Cover Page
Cover Page - shares | 6 Months Ended | |
Sep. 25, 2021 | Oct. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 25, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35368 | |
Entity Registrant Name | CAPRI HOLDINGS LTD | |
Entity Incorporation, State or Country Code | D8 | |
Entity Address, Address Line One | 33 Kingsway | |
Entity Address, City or Town | London | |
Entity Address, Country | GB | |
Entity Address, Postal Zip Code | WC2B 6UF | |
Country Region | 44 | |
City Area Code | 207 | |
Local Phone Number | 632 8600 | |
Title of 12(b) Security | Ordinary Shares, no par value | |
Trading Symbol | CPRI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 150,458,760 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001530721 | |
Current Fiscal Year End Date | --04-02 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 25, 2021 | Mar. 27, 2021 |
Current assets | ||
Cash and cash equivalents | $ 234 | $ 232 |
Receivables, net | 358 | 373 |
Inventories, net | 866 | 736 |
Prepaid expenses and other current assets | 214 | 205 |
Total current assets | 1,672 | 1,546 |
Property and equipment, net | 454 | 485 |
Operating lease right-of-use assets | 1,425 | 1,504 |
Intangible assets, net | 1,956 | 1,992 |
Goodwill | 1,488 | 1,498 |
Deferred tax assets | 284 | 278 |
Other assets | 214 | 178 |
Total assets | 7,493 | 7,481 |
Current liabilities | ||
Accounts payable | 491 | 512 |
Accrued payroll and payroll related expenses | 124 | 116 |
Accrued income taxes | 128 | 126 |
Short-term operating lease liabilities | 438 | 447 |
Short-term debt | 40 | 123 |
Accrued expenses and other current liabilities | 299 | 297 |
Total current liabilities | 1,520 | 1,621 |
Long-term operating lease liabilities | 1,549 | 1,657 |
Deferred tax liabilities | 413 | 397 |
Long-term debt | 1,104 | 1,219 |
Other long-term liabilities | 307 | 430 |
Total liabilities | 4,893 | 5,324 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Ordinary shares, no par value; 650,000,000 shares authorized; 221,295,985 shares issued and 150,447,462 outstanding at September 25, 2021; 219,222,937 shares issued and 151,280,011 outstanding at March 27, 2021 | 0 | 0 |
Treasury shares, at cost (70,848,523 shares at September 25, 2021 and 67,942,926 shares at March 27, 2021) | (3,486) | (3,326) |
Additional paid-in capital | 1,225 | 1,158 |
Accumulated other comprehensive income | 174 | 56 |
Retained earnings | 4,689 | 4,270 |
Total shareholders’ equity of Capri | 2,602 | 2,158 |
Noncontrolling interest | (2) | (1) |
Total shareholders’ equity | 2,600 | 2,157 |
Total liabilities and shareholders’ equity | $ 7,493 | $ 7,481 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Sep. 25, 2021 | Mar. 27, 2021 |
Shareholders’ equity | ||
Ordinary shares, shares authorized (in shares) | 650,000,000 | 650,000,000 |
Ordinary shares, shares issued (in shares) | 221,295,985 | 219,222,937 |
Ordinary shares, shares outstanding (in shares) | 150,447,462 | 151,280,011 |
Treasury shares (in shares) | 70,848,523 | 67,942,926 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Income Statement [Abstract] | ||||
Total revenue | $ 1,300 | $ 1,110 | $ 2,553 | $ 1,561 |
Cost of goods sold | 416 | 400 | 813 | 549 |
Gross profit | 884 | 710 | 1,740 | 1,012 |
Selling, general and administrative expenses | 599 | 474 | 1,144 | 876 |
Depreciation and amortization | 49 | 54 | 99 | 108 |
Impairment of assets | 33 | 20 | 33 | 20 |
Restructuring and other charges | 8 | 9 | 11 | 17 |
Total operating expenses | 689 | 557 | 1,287 | 1,021 |
Income (loss) from operations | 195 | 153 | 453 | (9) |
Other income, net | (2) | 0 | (2) | (1) |
Interest (income) expense, net | (5) | 12 | (4) | 29 |
Foreign currency loss (gain) | 4 | 0 | 5 | (3) |
Income (loss) before (benefit) provision for income taxes | 198 | 141 | 454 | (34) |
(Benefit) provision for income taxes | (2) | 20 | 35 | 25 |
Net income (loss) | 200 | 121 | 419 | (59) |
Less: Net loss attributable to noncontrolling interest | 0 | (1) | 0 | (1) |
Net income (loss) attributable to Capri | $ 200 | $ 122 | $ 419 | $ (58) |
Weighted average ordinary shares outstanding: | ||||
Basic (in shares) | 151,859,760 | 150,492,275 | 151,604,916 | 150,024,293 |
Diluted (in shares) | 154,219,249 | 151,677,242 | 154,563,532 | 150,024,293 |
Net income (loss) per ordinary share attributable to Capri: | ||||
Basic (in dollars per share) | $ 1.31 | $ 0.81 | $ 2.76 | $ (0.39) |
Diluted (in dollars per share) | $ 1.30 | $ 0.81 | $ 2.71 | $ (0.39) |
Statements of Comprehensive Income (Loss): | ||||
Net income | $ 200 | $ 121 | $ 419 | $ (59) |
Foreign currency translation adjustments | 23 | 56 | 113 | 53 |
Net gain (loss) on derivatives | 4 | (2) | 4 | (3) |
Comprehensive income (loss) | 227 | 175 | 536 | (9) |
Less: Foreign currency translation adjustments attributable to noncontrolling interest | 0 | 0 | (1) | 0 |
Comprehensive income (loss) attributable to Capri | $ 227 | $ 176 | $ 537 | $ (8) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Total Equity of Capri | Ordinary Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Income | Retained Earnings | Non-controlling Interests |
Beginning balance (in shares) at Mar. 28, 2020 | 217,320,000 | |||||||
Beginning balance at Mar. 28, 2020 | $ 2,168 | $ 2,167 | $ 0 | $ 1,085 | $ (3,325) | $ 75 | $ 4,332 | $ 1 |
Beginning balance, treasury (in shares) at Mar. 28, 2020 | (67,894,000) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | (59) | (58) | (58) | (1) | ||||
Other comprehensive income (loss) | 50 | 50 | 50 | 0 | ||||
Comprehensive income (loss) | (9) | (8) | (1) | |||||
Vesting of restricted awards, net of forfeitures (in shares) | 996,000 | |||||||
Exercise of employee share options (in shares) | 247,000 | |||||||
Share based compensation expense | 41 | 41 | 41 | |||||
Repurchase of ordinary shares (in shares) | (48,000) | |||||||
Repurchase of ordinary shares | (1) | (1) | $ (1) | |||||
Ending balance (in shares) at Sep. 26, 2020 | 218,563,000 | |||||||
Ending balance at Sep. 26, 2020 | 2,199 | 2,199 | $ 0 | 1,126 | $ (3,326) | 125 | 4,274 | 0 |
Ending balance, treasury (in shares) at Sep. 26, 2020 | (67,942,000) | |||||||
Beginning balance (in shares) at Jun. 27, 2020 | 218,273,000 | |||||||
Beginning balance at Jun. 27, 2020 | 2,007 | 2,006 | $ 0 | 1,109 | $ (3,326) | 71 | 4,152 | 1 |
Beginning balance, treasury (in shares) at Jun. 27, 2020 | (67,932,000) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 121 | 122 | 122 | (1) | ||||
Other comprehensive income (loss) | 54 | 54 | 54 | 0 | ||||
Comprehensive income (loss) | 175 | 176 | (1) | |||||
Vesting of restricted awards, net of forfeitures (in shares) | 43,000 | |||||||
Exercise of employee share options (in shares) | 247,000 | |||||||
Share based compensation expense | 17 | 17 | 17 | |||||
Repurchase of ordinary shares (in shares) | (10,000) | |||||||
Repurchase of ordinary shares | 0 | |||||||
Ending balance (in shares) at Sep. 26, 2020 | 218,563,000 | |||||||
Ending balance at Sep. 26, 2020 | $ 2,199 | 2,199 | $ 0 | 1,126 | $ (3,326) | 125 | 4,274 | 0 |
Ending balance, treasury (in shares) at Sep. 26, 2020 | (67,942,000) | |||||||
Beginning balance (in shares) at Mar. 27, 2021 | 219,222,937 | 219,223,000 | ||||||
Beginning balance at Mar. 27, 2021 | $ 2,157 | 2,158 | $ 0 | 1,158 | $ (3,326) | 56 | 4,270 | (1) |
Beginning balance, treasury (in shares) at Mar. 27, 2021 | (67,942,926) | (67,943,000) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 419 | 419 | 419 | 0 | ||||
Other comprehensive income (loss) | 117 | 118 | 118 | (1) | ||||
Comprehensive income (loss) | 536 | 537 | (1) | |||||
Vesting of restricted awards, net of forfeitures (in shares) | 1,790,000 | |||||||
Exercise of employee share options (in shares) | 283,000 | |||||||
Exercise of employee share options | 11 | 11 | 11 | |||||
Share based compensation expense | 56 | 56 | 56 | |||||
Repurchase of ordinary shares (in shares) | (2,906,000) | |||||||
Repurchase of ordinary shares | $ (160) | (160) | $ (160) | |||||
Ending balance (in shares) at Sep. 25, 2021 | 221,295,985 | 221,296,000 | ||||||
Ending balance at Sep. 25, 2021 | $ 2,600 | 2,602 | $ 0 | 1,225 | $ (3,486) | 174 | 4,689 | (2) |
Ending balance, treasury (in shares) at Sep. 25, 2021 | (70,848,523) | (70,849,000) | ||||||
Beginning balance (in shares) at Jun. 26, 2021 | 220,974,000 | |||||||
Beginning balance at Jun. 26, 2021 | $ 2,450 | 2,452 | $ 0 | 1,201 | $ (3,385) | 147 | 4,489 | (2) |
Beginning balance, treasury (in shares) at Jun. 26, 2021 | (69,031,000) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 200 | 200 | 200 | 0 | ||||
Other comprehensive income (loss) | 27 | 27 | 27 | 0 | ||||
Comprehensive income (loss) | 227 | 227 | 0 | |||||
Vesting of restricted awards, net of forfeitures (in shares) | 199,000 | |||||||
Exercise of employee share options (in shares) | 123,000 | |||||||
Exercise of employee share options | 4 | 4 | 4 | |||||
Share based compensation expense | 20 | 20 | 20 | |||||
Repurchase of ordinary shares (in shares) | (1,818,000) | |||||||
Repurchase of ordinary shares | $ (101) | (101) | $ (101) | |||||
Ending balance (in shares) at Sep. 25, 2021 | 221,295,985 | 221,296,000 | ||||||
Ending balance at Sep. 25, 2021 | $ 2,600 | $ 2,602 | $ 0 | $ 1,225 | $ (3,486) | $ 174 | $ 4,689 | $ (2) |
Ending balance, treasury (in shares) at Sep. 25, 2021 | (70,848,523) | (70,849,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Sep. 25, 2021 | Sep. 26, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ 419 | $ (59) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 99 | 108 |
Share based compensation expense | 56 | 41 |
Deferred income taxes | (27) | 15 |
Impairment of assets | 33 | 22 |
Changes to lease related balances, net | (67) | (58) |
Tax (benefit) expense on exercise of share options | (3) | 5 |
Amortization of deferred financing costs | 3 | 2 |
Foreign currency gains | (7) | (3) |
Credit losses | (1) | (2) |
Change in assets and liabilities: | ||
Receivables, net | 15 | (29) |
Inventories, net | (133) | (73) |
Prepaid expenses and other current assets | (12) | 49 |
Accounts payable | (8) | 115 |
Accrued expenses and other current liabilities | 20 | 3 |
Other long-term assets and liabilities | 9 | 1 |
Net cash provided by operating activities | 396 | 137 |
Cash flows from investing activities | ||
Capital expenditures | (48) | (59) |
Cash paid for asset acquisitions | 0 | (12) |
Net cash used in investing activities | (48) | (71) |
Cash flows from financing activities | ||
Debt borrowings | 159 | 955 |
Debt repayments | (360) | (1,371) |
Debt issuance costs | 0 | (4) |
Repurchase of ordinary shares | (160) | (1) |
Exercise of employee share options | 11 | 0 |
Other financing activities | 8 | 0 |
Net cash used in financing activities | (342) | (421) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3) | 1 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 3 | (354) |
Beginning of period | 234 | 592 |
End of period | 237 | 238 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest | 22 | 28 |
Net cash paid (received) for income taxes | 28 | (44) |
Supplemental disclosure of non-cash investing and financing activities | ||
Accrued capital expenditures | $ 16 | $ 17 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Sep. 25, 2021 | |
Accounting Policies [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Capri Holdings Limited ("Capri", and together with its subsidiaries, the "Company") was incorporated in the British Virgin Islands (“BVI”) on December 13, 2002. The Company is a holding company that owns brands that are leading designers, marketers, distributors and retailers of branded women’s and men’s accessories, footwear and ready-to-wear bearing the Versace, Jimmy Choo and Michael Kors tradenames and related trademarks and logos. The Company operates in three reportable segments: Versace, Jimmy Choo and Michael Kors. See Note 16 for additional information. The interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned or controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The interim consolidated financial statements as of September 25, 2021 and for the three and six months ended September 25, 2021 and September 26, 2020 are unaudited. The Company consolidates the results of its Versace business on a one-month lag, as consistent with prior periods. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, necessary for a fair presentation in conformity with U.S. GAAP. The interim consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended March 27, 2021, as filed with the Securities and Exchange Commission on May 26, 2021, 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 25, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in accordance with U.S. GAAP 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 credit losses, estimates of inventory net realizable value, the valuation of share-based compensation, the valuation of deferred taxes and the valuation of goodwill, intangible assets, operating lease right-of-use assets and property and equipment, along with the estimated useful lives assigned to these assets. Actual results could differ from those estimates. Seasonality The Company experiences certain effects of seasonality with respect to its business. The Company generally experiences greater sales during its third fiscal quarter, primarily driven by holiday season sales, and the lowest sales during its first fiscal quarter. COVID-19 Related Government Assistance and Subsidies As there is no definitive guidance under U.S. GAAP, the Company has applied the guidance under International Accounting Standards 20, Accounting for Government Grants and Disclosure of Government Assistance ("IAS 20"). The Company has elected to follow the income approach under IAS 20 and recognize these funds as a reduction to the related expense in the Company’s consolidated statements of operations and comprehensive income (loss). The Company recognized $3 million and $9 million for the three months ended September 25, 2021 and September 26, 2020, respectively, and $7 million and $23 million for the six months ended September 25, 2021 and September 26, 2020, respectively, related to government assistance and subsidies. Cash, Cash Equivalents and Restricted Cash All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. Included in the Company’s cash and cash equivalents as of September 25, 2021 and March 27, 2021 are credit card receivables of $24 million and $25 million, respectively, which generally settle within two to three business days. A reconciliation of cash, cash equivalents and restricted cash as of September 25, 2021 and March 27, 2021 from the consolidated balance sheets to the consolidated statements of cash flows is as follows (in millions): September 25, March 27, Reconciliation of cash, cash equivalents and restricted cash Cash and cash equivalents $ 234 $ 232 Restricted cash included within prepaid expenses and other current assets 3 2 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 237 $ 234 Inventories, net Inventories primarily consist of finished goods with the exception of raw materials and work in process inventory. The combined total of raw materials and work in process inventory, net, recorded on the Company’s consolidated balance sheets was $30 million and $28 million as of September 25, 2021 and March 27, 2021, respectively. The net realizable value of the Company’s inventory as of September 25, 2021 and March 27, 2021 includes the adverse impacts associated with the COVID-19 pandemic. Derivative Financial Instruments Forward Foreign Currency Exchange Contracts The Company uses forward foreign currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain 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 contracts to hedge the Company’s cash flows, as they relate to foreign currency transactions. Certain of these contracts are designated as hedges for accounting purposes, while others remain undesignated. All of the Company’s derivative instruments are recorded in the Company’s consolidated balance sheets at fair value on a gross basis, regardless of their hedge designation. The Company designates certain contracts related to the purchase of inventory that qualify for hedge accounting as cash flow hedges. Formal hedge documentation is prepared for all derivative instruments designated as hedges, including a description of the hedged item and the hedging instrument and the risk being hedged. The changes in the fair value for contracts designated as cash flow hedges is recorded in equity as a component of accumulated other comprehensive income until the hedged item affects earnings. When the inventory related to forecasted inventory purchases that are being hedged is sold to a third party, the gains or losses deferred in accumulated other comprehensive income are recognized within cost of goods sold. The Company uses regression analysis to assess effectiveness of derivative instruments that are designated as hedges, which compares the change in the fair value of the derivative instrument to the change in the related hedged item. If the hedge is no longer expected to be highly effective in the future, future changes in the fair value are recognized in earnings. For those contracts that are not designated as hedges, changes in the fair value are recorded to foreign currency loss (gain) in the Company’s consolidated statements of operations and comprehensive income (loss). The Company classifies cash flows relating to its forward foreign currency exchange contracts related to purchase of inventory consistently with the classification of the hedged item within cash flows from operating activities. The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. In order to mitigate counterparty credit risk, the Company only 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. Net Investment Hedges The Company also uses fixed-to-fixed cross currency swap agreements to hedge its net investments in foreign operations against future volatility in the exchange