Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Dec. 27, 2014 | Feb. 02, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 27-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | KORS | |
Entity Registrant Name | MICHAEL KORS HOLDINGS LTD | |
Entity Central Index Key | 1530721 | |
Current Fiscal Year End Date | -25 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 200,755,876 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 27, 2014 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $949,846 | $955,145 |
Receivables, net | 364,070 | 314,055 |
Inventories | 537,501 | 426,938 |
Deferred tax assets | 21,555 | 30,539 |
Prepaid expenses and other current assets | 110,347 | 50,492 |
Total current assets | 1,983,319 | 1,777,169 |
Property and equipment, net | 532,304 | 350,678 |
Intangible assets, net | 63,644 | 48,034 |
Goodwill | 14,005 | 14,005 |
Deferred tax assets | 3,740 | 3,662 |
Other assets | 33,576 | 23,425 |
Total assets | 2,630,588 | 2,216,973 |
Current liabilities | ||
Accounts payable | 175,197 | 131,953 |
Accrued payroll and payroll related expenses | 50,642 | 54,703 |
Accrued income taxes | 29,757 | 47,385 |
Accrued expenses and other current liabilities | 105,726 | 74,329 |
Total current liabilities | 361,322 | 308,370 |
Deferred rent | 94,926 | 76,785 |
Deferred tax liabilities | 145 | 5,887 |
Other long-term liabilities | 22,710 | 19,800 |
Total liabilities | 479,103 | 410,842 |
Commitments and contingencies | ||
Shareholders' equity | ||
Ordinary shares, no par value; 650,000,000 shares authorized, and 201,029,249 shares issued and outstanding at December 27, 2014, and 204,291,345 shares issued and outstanding at March 29, 2014 | 0 | 0 |
Treasury shares, at cost (5,139,365 shares at December 27, 2014, and 29,765 at March 29, 2014) | -405,702 | -2,447 |
Additional paid-in capital | 610,938 | 527,213 |
Accumulated other comprehensive loss | -39,870 | -6,373 |
Retained earnings | 1,986,119 | 1,287,738 |
Total shareholders' equity | 2,151,485 | 1,806,131 |
Total liabilities and shareholders' equity | $2,630,588 | $2,216,973 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 27, 2014 | Mar. 29, 2014 |
Ordinary shares, par value | ||
Ordinary shares, shares authorized | 650,000,000 | 650,000,000 |
Ordinary shares, shares issued | 201,029,249 | 204,291,345 |
Ordinary shares, shares outstanding | 201,029,249 | 204,291,345 |
Treasury shares, at cost | 5,139,365 | 29,765 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | |
Net sales | $1,263,226,000 | $964,787,000 | $3,159,932,000 | $2,288,479,000 |
Licensing revenue | 51,500,000 | 47,442,000 | 130,553,000 | 104,912,000 |
Total revenue | 1,314,726,000 | 1,012,229,000 | 3,290,485,000 | 2,393,391,000 |
Cost of goods sold | 514,583,000 | 392,731,000 | 1,273,682,000 | 926,747,000 |
Gross profit | 800,143,000 | 619,498,000 | 2,016,803,000 | 1,466,644,000 |
Selling, general and administrative expenses | 344,174,000 | 254,603,000 | 915,443,000 | 648,695,000 |
Depreciation and amortization | 37,492,000 | 21,655,000 | 100,554,000 | 55,687,000 |
Total operating expenses | 381,666,000 | 276,258,000 | 1,015,997,000 | 704,382,000 |
Income from operations | 418,477,000 | 343,240,000 | 1,000,806,000 | 762,262,000 |
Other expense (income) | 150,000 | 0 | -1,396,000 | 0 |
Interest expense, net | 116,000 | 109,000 | 147,000 | 409,000 |
Foreign currency loss | 1,201,000 | 3,000 | 4,946,000 | 279,000 |
Income before provision for income taxes | 417,010,000 | 343,128,000 | 997,109,000 | 761,574,000 |
Provision for income taxes | 113,335,000 | 113,485,000 | 298,728,000 | 261,127,000 |
Net income | 303,675,000 | 229,643,000 | 698,381,000 | 500,447,000 |
Weighted average ordinary shares outstanding: | ||||
Basic | 202,668,541 | 203,175,380 | 203,627,688 | 202,314,813 |
Diluted | 205,647,816 | 206,088,062 | 206,752,103 | 205,192,959 |
Net income per ordinary share: | ||||
Basic | $1.50 | $1.13 | $3.43 | $2.47 |
Diluted | $1.48 | $1.11 | $3.38 | $2.44 |
Statements of Comprehensive Income: | ||||
Net income | 303,675,000 | 229,643,000 | 698,381,000 | 500,447,000 |
Foreign currency translation adjustments | -22,220,000 | -1,745,000 | -46,824,000 | 3,228,000 |
Net realized and unrealized gains (losses) on derivatives | 2,769,000 | -496,000 | 13,327,000 | -3,709,000 |
Comprehensive income | $284,224,000 | $227,402,000 | $664,884,000 | $499,966,000 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Ordinary Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Loss | Retained Earnings |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Beginning Balance at Mar. 29, 2014 | $1,806,131 | $527,213 | ($2,447) | ($6,373) | $1,287,738 | |
Beginning Balance (in shares) at Mar. 29, 2014 | 204,261,580 | |||||
Net income | 698,381 | 698,381 | ||||
Foreign currency translation adjustment | -46,824 | -46,824 | ||||
Net unrealized gain on derivatives (net of taxes of $1.7 million) | 13,327 | 13,327 | ||||
Total comprehensive income | 664,884 | |||||
Issuance of restricted shares | 415,162 | |||||
Exercise of employee share options (in shares) | 1,462,107 | 1,462,107 | ||||
Exercise of employee share options | 10,060 | 10,060 | ||||
Equity compensation expense | 33,445 | 33,445 | ||||
Tax benefits on exercise of share options | 40,220 | 40,220 | ||||
Purchase of Treasury Shares | -5,109,600 | |||||
Purchase of Treasury Shares | -403,255 | -403,255 | ||||
Ending Balance at Dec. 27, 2014 | $2,151,485 | $610,938 | ($405,702) | ($39,870) | $1,986,119 | |
Ending Balance (in shares) at Dec. 27, 2014 | 201,029,249 |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Dec. 27, 2014 |
Net unrealized gain on derivatives, taxes | $1.70 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 |
Cash flows from operating activities | ||
Net income | $698,381 | $500,447 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 100,554 | 55,687 |
Loss on disposal of fixed assets | 1,802 | 2,135 |
Unrealized foreign exchange loss | 165 | 279 |
Loss (income) earned on joint venture | 242 | -125 |
Amortization of deferred financing costs | 560 | 560 |
Amortization of deferred rent | 3,933 | 5,116 |
Deferred income taxes | -8,636 | 2,507 |
Equity compensation expense | 33,445 | 20,919 |
Tax benefits on exercise of share options | -40,220 | -44,731 |
Change in assets and liabilities: | ||
Receivables, net | -59,483 | -83,994 |
Inventories | -125,251 | -162,230 |
Prepaid expenses and other current assets | -42,340 | -5,250 |
Other assets | -8,993 | -6,063 |
Accounts payable | 46,491 | 62,028 |
Accrued expenses and other current liabilities | 52,118 | 84,824 |
Other long-term liabilities | 19,297 | 17,734 |
Net cash provided by operating activities | 672,065 | 449,843 |
Cash flows from investing activities | ||
Capital expenditures | -282,733 | -126,942 |
Investment in joint venture | -2,940 | |
Purchase of intangible assets | -26,150 | -21,962 |
Net cash used in investing activities | -311,823 | -148,904 |
Cash flows from financing activities | ||
Repayments of borrowings under revolving credit agreement | -21,120 | |
Borrowings under revolving credit agreement | 21,120 | |
Exercise of employee share options | 10,060 | 13,535 |
Purchase of Treasury Shares | -403,255 | -2,447 |
Tax benefits on exercise of share options | 40,220 | 44,731 |
Payment of deferred financing costs | -176 | |
Net cash (used in) provided by financing activities | -352,975 | 55,643 |
Effect of exchange rate changes on cash and cash equivalents | -12,566 | -752 |
Net (decrease) increase in cash and cash equivalents | -5,299 | 355,830 |
Beginning of period | 955,145 | 472,511 |
End of period | 949,846 | 828,341 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest | 537 | 513 |
Cash paid for income taxes | 315,608 | 206,552 |
Supplemental disclosure of noncash investing and financing activities | ||
Accrued capital expenditures | $25,790 | $18,635 |
Business_and_Basis_of_Presenta
Business and Basis of Presentation | 9 Months Ended |
Dec. 27, 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. | |
The interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The consolidated financial statements as of December 27, 2014, and for the three and nine months ended December 27, 2014 and December 28, 2013, are unaudited. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The interim financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, necessary for a fair presentation in conformity with GAAP. The interim financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended March 29, 2014, as filed with the Securities and Exchange Commission on May 28, 2014, in the Company’s Annual Report on Form 10-K. The results of operations for the interim periods should not be considered indicative of results to be expected for the full fiscal year. | |
