Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Mar. 29, 2014 | 21-May-14 | Sep. 28, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 29-Mar-14 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'KORS | ' | ' |
Entity Registrant Name | 'MICHAEL KORS HOLDINGS LTD | ' | ' |
Entity Central Index Key | '0001530721 | ' | ' |
Current Fiscal Year End Date | '--03-29 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 204,293,091 | ' |
Entity Public Float | ' | ' | $13,788,608,588 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 29, 2014 | Mar. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $955,145 | $472,511 |
Receivables, net | 314,055 | 206,454 |
Inventories | 426,938 | 266,894 |
Deferred tax assets | 30,539 | 8,480 |
Prepaid expenses and other current assets | 50,492 | 34,850 |
Total current assets | 1,777,169 | 989,189 |
Property and equipment, net | 350,678 | 242,113 |
Intangible assets, net | 48,034 | 20,980 |
Goodwill | 14,005 | 14,005 |
Deferred tax assets | 3,662 | 4,389 |
Other assets | 23,425 | 18,889 |
Total assets | 2,216,973 | 1,289,565 |
Current liabilities | ' | ' |
Accounts payable | 131,953 | 82,977 |
Accrued payroll and payroll related expenses | 54,703 | 38,642 |
Accrued income taxes | 47,385 | 9,074 |
Accrued expenses and other current liabilities | 74,329 | 33,555 |
Total current liabilities | 308,370 | 164,248 |
Deferred rent | 76,785 | 56,986 |
Deferred tax liabilities | 5,887 | 13,163 |
Other long-term liabilities | 19,800 | 7,922 |
Total liabilities | 410,842 | 242,319 |
Commitments and contingencies | ' | ' |
Shareholders' equity | ' | ' |
Ordinary shares, no par value; 650,000,000 shares authorized, and 204,291,345 shares issued and outstanding at March 29, 2014, and 201,454,408 shares issued and outstanding at March 30, 2013 | ' | ' |
Treasury shares, at cost (29,765 shares at March 29, 2014) | -2,447 | ' |
Additional paid-in capital | 527,213 | 424,454 |
Accumulated other comprehensive loss | -6,373 | -3,461 |
Retained earnings | 1,287,738 | 626,253 |
Total shareholders' equity | 1,806,131 | 1,047,246 |
Total liabilities and shareholders' equity | $2,216,973 | $1,289,565 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 29, 2014 | Mar. 30, 2013 |
Ordinary shares, par value | ' | ' |
Ordinary shares, shares authorized | 650,000,000 | 650,000,000 |
Ordinary shares, shares issued | 204,291,345 | 201,454,408 |
Ordinary shares, shares outstanding | 204,291,345 | 201,454,408 |
Treasury shares, at cost | 29,765 | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Net sales | $3,170,522 | $2,094,757 | $1,237,100 |
Licensing revenue | 140,321 | 86,975 | 65,154 |
Total revenue | 3,310,843 | 2,181,732 | 1,302,254 |
Cost of goods sold | 1,294,773 | 875,166 | 549,158 |
Gross profit | 2,016,070 | 1,306,566 | 753,096 |
Selling, general and administrative expenses | 926,913 | 621,536 | 464,568 |
Depreciation and amortization | 79,654 | 54,291 | 37,554 |
Impairment of long-lived assets | 1,332 | 725 | 3,292 |
Total operating expenses | 1,007,899 | 676,552 | 505,414 |
Income from operations | 1,008,171 | 630,014 | 247,682 |
Interest expense, net | 393 | 1,524 | 1,495 |
Foreign currency loss (gain) | 131 | 1,363 | -2,629 |
Income before provision for income taxes | 1,007,647 | 627,127 | 248,816 |
Provision for income taxes | 346,162 | 229,525 | 101,452 |
Net income | 661,485 | 397,602 | 147,364 |
Net income applicable to preference shareholders | ' | ' | 21,227 |
Net income available for ordinary shareholders | 661,485 | 397,602 | 126,137 |
Weighted average ordinary shares outstanding: | ' | ' | ' |
Basic | 202,582,945 | 196,615,054 | 158,258,126 |
Diluted | 205,638,107 | 201,540,144 | 189,299,197 |
Net income per ordinary share: | ' | ' | ' |
Basic | $3.27 | $2.02 | $0.80 |
Diluted | $3.22 | $1.97 | $0.78 |
Statements of Comprehensive Income: | ' | ' | ' |
Net income | 661,485 | 397,602 | 147,364 |
Foreign currency translation adjustments | -34 | -4,006 | -4,768 |
Net realized and unrealized (losses) gains on derivatives | -2,878 | 1,280 | ' |
Comprehensive income | $658,573 | $394,876 | $142,596 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Convertible Preference Shares | Ordinary Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Gain (Loss) | Retained Earnings |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Beginning Balance at Apr. 02, 2011 | $125,320 | ' | ' | $40,000 | ' | $4,033 | $81,287 |
Beginning Balance (in shares) at Apr. 02, 2011 | ' | 10,163,920 | 140,554,377 | ' | ' | ' | ' |
Net income | 147,364 | ' | ' | ' | ' | ' | 147,364 |
Foreign currency translation adjustment | -4,768 | ' | ' | ' | ' | -4,768 | ' |
Total comprehensive income | 142,596 | ' | ' | ' | ' | ' | ' |
Issuance of shares in exchange for note (in shares) | ' | 475,796 | 6,579,656 | ' | ' | ' | ' |
Issuance of shares in exchange for note | 101,650 | ' | ' | 101,650 | ' | ' | ' |
Elimination of contingent redemption on ordinary shares | 6,706 | ' | ' | 6,706 | ' | ' | ' |
Issuance of convertible preference shares (in shares) | ' | 217,137 | ' | ' | ' | ' | ' |
Issuance of convertible preference shares | 9,550 | ' | ' | 9,550 | ' | ' | ' |
Issuance of restricted shares | ' | ' | 820,074 | ' | ' | ' | ' |
Exercise of employee share options (in shares) | ' | ' | 3,521,258 | ' | ' | ' | ' |
Exercise of employee share options | 9,672 | ' | ' | 9,672 | ' | ' | ' |
Equity compensation expense | 27,020 | ' | ' | 27,020 | ' | ' | ' |
Tax benefits on exercise of share options | 32,281 | ' | ' | 32,281 | ' | ' | ' |
Contributed capital-services provided by former parent | 1,442 | ' | ' | 1,442 | ' | ' | ' |
Conversion of convertible preference shares | ' | -10,856,853 | 41,256,025 | ' | ' | ' | ' |
Ending Balance at Mar. 31, 2012 | 456,237 | ' | ' | 228,321 | ' | -735 | 228,651 |
Ending Balance (in shares) at Mar. 31, 2012 | ' | ' | 192,731,390 | ' | ' | ' | ' |
Net income | 397,602 | ' | ' | ' | ' | ' | 397,602 |
Foreign currency translation adjustment | -4,006 | ' | ' | ' | ' | -4,006 | ' |
Net unrealized gain (loss) on derivatives (net of taxes of $0.4 million in March 29, 2014 and $0.1 million in March 30, 2013) | 1,280 | ' | ' | ' | ' | 1,280 | ' |
Total comprehensive income | 394,876 | ' | ' | ' | ' | ' | ' |
Issuance of restricted shares | ' | ' | 18,541 | ' | ' | ' | ' |
Exercise of employee share options (in shares) | ' | ' | 8,704,477 | ' | ' | ' | ' |
Exercise of employee share options | 30,435 | ' | ' | 30,435 | ' | ' | ' |
Equity compensation expense | 20,932 | ' | ' | 20,932 | ' | ' | ' |
Tax benefits on exercise of share options | 144,508 | ' | ' | 144,508 | ' | ' | ' |
Contributed capital-services provided by former parent | 258 | ' | ' | 258 | ' | ' | ' |
Ending Balance at Mar. 30, 2013 | 1,047,246 | ' | ' | 424,454 | ' | -3,461 | 626,253 |
Ending Balance (in shares) at Mar. 30, 2013 | ' | ' | 201,454,408 | ' | ' | ' | ' |
Net income | 661,485 | ' | ' | ' | ' | ' | 661,485 |
Foreign currency translation adjustment | -34 | ' | ' | ' | ' | -34 | ' |
Net unrealized gain (loss) on derivatives (net of taxes of $0.4 million in March 29, 2014 and $0.1 million in March 30, 2013) | -2,878 | ' | ' | ' | ' | -2,878 | ' |
Total comprehensive income | 658,573 | ' | ' | ' | ' | ' | ' |
Issuance of restricted shares | ' | ' | 250,654 | ' | ' | ' | ' |
Exercise of employee share options (in shares) | 2,586,283 | ' | 2,586,283 | ' | ' | ' | ' |
Exercise of employee share options | 18,988 | ' | ' | 18,988 | ' | ' | ' |
Equity compensation expense | 29,078 | ' | ' | 29,078 | ' | ' | ' |
Tax benefits on exercise of share options | 54,693 | ' | ' | 54,693 | ' | ' | ' |
Purchase of Treasury Shares | ' | ' | -29,765 | ' | ' | ' | ' |
Purchase of Treasury Shares | -2,447 | ' | ' | ' | -2,447 | ' | ' |
Ending Balance at Mar. 29, 2014 | $1,806,131 | ' | ' | $527,213 | ($2,447) | ($6,373) | $1,287,738 |
Ending Balance (in shares) at Mar. 29, 2014 | ' | ' | 204,261,580 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Net unrealized gain on derivatives, taxes | $0.40 | $0.10 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Cash flows from operating activities | ' | ' | ' |
Net income | $661,485 | $397,602 | $147,364 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 79,654 | 54,291 | 37,554 |
Impairment and write-off of property and equipment | 1,332 | 725 | 3,292 |
Loss on disposal of fixed assets | 3,758 | 229 | ' |
Unrealized foreign exchange loss (gain) | 131 | 1,363 | -2,629 |
Income earned on joint venture | -354 | ' | ' |
Amortization of deferred financing costs | 746 | 703 | 498 |
Amortization of deferred rent | 6,333 | 3,245 | 4,214 |
Deferred income taxes | -29,905 | 3,222 | -7,729 |
Equity compensation expense | 29,078 | 20,932 | 27,020 |
Tax benefits on exercise of share options | -54,693 | -144,508 | -32,281 |
Non-cash charges for services provided by former parent | ' | 258 | 1,442 |
Change in assets and liabilities: | ' | ' | ' |
Receivables, net | -105,648 | -80,581 | -48,399 |
Inventories | -158,243 | -81,108 | -71,151 |
Prepaid expenses and other current assets | -5,222 | -3,866 | -12,647 |
Other assets | -4,274 | 6 | -2,284 |
Accounts payable | 49,034 | 16,299 | 14,888 |
Accrued expenses and other current liabilities | 133,208 | 152,630 | 46,419 |
Other long-term liabilities | 25,359 | 14,894 | 9,719 |
Net cash provided by operating activities | 631,779 | 356,336 | 115,290 |
Cash flows from investing activities | ' | ' | ' |
Capital expenditures | -184,738 | -121,321 | -88,187 |
Equity method investments | -1,960 | -3,232 | ' |
Loans receivable-joint venture | ' | -6,000 | ' |
Purchase of intangible assets | -28,822 | -8,546 | ' |
Net cash used in investing activities | -215,520 | -139,099 | -88,187 |
Cash flows from financing activities | ' | ' | ' |
Repayments of borrowings under revolving credit agreement | -21,120 | -38,954 | -100,855 |
Borrowings under revolving credit agreement | 21,120 | 16,280 | 110,764 |
Proceeds from private placement | ' | ' | 9,550 |
Exercise of employee share options | 18,988 | 30,435 | 9,672 |
Purchase of Treasury Shares | -2,447 | ' | ' |
Tax benefits on exercise of share options | 54,693 | 144,508 | 32,281 |
Payment of deferred financing costs | -176 | -1,708 | -2,773 |
Net cash provided by financing activities | 71,058 | 150,561 | 58,639 |
Effect of exchange rate changes on cash and cash equivalents | -4,683 | -1,641 | -453 |
Net increase in cash and cash equivalents | 482,634 | 366,157 | 85,289 |
Beginning of period | 472,511 | 106,354 | 21,065 |
End of period | 955,145 | 472,511 | 106,354 |
Supplemental disclosures of cash flow information | ' | ' | ' |
Cash paid for interest | 699 | 484 | 1,266 |
Cash paid for income taxes | 280,667 | 70,500 | 84,389 |
Supplemental disclosure of noncash investing and financing activities | ' | ' | ' |
Accrued capital expenditures | $16,324 | $12,289 | $6,869 |
Business_and_Basis_of_Presenta
Business and Basis of Presentation | 12 Months Ended |
Mar. 29, 2014 | |
Business and Basis of Presentation | ' |
1. Business and Basis of Presentation | |
Michael Kors Holdings Limited (“MKHL,” and together with its subsidiaries, the “Company”) was incorporated in the British Virgin Islands (“BVI”) on December 13, 2002. The Company is a leading designer, marketer, distributor and retailer of branded women’s apparel and accessories and men’s apparel bearing the Michael Kors tradename and related trademarks “MICHAEL KORS,” “MICHAEL MICHAEL KORS,” and various other related trademarks and logos. The Company’s business consists of retail, wholesale and licensing segments. Retail operations consist of collection stores, lifestyle stores, including concessions and outlet stores located primarily in the United States, Canada, Europe and Japan. Wholesale revenues are principally derived from major department and specialty stores located throughout the United States, Canada and Europe. The Company licenses its trademarks on products such as fragrances, cosmetics, eyewear, leather goods, jewelry, watches, coats, men’s suits, swimwear, furs and ties. | |
For all periods presented, all ordinary share and per share amounts in these consolidated financial statements and the notes hereto have been adjusted retroactively to reflect the effects of a 3.8-to-1 share split, which was completed on November 30, 2011, as well as the effects of the July 2011 reorganization discussed in Note 2 below, as if such reorganization and share split had occurred at the beginning of the periods presented. | |
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
The Company utilizes a 52 to 53 week fiscal year ending on the Saturday closest to March 31. As such, the fiscal years ending on March 29, 2014, March 30, 2013, and March 31, 2012 (“Fiscal 2014,” “Fiscal 2013” and “Fiscal 2012,” respectively) consist of 52 weeks. |
Reorganization_and_Initial_Pub
Reorganization and Initial Public Offering | 12 Months Ended |
Mar. 29, 2014 | |
Reorganization and Initial Public Offering | ' |
2. Reorganization and Initial Public Offering | |
Prior to July 2011, the Company was owned 85% by SHL-Kors Limited, a BVI corporation, and 15% by Mr. Kors. SHL-Kors Limited was owned 100% by SHL Fashion Limited. | |
In July 2011, the Company underwent a corporate reorganization whereby the Company completed a merger with its former parent, SHL-Kors Limited, which merged with and into the Company, with the Company as the surviving corporation (the “First Merger”). Subsequent to the completion of the First Merger, SHL Fashion Limited, the former parent company of SHL-Kors Limited, merged with and into the Company (the “Second Merger”), with the Company as the surviving corporation. Upon completion of the Second Merger, the previous shareholders of SHL Fashion Limited (which include Sportswear Holdings Limited and the Company’s chief executive officer, John Idol), and Mr. Kors became direct shareholders in the Company. Immediately prior to the Second Merger, the Company issued 475,796 preference shares and 6,579,656 ordinary shares to SHL Fashion Limited in consideration for the extinguishment of the Company’s $101.7 million note payable to SHL Fashion Limited. This exchange was based on the fair value of the Company at the time of exchange. In the Second Merger, Mr. Kors and the shareholders of SHL Fashion Limited received 147,134,033 newly issued ordinary shares and 10,639,716 newly issued convertible preference shares of the Company in proportion to their ownership interests held prior to the Second Merger. The Company considered this transaction to be the acquisition of the non-controlling interest in the Company held by Mr. Kors, and, accordingly, the Company accounted for this transaction as an equity transaction. | |
Following the reorganization, in a private placement in July 2011, a group of investors purchased (i) all 10,639,716 convertible preference shares issued in the reorganization from the previous SHL Fashion Limited shareholders and Mr. Kors for $490 million, and (ii) 217,137 newly issued convertible preference shares from the Company for $10.0 million, of which $9.5 million in proceeds, net of placement fees of $0.5 million, were received by the Company. As a result of the aforementioned transactions, the capital structure of the Company increased from 4,351 issued and outstanding ordinary shares to 147,134,033 issued and outstanding ordinary shares (650,000,000 authorized) and 10,856,853 authorized, issued and outstanding convertible preference shares. | |
In addition to the above, immediately prior to the reorganization, the redemption feature related to the contingently redeemable ordinary shares was eliminated, thereby, resulting in the reclassification of $6.7 million from temporary equity, which was classified as “contingently redeemable ordinary shares” in the Company’s consolidated balance sheets, to permanent equity as additional paid-in capital (see Note 17). | |
On December 20, 2011, the Company completed an initial public offering (“IPO”), which resulted in the sale of 54,280,000 shares at a price of $20 per share, all of which were sold by selling shareholders. The Company did not receive any of the proceeds related to the sale of these shares. On December 20, 2011, in connection with the consummation of the IPO, 10,856,853 convertible preference shares were converted into 41,256,025 ordinary shares at a ratio of 3.8-to-1 resulting in no preference shares issued and outstanding at March 31, 2012. | |
During March 2012, the Company completed a secondary offering of 25,000,000 ordinary shares at a price of $47.00 per share. Subsequent to this offering and in connection with it, the underwriters exercised their additional share purchase option during April 2012, where an additional 3,750,000 shares were offered at $47.00 per share. Similar to the IPO the Company did not receive any of the proceeds related to the sale of these shares and incurred approximately $0.7 million in fees related to the secondary offering which were charged to selling, general and administrative expenses during the fourth quarter of Fiscal 2012. As a result of the secondary offering, Sportswear Holdings Limited ownership decreased to 25.0% of the Company’s ordinary shares whereby the Company ceased to be a “controlled company” under New York Stock Exchange listing rules. | |
During September 2012, the Company completed a secondary offering of 23,000,000 ordinary shares at a price of $53.00 per share. Subsequent to this offering, and in connection with it, the underwriters exercised their additional share purchase option during October 2012, where an additional 3,450,000 shares were offered at $53.00 per share. Similar to the prior public offerings the Company did not receive any of the proceeds related to the sale of these shares and incurred approximately $0.9 million in fees related to the secondary offering, which were charged to selling, general and administrative expenses. | |
During February 2013, the Company completed a secondary offering of 25,000,000 ordinary shares at a price of $61.50 per share. Similar to the prior public offerings the Company did not receive any of the proceeds related to the sale of these shares and incurred approximately $0.8 million in fees related to the secondary offering, which were charged to selling, general and administrative expenses. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
3. Summary of Significant Accounting Policies | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to use judgment and make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are completed. The most significant assumptions and estimates involved in preparing the financial statements include allowances for customer deductions, sales returns, sales discounts and doubtful accounts, estimates of inventory recovery, the valuation of share-based compensation, valuation of deferred taxes and the estimated useful lives used for amortization and depreciation of intangible assets and property and equipment. Actual results could differ from those estimates. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
The Company recognizes retail store revenues upon sale of its products to retail consumers, net of estimated returns. Wholesale revenue is recognized net of estimates for sales returns, discounts and allowances, after merchandise is shipped and title and risk of loss is transferred to the Company’s wholesale customers. To arrive at net sales for retail, gross sales are reduced by actual customer returns as well as by a provision for estimated future customer returns, which is based on management’s review of historical and current customer returns. Sales taxes collected from retail customers are presented on a net basis and as such are excluded from revenue. To arrive at net sales for wholesale, gross sales are reduced by provisions for estimated future returns, based on current expectations, trade discounts, markdowns, allowances and operational chargebacks, as well as for certain cooperative selling expenses. | |||||||||||||||||
The following table details the activity and balances of the Company’s sales reserves for the fiscal years ended March 29, 2014, March 30, 2013, and March 31, 2012 (in thousands): | |||||||||||||||||
Retail | Balance | Amounts | Write-offs | Balance | |||||||||||||
Beginning | Charged to | Against | at | ||||||||||||||
of Year | Revenue | Reserves | Year End | ||||||||||||||
Return Reserves: | |||||||||||||||||
Year ended March 29, 2014 | $ | 3,146 | $ | 45,632 | $ | (46,458 | ) | $ | 2,320 | ||||||||
Year ended March 30, 2013 | $ | 1,659 | $ | 35,448 | $ | (33,961 | ) | $ | 3,146 | ||||||||
Year ended March 31, 2012 | $ | 2,313 | $ | 23,580 | $ | (24,234 | ) | $ | 1,659 | ||||||||
Wholesale | Balance | Amounts | Write-offs | Balance | |||||||||||||
Beginning | Charged to | Against | at | ||||||||||||||
of Year | Revenue | Reserves | Year End | ||||||||||||||
Total Sales Reserves: | |||||||||||||||||
Year ended March 29, 2014 | $ | 43,009 | $ | 203,465 | $ | (180,553 | ) | $ | 65,921 | ||||||||
Year ended March 30, 2013 | $ | 30,381 | $ | 135,450 | $ | (122,822 | ) | $ | 43,009 | ||||||||
Year ended March 31, 2012 | $ | 25,180 | $ | 114,577 | $ | (109,376 | ) | $ | 30,381 | ||||||||
Royalty revenue generated from product licenses, which includes contributions for advertising, is based on reported sales of licensed products bearing the Company’s tradenames, at rates specified in the license agreements. These agreements are also subject to contractual minimum levels. Royalty revenue generated by geographic specific licensing agreements is recognized as earned under the licensing agreements based on reported sales of licensees applicable to specified periods as outlined in the agreements. These agreements allow for the use of the Company’s tradenames to sell its branded products in specific geographic regions. | |||||||||||||||||
Advertising | |||||||||||||||||
Advertising costs are charged to expense when incurred and are reflected in general and administrative expenses. For the years ended March 29, 2014, March 30, 2013, and March 31, 2012, advertising expense was $65.7 million, $41.9 million and $31.4 million, respectively. | |||||||||||||||||
Cooperative advertising expense, which represents the Company’s participation in advertising expenses of its wholesale customers, is reflected as a reduction of net sales. Expenses related to cooperative advertising for Fiscal 2014, Fiscal 2013, and Fiscal 2012, were $7.3 million, $5.1 million and $4.3 million, respectively. | |||||||||||||||||