rates between its U.S. Dollars and these foreign currencies. The Company has elected the spot method of designating these contracts under ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”, and has designated these contracts as net investment hedges. The net gain or loss on the net investment hedge is reported within foreign currency translation gains and losses (“CTA”), as a component of accumulated other comprehensive income on the Company’s consolidated balance sheets. Interest accruals and coupon payments are recognized directly in interest (income) expense, net, in the Company’s consolidated statements of operations and comprehensive income (loss). Upon discontinuation of a hedge, all previously recognized amounts remain in CTA until the net investment is sold, diluted or liquidated. Interest Rate Swap Agreements The Company also uses interest rate swap agreements to hedge the variability of its cash flows resulting from floating interest rates on the Company’s borrowings. When an interest rate swap agreement qualifies for hedge accounting as a cash flow hedge, the changes in the fair value are recorded in equity as a component of accumulated other comprehensive income and are reclassified into interest (income) expense, net, in the same period during which the hedged transactions affect earnings. Leases The Company leases retail stores, office space and warehouse space under operating lease agreements that expire at various dates through September 2043. The Company’s leases generally have terms of up to 10 years, generally require a fixed annual rent and may require the payment of additional rent if store sales exceed a negotiated amount. Although most of the Company’s equipment is owned, the Company has limited equipment leases that expire on various dates through August 2025. The Company acts as sublessor in certain leasing arrangements, primarily related to closed stores under its restructuring activities, as discussed in Note 8. Fixed sublease payments received are recognized on a straight-line basis over the sublease term. The Company determines the sublease term based on the date it provides possession to the subtenant through the expiration date of the sublease. The Company recognizes operating lease right-of-use assets and lease liabilities at lease commencement date, based on the present value of fixed lease payments over the expected lease term. The Company uses its incremental borrowing rates to determine the present value of fixed lease payments based on the information available at the lease commencement date, as the rate implicit in the lease is not readily determinable for the Company’s leases. The Company’s incremental borrowing rates are based on the term of the leases, the economic environment of the leases and reflect the expected interest rate it would incur to borrow on a secured basis. Certain leases include one or more renewal options. The exercise of lease renewal options is generally at the Company’s sole discretion and as such, the Company typically determines that exercise of these renewal options is not reasonably certain. As a result, the Company generally does not include the renewal option period in the expected lease term and the associated lease payments are not included in the measurement of the operating lease right-of-use asset and lease liability. Certain leases also contain termination options with an associated penalty. Generally, the Company is reasonably certain not to exercise these options and as such, they are not included in the determination of the expected lease term. The Company recognizes operating lease expense on a straight-line basis over the lease term. Leases with an initial lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for its short-term leases on a straight-line basis over the lease term. The Company’s leases generally provide for payments of non-lease components, such as common area maintenance, real estate taxes and other costs associated with the leased property. The Company accounts for lease and non-lease components of its real estate leases together as a single lease component and, as such, includes fixed payments of non-lease components in the measurement of the operating lease right-of-use assets and lease liabilities for its real estate leases. Variable lease payments, such as percentage rentals based on sales, periodic adjustments for inflation, reimbursement of real estate taxes, any variable common area maintenance and any other variable costs associated with the leased property are expensed as incurred as variable lease costs and are not recorded on the balance sheet. The Company’s lease agreements do not contain any material residual value guarantees or material restrictions or covenants. The following table presents the Company’s supplemental cash flow information related to leases (in millions): Six Months Ended September 25, 2021 September 26, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases (1) $ 257 $ 191 (1) Operating cash flows used in operating leases for the six months ended September 25, 2021 and September 26, 2020 excluded $5 million and $60 million, respectively, of rent payments that have been deferred due to the COVID-19 pandemic. During the three and six months ended September 25, 2021, the Company recorded sublease income of $2 million and $4 million, respectively, and $1 million and $3 million, respectively, for the three and six months ended September 26, 2020, within restructuring and other charges for stores relating to our restructuring plan and selling, general and administrative expenses for all other locations. During the three and six months ended September 25, 2021, the Company recorded $3 million and $10 million, respectively, and $9 million and $24 million for the three and six months ended September 26, 2020, respectively, of rent concessions negotiated in connection with the impact of COVID-19 as if it were contemplated as part of the existing contract, and these concessions are recorded as a reduction to variable lease expense within selling, general and administrative expenses. Net Income (Loss) per Share The Company’s basic net income (loss) per ordinary share is calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period. Diluted net income (loss) per ordinary share reflects the potential dilution that would occur if share option grants or any other potentially dilutive instruments, including restricted shares and restricted share units ("RSUs"), were exercised or converted into ordinary shares. These potentially dilutive securities are included in diluted shares to the extent they are dilutive under the treasury stock method for the applicable periods. Performance-based RSUs are included as diluted shares if the related performance conditions are considered satisfied as of the end of the reporting period and to the extent they are dilutive under the treasury stock method. The components of the calculation of basic net income (loss) per ordinary share and diluted net income (loss) per ordinary share are as follows (in millions, except share and per share data): Three Months Ended Six Months Ended September 25, September 26, September 25, September 26, Numerator: Net income (loss) attributable to Capri $ 200 $ 122 $ 419 $ (58) Denominator: Basic weighted average shares 151,859,760 150,492,275 151,604,916 150,024,293 Weighted average dilutive share equivalents: Share options and restricted shares/units, and performance restricted share units 2,359,489 1,184,967 2,958,616 — Diluted weighted average shares 154,219,249 151,677,242 154,563,532 150,024,293 Basic net income (loss) per share (1) $ 1.31 $ 0.81 $ 2.76 $ (0.39) Diluted net income (loss) per share (1) $ 1.30 $ 0.81 $ 2.71 $ (0.39) (1) Basic and diluted net income (loss) per share are calculated using unrounded numbers. During the three and six months ended September 25, 2021, share equivalents of 415,331 shares and 513,088 shares, respectively, have been excluded from the above calculations due to their anti-dilutive effect. Share equivalents of 3,961,838 shares and 4,675,372 shares have been excluded from the above calculations for the three and six months ended September 26, 2020, respectively. Diluted net loss per share attributable to Capri for the six months ended September 26, 2020 excluded all potentially dilutive securities because there was a net loss attributable to Capri for the period and, as such, the inclusion of these securities would have been anti-dilutive. See Note 2 in the Company’s Annual Report on Form 10-K for the fiscal year ended March 27, 2021 for a complete disclosure of the Company’s significant accounting policies. Recently Issued Accounting Pronouncements The Company has considered all new accounting pronouncements and, other than the recent pronouncement discussed below, has concluded that there are no new pronouncements that may have a material impact on the Company’s results of operations, financial condition or cash flows based on current information. Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting" and in January 2021, issued ASU 2021-01, "Reference Rate Reform: Scope". Both of these updates aim to ease the potential burden in accounting for reference rate reform. These updates provide optional expedients and exceptions, if certain criteria are met, for applying accounting principles generally accepted in the United States to contract modifications, hedging relationships and other transactions affected by the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). The amendments were effective upon issuance and allow companies to adopt the amendments on a prospective basis through December 31, 2022. The Company has not applied the ASUs to any contract modifications or new hedging relationships in the current year. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Sep. 25, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company accounts for contracts with its customers when there is approval and commitment from both parties, the rights of the parties and payment terms have been identified, the contract has commercial substance and collectibility of consideration is probable. Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. The Company sells its products through three primary channels of distribution: retail, wholesale and licensing. Within the retail and wholesale channels, substantially all of the Company’s revenues consist of sales of products that represent a single performance obligation, where control transfers at a point in time to the customer. For licensing arrangements, royalty and advertising revenue is recognized over time based on access provided to the Company’s trademarks. Retail The Company generates sales through directly operated stores and e-commerce sites throughout the Americas (U.S., Canada and Latin America), certain parts of EMEA (Europe, Middle East and Africa) and certain parts of Asia (including Australia). Gift Cards. The Company sells gift cards that can be redeemed for merchandise, resulting in a contract liability upon issuance. Revenue is recognized when the gift card is redeemed or upon “breakage” for the estimated portion of gift cards that are not expected to be redeemed. “Breakage” revenue is calculated under the proportional redemption methodology, which considers the historical patterns of redemption in jurisdictions where the Company is not required to remit the value of the unredeemed gift cards as unclaimed property. The contract liability related to gift cards, net of estimated “breakage”, of $12 million and $12 million as of September 25, 2021 and March 27, 2021, respectively, is included within accrued expenses and other current liabilities in the Company’s consolidated balance sheet. Loyalty Program . The Company offers a loyalty program, which allows its Michael Kors U.S. customers to earn points on qualifying purchases toward monetary and non-monetary rewards, which may be redeemed for purchases at Michael Kors retail stores and e-commerce sites. The Company defers a portion of the initial sales transaction based on the estimated relative fair value of the benefits based on projected timing of future redemptions and historical activity. These amounts include estimated “breakage” for points that are not expected to be redeemed. Wholesale The Company’s products are sold primarily to major department stores, specialty stores and travel retail shops throughout the Americas, EMEA and Asia. The Company also has arrangements where its products are sold to geographic licensees in certain parts of EMEA, Asia and South America. Licensing The Company provides its third-party licensees with the right to access its Versace, Jimmy Choo and Michael Kors trademarks under product and geographic licensing arrangements. Under geographic licensing arrangements, third party licensees receive the right to distribute and sell products bearing the Company’s trademarks in retail and/or wholesale channels within certain geographical areas, including Brazil, the Middle East, Eastern Europe, South Africa and certain parts of Asia. The Company recognizes royalty revenue and advertising contributions based on the percentage of sales made by the licensees. Generally, the Company’s guaranteed minimum royalty amounts due from licensees relate to contractual periods that do not exceed 12 months, however, certain guaranteed minimums for Versace are multi-year based. As of September 25, 2021, contractually guaranteed minimum fees from the Company’s license agreements expected to be recognized as revenue during future periods were as follows (in millions): Contractually Guaranteed Minimum Fees Remainder of Fiscal 2022 $ 15 Fiscal 2023 29 Fiscal 2024 27 Fiscal 2025 23 Fiscal 2026 24 Fiscal 2027 and thereafter 75 Total $ 193 Sales Returns The refund liability recorded as of September 25, 2021 and March 27, 2021 was $48 million and $46 million, respectively, and the related asset for the right to recover returned product as of September 25, 2021 and March 27, 2021 was $15 million and $14 million, respectively. Contract Balances Total contract liabilities were $17 million and $18 million as of September 25, 2021 and March 27, 2021, respectively. For the three and six months ended September 25, 2021, the Company recognized $2 million and $8 million, respectively, in revenue which related to contract liabilities that existed at March 27, 2021. For the three and six months ended September 26, 2020, the Company recognized $2 million and $5 million, respectively, in revenue which related to contract liabilities that existed at March 28, 2020. There were no material contract assets recorded as of September 25, 2021 and March 27, 2021. There were no changes in historical variable consideration estimates that were materially different from actual results. Disaggregation of Revenue The following table presents the Company’s segment revenue disaggregated by geographic location (in millions): Three Months Ended Six Months Ended September 25, September 26, September 25, September 26, Versace revenue - the Americas $ 107 $ 60 $ 194 $ 75 Versace revenue - EMEA 118 80 205 107 Versace revenue - Asia 57 55 123 106 Total Versace 282 195 522 288 Jimmy Choo revenue - the Americas 38 33 76 39 Jimmy Choo revenue - EMEA 56 46 106 62 Jimmy Choo revenue - Asia 43 43 97 72 Total Jimmy Choo 137 122 279 173 Michael Kors revenue - the Americas 556 494 1,146 650 Michael Kors revenue - EMEA 214 185 379 264 Michael Kors revenue - Asia 111 114 227 186 Total Michael Kors 881 793 1,752 1,100 Total revenue - the Americas 701 587 1,416 764 Total revenue - EMEA 388 311 690 433 Total revenue - Asia 211 212 447 364 Total revenue $ 1,300 $ 1,110 $ 2,553 $ 1,561 See Note 3 in the Company’s Annual Report on Form 10-K for the fiscal year ended March 27, 2021 for a complete disclosure of the Company’s revenue recognition policy. |
Receivables, net
Receivables, net | 6 Months Ended |
Sep. 25, 2021 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net Receivables, net, consist of (in millions): September 25, March 27, Trade receivables (1) $ 367 $ 412 Receivables due from licensees 37 20 404 432 Less: allowances (46) (59) $ 358 $ 373 (1) As of September 25, 2021 and March 27, 2021, $67 million and $81 million, respectively, of trade receivables were insured. Receivables are presented net of allowances for discounts, markdowns, operational chargebacks and credit losses. Discounts are based on open invoices where trade discounts have been extended to customers. Markdowns are based on wholesale customers’ 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 revenues. |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Sep. 25, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net, consists of (in millions): September 25, March 27, Leasehold improvements $ 739 $ 737 Computer equipment and software 372 359 Furniture and fixtures 351 350 Equipment 140 139 In-store shops 57 53 Building 51 51 Land 20 20 1,730 1,709 Less: accumulated depreciation and amortization (1,317) (1,271) 413 438 Construction-in-progress 41 47 $ 454 $ 485 Depreciation and amortization of property and equipment for the three months ended September 25, 2021 and September 26, 2020 was $37 million and $41 million, respectively, and was $75 million and $84 million for the six months ended September 25, 2021 and September 26, 2020, respectively. During the three and six months ended September 25, 2021, the Company recorded $3 million of property and equipment impairment charges. During the three and six months ended September 26, 2020, the Company recorded $2 million in property and equipment impairment charges. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Sep. 25, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following table details the carrying values of the Company’s intangible assets and goodwill (in millions): September 25, March 27, Definite-lived intangible assets: Reacquired rights $ 400 $ 400 Trademarks 23 23 Customer relationships (1) 435 437 Gross definite-lived intangible assets 858 860 Less: accumulated amortization (208) (184) Net definite-lived intangible assets 650 676 Indefinite-lived intangible assets: Jimmy Choo brand (2) 335 338 Versace brand (1) 971 978 1,306 1,316 Total intangible assets, excluding goodwill $ 1,956 $ 1,992 Goodwill (3) $ 1,488 $ 1,498 (1) The change in the carrying value since March 27, 2021 reflects the impact of foreign currency translation. (2) Includes accumulated impairment of $249 million as of September 25, 2021 and March 27, 2021. The change in the carrying value since March 27, 2021 reflects the impact of foreign currency translation. (3) Includes accumulated impairment of $265 million related to the Jimmy Choo reporting units as of September 25, 2021 and March 27, 2021. The change in the carrying value since March 27, 2021 reflects the impact of foreign currency translation. Amortization expense for the Company’s definite-lived intangible assets for the three months ended September 25, 2021 and September 26, 2020 was $12 million, and was $24 million and $23 million for the six months ended September 25, 2021 and September 26, 2020, respectively. |