The Company utilizes a 52 to 53 week fiscal year ending on the Saturday closest to March 31. As such, the term “Fiscal Year” or “Fiscal” refers to the 52-week or 53-week period, ending on that day. The results for the three and nine months ended December 27, 2014 and December 28, 2013, are based on a 13-week and 39-week period, respectively. |
Share_Repurchase_Program
Share Repurchase Program | 9 Months Ended |
Dec. 27, 2014 | |
Share Repurchase Program | 2. Share Repurchase Program |
On November 14, 2014, the Company entered into a $355.0 million accelerated share repurchase program (the “ASR program”) with a major financial institution (the “ASR Counterparty”) to repurchase the Company’s ordinary shares. Under the ASR program, the Company paid $355.0 million to the ASR Counterparty and received 4,437,516 of its ordinary shares from the ASR Counterparty, which represents 100 percent of the shares expected to be purchased pursuant to the ASR program, based on an initial share price determination. However, additional shares may be delivered to the Company by January 29, 2015 (the settlement date), subject to the provisions of the ASR program, should the share price decline from that price, limited to a stated share price “floor”, and would not require any additional cash outlay by the Company. The total number of shares to be repurchased/acquired will be determined on final settlement, with any additional shares reacquired being based generally on the volume-weighted average price of the Company’s ordinary shares, less a discount, during the repurchase period, subject to aforementioned price floor. The ASR program is accounted for as treasury stock repurchase transactions, reducing the weighted average number of basic and diluted ordinary shares outstanding by the 4,437,516 shares initially repurchased, and as a forward contract indexed to the Company’s own ordinary shares for the future settlement provisions. The forward contract is accounted for as an equity instrument. In addition to shares purchased under the ASR, the Company, through open market transactions, purchased an additional 631,297 shares, under its’ current share-repurchase program. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Dec. 27, 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. | |||||||||||||||||
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, computer hardware and software are depreciated over three to five years, and in-store shops are amortized over three to four 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 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. | |||||||||||||||||
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 on the Company’s consolidated balance sheets at fair value, regardless of if they are designated or undesignated as hedges. | |||||||||||||||||
The Company designates the majority of these forward currency contracts as hedges for hedge accounting purposes which are related to the purchase of inventory. Accordingly, the effective portion of changes in the fair value for contracts entered into during the nine months ended December 27, 2014, designated as hedges, are recorded in equity as a component of accumulated other comprehensive income, and to cost of goods sold 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 that are entered into that are not designated as hedges, changes in the fair value, as of each balance sheet date and upon maturity, are recorded in other income, within the Company’s consolidated statements of operations. During the nine months ended December 27, 2014, a gain of approximately $0.2 million related to the change in fair value of these contracts was recorded in other income. In addition, the net unrealized gain related to contracts designated as hedges for $13.3 million, was charged to equity as a component of accumulated other comprehensive income during the nine months ended December 27, 2014. For the nine months ended December 27, 2014, amounts related to the ineffectiveness of these contracts were de minimis. The following table details the fair value of these contracts as of December 27, 2014, and March 29, 2014 (in thousands): | |||||||||||||||||
December 27, | March 29, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Prepaid expenses and other current assets | $ | 13,892 | $ | 12 | |||||||||||||
Accrued expenses and other current liabilities | $ | (476 | ) | $ | (1,875 | ) | |||||||||||
The Company expects the entirety of these balances to be reclassified into earnings within the next twelve months, subject to changes in the fair value of these contracts up to such time the related purchase of the underlying hedged item is completed. | |||||||||||||||||
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 December 27, 2014 was approximately $176.2 million, which was comprised predominately of those designated as hedges. | |||||||||||||||||
Net Income Per Share | |||||||||||||||||
The Company’s basic net income per share excludes the dilutive effect of share options and units, as well as 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. | |||||||||||||||||
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): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 27, | December 28, | December 27, | December 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net Income | $ | 303,675 | $ | 229,643 | $ | 698,381 | $ | 500,447 | |||||||||
Denominator: | |||||||||||||||||
Basic weighted average ordinary shares | 202,668,541 | 203,175,380 | 203,627,688 | 202,314,813 | |||||||||||||
Weighted average dilutive share equivalents: | |||||||||||||||||
Share options and restricted shares/units | 2,979,275 | 2,912,682 | 3,124,415 | 2,878,146 | |||||||||||||
Diluted weighted average ordinary shares | 205,647,816 | 206,088,062 | 206,752,103 | 205,192,959 | |||||||||||||
Basic net income per ordinary share | $ | 1.5 | $ | 1.13 | $ | 3.43 | $ | 2.47 | |||||||||
Diluted net income per ordinary share | $ | 1.48 | $ | 1.11 | $ | 3.38 | $ | 2.44 | |||||||||
Share equivalents for the three and nine months ended December 27, 2014 for 284,344 shares and 185,261 shares, respectively, have been excluded from the above calculation as they were anti-dilutive. Share equivalents for the three and nine months ended December 28, 2013 for 22,283 shares and 57,505 shares, respectively, have been excluded from the above calculation as they were anti-dilutive. | |||||||||||||||||
Recent Accounting Pronouncements—The Company has considered all new accounting pronouncements and, and with the exception of the 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. | |||||||||||||||||
In May, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers, which amends how an entity is currently required to recognize revenue from contracts with its customers. The ASU will replace the existing revenue recognition guidance in GAAP when it becomes effective for entities in January 2017. Early application is not permitted. The Company is currently evaluating the impact that ASU 2014-09 will have on its consolidated financial statements and related disclosures. |
Receivables_net
Receivables, net | 9 Months Ended | ||||||||
Dec. 27, 2014 | |||||||||
Receivables, net | 4. Receivables, net | ||||||||
Receivables, net consist of (in thousands): | |||||||||
December 27, | March 29, | ||||||||
2014 | 2014 | ||||||||
Trade receivables: | |||||||||
Credit risk assumed by factors/insured | $ | 317,559 | $ | 261,900 | |||||
Credit risk retained by Company | 116,415 | 109,094 | |||||||
Receivables due from licensees | 37,291 | 11,302 | |||||||
471,265 | 382,296 | ||||||||
Less allowances: | (107,195 | ) | (68,241 | ) | |||||
$ | 364,070 | $ | 314,055 | ||||||
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 December 27, 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 $1.1 million and $1.5 million, at December 27, 2014 and March 29, 2014, respectively. |
Property_and_Equipment_net
Property and Equipment, net | 9 Months Ended | ||||||||
Dec. 27, 2014 | |||||||||
Property and Equipment, net | 5. Property and Equipment, net | ||||||||
Property and equipment, net consist of (in thousands): | |||||||||
December 27, | March 29, | ||||||||
2014 | 2014 | ||||||||