Shipping and Handling | |||||||||||||||||
Shipping and handling costs amounting to $78.6 million, $29.1 million and $19.7 million for Fiscal 2014, Fiscal 2013, and Fiscal 2012, respectively, are included in selling, general and administrative expenses in the statements of operations. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. | |||||||||||||||||
Inventories | |||||||||||||||||
Inventories consist of finished goods and are stated at the lower of cost or market value. Cost is determined using the weighted average cost method. Costs include amounts paid to independent manufacturers, plus duties and freight to bring the goods to the Company’s warehouses, which are located in the United States, Holland, Canada, Japan and Hong Kong. The Company adjusts its inventory to reflect situations in which the cost of inventory is not expected to be fully recovered. These adjustments are estimates, which could vary significantly from actual results if future economic conditions, customer demand or competition differ from expectations. For the periods presented, there were no significant adjustments related to unsalable inventory. | |||||||||||||||||
Store Pre-opening Costs | |||||||||||||||||
Costs associated with the opening of new retail stores and start up activities, are expensed as incurred. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment is stated at cost less accumulated depreciation and amortization (carrying value). Depreciation is provided on a straight-line basis over the expected remaining useful lives of the related assets. Equipment, furniture and fixtures, are depreciated over five to seven years, and computer hardware and software are depreciated over three to five years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated remaining useful lives of the related assets or remaining lease term. The Company includes all its amortization and depreciation expense as a component of total operating expenses, as the underlying long-lived assets are not directly or indirectly related to bringing the Company’s products to their existing location and condition. | |||||||||||||||||
The Company’s share of the cost of constructing in-store shop displays within its wholesale customers’ floor-space (“shop-in-shops”), which is paid directly to third-party suppliers, is capitalized as property and equipment and is generally amortized over a useful life of three years. | |||||||||||||||||
Maintenance and repairs are charged to expense in the year incurred. Cost and related accumulated depreciation for property and equipment are removed from the accounts upon their sale or disposition and the resulting gain or loss is reflected in the results of operations. | |||||||||||||||||
Internal-use Software | |||||||||||||||||
The Company capitalizes, in property and equipment, direct costs incurred during the application development stage and the implementation stage for developing, purchasing or otherwise acquiring software for internal use. These costs are amortized over the estimated useful lives of the software, generally five years. All costs incurred during the preliminary project stage, including project scoping, identification and testing of alternatives, are expensed as incurred. | |||||||||||||||||
Intangible Assets | |||||||||||||||||
Intangible assets consist of trademarks and lease rights and are stated at cost less accumulated amortization. Trademarks are amortized over twenty years and lease rights are amortized over the term of the related lease agreements on a straight-line basis. | |||||||||||||||||
Impairment of Long-lived Assets | |||||||||||||||||
The Company evaluates its long-lived assets, including fixed assets and intangible assets with finite useful lives, for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. If the sum of estimated undiscounted future cash flows associated with the asset is less than the asset’s carrying value, an impairment charge is recognized, which is measured as the amount by which the carrying value exceeds the fair value of the asset. These estimates of cash flow require significant management judgment and certain assumptions about future volume, sales and expense growth rates, devaluation and inflation. As such, these estimates may differ from actual cash flows. | |||||||||||||||||
Goodwill | |||||||||||||||||
On an annual basis, the Company evaluates goodwill for impairment during the Company’s fourth quarter of its fiscal year or whenever impairment indicators exist. Judgments regarding the existence of impairment indicators are based on market conditions and operational performance of the business. Future events could cause the Company to conclude that impairment indicators exist, and, therefore, that goodwill may be impaired. To the extent that the fair value associated with the goodwill is less than its carrying amount, the Company writes down the carrying amount of the goodwill to its fair value. | |||||||||||||||||
Prior to Fiscal 2012 the Company assessed goodwill for impairment by calculating the fair value of the Company’s reporting units to which goodwill has been allocated using the discounted cash flow method along with the market multiples method. During Fiscal 2012, the Company adopted a new accounting pronouncement related to goodwill impairment analysis, which allows entities to initially perform a qualitative analysis (“step zero”) of the fair value of its reporting units to determine whether it is necessary to undertake a quantitative (“two step”) goodwill analysis. In the fourth quarter of Fiscal 2014, the Company continued to follow this guidance with respect to its annual impairment analysis for goodwill, and concluded that the carrying amounts of all reporting units were significantly exceeded by their respective fair values, and thus performing any further analysis (e.g. two step) was unnecessary. | |||||||||||||||||
The Company will continue to perform the aforementioned qualitative analysis (step zero) in future fiscal years as its first step in goodwill impairment assessment. Should the results of this assessment result in either an ambiguous or unfavorable conclusion the Company will perform additional quantitative testing consistent with the fair value approach mentioned above. The valuation methods used in the fair value approach, discounted cash flow and market multiples method, require the Company’s management to make certain assumptions and estimates regarding certain industry trends and future profitability of the Company’s reporting units. If the carrying amount of a reporting unit exceeds its fair value, the Company would compare the implied fair value of the reporting unit goodwill with its carrying value. To compute the implied fair value, the Company would assign the fair value of the reporting unit to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. If the carrying value of the reporting unit goodwill exceeded the implied fair value of the reporting unit goodwill, the Company would record an impairment loss to write down such goodwill to its implied fair value. The valuation of goodwill is affected by, among other things, the Company’s business plan for the future and estimated results of future operations. | |||||||||||||||||
Joint Venture Investments | |||||||||||||||||
The Company accounts for investments in joint ventures as equity investments and records them in other assets in the Company’s consolidated balance sheets. During Fiscal 2013, the Company made a non-recourse loan to the Company’s sole joint venture (which resides in Latin America), for approximately $6.0 million, which accrues at a 5% annual rate. The purpose of the loan was to provide working capital for the joint venture’s operations. The $6.0 million loan is repayable at the time of the expiration of the joint venture agreement, along with accrued interest payable at the expiration date. The loan, along with accrued interest, are recorded in other assets in the Company’s consolidated balance sheets. | |||||||||||||||||
Share-based Compensation | |||||||||||||||||
The Company grants share-based awards to certain employees and directors of the Company. Awards are measured at the grant date based on the fair value as calculated using the Black-Scholes option pricing model, for share options, or the closing market price at the grant date for restricted shares and units. These fair values are recognized as expense over the requisite service period, based on attainment of certain vesting requirements for performance grants, or the passage of time for those grants which have time-based vesting requirements. Determining the fair value of share-based awards at the grant date requires considerable judgment, including estimating expected volatility, expected term and risk-free rate. | |||||||||||||||||
The Company’s expected volatility is based on the average volatility rates of similar actively traded companies over the past 4.5-9.5 years, which is the Company’s range of estimated expected holding periods. The expected holding period for options which vest based on performance requirements are based on the period to expiration which is generally 9-10 years, which directly correlates to the Company’s service period requirement for such options. Generally, the expected holding period for time-based vesting options (no performance requirements) are calculated using the simplified method which uses the vesting term of the options, generally 4 years, and the contractual term of 7 years, resulting in a holding period of 4.5-4.75 years. The simplified method was chosen as a means to determine the Company’s estimated holding period as prior to December 2011, the Company was privately held and as such there is insufficient historical option exercise experience. The risk-free rate is derived from the zero-coupon U.S. Treasury Strips yield curve, the period of which relates to the grant’s estimated holding period. If factors change and the Company employs different assumptions, the fair value of future awards and resulting share-based compensation expense may differ significantly from what the Company has estimated in the past. | |||||||||||||||||
Foreign Currency Translation and Transactions | |||||||||||||||||
The financial statements of the majority of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. The Company’s functional currency is the United States dollar (“USD”) for MKHL and its United States based subsidiaries. Assets and liabilities have been translated using period-end exchange rates, and revenues and expenses have been translated using average exchange rates over the reporting period. The adjustments resulting from translation have been recorded separately in shareholders’ equity as a component of accumulated other comprehensive loss. Foreign currency transaction income and losses resulting from the re-measuring of transactions denominated in a currency other than the functional currency of a particular entity are included in the consolidated statements of operations. | |||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||
The Company uses forward currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain of its transactions. The Company in its normal course of business enters into transactions with foreign suppliers and seeks to minimize risks related to these transactions. The Company employs these forward currency contracts to hedge the Company’s cash flows, as they relate to foreign currency transactions, of which certain of these contracts are designated as hedges for accounting purposes, while others are undesignated hedges for hedge accounting purposes. These derivative instruments are recorded in the Company’s consolidated balance sheets at fair value, regardless of if they are designated or undesignated as hedges. | |||||||||||||||||
Prior to the Company’s third fiscal 2013 quarter ended December 29, 2012, the Company did not designate these instruments as hedges for hedge accounting purposes. During the third Fiscal 2013 quarter, the Company elected to designate contracts entered into during and subsequent to that quarter as hedges for hedge accounting purposes, for contracts related to the purchase of inventory. Accordingly, the effective portion of changes in the fair value for contracts entered into during Fiscal 2014, are recorded in equity as a component of accumulated other comprehensive loss, and to cost of sales for any portion of those contracts deemed ineffective. The Company will continue to record changes in the fair value of hedge designated contracts in this manner until their maturity, where the unrealized gain or loss will be recognized into earnings in that period. For those contracts entered into, currently and in the future, that are not, and will not be designated as hedges, changes in the fair value, as of each balance sheet date and upon maturity, are recorded in cost of sales or operating expenses, within the Company’s consolidated statements of operations, as applicable to the transactions for which the forward exchange contracts were intended to hedge. During Fiscal 2014, a net realized loss related to the change in fair value of those contracts not designated as hedges, were de minimis. In addition, the net unrealized loss related to those contracts designated as hedges during Fiscal 2014 of $2.9 million, was charged to equity as a component of accumulated other comprehensive loss. During Fiscal 2014, amounts related to the ineffectiveness of these contracts were de minimis. The company expects that substantially all the amounts currently residing in accumulated other comprehensive loss to be reclassified into earnings during the next twelve months, based upon the timing of inventory purchases and turns. These amounts are subject to fluctuations in the applicable currency exchange rates. | |||||||||||||||||
The following table details the fair value of these contracts as of March 29, 2014, and March 30, 2013 (in thousands): | |||||||||||||||||
March 29, | March 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Prepaid expenses and other current assets | $ | 12 | $ | 1,367 | |||||||||||||
Accrued expenses and other current liabilities | $ | (1,875 | ) | $ | (71 | ) | |||||||||||
The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. In attempts to mitigate counterparty credit risk, the Company enters into contracts with carefully selected financial institutions based upon their credit ratings and certain other financial factors, adhering to established limits for credit exposure. The aforementioned forward contracts generally have a term of no more than 12 months. The period of these contracts is directly related to the foreign transaction they are intended to hedge. The notional amount of these contracts outstanding at March 29, 2014 was approximately $155.1 million, which was comprised predominately of those designated as hedges. | |||||||||||||||||
Income Taxes | |||||||||||||||||
Deferred income tax assets and liabilities have been provided for temporary differences between the tax bases and financial reporting bases of the Company’s assets and liabilities using the tax rates and laws in effect for the periods in which the differences are expected to reverse. The Company periodically assesses the realizability of deferred tax assets and the adequacy of deferred tax liabilities, based on the results of local, state, federal or foreign statutory tax audits or estimates and judgments used. | |||||||||||||||||
Realization of deferred tax assets associated with net operating loss and tax credit carryforwards is dependent upon generating sufficient taxable income prior to their expiration in the applicable tax jurisdiction. The Company periodically reviews the recoverability of its deferred tax assets and provides valuation allowances, as deemed necessary, to reduce deferred tax assets to amounts that more-likely-than-not will be realized. The Company’s management considers many factors when assessing the likelihood of future realization of deferred tax assets, including recent earnings results within various taxing jurisdictions, expectations of future taxable income, the carryforward periods remaining and other factors. Changes in the required valuation allowance are recorded in income in the period such determination is made. Deferred tax assets could be reduced in the future if the Company’s estimates of taxable income during the carryforward period are significantly reduced or alternative tax strategies are no longer viable. | |||||||||||||||||
The Company recognizes the impact of an uncertain income tax position taken on its income tax returns at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will be recognized if it has less than a 50% likelihood of being sustained. The tax positions are analyzed periodically (at least quarterly) and adjustments are made as events occur that warrant adjustments for those positions. The Company records interest expense and penalties payable to relevant tax authorities as income tax expense. | |||||||||||||||||
Rent Expense, Deferred Rent and Landlord Construction Allowances | |||||||||||||||||
The Company leases office space, retail stores and distribution facilities under agreements that are classified as operating leases. Many of these operating leases include contingent rent provisions (percentage rent), and/or provide for certain landlord allowances related to tenant improvements and other relevant items. Rent expense is calculated by recognizing total minimum rental payments (net of any rental abatements, construction allowances and other rental concessions), on a straight-line basis, over the lease term. Accordingly, rent expense charged to operations differs from rent paid, resulting in the Company recording deferred rent, which is classified as a long-term liability in the Company’s consolidated balance sheets. The recognition of rent expense for a given operating lease commences on the earlier of the lease commencement date or the date of possession of the property. The Company accounts for landlord allowances and incentives as a component of deferred rent, which is amortized over the lease term as a reduction of rent expense. The Company records rent expense as a component of selling, general and administrative expenses. | |||||||||||||||||
Deferred Financing Costs | |||||||||||||||||
The Company defers costs directly associated with acquiring third party financing. These deferred costs are amortized on a straight-line basis, which approximates the effective interest method, as interest expense over the term of the related indebtedness. As of March 29, 2014, deferred financing costs were $2.9 million, net of accumulated amortization of $2.8 million, and as of March 30, 2013, deferred financing costs were $3.4 million, net of accumulated amortization of $2.0 million. Deferred financing costs are included in other assets on the consolidated balance sheets. | |||||||||||||||||
Net Income Per Share | |||||||||||||||||
The Company reported earnings per share in conformity with the two-class method for calculating and presenting earnings per share for fiscal years prior to Fiscal 2013, due to the existence of both ordinary and convertible preference securities in those periods. Under the two-class method, basic net income per ordinary share is computed by dividing the net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Net income available to shareholders is determined by allocating undistributed earnings between holders of ordinary and convertible preference shares, based on the participation rights of the preference shares. Diluted net income per share is computed by dividing the net income available to both ordinary and preference shareholders by the weighted-average number of dilutive shares outstanding during the period. | |||||||||||||||||
The Company’s basic net income per share excludes the dilutive effect of share options and unvested restricted shares. It is based upon the weighted average number of ordinary shares outstanding during the period divided into net income. | |||||||||||||||||
Diluted net income per share reflects the potential dilution that would occur if share option grants or any other dilutive equity instruments were exercised or converted into ordinary shares. These equity instruments are included as potential dilutive securities to the extent they are dilutive under the treasury stock method for the applicable periods. | |||||||||||||||||
For the purposes of basic and diluted net income per share, as a result of the reorganization and exchange during July 2011, weighted average shares outstanding for fiscal year 2012 reflect the exchange of ordinary shares for the newly issued ordinary and convertible preference shares as described in Note 2, as if such reorganization and exchange had occurred at the beginning of that fiscal year. In addition, as a result of the 3.8-to-1 share split, which was completed on November 30, 2011, weighted average shares outstanding for Fiscal 2012 reflect the split as if it had occurred at the beginning of that fiscal year. | |||||||||||||||||
The components of the calculation of basic net income per ordinary share and diluted net income per ordinary share are as follows (in thousands except share and per share data): | |||||||||||||||||
Fiscal Years Ended | |||||||||||||||||
March 29, | March 30, | March 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Numerator: | |||||||||||||||||
Net Income | $ | 661,485 | $ | 397,602 | $ | 147,364 | |||||||||||
Net income applicable to preference shareholders | — | — | 21,227 | ||||||||||||||
$ | 661,485 | $ | 397,602 | $ | 126,137 | ||||||||||||
Denominator: | |||||||||||||||||
Basic weighted average ordinary shares | 202,582,945 | 196,615,054 | 158,258,126 | ||||||||||||||
Weighted average dilutive share equivalents: | |||||||||||||||||
Share options and restricted shares/units | 3,055,162 | 4,925,090 | 2,628,650 | ||||||||||||||
Convertible preference shares | — | — | 28,412,421 | ||||||||||||||
Diluted weighted average ordinary shares | 205,638,107 | 201,540,144 | 189,299,197 | ||||||||||||||
Basic net income per ordinary share | $ | 3.27 | $ | 2.02 | $ | 0.8 | |||||||||||
Diluted net income per ordinary share | $ | 3.22 | $ | 1.97 | $ | 0.78 | |||||||||||