Current Assets and Current Liab
Current Assets and Current Liabilities | 6 Months Ended |
Sep. 25, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Current Assets and Current Liabilities | Current Assets and Current Liabilities Prepaid expenses and other current assets consist of the following (in millions): September 25, March 27, Prepaid taxes $ 116 $ 133 Interest receivable related to net investment hedges 21 12 Prepaid contracts 17 11 Other accounts receivables 16 13 Other 44 36 $ 214 $ 205 Accrued expenses and other current liabilities consist of the following (in millions): September 25, March 27, Other taxes payable $ 65 $ 46 Return liabilities 48 46 Accrued advertising and marketing 18 11 Accrued rent (1) 17 20 Accrued capital expenditures 17 17 Professional services 14 13 Accrued litigation 14 12 Accrued purchases and samples 13 8 Gift cards and retail store credits 13 12 Accrued interest 9 10 Restructuring liability 4 9 Charitable donations (2) — 20 Other 67 73 $ 299 $ 297 (1) The accrued rent balance relates to variable lease payments. (2) Relates to a $20 million unconditional pledge to The Capri Holdings Foundation for the Advancement of Diversity in Fashion as of March 27, 2021 which was funded during the quarter ended September 25, 2021. |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Sep. 25, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges Capri Retail Store Optimization Program As previously announced, the Company intends to close approximately 170 of its retail stores over two During the three and six months ended September 25, 2021, the Company closed 16 and 26 of its retail stores, respectively, which have been incorporated into the Capri Retail Store Optimization Program. Net restructuring (gains) charges recorded in connection with the Capri Retail Store Optimization Program during the three and six months ended September 25, 2021 were $(1) million and $(4) million, respectively, and $2 million and $5 million, during the three and six months ended September 26, 2020, respectively. The below table presents a roll forward of the Company's restructuring liability related to its Capri Retail Store Optimization Program (in millions): Severance and benefit costs Lease-related and other costs Total Balance at March 27, 2021 $ — $ 3 $ 3 Additions charged to expense (1) 1 2 3 Payments (1) (3) (4) Balance at September 25, 2021 $ — $ 2 $ 2 (1) Excludes a net credit of $7 million related to gains on certain lease terminations partially offset by store operating costs for previously closed stores during the six months ended September 25, 2021. Other Restructuring Charges In addition to the restructuring charges related to the Capri Retail Store Optimization Program, the Company incurred charges of $2 million and $3 million during the three and six months ended September 25, 2021, respectively, primarily relating to closures of corporate locations. There were no charges for the three and six months ended September 26, 2020. Other Costs During both the three and six months ended September 25, 2021 and September 26, 2020, the Company recorded costs of $7 million and $12 million, respectively, primarily related to equity awards associated with the acquisition of Versace. |
Debt Obligations
Debt Obligations | 6 Months Ended |
Sep. 25, 2021 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations The following table presents the Company’s debt obligations (in millions): September 25, March 27, Term Loan $ 647 $ 870 Senior Notes due 2024 450 450 Other 53 30 Total debt 1,150 1,350 Less: Unamortized debt issuance costs 5 7 Less: Unamortized discount on long-term debt 1 1 Total carrying value of debt 1,144 1,342 Less: Short-term debt 40 123 Total long-term debt $ 1,104 $ 1,219 Senior Secured Revolving Credit Facility On June 25, 2020, the Company entered into the second amendment (the “Second Amendment”) to its third amended and restated credit facility, dated as of November 15, 2018 (as amended, the “2018 Credit Facility”), with, among others, JPMorgan Chase Bank, N.A., as administrative agent. Pursuant to the Second Amendment, the financial covenant in the Company’s 2018 Credit Facility required it to maintain a ratio of the sum of total indebtedness plus the capitalized amount of all operating lease obligations for the last four fiscal quarters to Consolidated EBITDAR of no greater than 3.75 to 1.00 had been waived through the fiscal quarter ending June 26, 2021. In addition, the Second Amendment added a new $230 million revolving line of credit with a maturity date of June 24, 2021 (the “364 Day Facility”). The Second Amendment also permitted certain working capital facilities between the Company or any of its subsidiaries with a lender or an affiliate of a lender under the 2018 Credit Facility to be guaranteed under the 2018 Credit Facility guarantees and certain supply chain financings with, and up to $50 million outstanding principal amount of bilateral letters of credit and bilateral bank guarantees issued by a lender or an affiliate of a lender to be guaranteed and secured under the 2018 Credit Facility guarantees and collateral documents. The Second Amendment, among other things, also temporarily suspended the quarterly maximum leverage ratio covenant and imposed a minimum liquidity test during the period from June 25, 2020 until the earlier of (x) the date on which the Company delivers its financial statements for the fiscal quarter ending June 26, 2021 and (y) the date on which the Company certifies that its net leverage ratio as of the last day of the most recently ended fiscal quarter was no greater than 4.00 to 1.00 (the “Applicable Period”). On May 20, 2021, the Company determined it no longer desired to maintain this additional line of credit and consequently delivered a notice to the administrative agent terminating the 364 Day Facility, and the 364 Day Facility terminated on May 25, 2021. The remainder of the 2018 Credit Facility remains in full force and effect. On May 26, 2021 (the “Election Date”), the Company delivered to the administrative agent the certificate required to terminate the Applicable Period. Effective as of the Election Date, the Company will be required to comply with the quarterly maximum net leverage ratio test of 4.00 to 1.00. On September 23, 2021, the Company agreed to suspend its rights to borrow in all non-U.S. Dollar (i.e. Pounds Sterling, Euro, Swiss Francs and Japanese Yen) currency LIBOR rate tenors under the 2018 Credit Facility after December 31, 2021 given that non-U.S. Dollar LIBOR will no longer be published after that date. As of September 25, 2021, and the date these financial statements were issued, the Company was in compliance with all covenants related to the 2018 Credit Facility. As of September 25, 2021 and March 27, 2021, the Company had no borrowings outstanding under the 2018 Revolving Credit Facility. In addition, stand-by letters of credit of $28 million and $27 million were outstanding as of September 25, 2021 and March 27, 2021, respectively. At September 25, 2021 and March 27, 2021, the amount available for future borrowings under the 2018 Revolving Credit Facility were $972 million and $973 million, respectively. As of September 25, 2021 and March 27, 2021, the carrying value of borrowings outstanding under the 2018 Term Loan Facility was $644 million and $865 million, respectively, of which there was no amount recorded within short-term debt as of September 25, 2021 and $97 million recorded within short-term debt as of March 27, 2021 and $644 million and $768 million, respectively, was recorded within long-term debt in its consolidated balance sheets. During Fiscal 2021, the Company began offering a supplier financing program to certain suppliers as the Company continues to identify opportunities to improve liquidity. This program enables suppliers, at their sole discretion, to sell their receivables (i.e., the Company’s payment obligations to suppliers) to a financial institution on a non-recourse basis in order to be paid earlier than current payment terms provide. The Company’s obligations, including the amount due and scheduled payment dates, are not impacted by a suppliers’ decision to participate in this program. The Company does not reimburse suppliers for any costs they incur to participate in the program and their participation is voluntary. The amount outstanding under this program as of September 25, 2021 and March 27, 2021 was $31 million and $17 million, respectively, and was recorded within short-term debt in the Company’s consolidated balance sheets. During the first quarter of Fiscal 2022, the Company's subsidiary, Versace, entered into an agreement with Banco BPM Banking Group ("the Bank") to sell certain tax receivables to the Bank in exchange for cash. As of September 25, 2021, the outstanding balance was $19 million, with $9 million and $10 million recorded within short-term debt and long-term debt in the Company’s consolidated balance sheets, respectively. See Note 12 to the Company’s Fiscal 2021 Annual Report on Form 10-K for additional information regarding the Company’s credit facilities and debt obligations. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 25, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, the Company is party to various legal proceedings and claims. Although the outcome of such claims cannot be determined with certainty, the Company believes that the outcome of all pending legal proceedings in the aggregate will not have a material adverse effect on its cash flow, results of operations or financial position. Please refer to the Contractual Obligations and Commercial Commitments disclosure within the Liquidity and Capital Resources section of the Company’s Annual Report on Form 10-K for the fiscal year ended March 27, 2021 for a detailed disclosure of other commitments and contractual obligations as of March 27, 2021. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 25, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial assets and liabilities are measured at fair value using the three-level 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 based on market data obtained from independent sources. Unobservable inputs are inputs based on a company’s own assumptions about market participant assumptions 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 prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs derived principally from or corroborated by observable market data. Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. At September 25, 2021 and March 27, 2021, the fair values of the Company’s forward foreign currency exchange contracts, interest rate swaps and net investment hedges were determined using broker quotations, which were calculations derived from observable market information: the applicable currency 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 assesses the credit risk of the counterparty and would adjust the provided valuations for counterparty credit risk when appropriate. The fair values 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. The fair values of net investment hedges and interest rate swaps are included in other assets, and in other long-term liabilities in the consolidated balance sheets, depending on whether they represent assets or liabilities of the Company. See Note 12 for further detail. All contracts are measured and recorded at fair value on a recurring basis and are categorized in Level 2 of the fair value hierarchy, as shown in the following table (in millions): Fair value at September 25, 2021 using: Fair value at March 27, 2021 using: Quoted prices in Significant Significant Quoted prices in Significant Significant Derivative assets: Forward foreign currency exchange contracts $ — $ 4 $ — $ — $ 2 $ — Net investment hedges — 33 — — 3 — Total derivative assets $ — $ 37 $ — $ — $ 5 $ — Derivative liabilities: Forward foreign currency exchange contracts $ — $ — $ — $ — $ 1 $ — Net investment hedges — 118 — — 263 — Interest rate swap — — — — 1 — Undesignated forward currency exchange contracts — — — — — — Total derivative liabilities $ — $ 118 $ — $ — $ 265 $ — The Company’s long-term debt obligations are recorded in its consolidated balance sheets at carrying values, which may differ from the related fair values. The fair value of the Company’s long-term debt is estimated using external pricing data, including any available quoted market prices and based on other debt instruments with similar characteristics. Borrowings under revolving credit agreements, if outstanding, are recorded at carrying value, which approximates fair value due to the frequent nature of such borrowings and repayments. See Note 9 for detailed information related to carrying values of the Company’s outstanding debt. The following table summarizes the carrying values and estimated fair values of the Company’s short- and long-term debt, based on Level 2 measurements (in millions): September 25, 2021 March 27, 2021 Carrying Estimated Carrying Estimated Senior Notes due 2024 $ 447 $ 476 $ 447 $ 470 Term Loan $ 644 $ 641 $ 865 $ 866 Revolving Credit Facilities $ — $ — $ — $ — The Company’s cash and cash equivalents, accounts receivable and accounts payable are recorded at carrying value, which approximates fair value. Non-Financial Assets and Liabilities The Company’s non-financial assets include goodwill, intangible assets, operating lease right-of-use assets and property and equipment. Such assets are reported at their carrying values and are not subject to recurring fair value measurements. The Company’s goodwill and its indefinite-lived intangible assets (Versace and Jimmy Choo brands) are assessed for impairment at least annually, while its other long-lived assets, including operating lease right-of-use assets, property and equipment and definite-lived intangible assets, are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. The Company determines the fair values of these assets based on Level 3 measurements using the Company’s best estimates of the amount and timing of future discounted cash flows, based on historical experience, market conditions, current trends and performance expectations. The Company recorded $33 million of impairment charges during the three and six months ended September 25, 2021. The Company recorded $22 million in impairment charges during the three and six months ended September 26, 2020. The following table details the carrying values and fair values of the Company’s assets that have been impaired during the three and six months ended September 25, 2021 and three and six months ended September 26, 2020 (in millions): Three and Six Months Ended Three and Six Months Ended Carrying Value Prior to Impairment Fair Value Impairment Charge Carrying Value Prior to Impairment Fair Value Impairment Charge (1) Operating Lease Right-of-Use Assets $ 83 $ 53 $ 30 $ 46 $ 26 $ 20 Property and Equipment 4 1 3 5 3 2 Total $ 87 $ 54 $ 33 $ 51 $ 29 $ 22 (1) Includes $2 million of impairment charges that were recorded within restructuring and other charges related to the Capri Retail Store Optimization Program for both the three and six months ended September 26, 2020. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Sep. 25, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Forward Foreign Currency Exchange Contracts The Company uses forward foreign 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 certain forecasted inventory purchases by using forward foreign currency exchange contracts. The Company only enters into derivative instruments with highly credit-rated counterparties. The Company does not enter into derivative contracts for trading or speculative purposes. Net Investment Hedges During the first quarter of Fiscal 2022, the Company modified multiple fixed-to-fixed cross-currency swap agreements with aggregate notional amounts of $2.875 billion to hedge its net investment in Euro denominated subsidiaries. Certain of these contracts are supported by a credit support annex ("CSA") which provides for collateral exchange with the earliest effective date being May 2023. If the outstanding position of a contract exceeds a certain threshold governed by the aforementioned CSA's, either party is required to post cash collateral. Due to an-other-than-insignificant financing element on certain of these modified contracts, the net interest cash inflows of $8 million during the six months ended September 25, 2021 related to these contracts are classified as financing activities in the Company’s consolidated statements of cash flows. As of September 25, 2021, the Company had multiple fixed-to-fixed cross-currency swap agreements with aggregate notional amounts of $4 billion to hedge its net investment in Euro denominated subsidiaries and $194 million to hedge its net investment in Japanese Yen denominated subsidiaries against future volatility in the exchange rates between the U.S. Dollar and these currencies. Under the terms of these contracts, the Company will exchange the semi-annual fixed rate payments on U.S. denominated debt for fixed rate payments of 0% to 4.457% in Euros and 0% to 3.588% in Japanese Yen. Certain of these contracts include mandatory early termination dates between February 2024 and February 2026, while the remaining contracts have maturity dates between March 2024 and August 2050. These contracts have been designated as net investment hedges. When a cross-currency swap is used as a hedging instrument in a net investment hedge assessed under the spot method, the cross-currency basis spread is excluded from the assessment of hedge effectiveness and is recognized as a reduction in interest expense in the Company’s consolidated statements of operations and comprehensive income (loss). Accordingly, the Company recorded a reduction in interest expense of $15 million and $27 million during the three and six months ended September 25, 2021, respectively, and $2 million during both the three and six months ended September 26, 2020. This increase from prior year is primarily due to the Company having higher average notional amounts outstanding on these hedges. Interest Rate Swap As of September 25, 2021, the Company had an interest rate swap with an initial notional amount of $500 million that will decrease to $350 million in April 2022. The swap was designated as a cash flow hedge designed to mitigate the impact of adverse interest rate fluctuations for a portion of the Company’s variable-rate debt equal to the notional amount of the swap. The interest rate swap converts the one-month adjusted LIBOR interest rate on these borrowings to a fixed interest rate of 0.237% through December 2022. When an interest rate swap agreement qualifies for hedge accounting as a cash flow hedge, the changes in the fair value are recorded in equity as a component of accumulated other comprehensive income and are reclassified into interest expense in the same period during which the hedged transactions affect earnings. During the three and six months ended September 25, 2021 and September 26, 2020, the Company recorded an immaterial amount of net interest expense related to this agreement. The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of September 25, 2021 and March 27, 2021 (in millions): Fair Values Notional Amounts Assets Liabilities September 25, March 27, September 25, March 27, September 25, March 27, Forward foreign currency exchange contracts $ 119 $ 155 $ 4 (1) $ 2 (1) $ — $ 1 (2) Net investment hedges 4,194 3,194 33 (3) 3 (3) 118 (4) 263 (4) Interest rate swap 500 500 — — — 1 (4) Total designated hedges 4,813 3,849 37 5 118 265 Undesignated derivative contracts (5) 22 13 — — — — Total $ 4,835 $ 3,862 $ 37 $ 5 $ 118 $ 265 (1) Recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets. (2) Recorded within accrued expenses and other current liabilities in the Company’s consolidated balance sheets. (3) Recorded within other assets in the Company’s consolidated balance sheets. (4) Recorded within other long-term liabilities in the Company’s consolidated balance sheets. (5) Primarily includes undesignated hedges of inventory purchases. The Company records and presents the fair values of all of its derivative assets and liabilities in its consolidated balance sheets on a gross basis, as shown in the previous table. However, if the Company were to offset and record the asset and liability balances for its derivative instruments on a net basis in accordance with the terms of its master netting arrangements, which provide for the right to set-off amounts for similar transactions denominated in the same currencies, the resulting impact as of September 25, 2021 and March 27, 2021 would be as follows (in millions): Forward Currency Net Investment Interest Rate September 25, March 27, September 25, March 27, September 25, March 27, Assets subject to master netting arrangements $ 4 $ 2 $ 33 $ 3 $ — $ — Liabilities subject to master netting arrangements $ — $ 1 $ 118 $ 263 $ — $ 1 Derivative assets, net $ 4 $ 1 $ 29 $ 3 $ — $ — Derivative liabilities, net $ — $ — $ 114 $ 263 $ — $ 1 Currently, the Company’s master netting arrangements do not require cash collateral to be pledged by the Company or its counterparties. Changes in the fair value of the Company’s forward foreign currency exchange contracts that are designated as accounting hedges are recorded in equity as a component of accumulated other comprehensive income 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 goods sold within the Company’s consolidated statements of operations and comprehensive income (loss). The net gain or loss on net investment hedges are reported within foreign currency translation gains and losses (“CTA”) as a component of accumulated other comprehensive income on the Company’s consolidated balance sheets. Upon discontinuation of the hedge, such amounts remain in CTA until the related investment is sold or liquidated. Changes in the fair value of the Company’s interest rate swaps that are designated as accounting hedges are recorded in equity as a component of accumulated other comprehensive income 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 interest expense within the Company’s consolidated statements of operations and comprehensive income (loss). The following table summarizes the pre-tax impact of the gains and losses on the Company’s designated forward foreign currency exchange contracts, net investment hedges and interest rate swaps (in millions): Three Months Ended Six Months Ended September 25, 2021 September 26, 2020 September 25, 2021 September 26, 2020 Pre-Tax Gains Pre-Tax Losses Pre-Tax Gains Pre-Tax Losses Designated forward foreign currency exchange contracts $ 3 $ — $ 2 $ — Designated net investment hedges $ 89 $ (42) $ 172 $ (42) Designated interest rate swaps $ — $ — $ — $ (1) The following tables summarize the pre-tax impact of the gains and losses within the consolidated statements of operations and comprehensive income (loss) related to the designated forward foreign currency exchange contracts for the three and six months ended September 25, 2021 and September 26, 2020 (in millions): Three Months Ended Pre-Tax Loss (Gain) Reclassified from Location of Gain Recognized September 25, 2021 September 26, 2020 Designated forward foreign currency exchange contracts $ 1 $ (2) Cost of goods sold Six Months Ended Pre-Tax Loss (Gain) Reclassified from Location of Gain recognized September 25, 2021 September 26, 2020 Designated forward foreign currency exchange contracts $ 2 $ (3) Cost of goods sold The Company expects that substantially all of the amounts currently recorded in accumulated other comprehensive income for its forward foreign currency exchange contracts will be reclassified into earnings during the next 12 months, based upon the timing of inventory purchases and turnover. Undesignated Hedges During the three and six months ended September 25, 2021 and September 26, 2020, the net impact of changes in the fair value of undesignated forward foreign currency exchange contracts recognized within foreign currency loss (gain) in the Company’s consolidated statements of operations and comprehensive income (loss) was immaterial. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Sep. 25, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchase Program During the first quarter of Fiscal 2022, the Company reinstated its $500 million share repurchase program, which was previously suspended during the first quarter of Fiscal 2021 in response to the impact of the COVID-19 pandemic and the provisions of the Second Amendment of the 2018 Credit Facility. During the six months ended September 25, 2021, the Company purchased 2,712,275 shares for a total cost of approximately $150 million including commissions, through open market transactions under the current plan. As of September 25, 2021, the remaining availability under the Company’s share repurchase program was $250 million. During the six months ended September 26, 2020, the Company did not purchase any shares through open market transactions under the current plan, as the Company's share repurchase plan was suspended at that time. Share repurchases may be made in open market or privately negotiated transactions, subject to market conditions, applicable legal requirements, trading transactions under the Company’s insider trading policy and other relevant factors. The program may be suspended or discontinued at any time. The Company also has in place a “withhold to cover” repurchase program, which allows the Company to withhold ordinary shares from certain executive officers and directors to satisfy minimum tax withholding obligations relating to the vesting of their restricted share awards. During the six month periods ended September 25, 2021 and September 26, 2020, the Company withheld 193,322 shares and 47,635 shares, respectively, with a fair value of $10 million and $1 million, respectively, in satisfaction of minimum tax withholding obligations relating to the vesting of restricted share awards. Accumulated Other Comprehensive Income The following table details changes in the components of accumulated other comprehensive income (“AOCI”), net of taxes, for the six months ended September 25, 2021 and September 26, 2020, respectively (in millions): Foreign Currency Adjustments (1) Net (Losses) Gains on Derivatives (2) Other Comprehensive Income Attributable to Capri Balance at March 27, 2021 $ 57 $ (1) $ 56 Other comprehensive income before reclassifications 114 2 116 Less: amounts reclassified from AOCI to earnings — (2) (2) Other comprehensive income, net of tax 114 4 118 Balance at September 25, 2021 $ 171 $ 3 $ 174 Balance at March 28, 2020 $ 72 $ 3 $ 75 Other comprehensive income before reclassifications 53 — 53 Less: amounts reclassified from AOCI to earnings — 3 3 Other comprehensive income (loss), net of tax 53 (3) 50 Balance at September 26, 2020 $ 125 $ — $ 125 (1) Foreign currency translation adjustments for the six months ended September 25, 2021 primarily include a $132 million gain, net of taxes of $40 million, relating to the Company's net investment hedges, and a net $23 million translation loss. Foreign currency translation adjustments for the six months ended September 26, 2020 primarily include a net $88 million translation gain partially offset by a $35 million loss, net of taxes of $7 million, relating to the Company's net investment hedges. (2) Reclassified amounts primarily relate to the Company’s forward foreign currency exchange contracts for inventory purchases and are recorded within cost of goods sold in the Company’s consolidated statements of operations and comprehensive income (loss). All tax effects were not material for the periods presented. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Sep. 25, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based CompensationThe Company grants equity awards to certain employees and directors of the Company at the discretion of the Company’s Compensation and Talent Committee. The Company has two equity plans, one stock option plan adopted in Fiscal 2008 (as amended and restated, the “2008 Plan”), and the Omnibus Incentive Plan adopted in the third fiscal quarter of Fiscal 2012 and amended and restated with shareholder approval in May 2015, and again in June 2020 (the “Incentive Plan”). The 2008 Plan only provided for grants of share options and was authorized to issue up to 23,980,823 ordinary shares. As of September 25, 2021, there were no shares available to grant equity awards under the 2008 Plan. The Incentive Plan allows for grants of share options, restricted shares and RSUs, and other equity awards, and authorizes a total issuance of up to 18,846,000 ordinary shares after amendments in June 2020. At September 25, 2021, there were 3,932,474 ordinary shares available for future grants of equity awards under the Incentive Plan. Option grants issued from the 2008 Plan generally expire ten years from the date of the grant, and those issued under the Incentive Plan generally expire seven years from the date of the grant. The following table summarizes the Company’s share-based compensation activity during the six months ended September 25, 2021: Options Service-Based RSUs Performance-Based RSUs Outstanding/Unvested at March 27, 2021 1,150,260 4,895,517 581,659 Granted — 1,626,688 — Exercised/Vested (283,076) (1,777,764) (347,561) Change due to performance condition — — 26,109 Canceled/Forfeited (360,750) (225,692) — Outstanding/Unvested at September 25, 2021 506,434 4,518,749 260,207 The weighted average grant date fair value of service-based RSUs granted during the six months ended September 25, 2021 was $51.64. The weighted average grant date fair value of service-based RSUs granted during the six months ended September 26, 2020 was $15.98. Share-Based Compensation Expense The following table summarizes compensation expense attributable to share-based compensation for the three and six months ended September 25, 2021 and September 26, 2020 (in millions): Three Months Ended Six Months Ended September 25, September 26, September 25, September 26, Share-based compensation expense $ 20 $ 17 $ 56 $ 41 Tax benefit related to share-based compensation expense $ 4 $ 4 $ 11 $ 9 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 rates. The estimated value of future forfeitures for equity grants as of September 25, 2021 is approximately $17 million. See Note 17 in the Company’s Fiscal 2021 Annual Report on Form 10-K for additional information relating to the Company’s share-based compensation awards. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 25, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company’s effective tax rate for the three and six months ended September 25, 2021 was (1.0)% and 7.7%, respectively. Such rates differ from the United Kingdom (“U.K.”) federal statutory rate of 19% primarily due to a benefit recognized as a result of recently enacted tax legislation in Italy which allowed the Company to reduce its deferred tax liabilities. Specifically, this change allowed the Company to step up certain intangible assets which will result in lower future cash taxes. In addition, the tax rate for each period was further reduced by the favorable impact of global financing activities, partially offset by the increases in uncertain tax positions for the three months ended September 25, 2021. For the six months ended September 25, 2021, the tax rate was also negatively impacted by the tax rate change in the United Kingdom on the Company's net deferred tax liabilities. The global financing activities are related to the Company’s 2014 move of its principal executive office from Hong Kong to the U.K. and decision to become a U.K. tax resident. In connection with this decision, the Company funded its international growth strategy through intercompany debt financing arrangements. These debt financing arrangements reside between certain of our U.S., U.K. and Hungarian subsidiaries. Due to the difference in the statutory income tax rates between these jurisdictions, the Company realized lower effective tax rates for the three and six months ended September 25, 2021. |
Segment Information
Segment Information | 6 Months Ended |