Furniture and fixtures | $ | 149,405 | $ | 108,757 | |||||
Equipment | 70,719 | 31,683 | |||||||
Computer equipment and software | 94,788 | 50,646 | |||||||
In-store shops | 176,105 | 123,637 | |||||||
Leasehold improvements | 271,773 | 216,451 | |||||||
762,790 | 531,174 | ||||||||
Less: accumulated depreciation and amortization | (310,623 | ) | (234,381 | ) | |||||
452,167 | 296,793 | ||||||||
Construction-in-progress | 80,137 | 53,885 | |||||||
$ | 532,304 | $ | 350,678 | ||||||
Depreciation and amortization of property and equipment for the three and nine months ended December 27, 2014, was $35.7 million and $95.2 million, respectively, and for the three and nine months ended December 28, 2013, was $20.7 million and $53.8 million, respectively. |
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 9 Months Ended | ||||||||||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||||||||||
Intangible Assets and Goodwill | 6. Intangible Assets and Goodwill | ||||||||||||||||||||||||
The following table discloses the carrying values of intangible assets and goodwill (in thousands): | |||||||||||||||||||||||||
December 27, 2014 | March 29, 2014 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Trademarks | $ | 23,000 | $ | 13,707 | $ | 9,293 | $ | 23,000 | $ | 12,845 | $ | 10,155 | |||||||||||||
Lease Rights | 62,112 | 7,761 | 54,351 | 41,748 | 3,869 | 37,879 | |||||||||||||||||||
Goodwill | 14,005 | — | 14,005 | 14,005 | — | 14,005 | |||||||||||||||||||
$ | 99,117 | $ | 21,468 | $ | 77,649 | $ | 78,753 | $ | 16,714 | $ | 62,039 | ||||||||||||||
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 $1.8 million and $5.3 million, respectively, for the three and nine months ended December 27, 2014, and $1.0 million and $1.9 million, respectively, for the three and nine months ended December 28, 2013. | |||||||||||||||||||||||||
Goodwill is not amortized but will be evaluated for impairment in the last quarter of Fiscal 2015, or whenever impairment indicators exist. 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): | |||||||||||||||||||||||||
Remainder of Fiscal 2015 | $ | 2,005 | |||||||||||||||||||||||
Fiscal 2016 | 9,825 | ||||||||||||||||||||||||
Fiscal 2017 | 9,824 | ||||||||||||||||||||||||
Fiscal 2018 | 9,790 | ||||||||||||||||||||||||
Fiscal 2019 | 8,862 | ||||||||||||||||||||||||
Thereafter | 23,338 | ||||||||||||||||||||||||
$ | 63,644 | ||||||||||||||||||||||||
Credit_Facilities
Credit Facilities | 9 Months Ended |
Dec. 27, 2014 | |
Credit Facilities | 7. Credit Facilities |
Senior Unsecured Revolving Credit Facility | |
On February 8, 2013, the Company 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 December 27, 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 at 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. 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 December 27, 2014, there were no amounts outstanding under the 2013 Credit Facility, and there were no amounts borrowed during the nine months ended December 27, 2014. The amount available for future borrowings under this agreement was $188.6 million at December 27, 2014. At December 27, 2014, there were stand-by letters of credit of $11.4 million. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 27, 2014 | |
Commitments and Contingencies | 8. Commitments and 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 | 9 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
Fair Value of Financial Instruments | 9. 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 for these purposes 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 December 27, 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: | |||||||||||||||||
Total | Fair value at December 27, 2014, using: | ||||||||||||||||
(In thousands) | 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 | $ | 13,604 | $ | — | $ | 13,604 | $ | — | |||||||||
Foreign currency forward contracts- Canadian Dollar to U.S. Dollar | 288 | — | 288 | — | |||||||||||||
Foreign currency forward contracts- U.S. Dollar to Euro | (476 | ) | — | (476 | ) | — | |||||||||||
Total | $ | 13,416 | $ | — | $ | 13,416 | $ | — | |||||||||
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 | 9 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
Other Comprehensive Income- Hedging Instruments | 10. 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 gains and losses of the forward contracts designated as hedges for the three and nine months ended December 27, 2014 (in thousands): | |||||||||||||||||
Three Months Ended December 27, 2014 | Nine Months Ended December 27, 2014 | ||||||||||||||||
Pre-Tax | Gain | Pre-Tax | Gain | ||||||||||||||
Gain | Reclassified from | Gain | Reclassified from | ||||||||||||||
Recognized | Accumulated OCI | Recognized | Accumulated OCI | ||||||||||||||
in OCI | into Earnings | in OCI | into Earnings | ||||||||||||||
(Effective Portion) | (Effective Portion) | (Effective Portion) | (Effective Portion) | ||||||||||||||
Forward currency exchange contracts | $ | 3,139 | $ | 1,956 | $ | 15,034 | $ | 573 | |||||||||
The following table summarizes the impact of the effective portion of gains and losses of the forward contracts designated as hedges for the three and nine months ended December 28, 2013: | |||||||||||||||||
Three Months Ended December 28, 2013 | Nine Months Ended December 28, 2013 | ||||||||||||||||
Pre-Tax | (Loss) | Pre-Tax | Gain | ||||||||||||||
(Loss) | Reclassified from | (Loss) | Reclassified from | ||||||||||||||
Recognized | Accumulated OCI | Recognized | Accumulated OCI | ||||||||||||||
in OCI | into Earnings | in OCI | into Earnings | ||||||||||||||
(Effective Portion) | (Effective Portion) | (Effective Portion) | (Effective Portion) | ||||||||||||||
Forward currency exchange contracts | $ | (695 | ) | $ | (422 | ) | $ | (4,208 | ) | $ | 133 |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
Share-Based Compensation | 11. 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. Subsequent to the adoption of the 2012 Plan, there were 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 December 27, 2014, there were 10,642,111 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 generally 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 option activity during the nine months ended December 27, 2014, and information about options outstanding at December 27, 2014: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise price | Remaining | Value | |||||||||||||||
Contractual | (in thousands) | ||||||||||||||||
Life (years) | |||||||||||||||||
Outstanding at March 29, 2014 | 8,377,928 | $ | 13.69 | ||||||||||||||
Granted | 795,255 | $ | 90.95 | ||||||||||||||
Exercised | (1,462,107 | ) | $ | 6.88 | |||||||||||||
Canceled/forfeited | (177,845 | ) | $ | 29.14 | |||||||||||||
Outstanding at December 27, 2014 | 7,533,231 | $ | 22.79 | 5.59 | $ | 407,380 | |||||||||||
Vested or expected to vest at December 27, 2014 | 7,382,566 | $ | 22.79 | 5.59 | |||||||||||||
Vested and exercisable at December 27, 2014 | 3,504,844 | $ | 11.92 | 5.17 | $ | 221,824 | |||||||||||
There were 4,028,387 non-vested and 3,504,844 vested outstanding options at December 27, 2014. The total intrinsic value of options exercised during the nine months ended December 27, 2014 was $114.4 million, and the cash received from options exercised during this period was $10.1 million. The total intrinsic value of options exercised during the nine months ended December 28, 2013 was $133.3 million, and the cash received from options exercised during this period was $13.5 million. As of December 27, 2014, the remaining unrecognized share-based compensation expense for non-vested share options to be expensed in future periods is $35.1 million, and the related weighted-average period over which it is expected to be recognized is approximately 2.95 years. | |||||||||||||||||
The weighted average grant date fair value for options granted during the three and nine months ended December 27, 2014 was $22.25 and $28.09, respectively, and for the three and nine months ended December 28, 2013 was $26.36 and $24.94, respectively. The following table represents assumptions used to estimate the fair value of options: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 27, | December 28, | December 27, | December 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
Volatility factor | 32.8 | % | 38.4 | % | 33.2 | % | 46.1 | % | |||||||||
Weighted average risk-free interest rate | 1.5 | % | 1.3 | % | 1.5 | % | 1 | % | |||||||||