Share equivalents for 44,256 shares, 7,341 shares, and 343,787 shares, for fiscal years ending March 29, 2014, March 30, 2013, and March 31, 2012, have been excluded from the above calculation due to their anti-dilutive effect. | |||||||||||||||||
Recent Accounting Pronouncements—The Company has considered all new accounting pronouncements and, other than the new pronouncement described below, has concluded that there are no new pronouncements that have a material impact on results of operations, financial condition, or cash flows, based on current information. | |||||||||||||||||
During the fiscal quarter ended June 29, 2013, the Company adopted the provisions of Accounting Standard Update 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”) which the Financial Accounting Standards Board (“FASB”) issued in February 2013. ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The ASU is effective for annual periods and interim periods within those periods beginning after December 15, 2012. |
Receivables
Receivables | 12 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Receivables | ' | ||||||||
4. Receivables | |||||||||
Receivables consist of (in thousands): | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Trade receivables: | |||||||||
Credit risk assumed by factors/insured | $ | 261,900 | $ | 199,677 | |||||
Credit risk retained by Company | 109,094 | 45,588 | |||||||
Receivables due from licensees | 11,302 | 7,344 | |||||||
382,296 | 252,609 | ||||||||
Less allowances: | (68,241 | ) | (46,155 | ) | |||||
$ | 314,055 | $ | 206,454 | ||||||
The Company has historically assigned a substantial portion of its trade receivables to factors in the United States and Europe whereby the factors assumed credit risk with respect to such receivables assigned. Under the factor agreements, factors bear the risk of loss from the financial inability of the customer to pay the trade receivable when due, up to such amounts as accepted by the factor; but not the risk of non-payment of such trade receivable for any other reason. Beginning in July 2012, the Company assumed responsibility for a large portion of previously factored accounts receivable balances the majority of which were insured at March 29, 2014. The Company provides an allowance for such non-payment risk at the time of sale, which is recorded as an offset to revenue. | |||||||||
Receivables are presented net of allowances for sales returns, discounts, markdowns, operational chargebacks and doubtful accounts. Sales returns are determined based on an evaluation of current market conditions and historical returns experience. Discounts are based on open invoices where trade discounts have been extended to customers. Markdowns are based on retail sales performance, seasonal negotiations with customers, historical deduction trends and an evaluation of current market conditions. Operational chargebacks are based on deductions taken by customers, net of expected recoveries. Such provisions, and related recoveries, are reflected in net sales. | |||||||||
The allowance for doubtful accounts is determined through analysis of periodic aging of receivables for which credit risk is not assumed by the factors, or which are not covered under insurance, and assessments of collectability based on an evaluation of historic and anticipated trends, the financial conditions of the Company’s customers and the impact of general economic conditions. The past due status of a receivable is based on its contractual terms. Amounts deemed uncollectible are written off against the allowance when it is probable the amounts will not be recovered. Allowances for doubtful accounts were $1.5 million and $1.1 million, at March 29, 2014 and March 30, 2013, respectively. |
Concentration_of_Credit_Risk_M
Concentration of Credit Risk, Major Customers and Suppliers | 12 Months Ended |
Mar. 29, 2014 | |
Concentration of Credit Risk, Major Customers and Suppliers | ' |
5. Concentration of Credit Risk, Major Customers and Suppliers | |
Financial instruments that subject the Company to concentration of credit risk are cash and cash equivalents and receivables. As part of its ongoing procedures, the Company monitors its concentration of deposits with various financial institutions in order to avoid any undue exposure. The Company mitigates its risk by depositing cash and cash equivalents in major financial institutions. With respect to certain of its receivables, the Company mitigates its credit risk through the assignment of receivables to a factor, as well as obtaining insurance coverage for a portion of non-factored receivables (as demonstrated in the above table in “Credit risk assumed by factors”). For the years ended March 29, 2014, March 30, 2013, and March 31, 2012, net sales related to one customer, within the Company’s wholesale segment, accounted for approximately 14.4%, 14%, and 13%, respectively, of total revenue. The accounts receivable related to this customer were fully factored or substantially insured for all three fiscal years. | |
The Company contracts for the purchase of finished goods principally with independent third-party contractors, whereby the contractor is generally responsible for all manufacturing processes, including the purchase of piece goods and trim. Although the Company does not have any long-term agreements with any of its manufacturing contractors, the Company believes it has mutually satisfactory relationships with them. The Company allocates product manufacturing among agents and contractors based on their capabilities, the availability of production capacity, quality, pricing and delivery. The inability of certain contractors to provide needed services on a timely basis could adversely affect the Company’s operations and financial condition. The Company has relationships with various agents who source the Company’s finished goods with numerous contractors on the Company’s behalf. For the years ended March 29, 2014, March 30, 2013, and March 31, 2012, one agent sourced approximately 12.6%, 14.0%, and 17.0%, respectively, and one contractor accounted for approximately 30.4%, 31.8%, and 31.0%, respectively, of the Company’s finished goods purchases. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Property and Equipment, Net | ' | ||||||||
6. Property and Equipment, Net | |||||||||
Property and equipment, net, consists of (in thousands): | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Furniture and fixtures | $ | 108,757 | $ | 76,336 | |||||
Equipment | 31,683 | 13,276 | |||||||
Computer equipment and software | 50,646 | 29,429 | |||||||
In-store shops | 123,637 | 78,809 | |||||||
Leasehold improvements | 216,451 | 168,306 | |||||||
531,174 | 366,156 | ||||||||
Less: accumulated depreciation and amortization | (234,381 | ) | (165,340 | ) | |||||
296,793 | 200,816 | ||||||||
Construction-in-progress | 53,885 | 41,297 | |||||||
$ | 350,678 | $ | 242,113 | ||||||
Depreciation and amortization of property and equipment for the years ended March 29, 2014, March 30, 2013, and March 31, 2012, was $76.6 million, $52.7 million, and $36.0 million, respectively. During Fiscal 2014, Fiscal 2013 and Fiscal 2012, the Company recorded impairment charges of $1.3 million, $0.7 million, and $3.3 million, respectively, related to certain retail locations still in operation. The impairments related to three retail locations in Fiscal 2014, one in Fiscal 2013, and two in Fiscal 2012. |
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 12 Months Ended | ||||||||||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||||||||||
Intangible Assets and Goodwill | ' | ||||||||||||||||||||||||
7. Intangible Assets and Goodwill | |||||||||||||||||||||||||
The following table discloses the carrying values of intangible assets and goodwill (in thousands): | |||||||||||||||||||||||||
March 29, 2014 | March 30, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Trademarks | $ | 23,000 | $ | 12,845 | $ | 10,155 | $ | 23,000 | $ | 11,693 | $ | 11,307 | |||||||||||||
Lease Rights | 41,748 | 3,869 | 37,879 | 11,548 | 1,875 | 9,673 | |||||||||||||||||||
Goodwill | 14,005 | — | 14,005 | 14,005 | — | 14,005 | |||||||||||||||||||
$ | 78,753 | $ | 16,714 | $ | 62,039 | $ | 48,553 | $ | 13,568 | $ | 34,985 | ||||||||||||||
The trademarks relate to the Company’s brand name and are amortized over twenty years. Lease rights are amortized over the respective terms of the underlying lease. Amortization expense was $3.1 million, $1.5 million, and $1.5 million, respectively, for each of the years ended March 29, 2014, March 30, 2013, and March 31, 2012. | |||||||||||||||||||||||||
Goodwill is not amortized but is evaluated annually for impairment in the last quarter or each fiscal year, or whenever impairment indicators exist. The Company evaluated goodwill during the fourth fiscal quarter of Fiscal 2014, and determined that there was no impairment. As of March 29, 2014, cumulative impairment related to goodwill totaled $5.4 million. There were no charges related to the impairment of goodwill in the periods presented. | |||||||||||||||||||||||||
Estimated amortization expense for each of the next five years is as follows (in thousands): | |||||||||||||||||||||||||
Fiscal 2015 | $ | 6,606 | |||||||||||||||||||||||
Fiscal 2016 | 6,779 | ||||||||||||||||||||||||
Fiscal 2017 | 6,774 | ||||||||||||||||||||||||
Fiscal 2018 | 6,740 | ||||||||||||||||||||||||
Fiscal 2019 | 6,646 | ||||||||||||||||||||||||
Thereafter | 14,489 | ||||||||||||||||||||||||
$ | 48,034 | ||||||||||||||||||||||||
There were no impairments to lease rights related to the retail locations which were impaired during Fiscal 2014, Fiscal 2013, and Fiscal 2012. |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 12 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Accrued Expenses and Other Current Liabilities | ' | ||||||||
8. Accrued Expenses and Other Current Liabilities | |||||||||
Accrued expenses and other current liabilities consist of (in thousands): | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Professional services | $ | 6,319 | $ | 4,041 | |||||
Advance royalty | 2,097 | 1,094 | |||||||
Inventory purchases | 12,408 | 5,040 | |||||||
Sales tax payable | 17,321 | 7,635 | |||||||
Unrealized loss on foreign exchange contracts | 1,813 | 334 | |||||||
Advertising | 4,810 | 3,013 | |||||||
Accrued rent | 14,159 | 3,787 | |||||||
Other | 15,402 | 8,611 | |||||||
$ | 74,329 | $ | 33,555 | ||||||
Credit_Facilities
Credit Facilities | 12 Months Ended |
Mar. 29, 2014 | |
Credit Facilities | ' |
9. Credit Facilities | |
Secured Revolving Credit Facility | |
The Company had a revolving credit facility, with a maturity date of September 15, 2015, which it terminated during February 2013 (the “2011 Credit Facility”). The 2011 Credit Facility was originally entered into during Fiscal 2007 and was amended on September 15, 2011. Pursuant to such amendment, the Credit Facility provided up to $100.0 million of borrowings, and was originally set to expire on September 15, 2015. The agreement also provided for loans and letters of credit to the Company’s European subsidiaries of up to $35.0 million. All other terms and conditions under the 2011 Credit Facility remained consistent with the original agreement. The 2011 Credit Facility provided for aggregate credit available equal to the lesser of (i) $100.0 million, or (ii) the sum of specified percentages of eligible receivables and eligible inventory, as defined, plus $30.0 million. The terms of the 2011 Credit Facility required all amounts outstanding under the agreement to be collateralized by substantially all the Company’s assets throughout the duration of the agreement. The 2011 Credit Facility contained financial covenants which limited capital expenditures to $110.0 million for any one fiscal year plus additional amounts as permitted, and a minimum fixed charge coverage ratio of 2.0 to 1.0 (with the ratio being EBITDA plus consolidated rent expense to the sum of fixed charges plus consolidated rent expense), restricted and limited additional indebtedness, and restricted the incurrence of additional liens and cash dividends. During Fiscal 2013, and prior to its termination, the Company was in compliance with all of the covenants covered under the agreement. | |
Borrowings under the 2011 Credit Facility accrued interest at the rate per annum announced from time to time by the agent of 1.25% above the prevailing applicable prime rate, or at a per annum rate equal to 2.25% above the prevailing LIBOR rate. The weighted average interest rate for the revolving credit facility was 2.72% during Fiscal 2013. The Credit Facility required an annual facility fee of $0.1 million, and an annual commitment fee of 0.35% on the unused portion of the available credit under the Credit Facility, which was payable quarterly. | |
At March 30, 2013 there were no amounts outstanding or available related to this agreement. The largest amount borrowed from the 2011 Credit Facility during Fiscal 2013 was $31.7 million. | |
Senior Unsecured Revolving Credit Facility | |
On February 8, 2013, the Company terminated the provisions of its existing 2011 Credit Facility and entered into a senior unsecured credit facility (“2013 Credit Facility”). Pursuant to the agreement the 2013 Credit Facility provides for up to $200.0 million of borrowings, and expires on February 8, 2018. The agreement also provides for loans and letters of credit to the Company’s European subsidiaries of up to $100.0 million. The 2013 Credit Facility contains financial covenants such as requiring an adjusted leverage ratio of 3.5 to 1.0 (with the ratio being total consolidated indebtedness plus 8.0 times consolidated rent expense to EBITDA plus consolidated rent expense) and a fixed charge coverage ratio of 2.0 to 1.0 (with the ratio being EBITDA plus consolidated rent expense to the sum of fixed charges plus consolidated rent expense), restricts and limits additional indebtedness, and restricts the incurrence of additional liens and cash dividends. As of March 29, 2014, the Company was in compliance with all covenants related to this agreement. | |
Borrowings under the 2013 Credit Facility accrue interest at the rate per annum announced from time to time by the agent a rate based on the rates applicable for deposits in the London interbank market for U.S. dollars or the applicable currency in which the loans are made (the “Adjusted LIBOR”) plus an applicable margin. The applicable margin may range from 1.25% to 1.75%, and is based, or dependent upon, a particular threshold related to the adjusted leverage ratio calculated during the period of borrowing. For the Fiscal 2014, the weighted average interest rate for the revolving credit facility was 1.6%. The 2013 Credit Facility requires an annual facility fee of $0.1 million, and an annual commitment fee of 0.25% to 0.35% on the unused portion of the available credit under the facility. | |
As of March 29, 2014, there were no amounts outstanding under the 2013 Credit Facility, and the amount available for future borrowings was $188.5 million. During Fiscal 2014 the largest amount borrowed under this agreement was $6.6 million. At March 29, 2014, there were stand-by letters of credit of $11.5 million outstanding. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Commitments and Contingencies | ' | ||||||||||||
10. Commitments and Contingencies | |||||||||||||
Leases | |||||||||||||
The Company leases office space, retail stores and warehouse space under operating lease agreements that expire at various dates through November 2028. In addition to minimum rental payments, the leases require payment of increases in real estate taxes and other expenses incidental to the use of the property. | |||||||||||||
Rent expense for the Company’s operating leases for the fiscal years then ended consist of the following (in thousands): | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Minimum rentals | $ | 107,071 | $ | 74,708 | $ | 61,364 | |||||||
Contingent rent | 56,299 | 29,871 | 11,209 | ||||||||||
Total rent expense | $ | 163,370 | $ | 104,579 | $ | 72,573 | |||||||
Future minimum lease payments under the terms of these noncancelable operating lease agreements are as follows (in thousands): | |||||||||||||
Fiscal year ending | |||||||||||||
2015 | $ | 133,892 | |||||||||||
2016 | 133,191 | ||||||||||||
2017 | 131,619 | ||||||||||||
2018 | 128,228 | ||||||||||||
2019 | 116,553 | ||||||||||||
Thereafter | 436,718 | ||||||||||||
$ | 1,080,201 | ||||||||||||
The Company has issued stand-by letters of credit to guarantee certain of its retail and corporate operating lease commitments, aggregating $11.5 million at March 29, 2014. | |||||||||||||
Long-term Employment Contract | |||||||||||||
The Company has an employment agreement with one of its officers that provides for continuous employment through the date of the officer’s death or permanent disability at a current salary of $2.5 million. In addition to salary, the agreement provides for an annual bonus and other employee related benefits. | |||||||||||||
Contingencies | |||||||||||||
In the ordinary course of business, the Company is party to various legal proceedings and claims. Although the outcome of such items cannot be determined with certainty, the Company’s management does not believe that the outcome of all pending legal proceedings in the aggregate will have a material adverse effect on its cash flow, results of operations or financial position. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
11. Fair Value of Financial Instruments | |||||||||||||||||
Financial assets and liabilities are measured at fair value using a valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy of a particular asset or liability depends on the inputs used in the valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally derived (unobservable). Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs based on a company’s own assumptions about market participant assumptions developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs as follows: | |||||||||||||||||
Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that a company has the ability to access at the measurement date. | |||||||||||||||||
Level 2—Valuations based on quoted inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data. | |||||||||||||||||
Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | |||||||||||||||||
The Company has historically entered into forward exchange contracts to hedge the foreign currency exposure for certain inventory purchases from its manufacturers in Europe and Asia, as well as commitments for certain services. The forward contracts that are used in the program mature in twelve months or less, consistent with the related planned purchases or services. The Company attempts to hedge the majority of its total anticipated European and Asian purchase and service contracts. Realized gains and losses applicable to derivatives used for inventory purchases are recognized in cost of sales, and those applicable to other services are recognized in selling, general and administrative expenses (see Note 3 Summary of Significant Accounting Policies—Derivative Financial Instruments, for further detail regarding hedge accounting treatment as it relates to gains and losses). At March 29, 2014, the fair value of the Company’s foreign currency forward contracts, the Company’s only derivatives, were valued using broker quotations which were calculations derived from observable market information: the applicable currency forward rates at the balance sheet date and those forward rates particular to the contract at inception. The Company makes no adjustments to these broker obtained quotes or prices, but does assess the credit risk of the counterparty and would adjust the provided valuations for counterparty credit risk when appropriate. The fair value of the forward contracts are included in prepaid expenses and other current assets, and in accrued expenses and other current liabilities in the consolidated balance sheets, depending on whether they represent assets or (liabilities) to the Company. All contracts are categorized in Level 2 of the fair value hierarchy as shown in the following table: | |||||||||||||||||
Fair value at March 29, 2014, using: | |||||||||||||||||
(In thousands) | Total | Quoted prices in | Significant other | Significant | |||||||||||||
active markets for | observable inputs | unobservable | |||||||||||||||
identical assets | (Level 2) | inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Foreign currency forward contracts - Euro to U.S. Dollar | $ | (1,875 | ) | $ | — | $ | (1,875 | ) | $ | — | |||||||
Foreign currency forward contracts - U.S. Dollar to Euro | 12 | — | 12 | — | |||||||||||||
Total | $ | (1,863 | ) | $ | — | $ | (1,863 | ) | $ | — | |||||||
The Company’s cash and cash equivalents, accounts receivable and accounts payable, are recorded at carrying value, which approximates fair value. Borrowings under the Credit Facility are recorded at face value as the fair value of the Credit Facility is synonymous with its recorded value as it is a short-term debt facility due to its revolving nature. |
Other_Comprehensive_Income_Hed
Other Comprehensive Income- Hedging Instruments | 12 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Other Comprehensive Income- Hedging Instruments | ' | ||||||||
12. Other Comprehensive Income- Hedging Instruments | |||||||||
The Company designates certain forward currency exchange contracts as hedges for hedge accounting purposes (see Note 3, Summary of Significant Accounting Policies—Derivative Financial Instruments). The Company employs forward currency contracts to hedge the Company’s exposures, as they relate to certain forecasted inventory purchases in foreign currencies, and as such are regarded as cash flow hedges up to such time the forecasted transaction occurs. | |||||||||
Changes in the fair value of the effective portion of these contracts are recorded in equity as a component of accumulated other comprehensive income, as of each balance sheet date, and are reclassified from accumulated other comprehensive income into earnings when the items underlying the hedged transactions are recognized into earnings, as a component of cost of sales within the Company’s consolidated statements of operations. | |||||||||