Sep. 25, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates its business through three operating segments - Versace, Jimmy Choo and Michael Kors, which are based on its business activities and organization. The reportable segments are segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by the Company’s chief operating decision maker ("CODM") in deciding how to allocate resources, as well as in assessing performance. The primary key performance indicators are revenue and operating income for each segment. The Company’s reportable segments represent components of the business that offer similar merchandise, customer experience and sales/marketing strategies. The Company’s three reportable segments are as follows: • Versace — segment includes revenue generated through the sale of Versace luxury accessories, ready-to-wear and footwear through directly operated Versace boutiques throughout North America (United States and Canada), certain parts of EMEA and certain parts of Asia, as well as through Versace outlet stores and e-commerce sites. In addition, revenue is generated through wholesale sales to distribution partners (including geographic licensing arrangements that allow third parties to use the Versace trademarks in connection with retail and/or wholesale sales of Versace branded products in specific geographic regions), multi-brand department stores and specialty stores worldwide, as well as through product license agreements in connection with the manufacturing and sale of jeans, fragrances, watches, jewelry, eyewear and home furnishings. • Jimmy Choo — segment includes revenue generated through the sale of Jimmy Choo luxury footwear, handbags and small leather goods and accessories through directly operated Jimmy Choo retail and outlet stores throughout the Americas, certain parts of EMEA and certain parts of Asia, through its e-commerce sites, as well as through wholesale sales of luxury goods to distribution partners (including geographic licensing arrangements that allow third parties to use the Jimmy Choo trademarks in connection with retail and/or wholesale sales of Jimmy Choo branded products in specific geographic regions), multi-brand department stores and specialty stores worldwide. In addition, revenue is generated through product licensing agreements, which allow third parties to use the Jimmy Choo brand name and trademarks in connection with the manufacturing and sale of fragrances and eyewear. • Michael Kors — segment includes revenue generated through the sale of Michael Kors products through four primary Michael Kors retail store formats: “Collection” stores, “Lifestyle” stores (including concessions), outlet stores and e-commerce sites, through which the Company sells Michael Kors products, as well as licensed products bearing the Michael Kors name, directly to consumers throughout the Americas, certain parts of EMEA and certain parts of Asia. The Company also sells Michael Kors products directly to department stores, primarily located across the Americas and Europe, to specialty stores and travel retail shops, and to its geographic licensees. In addition, revenue is generated through product and geographic licensing arrangements, which allow third parties to use the Michael Kors brand name and trademarks in connection with the manufacturing and sale of products, including watches, jewelry, fragrances and eyewear. In addition to these reportable segments, the Company has certain corporate costs that are not directly attributable to its brands and, therefore, are not allocated to its segments. Such costs primarily include certain administrative, corporate occupancy, shared service and information systems expenses, including enterprise resource planning system implementation costs. In addition, certain other costs are not allocated to segments, including restructuring and other charges (including transition costs related to the Company’s acquisitions), impairment costs and COVID-19 related charges. The segment structure is consistent with how the Company’s CODM plans and allocates resources, manages the business and assesses performance. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. The following table presents the key performance information of the Company’s reportable segments (in millions): Three Months Ended Six Months Ended September 25, September 26, September 25, September 26, Total revenue: Versace $ 282 $ 195 $ 522 $ 288 Jimmy Choo 137 122 279 173 Michael Kors 881 793 1,752 1,100 Total revenue $ 1,300 $ 1,110 $ 2,553 $ 1,561 Income (loss) from operations: Versace $ 55 $ 20 $ 103 $ (21) Jimmy Choo 1 — 12 (29) Michael Kors 220 190 460 142 Total segment income from operations 276 210 575 92 Less: Corporate expenses (45) (30) (86) (61) Restructuring and other charges (8) (9) (11) (17) Impairment of assets (1) (33) (20) (33) (20) COVID-19 related charges 5 2 8 (3) Total income (loss) from operations $ 195 $ 153 $ 453 $ (9) (1) Impairment of assets during the three and six months ended September 25, 2021 and September 26, 2020 primarily related to operating lease right-of-use assets at certain Michael Kors store locations. Depreciation and amortization expense for each segment are as follows (in millions): Three Months Ended Six Months Ended September 25, September 26, September 25, September 26, Depreciation and amortization: Versace $ 12 $ 13 $ 26 $ 26 Jimmy Choo 8 8 15 15 Michael Kors 29 33 58 67 Total depreciation and amortization $ 49 $ 54 $ 99 $ 108 Total revenue (based on country of origin) by geographic location are as follows (in millions): Three Months Ended Six Months Ended September 25, September 26, September 25, September 26, Revenue: The Americas (U.S., Canada and Latin America) (1) $ 701 $ 587 $ 1,416 $ 764 EMEA 388 311 690 433 Asia 211 212 447 364 Total revenue $ 1,300 $ 1,110 $ 2,553 $ 1,561 (1) Total revenue earned in the U.S. was $651 million and $1.322 billion, respectively, for the three and six months ended September 25, 2021 and $531 million and $692 million, respectively, for the three and six months ended September 26, 2020. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Sep. 25, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Share Repurchase Program On November 3, 2021, the Company announced that its Board of Directors has terminated the Company’s existing $500 million share repurchase program, with $250 million of availability remaining, and authorized a new share repurchase program pursuant to which the Company may, from time to time, repurchase up to $1.0 billion of its outstanding ordinary shares within a period of two years from the effective date of the program. Share repurchases may be made in open market or privately negotiated transactions, subject to market conditions, applicable legal requirements, trading restrictions under the Company’s insider trading policy and other relevant factors. The program may be suspended or discontinued at any time. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 25, 2021 | |
Accounting Policies [Abstract] | |
Consolidation | The interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned or controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The interim consolidated financial statements as of September 25, 2021 and for the three and six months ended September 25, 2021 and September 26, 2020 are unaudited. The Company consolidates the results of its Versace business on a one-month lag, as consistent with prior periods. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, necessary for a fair presentation in conformity with U.S. GAAP. The interim consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended March 27, 2021, as filed with the Securities and Exchange Commission on May 26, 2021, 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. |
Fiscal Period | The Company utilizes a 52- to 53-week fiscal year and the term “Fiscal Year” or “Fiscal” refers to that 52- or 53-week period. The results for the three and six months ended September 25, 2021 and September 26, 2020 are based on 13-week and 26-week periods, respectively. The Company’s Fiscal Year 2022 is a 53-week period ending April 2, 2022. |
Use of Estimates | The preparation of financial statements in accordance with U.S. GAAP 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 credit losses, estimates of inventory net realizable value, the valuation of share-based compensation, the valuation of deferred taxes and the valuation of goodwill, intangible assets, operating lease right-of-use assets and property and equipment, along with the estimated useful lives assigned to these assets. Actual results could differ from those estimates. |
Seasonality | The Company experiences certain effects of seasonality with respect to its business. |
COVID-19 Related Government Assistance and Subsidies | As there is no definitive guidance under U.S. GAAP, the Company has applied the guidance under International Accounting Standards 20, Accounting for Government Grants and Disclosure of Government Assistance ("IAS 20"). The Company has elected to follow the income approach under IAS 20 and recognize these funds as a reduction to the related expense in the Company’s consolidated statements of operations and comprehensive income (loss). |
Inventories, net | Inventories primarily consist of finished goods with the exception of raw materials and work in process inventory. |
Derivative Financial Instruments | Forward Foreign Currency Exchange Contracts The Company uses forward foreign currency exchange contracts to manage its exposure to fluctuations in foreign currency for certain 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 contracts to hedge the Company’s cash flows, as they relate to foreign currency transactions. Certain of these contracts are designated as hedges for accounting purposes, while others remain undesignated. All of the Company’s derivative instruments are recorded in the Company’s consolidated balance sheets at fair value on a gross basis, regardless of their hedge designation. The Company designates certain contracts related to the purchase of inventory that qualify for hedge accounting as cash flow hedges. Formal hedge documentation is prepared for all derivative instruments designated as hedges, including a description of the hedged item and the hedging instrument and the risk being hedged. The changes in the fair value for contracts designated as cash flow hedges is recorded in equity as a component of accumulated other comprehensive income until the hedged item affects earnings. When the inventory related to forecasted inventory purchases that are being hedged is sold to a third party, the gains or losses deferred in accumulated other comprehensive income are recognized within cost of goods sold. The Company uses regression analysis to assess effectiveness of derivative instruments that are designated as hedges, which compares the change in the fair value of the derivative instrument to the change in the related hedged item. If the hedge is no longer expected to be highly effective in the future, future changes in the fair value are recognized in earnings. For those contracts that are not designated as hedges, changes in the fair value are recorded to foreign currency loss (gain) in the Company’s consolidated statements of operations and comprehensive income (loss). The Company classifies cash flows relating to its forward foreign currency exchange contracts related to purchase of inventory consistently with the classification of the hedged item within cash flows from operating activities. The Company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. In order to mitigate counterparty credit risk, the Company only 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. Net Investment Hedges The Company also uses fixed-to-fixed cross currency swap agreements to hedge its net investments in foreign operations against future volatility in the exchange rates between its U.S. Dollars and these foreign currencies. The Company has elected the spot method of designating these contracts under ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”, and has designated these contracts as net investment hedges. The net gain or loss on the net investment hedge is reported within foreign currency translation gains and losses (“CTA”), as a component of accumulated other comprehensive income on the Company’s consolidated balance sheets. Interest accruals and coupon payments are recognized directly in interest (income) expense, net, in the Company’s consolidated statements of operations and comprehensive income (loss). Upon discontinuation of a hedge, all previously recognized amounts remain in CTA until the net investment is sold, diluted or liquidated. Interest Rate Swap Agreements The Company also uses interest rate swap agreements to hedge the variability of its cash flows resulting from floating interest rates on the Company’s borrowings. When an interest rate swap agreement qualifies for hedge accounting as a cash flow hedge, the changes in the fair value are recorded in equity as a component of accumulated other comprehensive income and are reclassified into interest (income) expense, net, in the same period during which the hedged transactions affect earnings. |
Leases | The Company leases retail stores, office space and warehouse space under operating lease agreements that expire at various dates through September 2043. The Company’s leases generally have terms of up to 10 years, generally require a fixed annual rent and may require the payment of additional rent if store sales exceed a negotiated amount. Although most of the Company’s equipment is owned, the Company has limited equipment leases that expire on various dates through August 2025. The Company acts as sublessor in certain leasing arrangements, primarily related to closed stores under its restructuring activities, as discussed in Note 8. Fixed sublease payments received are recognized on a straight-line basis over the sublease term. The Company determines the sublease term based on the date it provides possession to the subtenant through the expiration date of the sublease. The Company recognizes operating lease right-of-use assets and lease liabilities at lease commencement date, based on the present value of fixed lease payments over the expected lease term. The Company uses its incremental borrowing rates to determine the present value of fixed lease payments based on the information available at the lease commencement date, as the rate implicit in the lease is not readily determinable for the Company’s leases. The Company’s incremental borrowing rates are based on the term of the leases, the economic environment of the leases and reflect the expected interest rate it would incur to borrow on a secured basis. Certain leases include one or more renewal options. The exercise of lease renewal options is generally at the Company’s sole discretion and as such, the Company typically determines that exercise of these renewal options is not reasonably certain. As a result, the Company generally does not include the renewal option period in the expected lease term and the associated lease payments are not included in the measurement of the operating lease right-of-use asset and lease liability. Certain leases also contain termination options with an associated penalty. Generally, the Company is reasonably certain not to exercise these options and as such, they are not included in the determination of the expected lease term. The Company recognizes operating lease expense on a straight-line basis over the lease term. Leases with an initial lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for its short-term leases on a straight-line basis over the lease term. The Company’s leases generally provide for payments of non-lease components, such as common area maintenance, real estate taxes and other costs associated with the leased property. The Company accounts for lease and non-lease components of its real estate leases together as a single lease component and, as such, includes fixed payments of non-lease components in the measurement of the operating lease right-of-use assets and lease liabilities for its real estate leases. Variable lease payments, such as percentage rentals based on sales, periodic adjustments for inflation, reimbursement of real estate taxes, any variable common area maintenance and any other variable costs associated with the leased property are expensed as incurred as variable lease costs and are not recorded on the balance sheet. The Company’s lease agreements do not contain any material residual value guarantees or material restrictions or covenants. |
Net Income (Loss) per Share | The Company’s basic net income (loss) per ordinary share is calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period. Diluted net income (loss) per ordinary share reflects the potential dilution that would occur if share option grants or any other potentially dilutive instruments, including restricted shares and restricted share units ("RSUs"), were exercised or converted into ordinary shares. These potentially dilutive securities are included in diluted shares to the extent they are dilutive under the treasury stock method for the applicable periods. Performance-based RSUs are included as diluted shares if the related performance conditions are considered satisfied as of the end of the reporting period and to the extent they are dilutive under the treasury stock method. |
Recently Issued Accounting Pronouncements | In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting" and in January 2021, issued ASU 2021-01, "Reference Rate Reform: Scope". Both of these updates aim to ease the potential burden in accounting for reference rate reform. These updates provide optional expedients and exceptions, if certain criteria are met, for applying accounting principles generally accepted in the United States to contract modifications, hedging relationships and other transactions affected by the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). The amendments were effective upon issuance and allow companies to adopt the amendments on a prospective basis through December 31, 2022. The Company has not applied the ASUs to any contract modifications or new hedging relationships in the current year. |
Revenue Recognition | The Company accounts for contracts with its customers when there is approval and commitment from both parties, the rights of the parties and payment terms have been identified, the contract has commercial substance and collectibility of consideration is probable. Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. The Company sells its products through three primary channels of distribution: retail, wholesale and licensing. Within the retail and wholesale channels, substantially all of the Company’s revenues consist of sales of products that represent a single performance obligation, where control transfers at a point in time to the customer. For licensing arrangements, royalty and advertising revenue is recognized over time based on access provided to the Company’s trademarks. Retail The Company generates sales through directly operated stores and e-commerce sites throughout the Americas (U.S., Canada and Latin America), certain parts of EMEA (Europe, Middle East and Africa) and certain parts of Asia (including Australia). Gift Cards. The Company sells gift cards that can be redeemed for merchandise, resulting in a contract liability upon issuance. Revenue is recognized when the gift card is redeemed or upon “breakage” for the estimated portion of gift cards that are not expected to be redeemed. “Breakage” revenue is calculated under the proportional redemption methodology, which considers the historical patterns of redemption in jurisdictions where the Company is not required to remit the value of the unredeemed gift cards as unclaimed property. The contract liability related to gift cards, net of estimated “breakage”, of $12 million and $12 million as of September 25, 2021 and March 27, 2021, respectively, is included within accrued expenses and other current liabilities in the Company’s consolidated balance sheet. Loyalty Program . The Company offers a loyalty program, which allows its Michael Kors U.S. customers to earn points on qualifying purchases toward monetary and non-monetary rewards, which may be redeemed for purchases at Michael Kors retail stores and e-commerce sites. The Company defers a portion of the initial sales transaction based on the estimated relative fair value of the benefits based on projected timing of future redemptions and historical activity. These amounts include estimated “breakage” for points that are not expected to be redeemed. Wholesale The Company’s products are sold primarily to major department stores, specialty stores and travel retail shops throughout the Americas, EMEA and Asia. The Company also has arrangements where its products are sold to geographic licensees in certain parts of EMEA, Asia and South America. Licensing The Company provides its third-party licensees with the right to access its Versace, Jimmy Choo and Michael Kors trademarks under product and geographic licensing arrangements. Under geographic licensing arrangements, third party licensees receive the right to distribute and sell products bearing the Company’s trademarks in retail and/or wholesale channels within certain geographical areas, including Brazil, the Middle East, Eastern Europe, South Africa and certain parts of Asia. |