Expected life of option | 4.75 years | 4.75 years | 4.75 years | 4.75 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 December 27, 2014 and changes during the fiscal period then ended: | |||||||||||||||||
Number of Unvested | Weighted | ||||||||||||||||
Restricted Shares | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Unvested at March 29, 2014 | 657,853 | $ | 38.38 | ||||||||||||||
Granted | 433,126 | $ | 90.57 | ||||||||||||||
Vested | (212,853 | ) | $ | 32.12 | |||||||||||||
Canceled/forfeited | (29,734 | ) | $ | 68.37 | |||||||||||||
Unvested at December 27, 2014 | 848,392 | $ | 65.68 | ||||||||||||||
The total fair value of restricted shares vested during the nine months ended December 27, 2014 was $18.7 million. The total fair value of restricted shares vested during the nine months ended December 28, 2013 was $14.0 million. As of December 27, 2014, the remaining unrecognized share-based compensation expense for non-vested restricted share grants to be expensed in future periods is $45.7 million, and the related weighted-average period over which it is expected to be recognized is approximately 3.05 years. | |||||||||||||||||
The following table summarizes restricted share units under the 2012 Plan as of December 27, 2014 and changes during the fiscal period then ended: | |||||||||||||||||
Number of Unvested | Weighted | ||||||||||||||||
Restricted Units | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Unvested at March 29, 2014 | 199,779 | $ | 58.31 | ||||||||||||||
Granted | 245,591 | $ | 81.61 | ||||||||||||||
Vested | (11,770 | ) | $ | 30.04 | |||||||||||||
Canceled/forfeited | (10,846 | ) | $ | 62.24 | |||||||||||||
Unvested at December 27, 2014 | 422,754 | $ | 73.25 | ||||||||||||||
As of December 27, 2014, the remaining unrecognized share-based compensation expense for non-vested restricted share units to be expensed in future periods is $19.4 million, and the related weighted-average period over which it is expected to be recognized is approximately 2.06 years. | |||||||||||||||||
Compensation expense attributable to share-based compensation for the three and nine months ended December 27, 2014 was approximately $12.1 million and $33.4 million, respectively. Compensation expense attributable to share-based compensation for the three and nine months ended December 28, 2013 was approximately $7.8 million and $20.9 million, respectively. 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 stock option granting. The estimated value of future forfeitures for equity grants as of December 27, 2014 is approximately $1.4 million. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||||
Segment Information | 12. 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, jewelry, 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 the Middle East, Eastern Europe, Latin America and the Caribbean, throughout all of Asia (excluding Japan), as well as Australia. 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): | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
December 27, | December 28, | December 27, | December 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Revenue: | |||||||||||||||||||
Net sales: | Retail | $ | 689,388 | $ | 503,380 | $ | 1,665,209 | $ | 1,184,625 | ||||||||||
Wholesale | 573,838 | 461,407 | 1,494,723 | 1,103,854 | |||||||||||||||
Licensing | 51,500 | 47,442 | 130,553 | 104,912 | |||||||||||||||
Total revenue | $ | 1,314,726 | $ | 1,012,229 | $ | 3,290,485 | $ | 2,393,391 | |||||||||||
Income from operations: | |||||||||||||||||||
Retail | $ | 214,928 | $ | 171,281 | $ | 484,951 | $ | 377,528 | |||||||||||
Wholesale | 170,487 | 140,685 | 444,811 | 320,262 | |||||||||||||||
Licensing | 33,062 | 31,274 | 71,044 | 64,472 | |||||||||||||||
Income from operations | $ | 418,477 | $ | 343,240 | $ | 1,000,806 | $ | 762,262 | |||||||||||
Depreciation and amortization expense for each segment are as follows (in thousands): | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
December 27, | December 28, | December 27, | December 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||
Retail | $ | 22,414 | $ | 12,316 | $ | 62,401 | $ | 32,749 | |||||||||||
Wholesale | 15,007 | 9,145 | 37,505 | 22,519 | |||||||||||||||
Licensing | 71 | 194 | 648 | 419 | |||||||||||||||
Total depreciation and amortization | $ | 37,492 | $ | 21,655 | $ | 100,554 | $ | 55,687 | |||||||||||
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): | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
December 27, | December 28, | December 27, | December 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Revenue: | |||||||||||||||||||
North America (U.S. and Canada) | $ | 1,057,281 | $ | 862,619 | $ | 2,578,396 | $ | 2,032,450 | |||||||||||
Europe | 241,415 | 140,294 | 664,836 | 335,822 | |||||||||||||||
Japan | 16,030 | 9,316 | 47,253 | 25,119 | |||||||||||||||
Total revenue | $ | 1,314,726 | $ | 1,012,229 | $ | 3,290,485 | $ | 2,393,391 | |||||||||||
December 27, | March 29, | ||||||||||||||||||
2014 | 2014 | ||||||||||||||||||
Long-lived assets: | |||||||||||||||||||
North America (U.S. and Canada) | $ | 411,669 | $ | 283,162 | |||||||||||||||
Europe | 173,010 | 108,074 | |||||||||||||||||
Japan | 11,269 | 7,476 | |||||||||||||||||
Total Long-lived assets: | $ | 595,948 | $ | 398,712 | |||||||||||||||
Other_Expense_Income
Other Expense (Income) | 9 Months Ended | ||||||||
Dec. 27, 2014 | |||||||||
Other Expense (Income) | 13. Other expense (income) | ||||||||
Other expense (income) consists of the following (in thousands): | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
December 27, | December 27, | ||||||||
2014 | 2014 | ||||||||
Losses related to joint venture | $ | 553 | $ | 242 | |||||
Income related to anti-counterfeit program | (365 | ) | (1,403 | ) | |||||
Net unrealized gains on foreign currency forward contracts | (38 | ) | (235 | ) | |||||
Total Other expense (income) | $ | 150 | $ | (1,396 | ) | ||||
There were no amounts related to Other expense (income) during the three and nine months ended December 28, 2013. |
Agreements_with_Shareholders_a
Agreements with Shareholders and Related Party Transactions | 9 Months Ended |
Dec. 27, 2014 | |
Agreements with Shareholders and Related Party Transactions | 14. Agreements with Shareholders and Related Party Transactions |
On October 24, 2014, the Company purchased an aircraft from a former board member (who resigned on September 10, 2014) in the amount of $16.5 million. The purchase price was the fair market value of the aircraft at the purchase date and was no less favorable to the Company than it would have received in an arm’s-length transaction. The aircraft was purchased for purposes of business travel for the Company’s executives, and was recorded as a fixed asset in the Company’s consolidated balance sheets. Prior to the purchase of this plane the Company or its chief executive officer arranged for a plane owned by Sportswear Holdings Limited or its affiliates which was 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 entered into such an arrangement for business travel, the Company reimbursed him for the actual market price paid for the use of such plane. During the nine months ended December 27, 2014, and December 28, 2013, 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 and $1.0 million, for the nine months ended December 27, 2014, and December 28, 2013, respectively. | |
The Company’s Chief Creative Officer, Michael Kors, and the Company’s Chief Executive Officer, John Idol, and certain of the Company’s former 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 sales benchmarks are not met. For the nine months ended December 27, 2014 and December 28, 2013, there were approximately $3.1 million and $0.8 million, respectively, of royalties earned under these agreements. These royalties were driven by Licensee sales (of the Company’s goods) to their customers of approximately $70.2 million, and $19.0 million, for the nine months ended December 27, 2014 and December 28, 2013, respectively. 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 the nine months ended December 27, 2014 and December 28, 2013, amounts recognized as net sales in the Company’s consolidated statements of operations and other comprehensive income, related to these sales, were approximately $24.8 million and $7.8 million, respectively. | |