The following table summarizes the impact of the effective portion of the losses of the forward contracts designated as hedges for the fiscal year ended March 29, 2014 (in thousands): | |||||||||
Fiscal Year Ended March 29, 2014 | |||||||||
Pre-Tax | Loss | ||||||||
(Loss) | Reclassified from | ||||||||
Recognized | Accumulated OCI | ||||||||
in OCI | into Earnings | ||||||||
(Effective Portion) | (Effective Portion) | ||||||||
Forward currency exchange contracts | $ | (3,257 | ) | $ | (540 | ) | |||
Contracts designated as hedging for hedge accounting purposes during Fiscal 2013, as well as the related activity, were de minimis, as the Company had adopted the provisions of hedge accounting late in the fiscal 2013 year. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
13. Share-Based Compensation | |||||||||||||||||
The Company issues equity grants to certain employees and directors of the Company at the discretion of the Company’s Compensation Committee. The Company has two equity plans, one adopted in Fiscal 2008, the Michael Kors (USA), Inc. Stock Option Plan (as amended and restated, the “2008 Plan”), and the other adopted in the third fiscal quarter of Fiscal 2012, the Michael Kors Holdings Limited Omnibus Incentive Plan (the “2012 Plan”). The 2008 Plan provided for the granting of share options only and was authorized to issue up to 23,980,823 ordinary shares. As of March 29, 2014, there are no shares available for the granting of equity awards under the 2008 Plan. The 2012 Plan allows for the granting of share options, restricted shares and restricted share units, and other equity awards, and authorizes a total issuance of up to 15,246,000 ordinary shares. At March 29, 2014, there were 11,897,658 ordinary shares available for the granting of equity awards under the 2012 Plan. Option grants issued from the 2008 Plan generally expire ten years from the date of the grant, and those issued under the 2012 Plan generally expire seven years from the date of the grant. | |||||||||||||||||
Share Options | |||||||||||||||||
Share options are generally exercisable at no less than the fair market value on the date of grant. The Company has issued two types of option grants, those that vest based on the attainment of a performance target and those that vest based on the passage of time. Performance based share options may vest based upon the attainment of one of two performance measures. One performance measure is an individual performance target, which is based upon certain performance targets unique to the individual grantee, and the other measure is a company-wide performance target, which is based on a cumulative minimum growth requirement in consolidated net equity. The individual performance target vests 20% of the total option grant each year the target is satisfied. The individual has ten years in which to achieve five individual performance vesting tranches. The company-wide performance target must be achieved over the ten-year term. Performance is measured at the end of the term, and any unvested options under the grant vest if the target is achieved. The Company-wide performance target is established at the time of the grant. The target metrics underlying individual performance vesting requirements are established for each recipient each year up until such time as the grant is fully vested. Options subject to time based vesting requirements become vested in four equal increments on each of the first, second, third and fourth anniversaries of the date on which such options were awarded. | |||||||||||||||||
The following table summarizes the share options activity during Fiscal 2014, and information about options outstanding at March 29, 2014: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise price | Remaining | Value | |||||||||||||||
Contractual | (in thousands) | ||||||||||||||||
Life (years) | |||||||||||||||||
Outstanding at March 30, 2013 | 10,381,342 | $ | 9.21 | ||||||||||||||
Granted | 623,098 | $ | 62.7 | ||||||||||||||
Exercised | (2,586,283 | ) | $ | 7.36 | |||||||||||||
Canceled/forfeited | (40,229 | ) | $ | 24.35 | |||||||||||||
Outstanding at March 29, 2014 | 8,377,928 | $ | 13.69 | 6.18 | $ | 662,388 | |||||||||||
Vested or expected to vest at March 29, 2014 | 8,210,369 | $ | 13.69 | 6.18 | |||||||||||||
Vested and exercisable at March 29, 2014 | 2,295,526 | $ | 9.57 | 5.49 | $ | 190,945 | |||||||||||
The total intrinsic value of options exercised during Fiscal 2014 was $163.2 million. The cash received from options exercised during Fiscal 2014, was $19.0 million. The total intrinsic value of options exercised during Fiscal 2013 was $415.1 million. The cash received from options exercised during Fiscal 2013, was $30.4 million. | |||||||||||||||||
The weighted average grant date fair value for options granted during Fiscal 2014, Fiscal 2013, and Fiscal 2012, was $24.95, $20.66, and $8.01, respectively. The following table represents assumptions used to estimate the fair value of options: | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
March 29, | March 30, | March 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Volatility factor | 46 | % | 48.5 | % | 46.5 | % | |||||||||||
Weighted average risk-free interest rate | 1 | % | 0.6 | % | 1.8 | % | |||||||||||
Expected life of option | 4.75 years | 4.75 years | 7.8 years | ||||||||||||||
Restricted Shares and Restricted Share Units | |||||||||||||||||
The Company grants restricted shares and restricted share units at the fair market value at the date of the grant. Expense for restricted share grants is calculated based on the intrinsic value of the grant, which is the difference between the cost to the recipient and the fair market value of the underlying share (grants are generally issued at no cost to the recipient). Expense is recognized ratably over the vesting period which is generally three to four years from the date of the grant. Similar to share options, restricted share grants generally vest in four equal increments on each of the first, second, third and fourth anniversaries of the date on which such grants were awarded. With respect to restricted share units, there are two types: performance based vesting grants and time based vesting grants. Share units whose vesting is based on meeting certain performance criteria, vest in full three years from their anniversary date only if certain cumulative performance targets are met at the end of the three year period. Expense related to these grants is recognized ratably over the three year performance period subject to the probability of the attainment of the related performance targets. Share units that vest based on time generally vest in full either on the first or fourth anniversary of the date of the grant, and are expensed accordingly. | |||||||||||||||||
The following table summarizes restricted shares under the 2012 Plan as of March 29, 2014 and changes during the fiscal period then ended: | |||||||||||||||||
Number of Unvested | Weighted | ||||||||||||||||
Restricted Shares | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Unvested at March 30, 2013 | 617,468 | $ | 23.66 | ||||||||||||||
Granted | 255,850 | $ | 62.89 | ||||||||||||||
Vested | (208,283 | ) | $ | 23.32 | |||||||||||||
Canceled/forfeited | (7,182 | ) | $ | 39.6 | |||||||||||||
Unvested at March 29, 2014 | 657,853 | $ | 38.38 | ||||||||||||||
The total fair value of restricted shares vested was $17.6 million during Fiscal 2014, and $10.5 million during Fiscal 2013. There were no restricted shares that vested prior to Fiscal 2013. As of March 29, 2014, the remaining unrecognized share-based compensation expense for non-vested restricted share grants to be expensed in future periods is $20.4 million, and the related weighted-average period over which it is expected to be recognized is approximately 2.61 years. | |||||||||||||||||
The following table summarizes restricted share units under the 2012 Plan as of March 29, 2014 and changes during the fiscal period then ended: | |||||||||||||||||
Number of Unvested | Weighted | ||||||||||||||||
Restricted Units | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Unvested at March 30, 2013 | 27,763 | $ | 31.12 | ||||||||||||||
Granted | 174,002 | $ | 62.64 | ||||||||||||||
Vested | (1,986 | ) | $ | 58.1 | |||||||||||||
Canceled/forfeited | — | $ | — | ||||||||||||||
Unvested at March 29, 2014 | 199,779 | $ | 58.31 | ||||||||||||||
The total fair value of restricted share units vested during Fiscal 2014 was $0.2 million. The total fair value of restricted share units vested during Fiscal 2013 was $0.8 million. As of March 29, 2014, the remaining unrecognized share-based compensation expense for non-vested restricted share unit grants to be expensed in future periods is $7.6 million, and the related weighted-average period over which it is expected to be recognized is approximately 2.12 years. | |||||||||||||||||
Compensation expense attributable to share-based compensation for Fiscal 2014, Fiscal 2013, and Fiscal 2012 was approximately $29.1 million, $20.9 million, and $27.0 million, respectively. There were 2,295,526 and 6,082,402 vested and non-vested outstanding options, respectively, at March 29, 2014. There were 657,853 unvested restricted share grants and 199,779 unvested restricted share units at March 29, 2014. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates forfeitures based on its historical forfeiture rate since the inception of share option granting. The estimated value of future forfeitures for equity grants as of March 29, 2014 is approximately $0.8 million. |
Taxes
Taxes | 12 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Taxes | ' | ||||||||||||
14. Taxes | |||||||||||||
MKHL is incorporated in the British Virgin Islands and is generally not subject to taxation. MKHL’s subsidiaries are subject to taxation in the United States and various other foreign jurisdictions which are aggregated in the “Non-U.S,” information captioned below. | |||||||||||||
Income before provision for income taxes consisted of the following (in thousands): | |||||||||||||
Fiscal Years Ended | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 792,899 | $ | 538,607 | $ | 227,514 | |||||||
Non-U.S. | 214,748 | 88,520 | 21,302 | ||||||||||
Total income before provision for income taxes | $ | 1,007,647 | $ | 627,127 | $ | 248,816 | |||||||
The provision for income taxes was as follows (in thousands): | |||||||||||||
Fiscal Years Ended | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current | |||||||||||||
U.S. Federal | $ | 295,159 | $ | 179,014 | $ | 79,690 | |||||||
U.S. State | 50,348 | 32,249 | 20,916 | ||||||||||
Non-U.S. | 30,560 | 15,040 | 8,575 | ||||||||||
Total current | 376,067 | 226,303 | 109,181 | ||||||||||
Deferred | |||||||||||||
U.S. Federal | (24,847 | ) | 1,246 | (4,128 | ) | ||||||||
U.S. State | (3,594 | ) | 2,088 | (3,595 | ) | ||||||||
Non-U.S. | (1,464 | ) | (112 | ) | (6 | ) | |||||||
Total deferred | (29,905 | ) | 3,222 | (7,729 | ) | ||||||||
Total provision for income taxes | $ | 346,162 | $ | 229,525 | $ | 101,452 | |||||||
The following table summarizes the significant differences between the United States Federal statutory tax rate and the Company’s effective tax rate for financial statement purposes: | |||||||||||||
Fiscal Years Ended | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal tax at 35% statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State and local income taxes, net of federal benefit | 2.3 | % | 3.6 | % | 4.8 | % | |||||||
Differences in tax effects on foreign income | -3.9 | % | -3.1 | % | -1.3 | % | |||||||
Foreign tax credit | -0.2 | % | -0.2 | % | -0.6 | % | |||||||
Liability for uncertain tax positions | 0.8 | % | 0.5 | % | 0.2 | % | |||||||
Effect of changes in valuation allowances on deferred tax assets | -0.2 | % | 0.3 | % | 1.8 | % | |||||||
Other | 0.6 | % | 0.5 | % | 0.9 | % | |||||||
34.4 | % | 36.6 | % | 40.8 | % | ||||||||
Significant components of the Company’s deferred tax assets (liabilities) consist of the following (in thousands): | |||||||||||||
March 29, | March 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets | |||||||||||||
Inventories | $ | 11,380 | $ | 8,469 | |||||||||
Payroll related accruals | 4,722 | 1,188 | |||||||||||
Deferred rent | 24,281 | 16,209 | |||||||||||
Deferred Revenue | 2,389 | — | |||||||||||
Net operating loss carryforwards | 7,743 | 8,508 | |||||||||||
Stock compensation | 14,117 | 8,909 | |||||||||||
Sales allowances | 7,654 | — | |||||||||||
Other | 9,589 | 2,331 | |||||||||||
81,875 | 45,614 | ||||||||||||
Valuation allowance | (8,020 | ) | (8,746 | ) | |||||||||
Total deferred tax assets | 73,855 | 36,868 | |||||||||||
Deferred tax liabilities | |||||||||||||
Goodwill and intangibles | (24,324 | ) | (14,780 | ) | |||||||||
Depreciation | (20,691 | ) | (20,927 | ) | |||||||||
Other | (526 | ) | (1,455 | ) | |||||||||
Total deferred tax liabilities | (45,541 | ) | (37,162 | ) | |||||||||
Net deferred tax (liability) assets | $ | 28,314 | $ | (294 | ) | ||||||||
The Company maintains valuation allowances on deferred tax assets applicable to subsidiaries in jurisdictions for which separate income tax returns are filed and where realization of the related deferred tax assets from future profitable operations is not reasonably assured. Deferred tax valuation allowances were increased by approximately $0.9 million in Fiscal 2014, $1.6 million in Fiscal 2013, and $4.4 million in Fiscal 2012. As a result of the attainment and expectation of achieving profitable operations in certain countries comprising the Company’s European operations and certain state jurisdictions in the United States, for which deferred tax valuation allowances had been previously established, the Company released valuation allowances amounting to approximately $1.6 million in Fiscal 2014, $1.1 million in Fiscal 2013, and $0.2 million in Fiscal 2012. | |||||||||||||
The Company has non-U.S. net operating loss carryforwards of approximately $27.4 million that will begin to expire in 2017. | |||||||||||||
As of March 29, 2014, the Company has accrued a liability of approximately $19.0 million related to uncertain tax positions, which includes accrued interest, which is included in other long-term liabilities in the consolidated balance sheets. | |||||||||||||
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was approximately $18.1 million at March 29, 2014, approximately $6.6 million at March 30, 2013, and approximately $1.8 million at March 31, 2012. A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding accrued interest, for Fiscal 2014, Fiscal 2013, and Fiscal 2012, are presented below (in thousands): | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits beginning balance | $ | 6,628 | $ | 1,758 | $ | 939 | |||||||
Additions related to prior period tax positions | 2,515 | 3,318 | 246 | ||||||||||
Additions related to current period tax positions | 9,312 | 2,482 | 573 | ||||||||||
Decreases from prior period positions | (368 | ) | (930 | ) | — | ||||||||
Unrecognized tax benefits ending balance | $ | 18,087 | $ | 6,628 | $ | 1,758 | |||||||
The Company classifies interest expense and penalties related to unrecognized tax benefits as components of the provision for income taxes. Interest expense recognized in the consolidated statements of operations for Fiscal 2014, Fiscal 2013, and Fiscal 2012 was approximately $0.9 million, $0.3 million, and $0.1 million, respectively. | |||||||||||||
The total amount of unrecognized tax benefits relating to the Company’s tax positions is subject to change based on future events, including, but not limited to, the settlements of ongoing audits and/or the expiration of applicable statutes of limitations. The Company files income tax returns in the United States, for federal, state, and local purposes, and in certain foreign jurisdictions. With few exceptions, the Company is no longer subject to examinations by the relevant tax authorities for years prior to its fiscal year ended April 3, 2010. | |||||||||||||
The total amount of undistributed earnings of United States and other non-U.S. subsidiaries as of March 29, 2014 was approximately $1,317.0 million. With the exception of one of the Company’s non-U.S. subsidiaries, it is the Company’s intention to permanently reinvest undistributed earnings of the remainder of its United States and non-U.S. subsidiaries and thereby indefinitely postpone their remittance. Deferred taxes are not provided on undistributed earnings of those subsidiaries that are indefinitely reinvested, and as such, no provision has been made for withholding taxes or income taxes for those subsidiaries. For the non-U.S. subsidiary whose earnings the Company does not intend to permanently reinvest, a deferred tax liability related to its undistributed earnings has been established, reflecting the potential future income tax liability upon distribution. | |||||||||||||
For the remainder of the Company’s undistributed earnings not currently provided for, income taxes may become payable if undistributed earnings of those subsidiaries are paid as dividends, and as such, deferred liabilities would be recognized upon contemplation of the distribution of those earnings. |
Retirement_Plans
Retirement Plans | 12 Months Ended |
Mar. 29, 2014 | |
Retirement Plans | ' |
15. Retirement Plans | |
The Company maintains defined contribution plans for employees, who become eligible to participate after three months of service. Features of these plans allow participants to contribute to a plan a percentage of their compensation, up to statutory limits depending upon the country in which a plan operates, and provide for mandatory and/or discretionary matching contributions by the Company. For the years ended March 29, 2014, March 30, 2013, and March 31, 2012, the Company recognized expense of approximately $3.5 million. $2.2 million and $1.6 million, respectively, related to these retirement plans. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Segment Information | ' | ||||||||||||
16. Segment Information | |||||||||||||
The Company operates its business through three operating segments—Retail, Wholesale and Licensing—which are based on its business activities and organization. The operating segments are segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by executive management in deciding how to allocate resources, as well as in assessing performance. The primary key performance indicators are net sales or revenue (in the case of Licensing) and operating income for each segment. The Company’s reportable segments represent channels of distribution that offer similar merchandise, customer experience and sales/marketing strategies. Sales of the Company’s products through Company owned stores for the Retail segment include “Collection,” “Lifestyle” including “concessions,” and outlet stores located throughout North America, Europe, and Japan. Products sold through the Retail segment include women’s apparel, accessories (which include handbags and small leather goods such as wallets), footwear and licensed products, such as watches, fragrances and eyewear. The Wholesale segment includes sales primarily to major department stores and specialty shops throughout North America and Europe. Products sold through the Wholesale segment include accessories (which include handbags and small leather goods such as wallets), footwear and women’s and men’s apparel. The Licensing segment includes royalties earned on licensed products and use of the Company’s trademarks, and rights granted to third parties for the right to sell the Company’s products in certain geographical regions such as South Korea, the Philippines, Singapore, Malaysia, Indonesia, Australia, the Middle East, Russia, Turkey, China, Hong Kong, Macau, Taiwan, Latin America and the Caribbean, and India. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Corporate overhead expenses are allocated to the segments based upon specific usage or other allocation methods. | |||||||||||||
The Company has allocated $12.1 million and $1.9 million of its recorded goodwill to its Wholesale and Licensing segments, respectively. The Company does not have identifiable assets separated by segment. The following table presents the key performance information of the Company’s reportable segments (in thousands): | |||||||||||||
Fiscal Years Ended | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue: | |||||||||||||
Net sales: Retail | $ | 1,593,005 | $ | 1,062,642 | $ | 626,940 | |||||||
Wholesale | 1,577,517 | 1,032,115 | 610,160 | ||||||||||
Licensing | 140,321 | 86,975 | 65,154 | ||||||||||
Total revenue | $ | 3,310,843 | $ | 2,181,732 | $ | 1,302,254 | |||||||
Income from operations: | |||||||||||||
Retail | $ | 467,248 | $ | 315,654 | $ | 121,851 | |||||||
Wholesale | 459,774 | 269,323 | 85,000 | ||||||||||
Licensing | 81,149 | 45,037 | 40,831 | ||||||||||
Income from operations | $ | 1,008,171 | $ | 630,014 | $ | 247,682 | |||||||
Depreciation and amortization expense for each segment are as follows (in thousands): | |||||||||||||
Fiscal Years Ended | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation: | |||||||||||||
Retail(1) | $ | 46,679 | $ | 35,388 | $ | 25,293 | |||||||
Wholesale | 32,364 | 18,531 | 12,012 | ||||||||||
Licensing | 611 | 372 | 249 | ||||||||||
Total depreciation | $ | 79,654 | $ | 54,291 | $ | 37,554 | |||||||
-1 | Excluded in the above table are impairment charges related to the retail segment for $1.3 million, $0.7 million, and $3.3 million, during the fiscal years ended March 29, 2014, March 30, 2013, and March 31, 2012, respectively. | ||||||||||||
Total revenue (as recognized based on country of origin), and long-lived assets by geographic location of the consolidated Company are as follows (in thousands): | |||||||||||||
Fiscal Years Ended | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Net revenues: | |||||||||||||
North America (U.S. and Canada) | $ | 2,771,818 | $ | 1,938,635 | $ | 1,183,234 | |||||||
Europe | 500,478 | 220,724 | 108,790 | ||||||||||
Other regions | 38,547 | 22,373 | 10,230 | ||||||||||
Total net revenues | $ | 3,310,843 | $ | 2,181,732 | $ | 1,302,254 | |||||||
As of | |||||||||||||
March 29, | March 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Long-lived assets: | |||||||||||||
North America (U.S. and Canada) | $ | 283,162 | $ | 209,973 | |||||||||