Receivables, net | Receivables are presented net of allowances for discounts, markdowns, operational chargebacks and credit losses. Discounts are based on open invoices where trade discounts have been extended to customers. Markdowns are based on wholesale customers’ 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 revenues.The Company’s allowance for credit losses is determined through analysis of periodic aging of receivables and assessments of collectability based on an evaluation of historic and anticipated trends, the financial condition 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. |
Fair Value of Financial Instruments, Policy | At September 25, 2021 and March 27, 2021, the fair values of the Company’s forward foreign currency exchange contracts, interest rate swaps and net investment hedges were determined using broker quotations, which were calculations derived from observable market information: the applicable currency 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 assesses the credit risk of the counterparty and would adjust the provided valuations for counterparty credit risk when appropriate. The fair values 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. The fair values of net investment hedges and interest rate swaps are included in other assets, and in other long-term liabilities in the consolidated balance sheets, depending on whether they represent assets or liabilities of the Company.The Company’s long-term debt obligations are recorded in its consolidated balance sheets at carrying values, which may differ from the related fair values. The fair value of the Company’s long-term debt is estimated using external pricing data, including any available quoted market prices and based on other debt instruments with similar characteristics. Borrowings under revolving credit agreements, if outstanding, are recorded at carrying value, which approximates fair value due to the frequent nature of such borrowings and repayments.The Company’s cash and cash equivalents, accounts receivable and accounts payable are recorded at carrying value, which approximates fair value. |
Fair Value Measurement, Policy | The Company’s non-financial assets include goodwill, intangible assets, operating lease right-of-use assets and property and equipment. Such assets are reported at their carrying values and are not subject to recurring fair value measurements. The Company’s goodwill and its indefinite-lived intangible assets (Versace and Jimmy Choo brands) are assessed for impairment at least annually, while its other long-lived assets, including operating lease right-of-use assets, property and equipment and definite-lived intangible assets, are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. The Company determines the fair values of these assets based on Level 3 measurements using the Company’s best estimates of the amount and timing of future discounted cash flows, based on historical experience, market conditions, current trends and performance expectations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 25, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | A reconciliation of cash, cash equivalents and restricted cash as of September 25, 2021 and March 27, 2021 from the consolidated balance sheets to the consolidated statements of cash flows is as follows (in millions): September 25, March 27, Reconciliation of cash, cash equivalents and restricted cash Cash and cash equivalents $ 234 $ 232 Restricted cash included within prepaid expenses and other current assets 3 2 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 237 $ 234 |
Restrictions on Cash and Cash Equivalents | A reconciliation of cash, cash equivalents and restricted cash as of September 25, 2021 and March 27, 2021 from the consolidated balance sheets to the consolidated statements of cash flows is as follows (in millions): September 25, March 27, Reconciliation of cash, cash equivalents and restricted cash Cash and cash equivalents $ 234 $ 232 Restricted cash included within prepaid expenses and other current assets 3 2 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 237 $ 234 |
Schedule of Net Lease Costs and Supplemental Cash Flow Information | The following table presents the Company’s supplemental cash flow information related to leases (in millions): Six Months Ended September 25, 2021 September 26, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases (1) $ 257 $ 191 (1) Operating cash flows used in operating leases for the six months ended September 25, 2021 and September 26, 2020 excluded $5 million and $60 million, respectively, of rent payments that have been deferred due to the COVID-19 pandemic. |
Schedule of 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 (loss) per ordinary share and diluted net income (loss) per ordinary share are as follows (in millions, except share and per share data): Three Months Ended Six Months Ended September 25, September 26, September 25, September 26, Numerator: Net income (loss) attributable to Capri $ 200 $ 122 $ 419 $ (58) Denominator: Basic weighted average shares 151,859,760 150,492,275 151,604,916 150,024,293 Weighted average dilutive share equivalents: Share options and restricted shares/units, and performance restricted share units 2,359,489 1,184,967 2,958,616 — Diluted weighted average shares 154,219,249 151,677,242 154,563,532 150,024,293 Basic net income (loss) per share (1) $ 1.31 $ 0.81 $ 2.76 $ (0.39) Diluted net income (loss) per share (1) $ 1.30 $ 0.81 $ 2.71 $ (0.39) (1) Basic and diluted net income (loss) per share are calculated using unrounded numbers. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Sep. 25, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contractually Guaranteed Minimum Fees | As of September 25, 2021, contractually guaranteed minimum fees from the Company’s license agreements expected to be recognized as revenue during future periods were as follows (in millions): Contractually Guaranteed Minimum Fees Remainder of Fiscal 2022 $ 15 Fiscal 2023 29 Fiscal 2024 27 Fiscal 2025 23 Fiscal 2026 24 Fiscal 2027 and thereafter 75 Total $ 193 |
Schedule of Segment Revenues Disaggregated by Geographic Location | The following table presents the Company’s segment revenue disaggregated by geographic location (in millions): Three Months Ended Six Months Ended September 25, September 26, September 25, September 26, Versace revenue - the Americas $ 107 $ 60 $ 194 $ 75 Versace revenue - EMEA 118 80 205 107 Versace revenue - Asia 57 55 123 106 Total Versace 282 195 522 288 Jimmy Choo revenue - the Americas 38 33 76 39 Jimmy Choo revenue - EMEA 56 46 106 62 Jimmy Choo revenue - Asia 43 43 97 72 Total Jimmy Choo 137 122 279 173 Michael Kors revenue - the Americas 556 494 1,146 650 Michael Kors revenue - EMEA 214 185 379 264 Michael Kors revenue - Asia 111 114 227 186 Total Michael Kors 881 793 1,752 1,100 Total revenue - the Americas 701 587 1,416 764 Total revenue - EMEA 388 311 690 433 Total revenue - Asia 211 212 447 364 Total revenue $ 1,300 $ 1,110 $ 2,553 $ 1,561 |
Receivables, net (Tables)
Receivables, net (Tables) | 6 Months Ended |
Sep. 25, 2021 | |
Receivables [Abstract] | |
Receivables, net | Receivables, net, consist of (in millions): September 25, March 27, Trade receivables (1) $ 367 $ 412 Receivables due from licensees 37 20 404 432 Less: allowances (46) (59) $ 358 $ 373 (1) As of September 25, 2021 and March 27, 2021, $67 million and $81 million, respectively, of trade receivables were insured. |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Sep. 25, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consists of (in millions): September 25, March 27, Leasehold improvements $ 739 $ 737 Computer equipment and software 372 359 Furniture and fixtures 351 350 Equipment 140 139 In-store shops 57 53 Building 51 51 Land 20 20 1,730 1,709 Less: accumulated depreciation and amortization (1,317) (1,271) 413 438 Construction-in-progress 41 47 $ 454 $ 485 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Sep. 25, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The following table details the carrying values of the Company’s intangible assets and goodwill (in millions): September 25, March 27, Definite-lived intangible assets: Reacquired rights $ 400 $ 400 Trademarks 23 23 Customer relationships (1) 435 437 Gross definite-lived intangible assets 858 860 Less: accumulated amortization (208) (184) Net definite-lived intangible assets 650 676 Indefinite-lived intangible assets: Jimmy Choo brand (2) 335 338 Versace brand (1) 971 978 1,306 1,316 Total intangible assets, excluding goodwill $ 1,956 $ 1,992 Goodwill (3) $ 1,488 $ 1,498 (1) The change in the carrying value since March 27, 2021 reflects the impact of foreign currency translation. (2) Includes accumulated impairment of $249 million as of September 25, 2021 and March 27, 2021. The change in the carrying value since March 27, 2021 reflects the impact of foreign currency translation. (3) Includes accumulated impairment of $265 million related to the Jimmy Choo reporting units as of September 25, 2021 and March 27, 2021. The change in the carrying value since March 27, 2021 reflects the impact of foreign currency translation. |
Schedule of Finite-Lived Intangible Assets | The following table details the carrying values of the Company’s intangible assets and goodwill (in millions): September 25, March 27, Definite-lived intangible assets: Reacquired rights $ 400 $ 400 Trademarks 23 23 Customer relationships (1) 435 437 Gross definite-lived intangible assets 858 860 Less: accumulated amortization (208) (184) Net definite-lived intangible assets 650 676 Indefinite-lived intangible assets: Jimmy Choo brand (2) 335 338 Versace brand (1) 971 978 1,306 1,316 Total intangible assets, excluding goodwill $ 1,956 $ 1,992 Goodwill (3) $ 1,488 $ 1,498 (1) The change in the carrying value since March 27, 2021 reflects the impact of foreign currency translation. (2) Includes accumulated impairment of $249 million as of September 25, 2021 and March 27, 2021. The change in the carrying value since March 27, 2021 reflects the impact of foreign currency translation. (3) Includes accumulated impairment of $265 million related to the Jimmy Choo reporting units as of September 25, 2021 and March 27, 2021. The change in the carrying value since March 27, 2021 reflects the impact of foreign currency translation. |
Current Assets and Current Li_2
Current Assets and Current Liabilities (Tables) | 6 Months Ended |
Sep. 25, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in millions): September 25, March 27, Prepaid taxes $ 116 $ 133 Interest receivable related to net investment hedges 21 12 Prepaid contracts 17 11 Other accounts receivables 16 13 Other 44 36 $ 214 $ 205 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in millions): September 25, March 27, Other taxes payable $ 65 $ 46 Return liabilities 48 46 Accrued advertising and marketing 18 11 Accrued rent (1) 17 20 Accrued capital expenditures 17 17 Professional services 14 13 Accrued litigation 14 12 Accrued purchases and samples 13 8 Gift cards and retail store credits 13 12 Accrued interest 9 10 Restructuring liability 4 9 Charitable donations (2) — 20 Other 67 73 $ 299 $ 297 (1) The accrued rent balance relates to variable lease payments. (2) Relates to a $20 million unconditional pledge to The Capri Holdings Foundation for the Advancement of Diversity in Fashion as of March 27, 2021 which was funded during the quarter ended September 25, 2021. |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 6 Months Ended |
Sep. 25, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The below table presents a roll forward of the Company's restructuring liability related to its Capri Retail Store Optimization Program (in millions): Severance and benefit costs Lease-related and other costs Total Balance at March 27, 2021 $ — $ 3 $ 3 Additions charged to expense (1) 1 2 3 Payments (1) (3) (4) Balance at September 25, 2021 $ — $ 2 $ 2 (1) Excludes a net credit of $7 million related to gains on certain lease terminations partially offset by store operating costs for previously closed stores during the six months ended September 25, 2021. |
Debt Obligations (Tables)
Debt Obligations (Tables) | 6 Months Ended |
Sep. 25, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | The following table presents the Company’s debt obligations (in millions): September 25, March 27, Term Loan $ 647 $ 870 Senior Notes due 2024 450 450 Other 53 30 Total debt 1,150 1,350 Less: Unamortized debt issuance costs 5 7 Less: Unamortized discount on long-term debt 1 1 Total carrying value of debt 1,144 1,342 Less: Short-term debt 40 123 Total long-term debt $ 1,104 $ 1,219 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 25, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Contracts Measured and Recorded at Fair Value on Recurring and Categorized in Level 2 of Fair Value Hierarchy | All contracts are measured and recorded at fair value on a recurring basis and are categorized in Level 2 of the fair value hierarchy, as shown in the following table (in millions): Fair value at September 25, 2021 using: Fair value at March 27, 2021 using: Quoted prices in Significant Significant Quoted prices in Significant Significant Derivative assets: Forward foreign currency exchange contracts $ — $ 4 $ — $ — $ 2 $ — Net investment hedges — 33 — — 3 — Total derivative assets $ — $ 37 $ — $ — $ 5 $ — Derivative liabilities: Forward foreign currency exchange contracts $ — $ — $ — $ — $ 1 $ — Net investment hedges — 118 — — 263 — Interest rate swap — — — — 1 — Undesignated forward currency exchange contracts — — — — — — Total derivative liabilities $ — $ 118 $ — $ — $ 265 $ — |
Fair Value Measurement of Long-term Debt | The following table summarizes the carrying values and estimated fair values of the Company’s short- and long-term debt, based on Level 2 measurements (in millions): September 25, 2021 March 27, 2021 Carrying Estimated Carrying Estimated Senior Notes due 2024 $ 447 $ 476 $ 447 $ 470 Term Loan $ 644 $ 641 $ 865 $ 866 Revolving Credit Facilities $ — $ — $ — $ — |
Schedule of Long-lived Assets, Nonrecurring | The following table details the carrying values and fair values of the Company’s assets that have been impaired during the three and six months ended September 25, 2021 and three and six months ended September 26, 2020 (in millions): Three and Six Months Ended Three and Six Months Ended Carrying Value Prior to Impairment Fair Value Impairment Charge Carrying Value Prior to Impairment Fair Value Impairment Charge (1) Operating Lease Right-of-Use Assets $ 83 $ 53 $ 30 $ 46 $ 26 $ 20 Property and Equipment 4 1 3 5 3 2 Total $ 87 $ 54 $ 33 $ 51 $ 29 $ 22 (1) Includes $2 million of impairment charges that were recorded within restructuring and other charges related to the Capri Retail Store Optimization Program for both the three and six months ended September 26, 2020. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Sep. 25, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Contracts Recorded on Gross Basis in Consolidated Balance Sheets | The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of September 25, 2021 and March 27, 2021 (in millions): Fair Values Notional Amounts Assets Liabilities September 25, March 27, September 25, March 27, September 25, March 27, Forward foreign currency exchange contracts $ 119 $ 155 $ 4 (1) $ 2 (1) $ — $ 1 (2) Net investment hedges 4,194 3,194 33 (3) 3 (3) 118 (4) 263 (4) Interest rate swap 500 500 — — — 1 (4) Total designated hedges 4,813 3,849 37 5 118 265 Undesignated derivative contracts (5) 22 13 — — — — Total $ 4,835 $ 3,862 $ 37 $ 5 $ 118 $ 265 (1) Recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets. (2) Recorded within accrued expenses and other current liabilities in the Company’s consolidated balance sheets. (3) Recorded within other assets in the Company’s consolidated balance sheets. (4) Recorded within other long-term liabilities in the Company’s consolidated balance sheets. (5) Primarily includes undesignated hedges of inventory purchases. |