The Company routinely purchases certain inventory from a manufacturer owned by one of its former directors. Amounts purchased during the nine months ended December 27, 2014, and December 28, 2013, were $9.1 million and $6.1 million, respectively. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Dec. 27, 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. | |||||||||||||||||
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, computer hardware and software are depreciated over three to five years, and in-store shops are amortized over three to four 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 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. | |||||||||||||||||
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 on the Company’s consolidated balance sheets at fair value, regardless of if they are designated or undesignated as hedges. | |||||||||||||||||
The Company designates the majority of these forward currency contracts as hedges for hedge accounting purposes which are related to the purchase of inventory. Accordingly, the effective portion of changes in the fair value for contracts entered into during the nine months ended December 27, 2014, designated as hedges, are recorded in equity as a component of accumulated other comprehensive income, and to cost of goods sold 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 that are entered into that are not designated as hedges, changes in the fair value, as of each balance sheet date and upon maturity, are recorded in other income, within the Company’s consolidated statements of operations. During the nine months ended December 27, 2014, a gain of approximately $0.2 million related to the change in fair value of these contracts was recorded in other income. In addition, the net unrealized gain related to contracts designated as hedges for $13.3 million, was charged to equity as a component of accumulated other comprehensive income during the nine months ended December 27, 2014. For the nine months ended December 27, 2014, amounts related to the ineffectiveness of these contracts were de minimis. The following table details the fair value of these contracts as of December 27, 2014, and March 29, 2014 (in thousands): | |||||||||||||||||
December 27, | March 29, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Prepaid expenses and other current assets | $ | 13,892 | $ | 12 | |||||||||||||
Accrued expenses and other current liabilities | $ | (476 | ) | $ | (1,875 | ) | |||||||||||
The Company expects the entirety of these balances to be reclassified into earnings within the next twelve months, subject to changes in the fair value of these contracts up to such time the related purchase of the underlying hedged item is completed. | |||||||||||||||||
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 December 27, 2014 was approximately $176.2 million, which was comprised predominately of those designated as hedges. | |||||||||||||||||
Net Income Per Share | Net Income Per Share | ||||||||||||||||
The Company’s basic net income per share excludes the dilutive effect of share options and units, as well as 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. | |||||||||||||||||
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): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 27, | December 28, | December 27, | December 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net Income | $ | 303,675 | $ | 229,643 | $ | 698,381 | $ | 500,447 | |||||||||
Denominator: | |||||||||||||||||
Basic weighted average ordinary shares | 202,668,541 | 203,175,380 | 203,627,688 | 202,314,813 | |||||||||||||
Weighted average dilutive share equivalents: | |||||||||||||||||
Share options and restricted shares/units | 2,979,275 | 2,912,682 | 3,124,415 | 2,878,146 | |||||||||||||
Diluted weighted average ordinary shares | 205,647,816 | 206,088,062 | 206,752,103 | 205,192,959 | |||||||||||||
Basic net income per ordinary share | $ | 1.5 | $ | 1.13 | $ | 3.43 | $ | 2.47 | |||||||||
Diluted net income per ordinary share | $ | 1.48 | $ | 1.11 | $ | 3.38 | $ | 2.44 | |||||||||
Share equivalents for the three and nine months ended December 27, 2014 for 284,344 shares and 185,261 shares, respectively, have been excluded from the above calculation as they were anti-dilutive. Share equivalents for the three and nine months ended December 28, 2013 for 22,283 shares and 57,505 shares, respectively, have been excluded from the above calculation as they were anti-dilutive. | |||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements—The Company has considered all new accounting pronouncements and, and with the exception of the 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. | ||||||||||||||||
In May, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers, which amends how an entity is currently required to recognize revenue from contracts with its customers. The ASU will replace the existing revenue recognition guidance in GAAP when it becomes effective for entities in January 2017. Early application is not permitted. The Company is currently evaluating the impact that ASU 2014-09 will have on its consolidated financial statements and related disclosures. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
Fair Values of Forward Foreign Currency Exchange Contracts | The following table details the fair value of these contracts as of December 27, 2014, and March 29, 2014 (in thousands): | ||||||||||||||||
December 27, | March 29, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Prepaid expenses and other current assets | $ | 13,892 | $ | 12 | |||||||||||||
Accrued expenses and other current liabilities | $ | (476 | ) | $ | (1,875 | ) | |||||||||||
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): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 27, | December 28, | December 27, | December 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net Income | $ | 303,675 | $ | 229,643 | $ | 698,381 | $ | 500,447 | |||||||||
Denominator: | |||||||||||||||||
Basic weighted average ordinary shares | 202,668,541 | 203,175,380 | 203,627,688 | 202,314,813 | |||||||||||||
Weighted average dilutive share equivalents: | |||||||||||||||||
Share options and restricted shares/units | 2,979,275 | 2,912,682 | 3,124,415 | 2,878,146 | |||||||||||||
Diluted weighted average ordinary shares | 205,647,816 | 206,088,062 | 206,752,103 | 205,192,959 | |||||||||||||
Basic net income per ordinary share | $ | 1.5 | $ | 1.13 | $ | 3.43 | $ | 2.47 | |||||||||
Diluted net income per ordinary share | $ | 1.48 | $ | 1.11 | $ | 3.38 | $ | 2.44 | |||||||||
Receivables_net_Tables
Receivables, net (Tables) | 9 Months Ended | ||||||||
Dec. 27, 2014 | |||||||||
Receivables, net | Receivables, net consist of (in thousands): | ||||||||
December 27, | March 29, | ||||||||
2014 | 2014 | ||||||||
Trade receivables: | |||||||||
Credit risk assumed by factors/insured | $ | 317,559 | $ | 261,900 | |||||
Credit risk retained by Company | 116,415 | 109,094 | |||||||
Receivables due from licensees | 37,291 | 11,302 | |||||||
471,265 | 382,296 | ||||||||
Less allowances: | (107,195 | ) | (68,241 | ) | |||||
$ | 364,070 | $ | 314,055 | ||||||
Property_and_Equipment_net_Tab
Property and Equipment, net (Tables) | 9 Months Ended | ||||||||
Dec. 27, 2014 | |||||||||
Property and Equipment, Net | Property and equipment, net consist of (in thousands): | ||||||||
December 27, | March 29, | ||||||||
2014 | 2014 | ||||||||
Furniture and fixtures | $ | 149,405 | $ | 108,757 | |||||
Equipment | 70,719 | 31,683 | |||||||
Computer equipment and software | 94,788 | 50,646 | |||||||
In-store shops | 176,105 | 123,637 | |||||||
Leasehold improvements | 271,773 | 216,451 | |||||||
762,790 | 531,174 | ||||||||
Less: accumulated depreciation and amortization | (310,623 | ) | (234,381 | ) | |||||
452,167 | 296,793 | ||||||||
Construction-in-progress | 80,137 | 53,885 | |||||||
$ | 532,304 | $ | 350,678 | ||||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||||||||||
Carrying Values of Intangible Assets and Goodwill | The following table discloses the carrying values of intangible assets and goodwill (in thousands): | ||||||||||||||||||||||||
December 27, 2014 | March 29, 2014 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Trademarks | $ | 23,000 | $ | 13,707 | $ | 9,293 | $ | 23,000 | $ | 12,845 | $ | 10,155 | |||||||||||||
Lease Rights | 62,112 | 7,761 | 54,351 | 41,748 | 3,869 | 37,879 | |||||||||||||||||||
Goodwill | 14,005 | — | 14,005 | 14,005 | — | 14,005 | |||||||||||||||||||
$ | 99,117 | $ | 21,468 | $ | 77,649 | $ | 78,753 | $ | 16,714 | $ | 62,039 | ||||||||||||||