Europe | 108,074 | 46,154 | |||||||||||
Other regions | 7,476 | 6,966 | |||||||||||
Total Long-lived assets: | $ | 398,712 | $ | 263,093 | |||||||||
Agreements_with_Shareholders_a
Agreements with Shareholders and Related Party Transactions | 12 Months Ended |
Mar. 29, 2014 | |
Agreements with Shareholders and Related Party Transactions | ' |
17. Agreements with Shareholders and Related Party Transactions | |
During July 2011, the note payable to the Company’s former parent, for $101.7 million, was exchanged for 475,796 preference shares and 6,579,662 ordinary shares, after taking into effect the impact of the share exchange that resulted from the reorganization discussed in Note 2. Accordingly, there are no outstanding balances related to the note, subsequent to the aforementioned transaction. | |
From time to time, Sportswear Holdings Limited or its affiliates have provided a plane for purposes of business travel to the directors and senior management of the Company at no charge to the Company. During Fiscal 2013, $0.3 million, representing the estimated costs of these services, which are based on allocated or incremental cost, was charged to selling, general and administrative expenses as an offset to contributed capital (additional paid-in capital). There were no amounts recorded to contributed capital related to these services during Fiscal 2014. The Company or its chief executive officer may arrange a plane owned by Sportswear Holdings Limited or its affiliates to be used for the Company’s directors and senior management for purposes of business travel on terms and conditions not less favorable to the Company than it would receive in an arm’s-length transaction with a third party. To the extent the Company’s chief executive officer enters into such an arrangement for business travel, the Company will reimburse him for the actual market price paid for the use of such plane. During Fiscal 2014, the Company chartered this plane from Sportswear Holdings Limited for business purposes, the amounts of which were paid in cash and charged to operating expenses. Amounts charged to the Company in connection with these services were approximately $1.4 million during this period. | |
The Company’s Chief Creative Officer, Michael Kors, and the Company’s Chief Executive Officer, John Idol, and certain of the Company’s current shareholders, including Sportswear Holdings Limited, jointly own Michael Kors Far East Holdings Limited, a BVI company. During Fiscal 2012, the Company entered into certain licensing agreements with certain subsidiaries of Michael Kors Far East Holdings Limited (the “Licensees”) which provide the Licensees with certain exclusive rights for use of the Company’s trademarks within China, Hong Kong, Macau and Taiwan, and to import, sell, advertise and promote certain of the Company’s products in these regions, as well as to own and operate stores which bear the Company’s tradenames. The agreements between the Company and subsidiaries of Michael Kors Far East Holdings Limited expire on March 31, 2041, and may be terminated by the Company at certain intervals if certain minimum sale benchmarks are not met. During Fiscal 2014, there were approximately $1.6 million of royalties earned under these agreements, which were driven by Licensee sales of our goods to their customers of approximately $36.5 million. There were no royalties earned during Fiscal 2013, as the Company was not entitled to royalties under this agreement until the start of its fiscal 2014 year. In addition, the Company sells certain inventory items to the Licensees through its wholesale segment at terms consistent with those of similar licensees in the region. During Fiscal 2014, amounts recognized as net sales in the Company’s consolidated statements of operations and other comprehensive income, related to these sales, were approximately $12.9 million. Amounts related to sales to the Licensees during Fiscal 2013 were de minimis. The Company also provides the Licensees with certain services, including, but not limited to, supply chain and logistics support, and management information system support at the request of the Licensees, for which the Company charges a service fee based on allocated internal costs employed in delivering the services, and includes a contractually agreed upon markup. These services were discontinued during Fiscal 2014, where a nominal amount of fees were charged. During Fiscal 2013, amounts charged to the Licensees for these services totaled $0.3 million, which was recorded in other selling, general and administrative expenses. As of March 29, 2014, amounts in the aggregate, owed to the Company by the Licensees, totaled approximately $4.5 million; all of which related to the above transactions and services. | |
The Company routinely purchases certain inventory from a manufacturer owned by one of its directors. Amounts purchased during Fiscal 2014, Fiscal 2013 and Fiscal 2012, were approximately $8.1 million, $5.7 million and $2.7 million, respectively. |
Selected_Quarterly_Financial_I
Selected Quarterly Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Selected Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||
18. Selected Quarterly Financial Information (Unaudited) | |||||||||||||||||
The following table summarizes the Fiscal 2014 and 2013 quarterly results (dollars in thousands): | |||||||||||||||||
Fiscal Quarter Ended | |||||||||||||||||
June | September | December | March | ||||||||||||||
Year Ended March 29, 2014 | |||||||||||||||||
Total Revenue | $ | 640,859 | $ | 740,303 | $ | 1,012,229 | $ | 917,452 | |||||||||
Gross profit | $ | 397,271 | $ | 449,875 | $ | 619,498 | $ | 549,426 | |||||||||
Income from operations | $ | 197,562 | $ | 221,460 | $ | 343,240 | $ | 245,909 | |||||||||
Net income | $ | 124,996 | $ | 145,808 | $ | 229,643 | $ | 161,038 | |||||||||
Weighted average ordinary shares outstanding: | |||||||||||||||||
Basic | 201,208,189 | 202,560,870 | 203,175,380 | 203,387,343 | |||||||||||||
Diluted | 204,336,124 | 205,154,692 | 206,088,062 | 206,973,550 | |||||||||||||
Year Ended March 30, 2013 | |||||||||||||||||
Total Revenue | $ | 414,865 | $ | 532,935 | $ | 636,778 | $ | 597,154 | |||||||||
Gross profit | $ | 251,000 | $ | 315,900 | $ | 383,451 | $ | 356,215 | |||||||||
Income from operations | $ | 111,943 | $ | 157,928 | $ | 204,839 | $ | 155,304 | |||||||||
Net income | $ | 68,645 | $ | 97,828 | $ | 130,028 | $ | 101,101 | |||||||||
Weighted average ordinary shares outstanding: | |||||||||||||||||
Basic | 192,790,454 | 194,323,935 | 199,291,480 | 200,080,126 | |||||||||||||
Diluted | 199,391,127 | 200,192,291 | 202,817,811 | 203,785,123 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to use judgment and make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are completed. The most significant assumptions and estimates involved in preparing the financial statements include allowances for customer deductions, sales returns, sales discounts and doubtful accounts, estimates of inventory recovery, the valuation of share-based compensation, valuation of deferred taxes and the estimated useful lives used for amortization and depreciation of intangible assets and property and equipment. Actual results could differ from those estimates. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
The Company recognizes retail store revenues upon sale of its products to retail consumers, net of estimated returns. Wholesale revenue is recognized net of estimates for sales returns, discounts and allowances, after merchandise is shipped and title and risk of loss is transferred to the Company’s wholesale customers. To arrive at net sales for retail, gross sales are reduced by actual customer returns as well as by a provision for estimated future customer returns, which is based on management’s review of historical and current customer returns. Sales taxes collected from retail customers are presented on a net basis and as such are excluded from revenue. To arrive at net sales for wholesale, gross sales are reduced by provisions for estimated future returns, based on current expectations, trade discounts, markdowns, allowances and operational chargebacks, as well as for certain cooperative selling expenses. | |||||||||||||||||
The following table details the activity and balances of the Company’s sales reserves for the fiscal years ended March 29, 2014, March 30, 2013, and March 31, 2012 (in thousands): | |||||||||||||||||
Retail | Balance | Amounts | Write-offs | Balance | |||||||||||||
Beginning | Charged to | Against | at | ||||||||||||||
of Year | Revenue | Reserves | Year End | ||||||||||||||
Return Reserves: | |||||||||||||||||
Year ended March 29, 2014 | $ | 3,146 | $ | 45,632 | $ | (46,458 | ) | $ | 2,320 | ||||||||
Year ended March 30, 2013 | $ | 1,659 | $ | 35,448 | $ | (33,961 | ) | $ | 3,146 | ||||||||
Year ended March 31, 2012 | $ | 2,313 | $ | 23,580 | $ | (24,234 | ) | $ | 1,659 | ||||||||
Wholesale | Balance | Amounts | Write-offs | Balance | |||||||||||||
Beginning | Charged to | Against | at | ||||||||||||||
of Year | Revenue | Reserves | Year End | ||||||||||||||
Total Sales Reserves: | |||||||||||||||||
Year ended March 29, 2014 | $ | 43,009 | $ | 203,465 | $ | (180,553 | ) | $ | 65,921 | ||||||||
Year ended March 30, 2013 | $ | 30,381 | $ | 135,450 | $ | (122,822 | ) | $ | 43,009 | ||||||||
Year ended March 31, 2012 | $ | 25,180 | $ | 114,577 | $ | (109,376 | ) | $ | 30,381 | ||||||||
Royalty revenue generated from product licenses, which includes contributions for advertising, is based on reported sales of licensed products bearing the Company’s tradenames, at rates specified in the license agreements. These agreements are also subject to contractual minimum levels. Royalty revenue generated by geographic specific licensing agreements is recognized as earned under the licensing agreements based on reported sales of licensees applicable to specified periods as outlined in the agreements. These agreements allow for the use of the Company’s tradenames to sell its branded products in specific geographic regions. | |||||||||||||||||
Advertising | ' | ||||||||||||||||
Advertising | |||||||||||||||||
Advertising costs are charged to expense when incurred and are reflected in general and administrative expenses. For the years ended March 29, 2014, March 30, 2013, and March 31, 2012, advertising expense was $65.7 million, $41.9 million and $31.4 million, respectively. | |||||||||||||||||
Cooperative advertising expense, which represents the Company’s participation in advertising expenses of its wholesale customers, is reflected as a reduction of net sales. Expenses related to cooperative advertising for Fiscal 2014, Fiscal 2013, and Fiscal 2012, were $7.3 million, $5.1 million and $4.3 million, respectively. | |||||||||||||||||
Shipping and Handling | ' | ||||||||||||||||
Shipping and Handling | |||||||||||||||||
Shipping and handling costs amounting to $78.6 million, $29.1 million and $19.7 million for Fiscal 2014, Fiscal 2013, and Fiscal 2012, respectively, are included in selling, general and administrative expenses in the statements of operations. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. | |||||||||||||||||
Inventories | ' | ||||||||||||||||
Inventories | |||||||||||||||||
Inventories consist of finished goods and are stated at the lower of cost or market value. Cost is determined using the weighted average cost method. Costs include amounts paid to independent manufacturers, plus duties and freight to bring the goods to the Company’s warehouses, which are located in the United States, Holland, Canada, Japan and Hong Kong. The Company adjusts its inventory to reflect situations in which the cost of inventory is not expected to be fully recovered. These adjustments are estimates, which could vary significantly from actual results if future economic conditions, customer demand or competition differ from expectations. For the periods presented, there were no significant adjustments related to unsalable inventory. | |||||||||||||||||
Store Pre-opening Costs | ' | ||||||||||||||||
Store Pre-opening Costs | |||||||||||||||||
Costs associated with the opening of new retail stores and start up activities, are expensed as incurred. | |||||||||||||||||
Property and Equipment | ' | ||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment is stated at cost less accumulated depreciation and amortization (carrying value). Depreciation is provided on a straight-line basis over the expected remaining useful lives of the related assets. Equipment, furniture and fixtures, are depreciated over five to seven years, and computer hardware and software are depreciated over three to five years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated remaining useful lives of the related assets or remaining lease term. The Company includes all its amortization and depreciation expense as a component of total operating expenses, as the underlying long-lived assets are not directly or indirectly related to bringing the Company’s products to their existing location and condition. | |||||||||||||||||
The Company’s share of the cost of constructing in-store shop displays within its wholesale customers’ floor-space (“shop-in-shops”), which is paid directly to third-party suppliers, is capitalized as property and equipment and is generally amortized over a useful life of three years. | |||||||||||||||||
Maintenance and repairs are charged to expense in the year incurred. Cost and related accumulated depreciation for property and equipment are removed from the accounts upon their sale or disposition and the resulting gain or loss is reflected in the results of operations. | |||||||||||||||||
Internal-use Software | ' | ||||||||||||||||
Internal-use Software | |||||||||||||||||
The Company capitalizes, in property and equipment, direct costs incurred during the application development stage and the implementation stage for developing, purchasing or otherwise acquiring software for internal use. These costs are amortized over the estimated useful lives of the software, generally five years. All costs incurred during the preliminary project stage, including project scoping, identification and testing of alternatives, are expensed as incurred. | |||||||||||||||||
Intangible Assets | ' | ||||||||||||||||
Intangible Assets | |||||||||||||||||
Intangible assets consist of trademarks and lease rights and are stated at cost less accumulated amortization. Trademarks are amortized over twenty years and lease rights are amortized over the term of the related lease agreements on a straight-line basis. | |||||||||||||||||
Impairment of Long-lived Assets | ' | ||||||||||||||||
Impairment of Long-lived Assets | |||||||||||||||||
The Company evaluates its long-lived assets, including fixed assets and intangible assets with finite useful lives, for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. If the sum of estimated undiscounted future cash flows associated with the asset is less than the asset’s carrying value, an impairment charge is recognized, which is measured as the amount by which the carrying value exceeds the fair value of the asset. These estimates of cash flow require significant management judgment and certain assumptions about future volume, sales and expense growth rates, devaluation and inflation. As such, these estimates may differ from actual cash flows. | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
Goodwill | |||||||||||||||||
On an annual basis, the Company evaluates goodwill for impairment during the Company’s fourth quarter of its fiscal year or whenever impairment indicators exist. Judgments regarding the existence of impairment indicators are based on market conditions and operational performance of the business. Future events could cause the Company to conclude that impairment indicators exist, and, therefore, that goodwill may be impaired. To the extent that the fair value associated with the goodwill is less than its carrying amount, the Company writes down the carrying amount of the goodwill to its fair value. | |||||||||||||||||
Prior to Fiscal 2012 the Company assessed goodwill for impairment by calculating the fair value of the Company’s reporting units to which goodwill has been allocated using the discounted cash flow method along with the market multiples method. During Fiscal 2012, the Company adopted a new accounting pronouncement related to goodwill impairment analysis, which allows entities to initially perform a qualitative analysis (“step zero”) of the fair value of its reporting units to determine whether it is necessary to undertake a quantitative (“two step”) goodwill analysis. In the fourth quarter of Fiscal 2014, the Company continued to follow this guidance with respect to its annual impairment analysis for goodwill, and concluded that the carrying amounts of all reporting units were significantly exceeded by their respective fair values, and thus performing any further analysis (e.g. two step) was unnecessary. | |||||||||||||||||
The Company will continue to perform the aforementioned qualitative analysis (step zero) in future fiscal years as its first step in goodwill impairment assessment. Should the results of this assessment result in either an ambiguous or unfavorable conclusion the Company will perform additional quantitative testing consistent with the fair value approach mentioned above. The valuation methods used in the fair value approach, discounted cash flow and market multiples method, require the Company’s management to make certain assumptions and estimates regarding certain industry trends and future profitability of the Company’s reporting units. If the carrying amount of a reporting unit exceeds its fair value, the Company would compare the implied fair value of the reporting unit goodwill with its carrying value. To compute the implied fair value, the Company would assign the fair value of the reporting unit to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. If the carrying value of the reporting unit goodwill exceeded the implied fair value of the reporting unit goodwill, the Company would record an impairment loss to write down such goodwill to its implied fair value. The valuation of goodwill is affected by, among other things, the Company’s business plan for the future and estimated results of future operations. | |||||||||||||||||
Joint Venture Investments | ' | ||||||||||||||||
Joint Venture Investments | |||||||||||||||||
The Company accounts for investments in joint ventures as equity investments and records them in other assets in the Company’s consolidated balance sheets. During Fiscal 2013, the Company made a non-recourse loan to the Company’s sole joint venture (which resides in Latin America), for approximately $6.0 million, which accrues at a 5% annual rate. The purpose of the loan was to provide working capital for the joint venture’s operations. The $6.0 million loan is repayable at the time of the expiration of the joint venture agreement, along with accrued interest payable at the expiration date. The loan, along with accrued interest, are recorded in other assets in the Company’s consolidated balance sheets. | |||||||||||||||||
Share-based Compensation | ' | ||||||||||||||||
Share-based Compensation | |||||||||||||||||
The Company grants share-based awards to certain employees and directors of the Company. Awards are measured at the grant date based on the fair value as calculated using the Black-Scholes option pricing model, for share options, or the closing market price at the grant date for restricted shares and units. These fair values are recognized as expense over the requisite service period, based on attainment of certain vesting requirements for performance grants, or the passage of time for those grants which have time-based vesting requirements. Determining the fair value of share-based awards at the grant date requires considerable judgment, including estimating expected volatility, expected term and risk-free rate. | |||||||||||||||||
The Company’s expected volatility is based on the average volatility rates of similar actively traded companies over the past 4.5-9.5 years, which is the Company’s range of estimated expected holding periods. The expected holding period for options which vest based on performance requirements are based on the period to expiration which is generally 9-10 years, which directly correlates to the Company’s service period requirement for such options. Generally, the expected holding period for time-based vesting options (no performance requirements) are calculated using the simplified method which uses the vesting term of the options, generally 4 years, and the contractual term of 7 years, resulting in a holding period of 4.5-4.75 years. The simplified method was chosen as a means to determine the Company’s estimated holding period as prior to December 2011, the Company was privately held and as such there is insufficient historical option exercise experience. The risk-free rate is derived from the zero-coupon U.S. Treasury Strips yield curve, the period of which relates to the grant’s estimated holding period. If factors change and the Company employs different assumptions, the fair value of future awards and resulting share-based compensation expense may differ significantly from what the Company has estimated in the past. | |||||||||||||||||
Foreign Currency Translation and Transactions | ' | ||||||||||||||||
Foreign Currency Translation and Transactions | |||||||||||||||||
The financial statements of the majority of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. The Company’s functional currency is the United States dollar (“USD”) for MKHL and its United States based subsidiaries. Assets and liabilities have been translated using period-end exchange rates, and revenues and expenses have been translated using average exchange rates over the reporting period. The adjustments resulting from translation have been recorded separately in shareholders’ equity as a component of accumulated other comprehensive loss. Foreign currency transaction income and losses resulting from the re-measuring of transactions denominated in a currency other than the functional currency of a particular entity are included in the consolidated statements of operations. | |||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||
