,304 |
By: | /s/ John D. Idol | |
Name: | John D. Idol | |
Title: | Chairman & Chief Executive Officer | |
By: | /s/ Thomas J. Edwards, Jr. | |
Name: | Thomas J. Edwards, Jr. | |
Title: | Executive Vice President, Chief Financial Officer and Chief Operating Officer |
Exhibit No. | Description | ||
101.1 | The following financial information from the Company’s Quarterly Report on Form 10-Q for the period ended June |