Estimated Amortization Expense | Estimated amortization expense for each of the next five years is as follows (in thousands): | ||||||||||||||||||||||||
Remainder of Fiscal 2015 | $ | 2,005 | |||||||||||||||||||||||
Fiscal 2016 | 9,825 | ||||||||||||||||||||||||
Fiscal 2017 | 9,824 | ||||||||||||||||||||||||
Fiscal 2018 | 9,790 | ||||||||||||||||||||||||
Fiscal 2019 | 8,862 | ||||||||||||||||||||||||
Thereafter | 23,338 | ||||||||||||||||||||||||
$ | 63,644 | ||||||||||||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 27, 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: | ||||||||||||||||
Total | Fair value at December 27, 2014, using: | ||||||||||||||||
(In thousands) | 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 | $ | 13,604 | $ | — | $ | 13,604 | $ | — | |||||||||
Foreign currency forward contracts- Canadian Dollar to U.S. Dollar | 288 | — | 288 | — | |||||||||||||
Foreign currency forward contracts- U.S. Dollar to Euro | (476 | ) | — | (476 | ) | — | |||||||||||
Total | $ | 13,416 | $ | — | $ | 13,416 | $ | — | |||||||||
Other_Comprehensive_Income_Hed1
Other Comprehensive Income- Hedging Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
Impact of Effective Portion of Gains and Losses of Forward Contracts Designated as Hedges | The following table summarizes the impact of the effective portion of gains and losses of the forward contracts designated as hedges for the three and nine months ended December 27, 2014 (in thousands): | ||||||||||||||||
Three Months Ended December 27, 2014 | Nine Months Ended December 27, 2014 | ||||||||||||||||
Pre-Tax | Gain | Pre-Tax | Gain | ||||||||||||||
Gain | Reclassified from | Gain | Reclassified from | ||||||||||||||
Recognized | Accumulated OCI | Recognized | Accumulated OCI | ||||||||||||||
in OCI | into Earnings | in OCI | into Earnings | ||||||||||||||
(Effective Portion) | (Effective Portion) | (Effective Portion) | (Effective Portion) | ||||||||||||||
Forward currency exchange contracts | $ | 3,139 | $ | 1,956 | $ | 15,034 | $ | 573 | |||||||||
The following table summarizes the impact of the effective portion of gains and losses of the forward contracts designated as hedges for the three and nine months ended December 28, 2013: | |||||||||||||||||
Three Months Ended December 28, 2013 | Nine Months Ended December 28, 2013 | ||||||||||||||||
Pre-Tax | (Loss) | Pre-Tax | Gain | ||||||||||||||
(Loss) | Reclassified from | (Loss) | Reclassified from | ||||||||||||||
Recognized | Accumulated OCI | Recognized | Accumulated OCI | ||||||||||||||
in OCI | into Earnings | in OCI | into Earnings | ||||||||||||||
(Effective Portion) | (Effective Portion) | (Effective Portion) | (Effective Portion) | ||||||||||||||
Forward currency exchange contracts | $ | (695 | ) | $ | (422 | ) | $ | (4,208 | ) | $ | 133 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
Option Activity and Information about Options Outstanding | The following table summarizes the share option activity during the nine months ended December 27, 2014, and information about options outstanding at December 27, 2014: | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise price | Remaining | Value | |||||||||||||||
Contractual | (in thousands) | ||||||||||||||||
Life (years) | |||||||||||||||||
Outstanding at March 29, 2014 | 8,377,928 | $ | 13.69 | ||||||||||||||
Granted | 795,255 | $ | 90.95 | ||||||||||||||
Exercised | (1,462,107 | ) | $ | 6.88 | |||||||||||||
Canceled/forfeited | (177,845 | ) | $ | 29.14 | |||||||||||||
Outstanding at December 27, 2014 | 7,533,231 | $ | 22.79 | 5.59 | $ | 407,380 | |||||||||||
Vested or expected to vest at December 27, 2014 | 7,382,566 | $ | 22.79 | 5.59 | |||||||||||||
Vested and exercisable at December 27, 2014 | 3,504,844 | $ | 11.92 | 5.17 | $ | 221,824 | |||||||||||
Assumptions Used to Estimate Fair Value of Options | The following table represents assumptions used to estimate the fair value of options: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 27, | December 28, | December 27, | December 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
Volatility factor | 32.8 | % | 38.4 | % | 33.2 | % | 46.1 | % | |||||||||
Weighted average risk-free interest rate | 1.5 | % | 1.3 | % | 1.5 | % | 1 | % | |||||||||
Expected life of option | 4.75 years | 4.75 years | 4.75 years | 4.75 years | |||||||||||||
Restricted Shares and Restricted Share Units | The following table summarizes restricted shares under the 2012 Plan as of December 27, 2014 and changes during the fiscal period then ended: | ||||||||||||||||
Number of Unvested | Weighted | ||||||||||||||||
Restricted Shares | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Unvested at March 29, 2014 | 657,853 | $ | 38.38 | ||||||||||||||
Granted | 433,126 | $ | 90.57 | ||||||||||||||
Vested | (212,853 | ) | $ | 32.12 | |||||||||||||
Canceled/forfeited | (29,734 | ) | $ | 68.37 | |||||||||||||
Unvested at December 27, 2014 | 848,392 | $ | 65.68 | ||||||||||||||
The following table summarizes restricted share units under the 2012 Plan as of December 27, 2014 and changes during the fiscal period then ended: | |||||||||||||||||
Number of Unvested | Weighted | ||||||||||||||||
Restricted Units | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Unvested at March 29, 2014 | 199,779 | $ | 58.31 | ||||||||||||||
Granted | 245,591 | $ | 81.61 | ||||||||||||||
Vested | (11,770 | ) | $ | 30.04 | |||||||||||||
Canceled/forfeited | (10,846 | ) | $ | 62.24 | |||||||||||||
Unvested at December 27, 2014 | 422,754 | $ | 73.25 | ||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||||
Key Performance Information of Reportable Segments | The following table presents the key performance information of the Company’s reportable segments (in thousands): | ||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
December 27, | December 28, | December 27, | December 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Revenue: | |||||||||||||||||||
Net sales: | Retail | $ | 689,388 | $ | 503,380 | $ | 1,665,209 | $ | 1,184,625 | ||||||||||
Wholesale | 573,838 | 461,407 | 1,494,723 | 1,103,854 | |||||||||||||||
Licensing | 51,500 | 47,442 | 130,553 | 104,912 | |||||||||||||||
Total revenue | $ | 1,314,726 | $ | 1,012,229 | $ | 3,290,485 | $ | 2,393,391 | |||||||||||
Income from operations: | |||||||||||||||||||
Retail | $ | 214,928 | $ | 171,281 | $ | 484,951 | $ | 377,528 | |||||||||||
Wholesale | 170,487 | 140,685 | 444,811 | 320,262 | |||||||||||||||
Licensing | 33,062 | 31,274 | 71,044 | 64,472 | |||||||||||||||
Income from operations | $ | 418,477 | $ | 343,240 | $ | 1,000,806 | $ | 762,262 | |||||||||||
Depreciation and Amortization Expense for Each Segment | Depreciation and amortization expense for each segment are as follows (in thousands): | ||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
December 27, | December 28, | December 27, | December 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||
Retail | $ | 22,414 | $ | 12,316 | $ | 62,401 | $ | 32,749 | |||||||||||
Wholesale | 15,007 | 9,145 | 37,505 | 22,519 | |||||||||||||||
Licensing | 71 | 194 | 648 | 419 | |||||||||||||||
Total depreciation and amortization | $ | 37,492 | $ | 21,655 | $ | 100,554 | $ | 55,687 | |||||||||||
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): | ||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
December 27, | December 28, | December 27, | December 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Revenue: | |||||||||||||||||||
North America (U.S. and Canada) | $ | 1,057,281 | $ | 862,619 | $ | 2,578,396 | $ | 2,032,450 | |||||||||||
Europe | 241,415 | 140,294 | 664,836 | 335,822 | |||||||||||||||
Japan | 16,030 | 9,316 | 47,253 | 25,119 | |||||||||||||||
Total revenue | $ | 1,314,726 | $ | 1,012,229 | $ | 3,290,485 | $ | 2,393,391 | |||||||||||
Long-Lived Assets by Geographic Location | |||||||||||||||||||
December 27, | March 29, | ||||||||||||||||||
2014 | 2014 | ||||||||||||||||||
Long-lived assets: | |||||||||||||||||||
North America (U.S. and Canada) | $ | 411,669 | $ | 283,162 | |||||||||||||||
Europe | 173,010 | 108,074 | |||||||||||||||||
Japan | 11,269 | 7,476 | |||||||||||||||||
Total Long-lived assets: | $ | 595,948 | $ | 398,712 | |||||||||||||||
Other_Expense_Income_Tables
Other Expense (Income) (Tables) | 9 Months Ended | ||||||||
Dec. 27, 2014 | |||||||||
Other Expense (Income) | Other expense (income) consists of the following (in thousands): | ||||||||
Three Months Ended | Nine Months Ended | ||||||||