The Company uses forward currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain of its transactions. The Company in its normal course of business enters into transactions with foreign suppliers and seeks to minimize risks related to these transactions. The Company employs these forward currency contracts to hedge the Company’s cash flows, as they relate to foreign currency transactions, of which certain of these contracts are designated as hedges for accounting purposes, while others are undesignated hedges for hedge accounting purposes. These derivative instruments are recorded in the Company’s consolidated balance sheets at fair value, regardless of if they are designated or undesignated as hedges. | |||||||||||||||||
Prior to the Company’s third fiscal 2013 quarter ended December 29, 2012, the Company did not designate these instruments as hedges for hedge accounting purposes. During the third Fiscal 2013 quarter, the Company elected to designate contracts entered into during and subsequent to that quarter as hedges for hedge accounting purposes, for contracts related to the purchase of inventory. Accordingly, the effective portion of changes in the fair value for contracts entered into during Fiscal 2014, are recorded in equity as a component of accumulated other comprehensive loss, and to cost of sales for any portion of those contracts deemed ineffective. The Company will continue to record changes in the fair value of hedge designated contracts in this manner until their maturity, where the unrealized gain or loss will be recognized into earnings in that period. For those contracts entered into, currently and in the future, that are not, and will not be designated as hedges, changes in the fair value, as of each balance sheet date and upon maturity, are recorded in cost of sales or operating expenses, within the Company’s consolidated statements of operations, as applicable to the transactions for which the forward exchange contracts were intended to hedge. During Fiscal 2014, a net realized loss related to the change in fair value of those contracts not designated as hedges, were de minimis. In addition, the net unrealized loss related to those contracts designated as hedges during Fiscal 2014 of $2.9 million, was charged to equity as a component of accumulated other comprehensive loss. During Fiscal 2014, amounts related to the ineffectiveness of these contracts were de minimis. The company expects that substantially all the amounts currently residing in accumulated other comprehensive loss to be reclassified into earnings during the next twelve months, based upon the timing of inventory purchases and turns. These amounts are subject to fluctuations in the applicable currency exchange rates. | |||||||||||||||||
The following table details the fair value of these contracts as of March 29, 2014, and March 30, 2013 (in thousands): | |||||||||||||||||
March 29, | March 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Prepaid expenses and other current assets | $ | 12 | $ | 1,367 | |||||||||||||
Accrued expenses and other current liabilities | $ | (1,875 | ) | $ | (71 | ) | |||||||||||
The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. In attempts to mitigate counterparty credit risk, the Company enters into contracts with carefully selected financial institutions based upon their credit ratings and certain other financial factors, adhering to established limits for credit exposure. The aforementioned forward contracts generally have a term of no more than 12 months. The period of these contracts is directly related to the foreign transaction they are intended to hedge. The notional amount of these contracts outstanding at March 29, 2014 was approximately $155.1 million, which was comprised predominately of those designated as hedges. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
Deferred income tax assets and liabilities have been provided for temporary differences between the tax bases and financial reporting bases of the Company’s assets and liabilities using the tax rates and laws in effect for the periods in which the differences are expected to reverse. The Company periodically assesses the realizability of deferred tax assets and the adequacy of deferred tax liabilities, based on the results of local, state, federal or foreign statutory tax audits or estimates and judgments used. | |||||||||||||||||
Realization of deferred tax assets associated with net operating loss and tax credit carryforwards is dependent upon generating sufficient taxable income prior to their expiration in the applicable tax jurisdiction. The Company periodically reviews the recoverability of its deferred tax assets and provides valuation allowances, as deemed necessary, to reduce deferred tax assets to amounts that more-likely-than-not will be realized. The Company’s management considers many factors when assessing the likelihood of future realization of deferred tax assets, including recent earnings results within various taxing jurisdictions, expectations of future taxable income, the carryforward periods remaining and other factors. Changes in the required valuation allowance are recorded in income in the period such determination is made. Deferred tax assets could be reduced in the future if the Company’s estimates of taxable income during the carryforward period are significantly reduced or alternative tax strategies are no longer viable. | |||||||||||||||||
The Company recognizes the impact of an uncertain income tax position taken on its income tax returns at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will be recognized if it has less than a 50% likelihood of being sustained. The tax positions are analyzed periodically (at least quarterly) and adjustments are made as events occur that warrant adjustments for those positions. The Company records interest expense and penalties payable to relevant tax authorities as income tax expense. | |||||||||||||||||
Rent Expense, Deferred Rent and Landlord Construction Allowances | ' | ||||||||||||||||
Rent Expense, Deferred Rent and Landlord Construction Allowances | |||||||||||||||||
The Company leases office space, retail stores and distribution facilities under agreements that are classified as operating leases. Many of these operating leases include contingent rent provisions (percentage rent), and/or provide for certain landlord allowances related to tenant improvements and other relevant items. Rent expense is calculated by recognizing total minimum rental payments (net of any rental abatements, construction allowances and other rental concessions), on a straight-line basis, over the lease term. Accordingly, rent expense charged to operations differs from rent paid, resulting in the Company recording deferred rent, which is classified as a long-term liability in the Company’s consolidated balance sheets. The recognition of rent expense for a given operating lease commences on the earlier of the lease commencement date or the date of possession of the property. The Company accounts for landlord allowances and incentives as a component of deferred rent, which is amortized over the lease term as a reduction of rent expense. The Company records rent expense as a component of selling, general and administrative expenses. | |||||||||||||||||
Deferred Financing Costs | ' | ||||||||||||||||
Deferred Financing Costs | |||||||||||||||||
The Company defers costs directly associated with acquiring third party financing. These deferred costs are amortized on a straight-line basis, which approximates the effective interest method, as interest expense over the term of the related indebtedness. As of March 29, 2014, deferred financing costs were $2.9 million, net of accumulated amortization of $2.8 million, and as of March 30, 2013, deferred financing costs were $3.4 million, net of accumulated amortization of $2.0 million. Deferred financing costs are included in other assets on the consolidated balance sheets. | |||||||||||||||||
Net Income Per Share | ' | ||||||||||||||||
Net Income Per Share | |||||||||||||||||
The Company reported earnings per share in conformity with the two-class method for calculating and presenting earnings per share for fiscal years prior to Fiscal 2013, due to the existence of both ordinary and convertible preference securities in those periods. Under the two-class method, basic net income per ordinary share is computed by dividing the net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Net income available to shareholders is determined by allocating undistributed earnings between holders of ordinary and convertible preference shares, based on the participation rights of the preference shares. Diluted net income per share is computed by dividing the net income available to both ordinary and preference shareholders by the weighted-average number of dilutive shares outstanding during the period. | |||||||||||||||||
The Company’s basic net income per share excludes the dilutive effect of share options and unvested restricted shares. It is based upon the weighted average number of ordinary shares outstanding during the period divided into net income. | |||||||||||||||||
Diluted net income per share reflects the potential dilution that would occur if share option grants or any other dilutive equity instruments were exercised or converted into ordinary shares. These equity instruments are included as potential dilutive securities to the extent they are dilutive under the treasury stock method for the applicable periods. | |||||||||||||||||
For the purposes of basic and diluted net income per share, as a result of the reorganization and exchange during July 2011, weighted average shares outstanding for fiscal year 2012 reflect the exchange of ordinary shares for the newly issued ordinary and convertible preference shares as described in Note 2, as if such reorganization and exchange had occurred at the beginning of that fiscal year. In addition, as a result of the 3.8-to-1 share split, which was completed on November 30, 2011, weighted average shares outstanding for Fiscal 2012 reflect the split as if it had occurred at the beginning of that fiscal year. | |||||||||||||||||
The components of the calculation of basic net income per ordinary share and diluted net income per ordinary share are as follows (in thousands except share and per share data): | |||||||||||||||||
Fiscal Years Ended | |||||||||||||||||
March 29, | March 30, | March 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Numerator: | |||||||||||||||||
Net Income | $ | 661,485 | $ | 397,602 | $ | 147,364 | |||||||||||
Net income applicable to preference shareholders | — | — | 21,227 | ||||||||||||||
$ | 661,485 | $ | 397,602 | $ | 126,137 | ||||||||||||
Denominator: | |||||||||||||||||
Basic weighted average ordinary shares | 202,582,945 | 196,615,054 | 158,258,126 | ||||||||||||||
Weighted average dilutive share equivalents: | |||||||||||||||||
Share options and restricted shares/units | 3,055,162 | 4,925,090 | 2,628,650 | ||||||||||||||
Convertible preference shares | — | — | 28,412,421 | ||||||||||||||
Diluted weighted average ordinary shares | 205,638,107 | 201,540,144 | 189,299,197 | ||||||||||||||
Basic net income per ordinary share | $ | 3.27 | $ | 2.02 | $ | 0.8 | |||||||||||
Diluted net income per ordinary share | $ | 3.22 | $ | 1.97 | $ | 0.78 | |||||||||||
Share equivalents for 44,256 shares, 7,341 shares, and 343,787 shares, for fiscal years ending March 29, 2014, March 30, 2013, and March 31, 2012, have been excluded from the above calculation due to their anti-dilutive effect. | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements—The Company has considered all new accounting pronouncements and, other than the new pronouncement described below, has concluded that there are no new pronouncements that have a material impact on results of operations, financial condition, or cash flows, based on current information. | |||||||||||||||||
During the fiscal quarter ended June 29, 2013, the Company adopted the provisions of Accounting Standard Update 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”) which the Financial Accounting Standards Board (“FASB”) issued in February 2013. ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The ASU is effective for annual periods and interim periods within those periods beginning after December 15, 2012. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Activity and Balances of Sales Reserves | ' | ||||||||||||||||
The following table details the activity and balances of the Company’s sales reserves for the fiscal years ended March 29, 2014, March 30, 2013, and March 31, 2012 (in thousands): | |||||||||||||||||
Retail | Balance | Amounts | Write-offs | Balance | |||||||||||||
Beginning | Charged to | Against | at | ||||||||||||||
of Year | Revenue | Reserves | Year End | ||||||||||||||
Return Reserves: | |||||||||||||||||
Year ended March 29, 2014 | $ | 3,146 | $ | 45,632 | $ | (46,458 | ) | $ | 2,320 | ||||||||
Year ended March 30, 2013 | $ | 1,659 | $ | 35,448 | $ | (33,961 | ) | $ | 3,146 | ||||||||
Year ended March 31, 2012 | $ | 2,313 | $ | 23,580 | $ | (24,234 | ) | $ | 1,659 | ||||||||
Wholesale | Balance | Amounts | Write-offs | Balance | |||||||||||||
Beginning | Charged to | Against | at | ||||||||||||||
of Year | Revenue | Reserves | Year End | ||||||||||||||
Total Sales Reserves: | |||||||||||||||||
Year ended March 29, 2014 | $ | 43,009 | $ | 203,465 | $ | (180,553 | ) | $ | 65,921 | ||||||||
Year ended March 30, 2013 | $ | 30,381 | $ | 135,450 | $ | (122,822 | ) | $ | 43,009 | ||||||||
Year ended March 31, 2012 | $ | 25,180 | $ | 114,577 | $ | (109,376 | ) | $ | 30,381 | ||||||||
Fair Values of Forward Foreign Currency Exchange Contracts | ' | ||||||||||||||||
The following table details the fair value of these contracts as of March 29, 2014, and March 30, 2013 (in thousands): | |||||||||||||||||
March 29, | March 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Prepaid expenses and other current assets | $ | 12 | $ | 1,367 | |||||||||||||
Accrued expenses and other current liabilities | $ | (1,875 | ) | $ | (71 | ) | |||||||||||
Components of Calculation of Basic Net Income Per Ordinary Share and Diluted Net Income Per Ordinary Share | ' | ||||||||||||||||
The components of the calculation of basic net income per ordinary share and diluted net income per ordinary share are as follows (in thousands except share and per share data): | |||||||||||||||||
Fiscal Years Ended | |||||||||||||||||
March 29, | March 30, | March 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Numerator: | |||||||||||||||||
Net Income | $ | 661,485 | $ | 397,602 | $ | 147,364 | |||||||||||
Net income applicable to preference shareholders | — | — | 21,227 | ||||||||||||||
$ | 661,485 | $ | 397,602 | $ | 126,137 | ||||||||||||
Denominator: | |||||||||||||||||
Basic weighted average ordinary shares | 202,582,945 | 196,615,054 | 158,258,126 | ||||||||||||||
Weighted average dilutive share equivalents: | |||||||||||||||||
Share options and restricted shares/units | 3,055,162 | 4,925,090 | 2,628,650 | ||||||||||||||
Convertible preference shares | — | — | 28,412,421 | ||||||||||||||
Diluted weighted average ordinary shares | 205,638,107 | 201,540,144 | 189,299,197 | ||||||||||||||
Basic net income per ordinary share | $ | 3.27 | $ | 2.02 | $ | 0.8 | |||||||||||
Diluted net income per ordinary share | $ | 3.22 | $ | 1.97 | $ | 0.78 | |||||||||||
Receivables_Tables
Receivables (Tables) | 12 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Receivables, net | ' | ||||||||
Receivables consist of (in thousands): | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Trade receivables: | |||||||||
Credit risk assumed by factors/insured | $ | 261,900 | $ | 199,677 | |||||
Credit risk retained by Company | 109,094 | 45,588 | |||||||
Receivables due from licensees | 11,302 | 7,344 | |||||||
382,296 | 252,609 | ||||||||
Less allowances: | (68,241 | ) | (46,155 | ) | |||||
$ | 314,055 | $ | 206,454 | ||||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Property and Equipment, Net | ' | ||||||||
Property and equipment, net, consists of (in thousands): | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Furniture and fixtures | $ | 108,757 | $ | 76,336 | |||||
Equipment | 31,683 | 13,276 | |||||||
Computer equipment and software | 50,646 | 29,429 | |||||||
In-store shops | 123,637 | 78,809 | |||||||
Leasehold improvements | 216,451 | 168,306 | |||||||
531,174 | 366,156 | ||||||||
Less: accumulated depreciation and amortization | (234,381 | ) | (165,340 | ) | |||||
296,793 | 200,816 | ||||||||
Construction-in-progress | 53,885 | 41,297 | |||||||
$ | 350,678 | $ | 242,113 | ||||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||||||||||
Carrying Values of Intangible Assets and Goodwill | ' | ||||||||||||||||||||||||
The following table discloses the carrying values of intangible assets and goodwill (in thousands): | |||||||||||||||||||||||||
March 29, 2014 | March 30, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Trademarks | $ | 23,000 | $ | 12,845 | $ | 10,155 | $ | 23,000 | $ | 11,693 | $ | 11,307 | |||||||||||||
Lease Rights | 41,748 | 3,869 | 37,879 | 11,548 | 1,875 | 9,673 | |||||||||||||||||||
Goodwill | 14,005 | — | 14,005 | 14,005 | — | 14,005 | |||||||||||||||||||
$ | 78,753 | $ | 16,714 | $ | 62,039 | $ | 48,553 | $ | 13,568 | $ | 34,985 | ||||||||||||||
Estimated Amortization Expense | ' | ||||||||||||||||||||||||
Estimated amortization expense for each of the next five years is as follows (in thousands): | |||||||||||||||||||||||||
Fiscal 2015 | $ | 6,606 | |||||||||||||||||||||||
Fiscal 2016 | 6,779 | ||||||||||||||||||||||||
Fiscal 2017 | 6,774 | ||||||||||||||||||||||||
Fiscal 2018 | 6,740 | ||||||||||||||||||||||||
Fiscal 2019 | 6,646 | ||||||||||||||||||||||||
Thereafter | 14,489 | ||||||||||||||||||||||||
$ | 48,034 | ||||||||||||||||||||||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Accrued Expenses and Other Current Liabilities | ' | ||||||||
Accrued expenses and other current liabilities consist of (in thousands): | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Professional services | $ | 6,319 | $ | 4,041 | |||||
Advance royalty | 2,097 | 1,094 | |||||||
Inventory purchases | 12,408 | 5,040 | |||||||
Sales tax payable | 17,321 | 7,635 | |||||||
Unrealized loss on foreign exchange contracts | 1,813 | 334 | |||||||
Advertising | 4,810 | 3,013 | |||||||
Accrued rent | 14,159 | 3,787 | |||||||
Other | 15,402 | 8,611 | |||||||
$ | 74,329 | $ | 33,555 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Rent Expense for Operating Leases | ' | ||||||||||||
Rent expense for the Company’s operating leases for the fiscal years then ended consist of the following (in thousands): | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Minimum rentals | $ | 107,071 | $ | 74,708 | $ | 61,364 | |||||||
Contingent rent | 56,299 | 29,871 | 11,209 | ||||||||||
Total rent expense | $ | 163,370 | $ | 104,579 | $ | 72,573 | |||||||
Future Minimum Lease Payments under Terms of Noncancelable Operating Lease Agreements | ' | ||||||||||||
Future minimum lease payments under the terms of these noncancelable operating lease agreements are as follows (in thousands): | |||||||||||||
Fiscal year ending | |||||||||||||
2015 | $ | 133,892 | |||||||||||
2016 | 133,191 | ||||||||||||
2017 | 131,619 | ||||||||||||
2018 | 128,228 | ||||||||||||
2019 | 116,553 | ||||||||||||
Thereafter | 436,718 | ||||||||||||
$ | 1,080,201 | ||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Contracts Categorized in Level 2 of Fair Value Hierarchy | ' | ||||||||||||||||
All contracts are categorized in Level 2 of the fair value hierarchy as shown in the following table: | |||||||||||||||||
Fair value at March 29, 2014, using: | |||||||||||||||||
(In thousands) | Total | Quoted prices in | Significant other | Significant | |||||||||||||
active markets for | observable inputs | unobservable | |||||||||||||||
identical assets | (Level 2) | inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Foreign currency forward contracts - Euro to U.S. Dollar | $ | (1,875 | ) | $ | — | $ | (1,875 | ) | $ | — | |||||||
Foreign currency forward contracts - U.S. Dollar to Euro | 12 | — | 12 | — | |||||||||||||
Total | $ | (1,863 | ) | $ | — | $ | (1,863 | ) | $ | — | |||||||
Other_Comprehensive_Income_Hed1
Other Comprehensive Income- Hedging Instruments (Tables) | 12 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Impact of Effective Portion of Losses of Forward Contracts Designated as Hedges | ' | ||||||||
The following table summarizes the impact of the effective portion of the losses of the forward contracts designated as hedges for the fiscal year ended March 29, 2014 (in thousands): | |||||||||
Fiscal Year Ended March 29, 2014 | |||||||||
Pre-Tax | Loss | ||||||||
(Loss) | Reclassified from | ||||||||
Recognized | Accumulated OCI | ||||||||
in OCI | into Earnings | ||||||||
(Effective Portion) | (Effective Portion) | ||||||||
Forward currency exchange contracts | $ | (3,257 | ) | $ | (540 | ) |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Options Activity and Information about Options Outstanding | ' | ||||||||||||||||
The following table summarizes the share options activity during Fiscal 2014, and information about options outstanding at March 29, 2014: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise price | Remaining | Value | |||||||||||||||
Contractual | (in thousands) | ||||||||||||||||
Life (years) | |||||||||||||||||
Outstanding at March 30, 2013 | 10,381,342 | $ | 9.21 | ||||||||||||||
Granted | 623,098 | $ | 62.7 | ||||||||||||||
Exercised | (2,586,283 | ) | $ | 7.36 | |||||||||||||
Canceled/forfeited | (40,229 | ) | $ | 24.35 | |||||||||||||
Outstanding at March 29, 2014 | 8,377,928 | $ | 13.69 | 6.18 | $ | 662,388 | |||||||||||
Vested or expected to vest at March 29, 2014 | 8,210,369 | $ | 13.69 | 6.18 | |||||||||||||
Vested and exercisable at March 29, 2014 | 2,295,526 | $ | 9.57 | 5.49 | $ | 190,945 | |||||||||||
Assumptions Used to Estimate Fair Value of Options | ' | ||||||||||||||||
The following table represents assumptions used to estimate the fair value of options: | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