Schedule of Derivative Instruments on The Balance Sheets, Net Basis | However, if the Company were to offset and record the asset and liability balances for its derivative instruments on a net basis in accordance with the terms of its master netting arrangements, which provide for the right to set-off amounts for similar transactions denominated in the same currencies, the resulting impact as of September 25, 2021 and March 27, 2021 would be as follows (in millions): Forward Currency Net Investment Interest Rate September 25, March 27, September 25, March 27, September 25, March 27, Assets subject to master netting arrangements $ 4 $ 2 $ 33 $ 3 $ — $ — Liabilities subject to master netting arrangements $ — $ 1 $ 118 $ 263 $ — $ 1 Derivative assets, net $ 4 $ 1 $ 29 $ 3 $ — $ — Derivative liabilities, net $ — $ — $ 114 $ 263 $ — $ 1 |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the pre-tax impact of the gains and losses on the Company’s designated forward foreign currency exchange contracts, net investment hedges and interest rate swaps (in millions): Three Months Ended Six Months Ended September 25, 2021 September 26, 2020 September 25, 2021 September 26, 2020 Pre-Tax Gains Pre-Tax Losses Pre-Tax Gains Pre-Tax Losses Designated forward foreign currency exchange contracts $ 3 $ — $ 2 $ — Designated net investment hedges $ 89 $ (42) $ 172 $ (42) Designated interest rate swaps $ — $ — $ — $ (1) The following tables summarize the pre-tax impact of the gains and losses within the consolidated statements of operations and comprehensive income (loss) related to the designated forward foreign currency exchange contracts for the three and six months ended September 25, 2021 and September 26, 2020 (in millions): Three Months Ended Pre-Tax Loss (Gain) Reclassified from Location of Gain Recognized September 25, 2021 September 26, 2020 Designated forward foreign currency exchange contracts $ 1 $ (2) Cost of goods sold Six Months Ended Pre-Tax Loss (Gain) Reclassified from Location of Gain recognized September 25, 2021 September 26, 2020 Designated forward foreign currency exchange contracts $ 2 $ (3) Cost of goods sold |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Sep. 25, 2021 | |
Equity [Abstract] | |
Changes in Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The following table details changes in the components of accumulated other comprehensive income (“AOCI”), net of taxes, for the six months ended September 25, 2021 and September 26, 2020, respectively (in millions): Foreign Currency Adjustments (1) Net (Losses) Gains on Derivatives (2) Other Comprehensive Income Attributable to Capri Balance at March 27, 2021 $ 57 $ (1) $ 56 Other comprehensive income before reclassifications 114 2 116 Less: amounts reclassified from AOCI to earnings — (2) (2) Other comprehensive income, net of tax 114 4 118 Balance at September 25, 2021 $ 171 $ 3 $ 174 Balance at March 28, 2020 $ 72 $ 3 $ 75 Other comprehensive income before reclassifications 53 — 53 Less: amounts reclassified from AOCI to earnings — 3 3 Other comprehensive income (loss), net of tax 53 (3) 50 Balance at September 26, 2020 $ 125 $ — $ 125 (1) Foreign currency translation adjustments for the six months ended September 25, 2021 primarily include a $132 million gain, net of taxes of $40 million, relating to the Company's net investment hedges, and a net $23 million translation loss. Foreign currency translation adjustments for the six months ended September 26, 2020 primarily include a net $88 million translation gain partially offset by a $35 million loss, net of taxes of $7 million, relating to the Company's net investment hedges. (2) Reclassified amounts primarily relate to the Company’s forward foreign currency exchange contracts for inventory purchases and are recorded within cost of goods sold in the Company’s consolidated statements of operations and comprehensive income (loss). All tax effects were not material for the periods presented. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Sep. 25, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Activity | The following table summarizes the Company’s share-based compensation activity during the six months ended September 25, 2021: Options Service-Based RSUs Performance-Based RSUs Outstanding/Unvested at March 27, 2021 1,150,260 4,895,517 581,659 Granted — 1,626,688 — Exercised/Vested (283,076) (1,777,764) (347,561) Change due to performance condition — — 26,109 Canceled/Forfeited (360,750) (225,692) — Outstanding/Unvested at September 25, 2021 506,434 4,518,749 260,207 |
Summary of Compensation Expense Attributable to Share-Based Compensation | The following table summarizes compensation expense attributable to share-based compensation for the three and six months ended September 25, 2021 and September 26, 2020 (in millions): Three Months Ended Six Months Ended September 25, September 26, September 25, September 26, Share-based compensation expense $ 20 $ 17 $ 56 $ 41 Tax benefit related to share-based compensation expense $ 4 $ 4 $ 11 $ 9 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Sep. 25, 2021 | |
Segment Reporting [Abstract] | |
Key Performance Information of Reportable Segments | The following table presents the key performance information of the Company’s reportable segments (in millions): Three Months Ended Six Months Ended September 25, September 26, September 25, September 26, Total revenue: Versace $ 282 $ 195 $ 522 $ 288 Jimmy Choo 137 122 279 173 Michael Kors 881 793 1,752 1,100 Total revenue $ 1,300 $ 1,110 $ 2,553 $ 1,561 Income (loss) from operations: Versace $ 55 $ 20 $ 103 $ (21) Jimmy Choo 1 — 12 (29) Michael Kors 220 190 460 142 Total segment income from operations 276 210 575 92 Less: Corporate expenses (45) (30) (86) (61) Restructuring and other charges (8) (9) (11) (17) Impairment of assets (1) (33) (20) (33) (20) COVID-19 related charges 5 2 8 (3) Total income (loss) from operations $ 195 $ 153 $ 453 $ (9) (1) Impairment of assets during the three and six months ended September 25, 2021 and September 26, 2020 primarily related to operating lease right-of-use assets at certain Michael Kors store locations. |
Depreciation and Amortization Expense for Each Segment | Depreciation and amortization expense for each segment are as follows (in millions): Three Months Ended Six Months Ended September 25, September 26, September 25, September 26, Depreciation and amortization: Versace $ 12 $ 13 $ 26 $ 26 Jimmy Choo 8 8 15 15 Michael Kors 29 33 58 67 Total depreciation and amortization $ 49 $ 54 $ 99 $ 108 |
Total Revenue (as Recognized Based on Country of Origin) | Total revenue (based on country of origin) by geographic location are as follows (in millions): Three Months Ended Six Months Ended September 25, September 26, September 25, September 26, Revenue: The Americas (U.S., Canada and Latin America) (1) $ 701 $ 587 $ 1,416 $ 764 EMEA 388 311 690 433 Asia 211 212 447 364 Total revenue $ 1,300 $ 1,110 $ 2,553 $ 1,561 (1) Total revenue earned in the U.S. was $651 million and $1.322 billion, respectively, for the three and six months ended September 25, 2021 and $531 million and $692 million, respectively, for the three and six months ended September 26, 2020. |
Business and Basis of Present_2
Business and Basis of Presentation (Details) | 6 Months Ended |
Sep. 25, 2021segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | Mar. 27, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Proceeds from government assistance | $ 3 | $ 9 | $ 7 | $ 23 | |
Credit card receivables | 24 | 24 | $ 25 | ||
Raw materials inventory and work in process inventory | 30 | 30 | $ 28 | ||
Sublease income | $ 2 | $ 1 | $ 4 | $ 3 | |
Anti-dilutive securities excluded from calculation of basic and diluted net income per ordinary share (in shares) | 415,331 | 3,961,838 | 513,088 | 4,675,372 | |
COVID-19 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Rent relief | $ 3 | $ 9 | $ 10 | $ 24 | |
Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Term of lease | 10 years | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Mar. 27, 2021 | Sep. 26, 2020 | Mar. 28, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 234 | $ 232 | ||
Restricted cash included within prepaid expenses and other current assets | 3 | 2 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 237 | $ 234 | $ 238 | $ 592 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 25, 2021 | Sep. 26, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used in operating leases | $ 257 | $ 191 |
COVID-19 | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||
Deferred rent payments | $ 5 | $ 60 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Components of Calculation of Basic Net Income Per Ordinary Share and Diluted Net Income Per Ordinary Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Numerator: | ||||
Net income (loss) attributable to Capri | $ 200 | $ 122 | $ 419 | $ (58) |
Denominator: | ||||
Basic weighted average shares (in shares) | 151,859,760 | 150,492,275 | 151,604,916 | 150,024,293 |
Weighted average dilutive share equivalents: | ||||
Share options and restricted shares/units, and performance restricted share units (in shares) | 2,359,489 | 1,184,967 | 2,958,616 | 0 |
Diluted weighted average shares (in shares) | 154,219,249 | 151,677,242 | 154,563,532 | 150,024,293 |
Basic net income (loss) per share (in dollars per share) | $ 1.31 | $ 0.81 | $ 2.76 | $ (0.39) |
Diluted net income (loss) per share (in dollars per share) | $ 1.30 | $ 0.81 | $ 2.71 | $ (0.39) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 25, 2021USD ($)distributionChannel | Sep. 26, 2020USD ($) | Sep. 25, 2021USD ($)distributionChannel | Sep. 26, 2020USD ($) | Mar. 27, 2021USD ($) | |
Contract With Customer, Asset And Liability [Line Items] | |||||
Number of product distribution channels | distributionChannel | 3 | 3 | |||
Deferred loyalty program liabilities | $ 13 | $ 13 | $ 12 | ||
Return liabilities | 48 | 48 | 46 | ||
Right to recover returned product | 15 | 15 | 14 | ||
Contract liabilities | 17 | 17 | 18 | ||
Revenue recognized during period | 2 | $ 2 | 8 | $ 5 | |
Contract assets | 0 | 0 | 0 | ||
Gift Cards | |||||
Contract With Customer, Asset And Liability [Line Items] | |||||
Deferred loyalty program liabilities | $ 12 | $ 12 | $ 12 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Contractually Guaranteed Minimum Fees (Details) $ in Millions | Sep. 25, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remainder of Fiscal 2022 | $ 15 |
Fiscal 2023 | 29 |
Fiscal 2024 | 27 |
Fiscal 2025 | 23 |
Fiscal 2026 | 24 |
Fiscal 2027 and thereafter | 75 |
Total | $ 193 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Revenue Disaggregation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 1,300 | $ 1,110 | $ 2,553 | $ 1,561 |
The Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 701 | 587 | 1,416 | 764 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 388 | 311 | 690 | 433 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 211 | 212 | 447 | 364 |
Versace | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 282 | 195 | 522 | 288 |
Versace | The Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 107 | 60 | 194 | 75 |
Versace | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 118 | 80 | 205 | 107 |
Versace | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 57 | 55 | 123 | 106 |
Jimmy Choo | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 137 | 122 | 279 | 173 |
Jimmy Choo | The Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 38 | 33 | 76 | 39 |
Jimmy Choo | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 56 | 46 | 106 | 62 |
Jimmy Choo | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 43 | 43 | 97 | 72 |
Michael Kors | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 881 | 793 | 1,752 | 1,100 |
Michael Kors | The Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 556 | 494 | 1,146 | 650 |
Michael Kors | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 214 | 185 | 379 | 264 |
Michael Kors | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 111 | $ 114 | $ 227 | $ 186 |
Receivables, net - Schedule of
Receivables, net - Schedule of Receivables (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Mar. 27, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 367 | $ 412 |
Receivables due from licensees | 37 | 20 |
Receivables, gross | 404 | 432 |
Less: allowances | (46) | (59) |
Receivables, net | 358 | 373 |
Credit Risk Assumed by Insured | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 67 | $ 81 |
Receivables, net - Narrative (D
Receivables, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | Mar. 27, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for doubtful accounts | $ 16 | $ 16 | $ 25 | ||
Credit loss | (1) | $ (2) | |||
COVID-19 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Credit loss | $ 0 | $ 4 | $ (1) | $ (2) |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Mar. 27, 2021 |
Property, Plant and Equipment [Abstract] | ||
Leasehold improvements | $ 739 | $ 737 |
Computer equipment and software | 372 | 359 |
Furniture and fixtures | 351 | 350 |
Equipment | 140 | 139 |
In-store shops | 57 | 53 |
Building | 51 | 51 |
Land | 20 | 20 |
Property and equipment, gross | 1,730 | 1,709 |
Less: accumulated depreciation and amortization | (1,317) | (1,271) |
Property and equipment, net (excluding construction-in-progress) | 413 | 438 |
Construction-in-progress | 41 | 47 |
Property and equipment, net | $ 454 | $ 485 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization of property and equipment | $ 37 | $ 41 | $ 75 | $ 84 |
Property and equipment impairment charges | $ 3 | $ 2 | $ 3 | $ 2 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Carrying Values of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Sep. 25, 2021 | Mar. 27, 2021 | |
Definite-lived intangible assets: | ||
Gross definite-lived intangible assets | $ 858 | $ 860 |
Less: accumulated amortization | (208) | (184) |
Net definite-lived intangible assets | 650 | 676 |
Indefinite-lived intangible assets: | ||
Indefinite-lived intangible assets | 1,306 | 1,316 |
Total intangible assets, excluding goodwill | 1,956 | 1,992 |
Goodwill | 1,488 | 1,498 |
Reacquired rights | ||
Definite-lived intangible assets: | ||
Gross definite-lived intangible assets | 400 | 400 |
Trademarks | ||
Definite-lived intangible assets: | ||
Gross definite-lived intangible assets | 23 | 23 |
Customer relationships (1) | ||
Definite-lived intangible assets: | ||
Gross definite-lived intangible assets | 435 | 437 |
Jimmy Choo | ||
Indefinite-lived intangible assets: | ||
Indefinite-lived intangible assets | 335 | 338 |
Accumulated impairment loss | 249 | 249 |
Accumulated impairment loss, goodwill | 265 | 265 |
Versace | ||
Indefinite-lived intangible assets: | ||
Indefinite-lived intangible assets | $ 971 | $ 978 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 12 | $ 12 | $ 24 | $ 23 |
Current Assets and Current Li_3
Current Assets and Current Liabilities - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Mar. 27, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid taxes | $ 116 | $ 133 |
Interest receivable related to net investment hedges | 21 | 12 |
Prepaid contracts | 17 | 11 |
Other accounts receivables | 16 | 13 |
Other | 44 | 36 |
Prepaid expenses and other current assets | $ 214 | $ 205 |
Current Assets and Current Li_4
Current Assets and Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Mar. 27, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Other taxes payable | $ 65 | $ 46 |
Return liabilities | 48 | 46 |
Accrued advertising and marketing | 18 | 11 |
Accrued rent | 17 | 20 |
Accrued capital expenditures | 17 | 17 |
Professional services | 14 | 13 |
Accrued litigation | 14 | 12 |
Accrued purchases and samples | 13 | 8 |
Gift cards and retail store credits | 13 | 12 |
Accrued interest | 9 | 10 |
Restructuring liability | 4 | 9 |
Charitable donations | 0 | 20 |
Other | 67 | 73 |
Accrued expenses and other current liabilities | $ 299 | $ 297 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021USD ($)store | Sep. 26, 2020USD ($) | Sep. 25, 2021USD ($)store | Sep. 26, 2020USD ($) | |
Gianni Versace S.r.l. | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Transition costs | $ 7,000,000 | $ 12,000,000 | $ 7,000,000 | $ 12,000,000 |
Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and other charges | $ 2,000,000 | 0 | $ 3,000,000 | 0 |
Capri Retail Store Optimization Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of stores expected to close | store | 170 | 170 | ||
Store closure period | 2 years | |||
Expected restructuring charges | $ 25,000,000 | $ 25,000,000 | ||
Number of store closed | store | 16 | 26 | ||
Restructuring charges, net | $ (1,000,000) | $ 2,000,000 | $ (4,000,000) | $ 5,000,000 |
Restructuring charges and other charges | $ 3,000,000 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Restructuring and Related Costs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 9,000,000 | |||
Ending balance | $ 4,000,000 | 4,000,000 | ||
Capri Retail Store Optimization Program | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 3,000,000 | |||
Additions charged to expense | 3,000,000 | |||
Payments | (4,000,000) | |||
Ending balance | 2,000,000 | 2,000,000 | ||
Gain (Loss) on Contract Termination | 7,000,000 | |||
Severance and benefit costs | Capri Retail Store Optimization Program | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | |||
Additions charged to expense | 1,000,000 | |||
Payments | (1,000,000) | |||
Ending balance | 0 | 0 | ||
Lease-related and other costs | Capri Retail Store Optimization Program | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 3,000,000 | |||
Additions charged to expense | 2,000,000 | |||
Payments | (3,000,000) | |||
Ending balance | 2,000,000 | 2,000,000 | ||
Facility Closing | ||||
Restructuring Reserve [Roll Forward] | ||||
Additions charged to expense | $ 2,000,000 | $ 0 | $ 3,000,000 | $ 0 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Debt Obligations (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Mar. 27, 2021 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,150 | $ 1,350 |
Less: Unamortized debt issuance costs | 5 | 7 |
Less: Unamortized discount on long-term debt | 1 | 1 |
Total carrying value of debt | 1,144 | 1,342 |
Less: Short-term debt | 40 | 123 |
Total long-term debt | 1,104 | 1,219 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | 647 | 870 |
Senior Notes due 2024 | Revolving Credit Facilities | ||
Debt Instrument [Line Items] | ||
Total debt | 450 | 450 |
Other | ||
Debt Instrument [Line Items] | ||
Total debt | $ 53 | $ 30 |
Debt Obligations - Narrative (D
Debt Obligations - Narrative (Details) | Jun. 26, 2021 | May 26, 2021 | Jun. 25, 2020USD ($) | Sep. 25, 2021USD ($) | Mar. 27, 2021USD ($) |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,104,000,000 | $ 1,219,000,000 | |||