December 27, | December 27, | ||||||||
2014 | 2014 | ||||||||
Losses related to joint venture | $ | 553 | $ | 242 | |||||
Income related to anti-counterfeit program | (365 | ) | (1,403 | ) | |||||
Net unrealized gains on foreign currency forward contracts | (38 | ) | (235 | ) | |||||
Total Other expense (income) | $ | 150 | $ | (1,396 | ) | ||||
Share_Repurchase_Program_Addit
Share Repurchase Program - Additional Information (Detail) (USD $) | 9 Months Ended | 0 Months Ended |
Dec. 27, 2014 | Nov. 14, 2014 | |
Stock Repurchase Program [Line Items] | ||
Ordinary shares repurchased, value | $403,255,000 | |
Accelerated Share Repurchase Program | ||
Stock Repurchase Program [Line Items] | ||
Ordinary shares repurchased, shares | 4,437,516 | |
Ordinary shares repurchased, value | 355,000,000 | |
Ordinary shares repurchased, cash paid | $355,000,000 | |
ASR program, percentage of shares expected to be repurchased | 100.00% | |
Share repurchase agreement, completion date | 29-Jan-15 | |
Share Repurchase Program | ||
Stock Repurchase Program [Line Items] | ||
Ordinary shares repurchased, shares | 631,297 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | |
Stock Options | ||||
Significant Accounting Policies [Line Items] | ||||
Anti-dilutive securities excluded from computation of earning per share | 284,344 | 22,283 | 185,261 | 57,505 |
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 Equipment And Software | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Computer Equipment And Software | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 5 years | |||
In-Store Shops | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
In-Store Shops | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 4 years | |||
Foreign Exchange Forward | Not Designated as Hedging Instrument | ||||
Significant Accounting Policies [Line Items] | ||||
Forward contracts term, maximum | 12 months | |||
Foreign Exchange Forward | Not Designated as Hedging Instrument | Other Income | ||||
Significant Accounting Policies [Line Items] | ||||
Gain (loss) on forward contracts | 200,000 | |||
Foreign Exchange Forward | Designated as Hedging Instrument | ||||
Significant Accounting Policies [Line Items] | ||||
Net unrealized gain on derivatives | 13,300,000 | |||
Notional amount of forward contract | 176,200,000 | 176,200,000 |
Fair_Values_of_Forward_Foreign
Fair Values of Forward Foreign Currency Exchange Contracts (Detail) (Foreign Exchange Forward, Not Designated as Hedging Instrument, USD $) | Dec. 27, 2014 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $13,892 | $12 |
Accrued Expenses and Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | ($476) | ($1,875) |
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 | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Numerator: | ||||
Net income | $303,675 | $229,643 | $698,381 | $500,447 |
Denominator: | ||||
Basic weighted average ordinary shares | 202,668,541 | 203,175,380 | 203,627,688 | 202,314,813 |
Weighted average dilutive share equivalents: | ||||
Share options and restricted shares/units | 2,979,275 | 2,912,682 | 3,124,415 | 2,878,146 |
Diluted weighted average ordinary shares | 205,647,816 | 206,088,062 | 206,752,103 | 205,192,959 |
Basic net income per ordinary share | $1.50 | $1.13 | $3.43 | $2.47 |
Diluted net income per ordinary share | $1.48 | $1.11 | $3.38 | $2.44 |
Receivables_net_Detail
Receivables, net (Detail) (USD $) | Dec. 27, 2014 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables due from licensees | $37,291 | $11,302 |
Receivables, Gross, Current | 471,265 | 382,296 |
Less allowances | -107,195 | -68,241 |
Receivables, net | 364,070 | 314,055 |
Credit Risk Assumed by Factors/Insured | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | 317,559 | 261,900 |
Credit Risk Assumed by Company | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $116,415 | $109,094 |
Receivables_Additional_Informa
Receivables - Additional Information (Detail) (USD $) | Dec. 27, 2014 | Mar. 29, 2014 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $1.10 | $1.50 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Dec. 27, 2014 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $762,790 | $531,174 |
Less: accumulated depreciation and amortization | -310,623 | -234,381 |
Subtotal | 452,167 | 296,793 |
Construction-in-progress | 80,137 | 53,885 |
Property and equipment, net | 532,304 | 350,678 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 149,405 | 108,757 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 70,719 | 31,683 |
Computer Equipment And Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 94,788 | 50,646 |
In-Store Shops | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 176,105 | 123,637 |
Leasehold Improvement | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $271,773 | $216,451 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization of property and equipment | $35.70 | $20.70 | $95.20 | $53.80 |
Carrying_Values_of_Intangible_
Carrying Values of Intangible Assets and Goodwill (Detail) (USD $) | Dec. 27, 2014 | Mar. 29, 2014 |
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 | 99,117 | 78,753 |
Accumulated Amortization | 21,468 | 16,714 |
Net | 63,644 | 48,034 |
Net | 77,649 | 62,039 |
Trademarks | ||
Intangible Assets And Goodwill [Line Items] | ||
Gross Carrying Amount | 23,000 | 23,000 |
Accumulated Amortization | 13,707 | 12,845 |
Net | 9,293 | 10,155 |
Lease Rights | ||
Intangible Assets And Goodwill [Line Items] | ||
Gross Carrying Amount | 62,112 | 41,748 |
Accumulated Amortization | 7,761 | 3,869 |
Net | $54,351 | $37,879 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Intangible Assets And Goodwill [Line Items] | ||||
Amortization expense | $1.80 | $1 | $5.30 | $1.90 |
Trademarks | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Amortization period | 20 years |
Estimated_Amortization_Expense
Estimated Amortization Expense (Detail) (USD $) | Dec. 27, 2014 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of Fiscal 2015 | $2,005 | |
Fiscal 2016 | 9,825 | |
Fiscal 2017 | 9,824 | |
Fiscal 2018 | 9,790 | |
Fiscal 2019 | 8,862 | |
Thereafter | 23,338 | |
Net | $63,644 | $48,034 |
Credit_Facilities_Additional_I
Credit Facilities - Additional Information (Detail) (USD $) | 9 Months Ended | |
Dec. 28, 2013 | Dec. 27, 2014 | |
Line of Credit Facility [Line Items] | ||
Line of credit facility, amounts borrowed | $21,120,000 | |
Credit Facility 2013 | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum borrowing capacity | 200,000,000 | |
Secured revolving credit facility, Expiration date | 8-Feb-18 | |
Line of credit facility covenant adjusted leverage ratio | 3.5 | |
Line of credit facility consolidated rent expense | 8.0 times | |
Minimum fixed charge coverage ratio | 2 | |
Line of Credit Annual Facility fee on unused portion | 100,000 | |
Line of credit facility amount outstanding | 0 | |
Line of credit facility, amounts borrowed | 0 | |
Line of credit facility available for future borrowings | 188,600,000 | |
Credit Facility 2013 | Europe | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility maximum borrowing capacity | 100,000,000 | |
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% | |
Standby Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility amount outstanding | $11,400,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (Foreign Exchange Forward, Not Designated as Hedging Instrument) | 9 Months Ended |
Dec. 27, 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 $) | Dec. 27, 2014 |
In Thousands, unless otherwise specified | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Total | $13,416 |
Euro to U.S. Dollar | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Foreign currency forward contracts-Asset | 13,604 |
Canadian Dollar to U.S. Dollar | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Foreign currency forward contracts-Asset | 288 |
U.S. Dollar to Euro | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Foreign currency forward contracts-Liability | -476 |
Fair Value, Inputs, Level 2 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Total | 13,416 |
Fair Value, Inputs, Level 2 | Euro to U.S. Dollar | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Foreign currency forward contracts-Asset | 13,604 |
Fair Value, Inputs, Level 2 | Canadian Dollar to U.S. Dollar | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Foreign currency forward contracts-Asset | 288 |