March 29, | March 30, | March 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Volatility factor | 46 | % | 48.5 | % | 46.5 | % | |||||||||||
Weighted average risk-free interest rate | 1 | % | 0.6 | % | 1.8 | % | |||||||||||
Expected life of option | 4.75 years | 4.75 years | 7.8 years | ||||||||||||||
Restricted Shares and Restricted Share Units | ' | ||||||||||||||||
The following table summarizes restricted shares under the 2012 Plan as of March 29, 2014 and changes during the fiscal period then ended: | |||||||||||||||||
Number of Unvested | Weighted | ||||||||||||||||
Restricted Shares | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Unvested at March 30, 2013 | 617,468 | $ | 23.66 | ||||||||||||||
Granted | 255,850 | $ | 62.89 | ||||||||||||||
Vested | (208,283 | ) | $ | 23.32 | |||||||||||||
Canceled/forfeited | (7,182 | ) | $ | 39.6 | |||||||||||||
Unvested at March 29, 2014 | 657,853 | $ | 38.38 | ||||||||||||||
The following table summarizes restricted share units under the 2012 Plan as of March 29, 2014 and changes during the fiscal period then ended: | |||||||||||||||||
Number of Unvested | Weighted | ||||||||||||||||
Restricted Units | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Unvested at March 30, 2013 | 27,763 | $ | 31.12 | ||||||||||||||
Granted | 174,002 | $ | 62.64 | ||||||||||||||
Vested | (1,986 | ) | $ | 58.1 | |||||||||||||
Canceled/forfeited | — | $ | — | ||||||||||||||
Unvested at March 29, 2014 | 199,779 | $ | 58.31 | ||||||||||||||
Taxes_Tables
Taxes (Tables) | 12 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Income Before Provision for Income Taxes | ' | ||||||||||||
Income before provision for income taxes consisted of the following (in thousands): | |||||||||||||
Fiscal Years Ended | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 792,899 | $ | 538,607 | $ | 227,514 | |||||||
Non-U.S. | 214,748 | 88,520 | 21,302 | ||||||||||
Total income before provision for income taxes | $ | 1,007,647 | $ | 627,127 | $ | 248,816 | |||||||
Provision for Income Taxes | ' | ||||||||||||
The provision for income taxes was as follows (in thousands): | |||||||||||||
Fiscal Years Ended | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current | |||||||||||||
U.S. Federal | $ | 295,159 | $ | 179,014 | $ | 79,690 | |||||||
U.S. State | 50,348 | 32,249 | 20,916 | ||||||||||
Non-U.S. | 30,560 | 15,040 | 8,575 | ||||||||||
Total current | 376,067 | 226,303 | 109,181 | ||||||||||
Deferred | |||||||||||||
U.S. Federal | (24,847 | ) | 1,246 | (4,128 | ) | ||||||||
U.S. State | (3,594 | ) | 2,088 | (3,595 | ) | ||||||||
Non-U.S. | (1,464 | ) | (112 | ) | (6 | ) | |||||||
Total deferred | (29,905 | ) | 3,222 | (7,729 | ) | ||||||||
Total provision for income taxes | $ | 346,162 | $ | 229,525 | $ | 101,452 | |||||||
Significant Differences Between United States Federal Statutory Tax Rate and Company's Effective Tax Rate | ' | ||||||||||||
The following table summarizes the significant differences between the United States Federal statutory tax rate and the Company’s effective tax rate for financial statement purposes: | |||||||||||||
Fiscal Years Ended | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal tax at 35% statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State and local income taxes, net of federal benefit | 2.3 | % | 3.6 | % | 4.8 | % | |||||||
Differences in tax effects on foreign income | -3.9 | % | -3.1 | % | -1.3 | % | |||||||
Foreign tax credit | -0.2 | % | -0.2 | % | -0.6 | % | |||||||
Liability for uncertain tax positions | 0.8 | % | 0.5 | % | 0.2 | % | |||||||
Effect of changes in valuation allowances on deferred tax assets | -0.2 | % | 0.3 | % | 1.8 | % | |||||||
Other | 0.6 | % | 0.5 | % | 0.9 | % | |||||||
34.4 | % | 36.6 | % | 40.8 | % | ||||||||
Significant Components of Deferred Tax Assets (Liabilities) | ' | ||||||||||||
Significant components of the Company’s deferred tax assets (liabilities) consist of the following (in thousands): | |||||||||||||
March 29, | March 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets | |||||||||||||
Inventories | $ | 11,380 | $ | 8,469 | |||||||||
Payroll related accruals | 4,722 | 1,188 | |||||||||||
Deferred rent | 24,281 | 16,209 | |||||||||||
Deferred Revenue | 2,389 | — | |||||||||||
Net operating loss carryforwards | 7,743 | 8,508 | |||||||||||
Stock compensation | 14,117 | 8,909 | |||||||||||
Sales allowances | 7,654 | — | |||||||||||
Other | 9,589 | 2,331 | |||||||||||
81,875 | 45,614 | ||||||||||||
Valuation allowance | (8,020 | ) | (8,746 | ) | |||||||||
Total deferred tax assets | 73,855 | 36,868 | |||||||||||
Deferred tax liabilities | |||||||||||||
Goodwill and intangibles | (24,324 | ) | (14,780 | ) | |||||||||
Depreciation | (20,691 | ) | (20,927 | ) | |||||||||
Other | (526 | ) | (1,455 | ) | |||||||||
Total deferred tax liabilities | (45,541 | ) | (37,162 | ) | |||||||||
Net deferred tax (liability) assets | $ | 28,314 | $ | (294 | ) | ||||||||
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits Excluding Accrued Interest | ' | ||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding accrued interest, for Fiscal 2014, Fiscal 2013, and Fiscal 2012, are presented below (in thousands): | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits beginning balance | $ | 6,628 | $ | 1,758 | $ | 939 | |||||||
Additions related to prior period tax positions | 2,515 | 3,318 | 246 | ||||||||||
Additions related to current period tax positions | 9,312 | 2,482 | 573 | ||||||||||
Decreases from prior period positions | (368 | ) | (930 | ) | — | ||||||||
Unrecognized tax benefits ending balance | $ | 18,087 | $ | 6,628 | $ | 1,758 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Key Performance Information of Reportable Segments | ' | ||||||||||||
The following table presents the key performance information of the Company’s reportable segments (in thousands): | |||||||||||||
Fiscal Years Ended | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue: | |||||||||||||
Net sales: Retail | $ | 1,593,005 | $ | 1,062,642 | $ | 626,940 | |||||||
Wholesale | 1,577,517 | 1,032,115 | 610,160 | ||||||||||
Licensing | 140,321 | 86,975 | 65,154 | ||||||||||
Total revenue | $ | 3,310,843 | $ | 2,181,732 | $ | 1,302,254 | |||||||
Income from operations: | |||||||||||||
Retail | $ | 467,248 | $ | 315,654 | $ | 121,851 | |||||||
Wholesale | 459,774 | 269,323 | 85,000 | ||||||||||
Licensing | 81,149 | 45,037 | 40,831 | ||||||||||
Income from operations | $ | 1,008,171 | $ | 630,014 | $ | 247,682 | |||||||
Depreciation and Amortization Expense for Each Segment | ' | ||||||||||||
Depreciation and amortization expense for each segment are as follows (in thousands): | |||||||||||||
Fiscal Years Ended | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation: | |||||||||||||
Retail(1) | $ | 46,679 | $ | 35,388 | $ | 25,293 | |||||||
Wholesale | 32,364 | 18,531 | 12,012 | ||||||||||
Licensing | 611 | 372 | 249 | ||||||||||
Total depreciation | $ | 79,654 | $ | 54,291 | $ | 37,554 | |||||||
-1 | Excluded in the above table are impairment charges related to the retail segment for $1.3 million, $0.7 million, and $3.3 million, during the fiscal years ended March 29, 2014, March 30, 2013, and March 31, 2012, respectively. | ||||||||||||
Total Revenue (as Recognized Based on Country of Origin) | ' | ||||||||||||
Total revenue (as recognized based on country of origin), and long-lived assets by geographic location of the consolidated Company are as follows (in thousands): | |||||||||||||
Fiscal Years Ended | |||||||||||||
March 29, | March 30, | March 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Net revenues: | |||||||||||||
North America (U.S. and Canada) | $ | 2,771,818 | $ | 1,938,635 | $ | 1,183,234 | |||||||
Europe | 500,478 | 220,724 | 108,790 | ||||||||||
Other regions | 38,547 | 22,373 | 10,230 | ||||||||||
Total net revenues | $ | 3,310,843 | $ | 2,181,732 | $ | 1,302,254 | |||||||
Long-Lived Assets by Geographic Location | ' | ||||||||||||
As of | |||||||||||||
March 29, | March 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Long-lived assets: | |||||||||||||
North America (U.S. and Canada) | $ | 283,162 | $ | 209,973 | |||||||||
Europe | 108,074 | 46,154 | |||||||||||
Other regions | 7,476 | 6,966 | |||||||||||
Total Long-lived assets: | $ | 398,712 | $ | 263,093 | |||||||||
Selected_Quarterly_Financial_I1
Selected Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Summary of Quarterly Results | ' | ||||||||||||||||
The following table summarizes the Fiscal 2014 and 2013 quarterly results (dollars in thousands): | |||||||||||||||||
Fiscal Quarter Ended | |||||||||||||||||
June | September | December | March | ||||||||||||||
Year Ended March 29, 2014 | |||||||||||||||||
Total Revenue | $ | 640,859 | $ | 740,303 | $ | 1,012,229 | $ | 917,452 | |||||||||
Gross profit | $ | 397,271 | $ | 449,875 | $ | 619,498 | $ | 549,426 | |||||||||
Income from operations | $ | 197,562 | $ | 221,460 | $ | 343,240 | $ | 245,909 | |||||||||
Net income | $ | 124,996 | $ | 145,808 | $ | 229,643 | $ | 161,038 | |||||||||
Weighted average ordinary shares outstanding: | |||||||||||||||||
Basic | 201,208,189 | 202,560,870 | 203,175,380 | 203,387,343 | |||||||||||||
Diluted | 204,336,124 | 205,154,692 | 206,088,062 | 206,973,550 | |||||||||||||
Year Ended March 30, 2013 | |||||||||||||||||
Total Revenue | $ | 414,865 | $ | 532,935 | $ | 636,778 | $ | 597,154 | |||||||||
Gross profit | $ | 251,000 | $ | 315,900 | $ | 383,451 | $ | 356,215 | |||||||||
Income from operations | $ | 111,943 | $ | 157,928 | $ | 204,839 | $ | 155,304 | |||||||||
Net income | $ | 68,645 | $ | 97,828 | $ | 130,028 | $ | 101,101 | |||||||||
Weighted average ordinary shares outstanding: | |||||||||||||||||
Basic | 192,790,454 | 194,323,935 | 199,291,480 | 200,080,126 | |||||||||||||
Diluted | 199,391,127 | 200,192,291 | 202,817,811 | 203,785,123 |
Business_and_Basis_of_Presenta1
Business and Basis of Presentation - Additional Information (Detail) | 1 Months Ended | |
Dec. 20, 2011 | Nov. 30, 2011 | |
Conversion of Stock [Line Items] | ' | ' |
Share split ratio | 3.8 | 3.8 |
Reorganization_and_Initial_Pub1
Reorganization and Initial Public Offering - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 20, 2011 | Nov. 30, 2011 | Jul. 31, 2011 | Mar. 31, 2012 | Mar. 29, 2014 | Mar. 30, 2013 | Jun. 30, 2011 | Jun. 30, 2011 | Jun. 30, 2011 | Jun. 30, 2011 | Dec. 20, 2011 | Feb. 28, 2013 | Oct. 31, 2012 | Sep. 30, 2012 | Apr. 30, 2012 | Mar. 31, 2012 | Mar. 31, 2012 | Dec. 20, 2011 | Jul. 31, 2011 | Mar. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2011 | Dec. 20, 2011 | Jul. 31, 2011 | Mar. 31, 2012 | |
SHL Kors Limited | Mr Kors | SHL Fashion Limited | IPO | Secondary Public Offering | Secondary Public Offering | Secondary Public Offering | Secondary Public Offering | Secondary Public Offering | Secondary Public Offering | Preferred Stock | Preferred Stock | Preferred Stock | Preferred Stock | Preferred Stock | Common Stock | Common Stock | Common Stock | ||||||||
Private Placement | Private Placement | ||||||||||||||||||||||||
Previous Shareholders of SHL Fashion Limited and Mr Kors | |||||||||||||||||||||||||
Reorganization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest before transaction | ' | ' | ' | ' | ' | ' | ' | 85.00% | 15.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of shares in exchange for note, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 475,796 | 475,796 | ' | ' | ' | 6,579,656 | 6,579,656 |
Issuance of shares in exchange for note, value | ' | ' | $101,700,000 | $101,650,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of new shares, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54,280,000 | 25,000,000 | 3,450,000 | 23,000,000 | 3,750,000 | 25,000,000 | ' | ' | 10,639,716 | 217,137 | 217,137 | 10,639,716 | ' | 147,134,033 | ' |
Issuance of new shares, value | ' | ' | ' | 9,550,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | 490,000,000 | ' | ' | ' |
Proceeds from private placement | ' | ' | ' | 9,550,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,500,000 | ' | ' | ' | ' |
Placement fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' |
Ordinary shares, shares authorized | ' | ' | 650,000,000 | ' | 650,000,000 | 650,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ordinary shares, shares issued | ' | ' | 147,134,033 | ' | 204,291,345 | 201,454,408 | 4,351 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ordinary shares, shares outstanding | ' | ' | 147,134,033 | ' | 204,291,345 | 201,454,408 | 4,351 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible preference shares, shares authorized | ' | ' | 10,856,853 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible preference shares, shares issued | ' | ' | 10,856,853 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible preference shares, shares outstanding | ' | ' | 10,856,853 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Elimination of contingent redemption on ordinary shares | ' | ' | 6,700,000 | 6,706,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of new shares, price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20 | $61.50 | $53 | $53 | $47 | $47 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of convertible preference shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,856,853 | ' | -10,856,853 | ' | ' | 41,256,025 | ' | 41,256,025 |
Share split ratio | 3.8 | 3.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees related to secondary offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $800,000 | $900,000 | ' | ' | ' | $700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest after transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Activity_and_Balances_of_Sales
Activity and Balances of Sales Reserves (Detail) (Allowance for sales returns, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Retail | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance Beginning of Year | $3,146 | $1,659 | $2,313 |
Amounts Charged to Revenue | 45,632 | 35,448 | 23,580 |
Write-offs Against Reserves | -46,458 | -33,961 | -24,234 |
Balance at Year End | 2,320 | 3,146 | 1,659 |
Wholesale | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance Beginning of Year | 43,009 | 30,381 | 25,180 |
Amounts Charged to Revenue | 203,465 | 135,450 | 114,577 |
Write-offs Against Reserves | -180,553 | -122,822 | -109,376 |
Balance at Year End | $65,921 | $43,009 | $30,381 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
Dec. 20, 2011 | Nov. 30, 2011 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 | |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Advertising expense | ' | ' | $65,700,000 | $41,900,000 | $31,400,000 |
Cooperative advertising Expenses | ' | ' | 7,300,000 | 5,100,000 | 4,300,000 |
Shipping and handling costs | ' | ' | 78,600,000 | 29,100,000 | 19,700,000 |
Non-recourse loan to sole joint venture | ' | ' | ' | 6,000,000 | ' |
Non-recourse loan annual rate | ' | ' | ' | 5.00% | ' |
Deferred finance cost | ' | ' | 2,900,000 | 3,400,000 | ' |
Accumulated amortization of deferred finance cost | ' | ' | 2,800,000 | 2,000,000 | ' |
Share split ratio | 3.8 | 3.8 | ' | ' | ' |
Stock Options | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Share-based compensation, vesting period | ' | ' | '4 years | ' | ' |
Share-based compensation, contractual term | ' | ' | '7 years | ' | ' |
Anti-dilutive securities excluded from computation of earning per share | ' | ' | 44,256 | 7,341 | 343,787 |
Stock Options | Minimum | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Share-based compensation, fair value assumption, expected holding period | ' | ' | '4 years 6 months | ' | ' |
Share-based compensation, service period requirement | ' | ' | '9 years | ' | ' |
Share-based compensation, holding period | ' | ' | '4 years 6 months | ' | ' |
Stock Options | Maximum | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Share-based compensation, fair value assumption, expected holding period | ' | ' | '9 years 6 months | ' | ' |
Share-based compensation, service period requirement | ' | ' | '10 years | ' | ' |
Share-based compensation, holding period | ' | ' | '4 years 9 months | ' | ' |
Foreign Exchange Forward | Not Designated as Hedging Instrument | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Forward contracts term, maximum | ' | ' | '12 months | ' | ' |
Foreign Exchange Forward | Designated as Hedging Instrument | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Net unrealized gain on derivatives | ' | ' | 2,900,000 | ' | ' |
Notional amount of forward contract | ' | ' | $155,100,000 | ' | ' |
Trademarks | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Intangible asset, useful life | ' | ' | '20 years | ' | ' |
In-Store Shops | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | ' | '3 years | ' | ' |
Software Development | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | ' | '5 years | ' | ' |
Equipment, furniture and fixtures | Minimum | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | ' | '5 years | ' | ' |
Equipment, furniture and fixtures | Maximum | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | ' | '7 years | ' | ' |
Computer Hardware And Software | Minimum | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | ' | '3 years | ' | ' |
Computer Hardware And Software | Maximum | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | ' | '5 years | ' | ' |
Fair_Values_of_Forward_Foreign
Fair Values of Forward Foreign Currency Exchange Contracts (Detail) (Foreign Exchange Forward, Not Designated as Hedging Instrument, USD $) | Mar. 29, 2014 | Mar. 30, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid Expenses and Other Current Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative assets | $12 | $1,367 |
Accrued Expenses and Other Current Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative liabilities | ($1,875) | ($71) |
Components_of_Calculation_of_B
Components of Calculation of Basic Net Income Per Ordinary Share and Diluted Net Income Per Ordinary Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $161,038 | $229,643 | $145,808 | $124,996 | $101,101 | $130,028 | $97,828 | $68,645 | $661,485 | $397,602 | $147,364 |
Net income applicable to preference shareholders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,227 |
Net income available for ordinary shareholders | ' | ' | ' | ' | ' | ' | ' | ' | $661,485 | $397,602 | $126,137 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic weighted average ordinary shares | 203,387,343 | 203,175,380 | 202,560,870 | 201,208,189 | 200,080,126 | 199,291,480 | 194,323,935 | 192,790,454 | 202,582,945 | 196,615,054 | 158,258,126 |
Weighted average dilutive share equivalents: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share options and restricted shares/units | ' | ' | ' | ' | ' | ' | ' | ' | 3,055,162 | 4,925,090 | 2,628,650 |
Convertible preference shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,412,421 |
Diluted weighted average ordinary shares | 206,973,550 | 206,088,062 | 205,154,692 | 204,336,124 | 203,785,123 | 202,817,811 | 200,192,291 | 199,391,127 | 205,638,107 | 201,540,144 | 189,299,197 |
Basic net income per ordinary share | ' | ' | ' | ' | ' | ' | ' | ' | $3.27 | $2.02 | $0.80 |
Diluted net income per ordinary share | ' | ' | ' | ' | ' | ' | ' | ' | $3.22 | $1.97 | $0.78 |
Receivables_net_Detail
Receivables, net (Detail) (USD $) | Mar. 29, 2014 | Mar. 30, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Receivables due from licensees | $11,302 | $7,344 |
Receivables, Gross, Current | 382,296 | 252,609 |
Less allowances | -68,241 | -46,155 |
Receivables, net | 314,055 | 206,454 |
Credit Risk Assumed by Factors/Insured | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Trade receivables | 261,900 | 199,677 |
Credit Risk Assumed by Company | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Trade receivables | $109,094 | $45,588 |
Receivables_Additional_Informa
Receivables - Additional Information (Detail) (USD $) | Mar. 29, 2014 | Mar. 30, 2013 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Allowance for doubtful accounts | $1.50 | $1.10 |
Concentration_of_Credit_Risk_M1
Concentration of Credit Risk, Major Customers and Suppliers - Additional Information (Detail) | 12 Months Ended | ||
Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 | |
Finished Goods | Supplier Concentration Risk | Agents | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 12.60% | 14.00% | 17.00% |
Finished Goods | Supplier Concentration Risk | Independent Contractor | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 30.40% | 31.80% | 31.00% |
Wholesale | Sales Revenue, Goods, Net | Customer Concentration Risk | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage | 14.40% | 14.00% | 13.00% |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Mar. 29, 2014 | Mar. 30, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $531,174 | $366,156 |
Less: accumulated depreciation and amortization | -234,381 | -165,340 |
Subtotal | 296,793 | 200,816 |
Construction-in-progress | 53,885 | 41,297 |
Property and equipment, net | 350,678 | 242,113 |
Furniture and Fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 108,757 | 76,336 |
Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 31,683 | 13,276 |
Computer Equipment And Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 50,646 | 29,429 |
In-Store Shops | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 123,637 | 78,809 |
Leasehold Improvement | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $216,451 | $168,306 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 | |
Store | Store | Store | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation and amortization of property and equipment | $76,600,000 | $52,700,000 | $36,000,000 |
Impairment of long-lived assets | $1,332,000 | $725,000 | $3,292,000 |
Number of stores impaired | 3 | 1 | 2 |
Carrying_Values_of_Intangible_
Carrying Values of Intangible Assets and Goodwill (Detail) (USD $) | Mar. 29, 2014 | Mar. 30, 2013 |
In Thousands, unless otherwise specified | ||
Intangible Assets And Goodwill [Line Items] | ' | ' |
Goodwill, Gross Carrying Amount | $14,005 | $14,005 |
Goodwill, Net | 14,005 | 14,005 |
Gross Carrying Amount | 78,753 | 48,553 |
Accumulated Amortization | 16,714 | 13,568 |
Net | 48,034 | ' |
Net | 62,039 | 34,985 |
Trademarks | ' | ' |
Intangible Assets And Goodwill [Line Items] | ' | ' |
Gross Carrying Amount | 23,000 | 23,000 |