Total carrying value of debt | 1,144,000,000 | 1,342,000,000 | |||
Short-term debt | 40,000,000 | 123,000,000 | |||
Short-term debt obligation | 31,000,000 | 17,000,000 | |||
Notes Payable to Banks | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 10,000,000 | ||||
Total carrying value of debt | 19,000,000 | ||||
Short-term debt | 9,000,000 | ||||
Revolving Credit Facilities | Revolving Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Letter of credit outstanding | 28,000,000 | 27,000,000 | |||
Revolving Credit Facilities | 2018 Credit Facility | Revolving Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio on credit facility | 3.75 | 4 | |||
Outstanding principal amount of bilateral letters of credit and bilateral bank guarantees | $ 50,000,000 | ||||
Long-term debt | 0 | 0 | |||
Amount available for future borrowings | 972,000,000 | 973,000,000 | |||
Revolving Credit Facilities | 2018 Credit Facility | Revolving Credit Facilities | Maximum | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio on credit facility | 4 | ||||
Revolving Credit Facilities | 364 Day Facility | Revolving Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 230,000,000 | ||||
Debt term | 364 days | ||||
2018 Term Loan Facility | Term Loan Facility | Revolving Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 644,000,000 | 768,000,000 | |||
Total carrying value of debt | 644,000,000 | 865,000,000 | |||
Short-term debt | $ 0 | $ 97,000,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value and Carrying Value of Assets (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Mar. 27, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative assets | $ 37 | $ 5 |
Total derivative liabilities | 118 | 265 |
Fair value, measurements, recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative assets | 37 | 5 |
Total derivative liabilities | 118 | 265 |
Fair value, measurements, recurring | Significant unobservable inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Forward foreign currency exchange contracts | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Forward foreign currency exchange contracts | Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative assets | 4 | 2 |
Total derivative liabilities | 0 | 1 |
Fair value, measurements, recurring | Forward foreign currency exchange contracts | Significant unobservable inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Net investment hedges | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Net investment hedges | Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative assets | 33 | 3 |
Total derivative liabilities | 118 | 263 |
Fair value, measurements, recurring | Net investment hedges | Significant unobservable inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Interest rate swap | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Interest rate swap | Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative liabilities | 0 | 1 |
Fair value, measurements, recurring | Interest rate swap | Significant unobservable inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Undesignated forward currency exchange contracts | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Undesignated forward currency exchange contracts | Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative liabilities | 0 | 0 |
Fair value, measurements, recurring | Undesignated forward currency exchange contracts | Significant unobservable inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value Measurement of Long-term Debt (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Mar. 27, 2021 |
Senior Notes due 2024 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 447 | $ 447 |
Senior Notes due 2024 | Level 2 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 476 | 470 |
Term Loan | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 644 | 865 |
Term Loan | Level 2 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 641 | 866 |
Revolving Credit Facilities | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 0 | 0 |
Revolving Credit Facilities | Level 2 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Fair Value Disclosures [Abstract] | ||||
Other long-lived asset impairment charges | $ 33 | $ 22 | $ 33 | $ 22 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Impaired Long-lived Assets Carrying Value and Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | Mar. 27, 2021 | Mar. 28, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment Charge | $ 33 | $ 22 | $ 33 | $ 22 | ||
Significant unobservable inputs (Level 3) | Nonrecurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value disclosure | 54 | 29 | 54 | 29 | $ 87 | $ 51 |
Impairment Charge | 33 | 22 | 33 | 22 | ||
Significant unobservable inputs (Level 3) | Nonrecurring | Operating Lease Right-of-Use Assets | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value disclosure | 53 | 26 | 53 | 26 | 83 | 46 |
Impairment Charge | 30 | 20 | 30 | 20 | ||
Significant unobservable inputs (Level 3) | Nonrecurring | Property and Equipment | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value disclosure | 1 | 3 | 1 | 3 | $ 4 | $ 5 |
Impairment Charge | $ 3 | 2 | $ 3 | 2 | ||
Significant unobservable inputs (Level 3) | Nonrecurring | Capri Retail Store Optimization Program | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment Charge | $ 2 | $ 2 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | Apr. 30, 2022 | Jun. 26, 2021 | Mar. 27, 2021 | |
Derivative [Line Items] | |||||||
Notional amounts | $ 4,835 | $ 4,835 | $ 3,862 | ||||
Other financing activities | 8 | $ 0 | |||||
Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Notional amounts | 4,813 | 4,813 | $ 3,849 | ||||
Net investment hedge, group one | Net investment hedging | Designated as Hedging Instrument | Euro Member Countries, Euro | |||||||
Derivative [Line Items] | |||||||
Notional amounts | $ 2,875 | ||||||
Other financing activities | 8 | ||||||
Net investment hedge, group two | Net investment hedging | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Reduction in interest expense | 15 | $ 2 | 27 | $ 2 | |||
Net investment hedge, group two | Net investment hedging | Designated as Hedging Instrument | Euro Member Countries, Euro | |||||||
Derivative [Line Items] | |||||||
Notional amounts | $ 4,000 | $ 4,000 | |||||
Derivative fixed interest rate | 4.457% | 4.457% | |||||
Net investment hedge, group two | Net investment hedging | Designated as Hedging Instrument | Japan, Yen | |||||||
Derivative [Line Items] | |||||||
Notional amounts | $ 194 | $ 194 | |||||
Derivative fixed interest rate | 3.588% | 3.588% | |||||
Net investment hedge, group two | Net investment hedging | Designated as Hedging Instrument | United States of America, Dollars | |||||||
Derivative [Line Items] | |||||||
Derivative fixed interest rate | 0.00% | 0.00% | |||||
Interest rate swap | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Notional amounts | $ 500 | $ 500 | |||||
Derivative fixed interest rate | 0.237% | 0.237% | |||||
Interest rate swap | Designated as Hedging Instrument | Forecast | |||||||
Derivative [Line Items] | |||||||
Notional amounts | $ 350 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Fair Value of Derivative Contracts Recorded on Gross Basis in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Mar. 27, 2021 |
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | $ 4,835 | $ 3,862 |
Assets | 37 | 5 |
Liabilities | 118 | 265 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 4,813 | 3,849 |
Assets | 37 | 5 |
Liabilities | 118 | 265 |
Designated as Hedging Instrument | Interest rate swap | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 500 | |
Not Designated as Hedging Instrument | Forward foreign currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 22 | 13 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Cash flow hedging | Designated as Hedging Instrument | Forward foreign currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 119 | 155 |
Assets | 4 | 2 |
Liabilities | 0 | 1 |
Cash flow hedging | Designated as Hedging Instrument | Interest rate swap | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 500 | 500 |
Assets | 0 | 0 |
Liabilities | 0 | 1 |
Net investment hedges | Designated as Hedging Instrument | Net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 4,194 | 3,194 |
Assets | 33 | 3 |
Liabilities | $ 118 | $ 263 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Values of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 25, 2021 | Mar. 27, 2021 |
Cash flow hedging | Forward Currency Exchange Contracts | ||
Derivative [Line Items] | ||
Assets subject to master netting arrangements | $ 4 | $ 2 |
Liabilities subject to master netting arrangements | 0 | 1 |
Derivative assets, net | 4 | 1 |
Derivative liabilities, net | 0 | 0 |
Cash flow hedging | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Assets subject to master netting arrangements | 0 | 0 |
Liabilities subject to master netting arrangements | 0 | 1 |
Derivative assets, net | 0 | 0 |
Derivative liabilities, net | 0 | 1 |
Net investment hedging | Net investment hedges | ||
Derivative [Line Items] | ||
Assets subject to master netting arrangements | 33 | 3 |
Liabilities subject to master netting arrangements | 118 | 263 |
Derivative assets, net | 29 | 3 |
Derivative liabilities, net | $ 114 | $ 263 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Pre-tax Impact of Gains (Losses) on Derivative (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Forward Currency Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-Tax Gains (Losses) Recognized in OCI | $ 3 | $ 0 | $ 2 | $ 0 |
Net investment hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-Tax Gains (Losses) Recognized in OCI | 89 | (42) | 172 | (42) |
Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-Tax Gains (Losses) Recognized in OCI | $ 0 | $ 0 | $ 0 | $ (1) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Summary of Pretax Impact of Gain (Loss) Reclassified from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Forward Currency Exchange Contracts | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-Tax Loss (Gain) Reclassified from Accumulated OCI | $ 1 | $ (2) | $ 2 | $ (3) |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | Jun. 26, 2021 | |
Subsidiary or Equity Method Investee [Line Items] | |||||
Ordinary shares, shares repurchased amount | $ 101 | $ 0 | $ 160 | $ 1 | |
Stock Repurchase Program | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Share-repurchase program amount | $ 500 | ||||
Ordinary shares, shares repurchased (in shares) | 2,712,275 | 0 | |||
Ordinary shares, shares repurchased amount | $ 150 | ||||
Share-repurchase program remaining amount | $ 250 | $ 250 | |||
Withholding Taxes | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Ordinary shares, shares repurchased (in shares) | 193,322 | 47,635 | |||
Ordinary shares, shares repurchased amount | $ 10 | $ 1 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 2,450 | $ 2,007 | $ 2,157 | $ 2,168 |
Other comprehensive income (loss), net of tax | 27 | 54 | 117 | 50 |
Ending balance | 2,600 | 2,199 | 2,600 | 2,199 |
Foreign currency translation adjustments | (23) | (56) | (113) | (53) |
Other Comprehensive Income Attributable to Capri | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 147 | 71 | 56 | 75 |
Other comprehensive income before reclassifications | 116 | 53 | ||
Less: amounts reclassified from AOCI to earnings | (2) | 3 | ||
Other comprehensive income (loss), net of tax | 27 | 54 | 118 | 50 |
Ending balance | 174 | 125 | 174 | 125 |
Foreign Currency Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 57 | 72 | ||
Other comprehensive income before reclassifications | 114 | 53 | ||
Less: amounts reclassified from AOCI to earnings | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 114 | 53 | ||
Ending balance | 171 | 125 | 171 | 125 |
Gain related to net investment hedges | 132 | 88 | 132 | 88 |
Taxes related to the gain on net investment hedges | 40 | |||
Foreign currency translation adjustments | 23 | 35 | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 7 | |||
Net (Losses) Gains on Derivatives | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (1) | 3 | ||
Other comprehensive income before reclassifications | 2 | 0 | ||
Less: amounts reclassified from AOCI to earnings | (2) | 3 | ||
Other comprehensive income (loss), net of tax | 4 | (3) | ||
Ending balance | $ 3 | $ 0 | $ 3 | $ 0 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions | 6 Months Ended | |
Sep. 25, 2021USD ($)equityPlanstockOptionPlan$ / sharesshares | Sep. 26, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of equity plans | equityPlan | 2 | |
Estimated value of future forfeitures | $ | $ 17 | |
Service-Based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value of RSUs (in dollars per share) | $ / shares | $ 51.64 | $ 15.98 |
2008 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of equity plans adopted | stockOptionPlan | 1 | |
Shares authorized for issuance (up to) (in shares) | 23,980,823 | |
Shares available for grant (in shares) | 0 | |
Option expiration period (years) | 10 years | |
2012 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized for issuance (up to) (in shares) | 18,846,000 | |
Shares available for grant (in shares) | 3,932,474 | |
Option expiration period (years) | 7 years |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-based Compensation Activity (Details) | 6 Months Ended |
Sep. 25, 2021shares | |
Options | |
Options | |
Outstanding at beginning of period (in shares) | 1,150,260 |
Granted (in shares) | 0 |
Exercised/Vested (in shares) | (283,076) |
Canceled/Forfeited (in shares) | (360,750) |
Outstanding at end of period (in shares) | 506,434 |
RSUs | |
Change due to performance condition (in shares) | 0 |
Service-Based RSUs | |
RSUs | |
Unvested at beginning of period (in shares) | 4,895,517 |
Granted (in shares) | 1,626,688 |
Exercised/Vested (in shares) | (1,777,764) |
Change due to performance condition (in shares) | 0 |
Canceled/Forfeited (in shares) | (225,692) |
Unvested at end of period (in shares) | 4,518,749 |
Performance-Based RSUs | |
RSUs | |
Unvested at beginning of period (in shares) | 581,659 |
Granted (in shares) | 0 |
Exercised/Vested (in shares) | (347,561) |
Change due to performance condition (in shares) | 26,109 |
Canceled/Forfeited (in shares) | 0 |
Unvested at end of period (in shares) | 260,207 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Compensation Expense Attributable to Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Share-based compensation expense | $ 20 | $ 17 | $ 56 | $ 41 |
Tax benefit related to share-based compensation expense | $ 4 | $ 4 | $ 11 | $ 9 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended |
Sep. 25, 2021 | Sep. 25, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | (1.00%) | 7.70% |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 6 Months Ended |
Sep. 25, 2021segmentretailStore | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Michael Kors | |
Segment Reporting Information [Line Items] | |
Number of retail store formats | retailStore | 4 |
Segment Information - Key Perfo
Segment Information - Key Performance Information of Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 1,300 | $ 1,110 | $ 2,553 | $ 1,561 |
Less: Corporate expenses | (45) | (30) | (86) | (61) |
Restructuring and other charges | (8) | (9) | (11) | (17) |
Impairment of assets | (33) | (20) | (33) | (20) |
Total income (loss) from operations | 195 | 153 | 453 | (9) |
COVID-19 | ||||
Segment Reporting Information [Line Items] | ||||
COVID-19 related charges | 5 | 2 | 8 | (3) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total income (loss) from operations | 276 | 210 | 575 | 92 |
Versace | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 282 | 195 | 522 | 288 |
Versace | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total income (loss) from operations | 55 | 20 | 103 | (21) |
Jimmy Choo | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 137 | 122 | 279 | 173 |
Jimmy Choo | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total income (loss) from operations | 1 | 0 | 12 | (29) |
Michael Kors | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 881 | 793 | 1,752 | 1,100 |
Michael Kors | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total income (loss) from operations | $ 220 | $ 190 | $ 460 | $ 142 |
Segment Information - Depreciat
Segment Information - Depreciation and Amortization Expense for Each Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total depreciation and amortization | $ 49 | $ 54 | $ 99 | $ 108 |
Versace | ||||
Segment Reporting Information [Line Items] | ||||
Total depreciation and amortization | 12 | 13 | 26 | 26 |
Jimmy Choo | ||||
Segment Reporting Information [Line Items] | ||||
Total depreciation and amortization | 8 | 8 | 15 | 15 |
Michael Kors | ||||
Segment Reporting Information [Line Items] | ||||
Total depreciation and amortization | $ 29 | $ 33 | $ 58 | $ 67 |
Segment Information - Total Rev
Segment Information - Total Revenue (as Recognized Based on Country of Origin) by Geographic Location (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 1,300 | $ 1,110 | $ 2,553 | $ 1,561 |
The Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 701 | 587 | 1,416 | 764 |
U.S. | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 651 | 531 | 1,322 | 692 |
EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 388 | 311 | 690 | 433 |
Asia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 211 | $ 212 | $ 447 | $ 364 |
Subsequent Events (Details)
Subsequent Events (Details) - Stock Repurchase Program - USD ($) | Nov. 03, 2021 | Sep. 25, 2021 | Jun. 26, 2021 |
Subsequent Event [Line Items] | |||
Share-repurchase program amount | $ 500,000,000 | ||
Share-repurchase program remaining amount | $ 250,000,000 | ||
Subsequent event | |||
Subsequent Event [Line Items] | |||
Share-repurchase program amount | $ 1,000,000,000 | ||
Stock repurchase program, period in force | 2 years |