Fair Value, Inputs, Level 2 | U.S. Dollar to Euro | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Foreign currency forward contracts-Liability | ($476) |
Impact_of_Effective_Portion_of
Impact of Effective Portion of Gains and Losses of Forward Contracts Designated as Hedges (Detail) (Foreign Exchange Contract, Designated as Hedging Instrument, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Foreign Exchange Contract | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-Tax Gain (Loss) Recognized in OCI (Effective Portion) | $3,139 | ($695) | $15,034 | ($4,208) |
Gain (Loss) Reclassified from Accumulated OCI into Earnings (Effective Portion) | $1,956 | ($422) | $573 | $133 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
EquityPlan | OptionPlan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity plans | 2 | |||
Number of stock option grants | 2 | |||
Outstanding option non-vested | 4,028,387 | 4,028,387 | ||
Outstanding option vested | 3,504,844 | |||
Intrinsic value of option exercised | $114.40 | $133.30 | ||
Cash received from options exercised | 10.1 | 13.5 | ||
Unrecognized stock based compensation expense | 35.1 | 35.1 | ||
Weighted average period of recognition | 2 years 11 months 12 days | |||
Weighted average grant date fair value of option | $22.25 | $26.36 | $28.09 | $24.94 |
Equity compensation expense | 12.1 | 7.8 | 33.4 | 20.9 |
Estimated value of future forfeitures | 1.4 | 1.4 | ||
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 | 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 | |||
Weighted average period of recognition | 3 years 18 days | |||
Fair value of restricted shares vested during a period | 18.7 | 14 | ||
Unrecognized stock based compensation expense | 45.7 | 45.7 | ||
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] | ||||
Weighted average period of recognition | 2 years 22 days | |||
Unrecognized stock based compensation expense | $19.40 | $19.40 | ||
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 | 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 | 15,246,000 | ||
Shares available for grant | 10,642,111 | 10,642,111 | ||
Expiration period | 7 years |
Option_Activity_and_Informatio
Option Activity and Information about Options Outstanding (Detail) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 27, 2014 |
Number of options | |
Outstanding at beginning of period | 8,377,928 |
Granted | 795,255 |
Exercised | -1,462,107 |
Canceled/forfeited | -177,845 |
Outstanding at end of period | 7,533,231 |
Vested or expected to vest at end of period | 7,382,566 |
Vested and exercisable at end of period | 3,504,844 |
Weighted Average Exercise Price | |
Outstanding at beginning of period | $13.69 |
Granted | $90.95 |
Exercised | $6.88 |
Canceled/forfeited | $29.14 |
Outstanding at end of period | $22.79 |
Vested or expected to vest at end of period | $22.79 |
Vested and exercisable at end of period | $11.92 |
Weighted Average Remaining Contractual Life (years) | |
Outstanding at end of period | 5 years 7 months 2 days |
Vested or expected to vest at end of period | 5 years 7 months 2 days |
Vested and exercisable at end of period | 5 years 2 months 1 day |
Aggregate Intrinsic Value | |
Outstanding at December 27, 2014 | $407,380 |
Vested and exercisable at December 27, 2014 | $221,824 |
Assumptions_Used_to_Estimate_F
Assumptions Used to Estimate Fair Value of Options (Detail) | 3 Months Ended | 9 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Volatility factor | 32.80% | 38.40% | 33.20% | 46.10% |
Weighted average risk-free interest rate | 1.50% | 1.30% | 1.50% | 1.00% |
Expected life of option | 4 years 9 months | 4 years 9 months | 4 years 9 months | 4 years 9 months |
Restricted_Shares_and_Restrict
Restricted Shares and Restricted Share Units (Detail) (USD $) | 9 Months Ended |
Dec. 27, 2014 | |
Restricted Shares | |
Number of Unvested Restricted Shares/Units | |
Unvested at beginning of period | 657,853 |
Granted | 433,126 |
Vested | -212,853 |
Canceled/forfeited | -29,734 |
Unvested at end of period | 848,392 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period | $38.38 |
Granted | $90.57 |
Vested | $32.12 |
Canceled/forfeited | $68.37 |
Unvested at end of period | $65.68 |
Restricted Share Units | |
Number of Unvested Restricted Shares/Units | |
Unvested at beginning of period | 199,779 |
Granted | 245,591 |
Vested | -11,770 |
Canceled/forfeited | -10,846 |
Unvested at end of period | 422,754 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period | $58.31 |
Granted | $81.61 |
Vested | $30.04 |
Canceled/forfeited | $62.24 |
Unvested at end of period | $73.25 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 27, 2014 | Mar. 29, 2014 |
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 | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Segment Reporting Information [Line Items] | ||||
Revenue | $1,314,726 | $1,012,229 | $3,290,485 | $2,393,391 |
Income from operations | 418,477 | 343,240 | 1,000,806 | 762,262 |
Retail | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 689,388 | 503,380 | 1,665,209 | 1,184,625 |
Income from operations | 214,928 | 171,281 | 484,951 | 377,528 |
Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 573,838 | 461,407 | 1,494,723 | 1,103,854 |
Income from operations | 170,487 | 140,685 | 444,811 | 320,262 |
Licensing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 51,500 | 47,442 | 130,553 | 104,912 |
Income from operations | $33,062 | $31,274 | $71,044 | $64,472 |
Depreciation_and_Amortization_
Depreciation and Amortization Expense for Each Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Depreciation By Segment [Line Items] | ||||
Depreciation and amortization | $37,492 | $21,655 | $100,554 | $55,687 |
Retail | ||||
Depreciation By Segment [Line Items] | ||||
Depreciation and amortization | 22,414 | 12,316 | 62,401 | 32,749 |
Wholesale | ||||
Depreciation By Segment [Line Items] | ||||
Depreciation and amortization | 15,007 | 9,145 | 37,505 | 22,519 |
Licensing | ||||
Depreciation By Segment [Line Items] | ||||
Depreciation and amortization | $71 | $194 | $648 | $419 |
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 | 9 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Mar. 29, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $1,314,726 | $1,012,229 | $3,290,485 | $2,393,391 | |
Long-lived assets | 595,948 | 595,948 | 398,712 | ||
North America (U.S. and Canada) | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 1,057,281 | 862,619 | 2,578,396 | 2,032,450 | |
Long-lived assets | 411,669 | 411,669 | 283,162 | ||
Europe | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 241,415 | 140,294 | 664,836 | 335,822 | |
Long-lived assets | 173,010 | 173,010 | 108,074 | ||
Japan | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 16,030 | 9,316 | 47,253 | 25,119 | |
Long-lived assets | $11,269 | $11,269 | $7,476 |
Other_Expense_Income_Detail
Other Expense (Income) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | |
Components of Other Income (Expense) [Line Items] | ||||
Losses related to joint venture | $553,000 | $242,000 | ||
Income related to anti-counterfeit program | -365,000 | -1,403,000 | ||
Net unrealized gains on foreign currency forward contracts | -38,000 | -235,000 | ||
Total Other expense (income) | $150,000 | $0 | ($1,396,000) | $0 |
Other_expense_income_Additiona
Other expense (income) - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | |
Components of Other Income (Expense) [Line Items] | ||||
Other expense (income) | $150,000 | $0 | ($1,396,000) | $0 |
Agreements_with_Shareholders_a1
Agreements with Shareholders and Related Party Transactions - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 24, 2014 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | |
Related Party Transaction [Line Items] | |||||
Purchase price of aircraft | $16,500,000 | $282,733,000 | $126,942,000 | ||
Amount charged to operating expenses | 1,400,000 | 1,000,000 | |||
Agreements between the Company and Far East Holdings Limited expiry date | 31-Mar-41 | ||||
Royalties earned | 3,100,000 | 800,000 | |||
Net sales related to inventory items to the Licensees | 70,200,000 | 19,000,000 | |||
Net sales | 1,263,226,000 | 964,787,000 | 3,159,932,000 | 2,288,479,000 | |
Director | |||||
Related Party Transaction [Line Items] | |||||
Inventory purchased from manufacturer owned by one of its directors | 9,100,000 | 6,100,000 | |||
Licensee | |||||
Related Party Transaction [Line Items] | |||||
Net sales | $24,800,000 | $7,800,000 |