Accumulated Amortization | 12,845 | 11,693 |
Net | 10,155 | 11,307 |
Lease Rights | ' | ' |
Intangible Assets And Goodwill [Line Items] | ' | ' |
Gross Carrying Amount | 41,748 | 11,548 |
Accumulated Amortization | 3,869 | 1,875 |
Net | $37,879 | $9,673 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Intangible Assets And Goodwill [Line Items] | ' | ' | ' |
Amortization expense | $3.10 | $1.50 | $1.50 |
Cumulative impairment of goodwill | $5.40 | ' | ' |
Trademarks | ' | ' | ' |
Intangible Assets And Goodwill [Line Items] | ' | ' | ' |
Amortization period | '20 years | ' | ' |
Estimated_Amortization_Expense
Estimated Amortization Expense (Detail) (USD $) | Mar. 29, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' |
Fiscal 2015 | $6,606 |
Fiscal 2016 | 6,779 |
Fiscal 2017 | 6,774 |
Fiscal 2018 | 6,740 |
Fiscal 2019 | 6,646 |
Thereafter | 14,489 |
Net | $48,034 |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Mar. 29, 2014 | Mar. 30, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Expenses and Other Current Liabilities [Line Items] | ' | ' |
Professional services | $6,319 | $4,041 |
Advance royalty | 2,097 | 1,094 |
Inventory purchases | 12,408 | 5,040 |
Sales tax payable | 17,321 | 7,635 |
Unrealized loss on foreign exchange contracts | 1,813 | 334 |
Advertising | 4,810 | 3,013 |
Accrued rent | 14,159 | 3,787 |
Other | 15,402 | 8,611 |
Accrued expenses and other current liabilities | $74,329 | $33,555 |
Credit_Facilities_Additional_I
Credit Facilities - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Credit Facility 2011 | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Secured revolving credit facility, Expiration date | 15-Sep-15 | ' |
Line of credit facility maximum borrowing capacity | $100 | ' |
Aggregate Credit available other than the sum of eligible receivables and eligible inventory | 30 | ' |
Financial covenants on capital expenditure | 110 | ' |
Minimum fixed charge coverage ratio | 2 | ' |
Line of Credit Weighted Average rate of interest | ' | 2.72% |
Line of Credit Annual Facility fee on unused portion | 0.1 | ' |
Line of Credit Annual Commitment fees on unused portion | 0.35% | ' |
Largest amount borrowed | ' | 31.7 |
Credit Facility 2011 | Europe | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of credit facility maximum borrowing capacity | 35 | ' |
Credit Facility 2011 | Prime Rate | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Interest rate | 1.25% | ' |
Credit Facility 2011 | L I B O Rate | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Interest rate | 2.25% | ' |
Credit Facility 2013 | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Secured revolving credit facility, Expiration date | 8-Feb-18 | ' |
Line of credit facility maximum borrowing capacity | 200 | ' |
Minimum fixed charge coverage ratio | 2 | ' |
Line of Credit Weighted Average rate of interest | 1.60% | ' |
Line of Credit Annual Facility fee on unused portion | 0.1 | ' |
Largest amount borrowed | 6.6 | ' |
Line of credit facility covenant adjusted leverage ratio | 3.5 | ' |
Line of credit facility consolidated rent expense | '8.0 times | ' |
Line of credit facility available for future borrowings | 188.5 | ' |
Credit Facility 2013 | Europe | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of credit facility maximum borrowing capacity | 100 | ' |
Credit Facility 2013 | Standby Letters of Credit | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of credit facility amount outstanding | $11.50 | ' |
Credit Facility 2013 | Minimum | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of Credit Annual Commitment fees on unused portion | 0.25% | ' |
Credit Facility 2013 | Minimum | L I B O Rate | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Interest rate | 1.25% | ' |
Credit Facility 2013 | Maximum | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of Credit Annual Commitment fees on unused portion | 0.35% | ' |
Credit Facility 2013 | Maximum | L I B O Rate | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Interest rate | 1.75% | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 29, 2014 |
Commitments and Letters of Credit [Line Items] | ' |
Lease expiration date | '2028-11 |
Stand by letter of credit issued | $11.50 |
Long term employment commitment amount | $2.50 |
Rent_Expense_for_Operating_Lea
Rent Expense for Operating Leases (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Operating Leased Assets [Line Items] | ' | ' | ' |
Minimum rentals | $107,071 | $74,708 | $61,364 |
Contingent rent | 56,299 | 29,871 | 11,209 |
Total rent expense | $163,370 | $104,579 | $72,573 |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments under Terms of Noncancelable Operating Lease Agreements (Detail) (USD $) | Mar. 29, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' |
2015 | $133,892 |
2016 | 133,191 |
2017 | 131,619 |
2018 | 128,228 |
2019 | 116,553 |
Thereafter | 436,718 |
Operating Leases, Future Minimum Payments Due, Total | $1,080,201 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (Foreign Exchange Forward, Not Designated as Hedging Instrument) | 12 Months Ended |
Mar. 29, 2014 | |
Foreign Exchange Forward | Not Designated as Hedging Instrument | ' |
Fair Value of Financial Instruments [Line Items] | ' |
Forward contracts term, maximum | '12 months |
Contracts_Categorized_in_Level
Contracts Categorized in Level 2 of Fair Value Hierarchy (Detail) (USD $) | Mar. 29, 2014 |
In Thousands, unless otherwise specified | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Total | ($1,863) |
Euro Member Countries, Euro | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Foreign currency forward contracts-Liability | -1,875 |
United States of America, Dollars | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Foreign currency forward contracts-Asset | 12 |
Fair Value, Inputs, Level 2 | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Total | -1,863 |
Fair Value, Inputs, Level 2 | Euro Member Countries, Euro | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Foreign currency forward contracts-Liability | -1,875 |
Fair Value, Inputs, Level 2 | United States of America, Dollars | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Foreign currency forward contracts-Asset | $12 |
Impact_of_Effective_Portion_of
Impact of Effective Portion of Losses of Forward Contracts Designated as Hedges (Detail) (Foreign Currency Exchange Contracts, Designated as Hedging Instrument, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2014 |
Foreign Currency Exchange Contracts | Designated as Hedging Instrument | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' |
Pre-Tax (Loss) Recognized in OCI (Effective Portion) | ($3,257) |
Loss Reclassified from Accumulated OCI into Earnings (Effective Portion) | ($540) |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
OptionPlan | |||
EquityPlan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of equity plans | 2 | ' | ' |
Number of stock option grants | 2 | ' | ' |
Intrinsic value of option exercised | $163.20 | $415.10 | ' |
Cash received from options exercised | 19 | 30.4 | ' |
Weighted average grant date fair value of option | $24.95 | $20.66 | $8.01 |
Equity compensation expense | 29.1 | 20.9 | 27 |
Estimated value of future forfeitures | 0.8 | ' | ' |
Outstanding option vested | 2,295,526 | ' | ' |
Outstanding option non-vested | 6,082,402 | ' | ' |
Individual Performance Based Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting percentage on achievement of individual performance | 20.00% | ' | ' |
Performance target achievement term | '10 years | ' | ' |
Individual performance vesting tranches | 5 | ' | ' |
Company Wide Performance Based Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Performance target achievement term | '10 years | ' | ' |
Time Based Option Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of installments for vesting period on each of the first, second, third and fourth anniversaries date of award | 4 | ' | ' |
Restricted Shares | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of installments for vesting period on each of the first, second, third and fourth anniversaries date of award | 4 | ' | ' |
Fair value of restricted shares vested during a period | 17.6 | 10.5 | ' |
Unrecognized stock based compensation expense | 20.4 | ' | ' |
Weighted average period of recognition | '2 years 7 months 10 days | ' | ' |
Unvested stock awards | 657,853 | 617,468 | ' |
Restricted Shares | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation, vesting period | '3 years | ' | ' |
Restricted Shares | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation, vesting period | '4 years | ' | ' |
Restricted Share Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Fair value of restricted shares vested during a period | 0.2 | 0.8 | ' |
Unrecognized stock based compensation expense | $7.60 | ' | ' |
Weighted average period of recognition | '2 years 1 month 13 days | ' | ' |
Unvested stock awards | 199,779 | 27,763 | ' |
Restricted Stock Units Performance Vesting | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation, vesting period | '3 years | ' | ' |
Expense related to grants recognizable period | '3 years | ' | ' |
Stock Option Plan 2008 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share authorized for issuance | 23,980,823 | ' | ' |
Expiration period | '10 years | ' | ' |
Omnibus Incentive Plan, Twenty Twelve | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share authorized for issuance | 15,246,000 | ' | ' |
Shares available for grant | 11,897,658 | ' | ' |
Expiration period | '7 years | ' | ' |
Options_Activity_and_Informati
Options Activity and Information about Options Outstanding (Detail) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2014 |
Number of options | ' |
Outstanding at beginning of period | 10,381,342 |
Granted | 623,098 |
Exercised | -2,586,283 |
Canceled/forfeited | -40,229 |
Outstanding at end of period | 8,377,928 |
Vested or expected to vest at end of period | 8,210,369 |
Vested and exercisable at end of period | 2,295,526 |
Weighted Average Exercise Price | ' |
Outstanding at beginning of period | $9.21 |
Granted | $62.70 |
Exercised | $7.36 |
Canceled/forfeited | $24.35 |
Outstanding at end of period | $13.69 |
Vested or expected to vest at end of period | $13.69 |
Vested and exercisable at end of period | $9.57 |
Weighted Average Remaining Contractual Live (years) | ' |
Outstanding at end of period | '6 years 2 months 5 days |
Vested or expected to vest at end of period | '6 years 2 months 5 days |
Vested and exercisable at end of period | '5 years 5 months 27 days |
Aggregate Intrinsic Value | ' |
Outstanding at March 29, 2014 | $662,388 |
Vested and exercisable at March 29, 2014 | $190,945 |
Assumptions_Used_to_Estimate_F
Assumptions Used to Estimate Fair Value of Options (Detail) | 12 Months Ended | ||
Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Volatility factor | 46.00% | 48.50% | 46.50% |
Weighted average risk-free interest rate | 1.00% | 0.60% | 1.80% |
Expected life of option | '4 years 9 months | '4 years 9 months | '7 years 9 months 18 days |
Restricted_Shares_and_Restrict
Restricted Shares and Restricted Share Units (Detail) (USD $) | 12 Months Ended |
Mar. 29, 2014 | |
Restricted Shares | ' |
Number of Unvested Restricted Shares/Units | ' |
Unvested at beginning of period | 617,468 |
Granted | 255,850 |
Vested | -208,283 |
Canceled/forfeited | -7,182 |
Unvested at end of period | 657,853 |
Weighted Average Grant Date Fair Value | ' |
Unvested at beginning of period | $23.66 |
Granted | $62.89 |
Vested | $23.32 |
Canceled/forfeited | $39.60 |
Unvested at end of period | $38.38 |
Restricted Share Units | ' |
Number of Unvested Restricted Shares/Units | ' |
Unvested at beginning of period | 27,763 |
Granted | 174,002 |
Vested | -1,986 |
Unvested at end of period | 199,779 |
Weighted Average Grant Date Fair Value | ' |
Unvested at beginning of period | $31.12 |
Granted | $62.64 |
Vested | $58.10 |
Unvested at end of period | $58.31 |
Income_Before_Provision_for_In
Income Before Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Schedule of Income Before Income Tax [Line Items] | ' | ' | ' |
United States | $792,899 | $538,607 | $227,514 |
Non-U.S. | 214,748 | 88,520 | 21,302 |
Income before provision for income taxes | $1,007,647 | $627,127 | $248,816 |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Current | ' | ' | ' |
U.S. Federal | $295,159 | $179,014 | $79,690 |
U.S. State | 50,348 | 32,249 | 20,916 |
Non-U.S. | 30,560 | 15,040 | 8,575 |
Total current | 376,067 | 226,303 | 109,181 |
Deferred | ' | ' | ' |
U.S. Federal | -24,847 | 1,246 | -4,128 |
U.S. State | -3,594 | 2,088 | -3,595 |
Non-U.S. | -1,464 | -112 | -6 |
Total deferred | -29,905 | 3,222 | -7,729 |
Total provision for income taxes | $346,162 | $229,525 | $101,452 |
Significant_Differences_Betwee
Significant Differences Between United States Federal Statutory Tax Rate and Company's Effective Tax Rate (Detail) | 12 Months Ended | ||
Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 | |
Reconciliation of Effective Income Tax Rate [Line Items] | ' | ' | ' |
Federal tax at 35% statutory rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal benefit | 2.30% | 3.60% | 4.80% |
Differences in tax effects on foreign income | -3.90% | -3.10% | -1.30% |
Foreign tax credit | -0.20% | -0.20% | -0.60% |
Liability for uncertain tax positions | 0.80% | 0.50% | 0.20% |
Effect of changes in valuation allowances on deferred tax assets | -0.20% | 0.30% | 1.80% |
Other | 0.60% | 0.50% | 0.90% |
Effective Income Tax Rate Reconciliation, Percent, Total | 34.40% | 36.60% | 40.80% |
Significant_Components_of_Defe
Significant Components of Deferred Tax Assets (Liabilities) (Detail) (USD $) | Mar. 29, 2014 | Mar. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets And Liabilities [Line Items] | ' | ' |
Inventories | $11,380 | $8,469 |
Payroll related accruals | 4,722 | 1,188 |
Deferred rent | 24,281 | 16,209 |
Deferred Revenue | 2,389 | ' |
Net operating loss carryforwards | 7,743 | 8,508 |
Stock compensation | 14,117 | 8,909 |
Sales allowances | 7,654 | ' |
Other | 9,589 | 2,331 |
Deferred Tax Assets, Gross, Total | 81,875 | 45,614 |
Valuation allowance | -8,020 | -8,746 |
Total deferred tax assets | 73,855 | 36,868 |
Goodwill and intangibles | -24,324 | -14,780 |
Depreciation | -20,691 | -20,927 |
Other | -526 | -1,455 |
Total deferred tax liabilities | -45,541 | -37,162 |
Net deferred tax (liability) assets | $28,314 | ($294) |
Taxes_Additional_Information_D
Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 | Apr. 02, 2011 | |
Income Tax [Line Items] | ' | ' | ' | ' |
Increase in deferred tax valuation allowance | $900,000 | $1,600,000 | $4,400,000 | ' |
Valuation allowance released | 1,600,000 | 1,100,000 | 200,000 | ' |
Accrued liability for uncertain tax positions | 19,000,000 | ' | ' | ' |
Unrecognized tax benefits | 18,087,000 | 6,628,000 | 1,758,000 | 939,000 |
Interest recognized | 900,000 | 300,000 | 100,000 | ' |
Undistributed earnings | 1,317,000,000 | ' | ' | ' |
Foreign Tax Authority | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Net operating loss carryforwards | $27,400,000 | ' | ' | ' |
Foreign Tax Authority | Minimum | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Operating loss carry forward expiration year | '2017 | ' | ' | ' |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits Excluding Accrued Interest (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Income Tax Contingency [Line Items] | ' | ' | ' |
Unrecognized tax benefits beginning balance | $6,628 | $1,758 | $939 |
Additions related to prior period tax positions | 2,515 | 3,318 | 246 |
Additions related to current period tax positions | 9,312 | 2,482 | 573 |
Decreases from prior period positions | -368 | -930 | ' |
Unrecognized tax benefits ending balance | $18,087 | $6,628 | $1,758 |
Retirement_Plans_Additional_In
Retirement Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined contribution plan, service period for eligibility | '3 months | ' | ' |
Expenses recognized related to retirement plans | $3.50 | $2.20 | $1.60 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Segment | ||
Segment Reporting Information [Line Items] | ' | ' |
Number of operating segments | 3 | ' |
Goodwill | $14,005 | $14,005 |
Wholesale | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Goodwill | 12,100 | ' |
Licensing | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Goodwill | $1,900 | ' |
Key_Performance_Information_of
Key Performance Information of Reportable Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $917,452 | $1,012,229 | $740,303 | $640,859 | $597,154 | $636,778 | $532,935 | $414,865 | $3,310,843 | $2,181,732 | $1,302,254 |
Income from operations | 245,909 | 343,240 | 221,460 | 197,562 | 155,304 | 204,839 | 157,928 | 111,943 | 1,008,171 | 630,014 | 247,682 |
Retail | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,593,005 | 1,062,642 | 626,940 |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 467,248 | 315,654 | 121,851 |
Wholesale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,577,517 | 1,032,115 | 610,160 |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 459,774 | 269,323 | 85,000 |
Licensing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 140,321 | 86,975 | 65,154 |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | $81,149 | $45,037 | $40,831 |
Depreciation_and_Amortization_
Depreciation and Amortization Expense for Each Segment (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 | |||
Depreciation By Segment [Line Items] | ' | ' | ' | |||
Depreciation and amortization | $79,654 | $54,291 | $37,554 | |||
Retail | ' | ' | ' | |||
Depreciation By Segment [Line Items] | ' | ' | ' | |||
Depreciation and amortization | 46,679 | [1] | 35,388 | [1] | 25,293 | [1] |
Wholesale | ' | ' | ' | |||
Depreciation By Segment [Line Items] | ' | ' | ' | |||
Depreciation and amortization | 32,364 | 18,531 | 12,012 | |||
Licensing | ' | ' | ' | |||
Depreciation By Segment [Line Items] | ' | ' | ' | |||
Depreciation and amortization | $611 | $372 | $249 | |||
[1] | Excluded in the above table are impairment charges related to the retail segment for $1.3 million, $0.7 million, and $3.3 million, during the fiscal years ended March 29, 2014, March 30, 2013, and March 31, 2012, respectively. |
Depreciation_and_Amortization_1
Depreciation and Amortization Expense for Each Segment (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Depreciation By Segment [Line Items] | ' | ' | ' |
Impairment of long-lived assets | $1,332 | $725 | $3,292 |
Retail | ' | ' | ' |
Depreciation By Segment [Line Items] | ' | ' | ' |
Impairment of long-lived assets | $1,300 | $700 | $3,300 |
Total_Revenue_as_Recognized_Ba
Total Revenue (as Recognized Based on Country of Origin), and Long-Lived Assets by Geographic Location (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $917,452 | $1,012,229 | $740,303 | $640,859 | $597,154 | $636,778 | $532,935 | $414,865 | $3,310,843 | $2,181,732 | $1,302,254 |
Long-lived assets | 398,712 | ' | ' | ' | 263,093 | ' | ' | ' | 398,712 | 263,093 | ' |
North America (U.S. and Canada) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 2,771,818 | 1,938,635 | 1,183,234 |
Long-lived assets | 283,162 | ' | ' | ' | 209,973 | ' | ' | ' | 283,162 | 209,973 | ' |
Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 500,478 | 220,724 | 108,790 |
Long-lived assets | 108,074 | ' | ' | ' | 46,154 | ' | ' | ' | 108,074 | 46,154 | ' |
Other Regions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 38,547 | 22,373 | 10,230 |
Long-lived assets | $7,476 | ' | ' | ' | $6,966 | ' | ' | ' | $7,476 | $6,966 | ' |
Agreements_with_Shareholders_a1
Agreements with Shareholders and Related Party Transactions - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2011 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 | |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Issuance of shares in exchange for note, value | $101,700,000 | ' | ' | $101,650,000 |
Estimated cost of business travel charged to selling, general and administrative services during period | ' | ' | 300,000 | ' |
Amount charged to operating expenses | ' | 1,400,000 | ' | ' |
Agreements between the Company and Far East Holdings Limited expiry date | ' | 31-Mar-41 | ' | ' |
Royalties earned | ' | 1,600,000 | ' | ' |
Future royalty receivable year | ' | '2014 | ' | ' |
Net sales related to inventory items to the Licensees | ' | 12,900,000 | ' | ' |
Amounts charged to the Licensees | ' | ' | 300,000 | ' |
Amounts owed to the Company by the Licensees | ' | 4,500,000 | ' | ' |
Net sales | ' | 3,170,522,000 | 2,094,757,000 | 1,237,100,000 |
Director | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Inventory purchased from manufacturer owned by one of its directors | ' | 8,100,000 | 5,700,000 | 2,700,000 |
Licensee | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Net sales | ' | $36,500,000 | ' | ' |
Preferred Stock | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Issuance of shares in exchange for note, shares | 475,796 | ' | ' | 475,796 |
Common Stock | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Issuance of shares in exchange for note, shares | 6,579,656 | ' | ' | 6,579,656 |
Issuance of ordinary shares in exchange for note, shares | 6,579,662 | ' | ' | ' |
Summary_of_Quarterly_Results_D
Summary of Quarterly Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Revenue | $917,452 | $1,012,229 | $740,303 | $640,859 | $597,154 | $636,778 | $532,935 | $414,865 | $3,310,843 | $2,181,732 | $1,302,254 |
Gross profit | 549,426 | 619,498 | 449,875 | 397,271 | 356,215 | 383,451 | 315,900 | 251,000 | 2,016,070 | 1,306,566 | 753,096 |
Income from operations | 245,909 | 343,240 | 221,460 | 197,562 | 155,304 | 204,839 | 157,928 | 111,943 | 1,008,171 | 630,014 | 247,682 |
Net income | $161,038 | $229,643 | $145,808 | $124,996 | $101,101 | $130,028 | $97,828 | $68,645 | $661,485 | $397,602 | $147,364 |
Weighted average ordinary shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | 203,387,343 | 203,175,380 | 202,560,870 | 201,208,189 | 200,080,126 | 199,291,480 | 194,323,935 | 192,790,454 | 202,582,945 | 196,615,054 | 158,258,126 |
Diluted | 206,973,550 | 206,088,062 | 205,154,692 | 204,336,124 | 203,785,123 | 202,817,811 | 200,192,291 | 199,391,127 | 205,638,107 | 201,540,144 | 189,299,197 |