CPRI - Earnings call transcript Q1 2007

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Operator

Good day, and welcome to the Michael Kors Holdings Limited Versace Acquisition Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Katina Metzidakis, Vice President of Investor Relations. Please go ahead.

Katina Metzidakis

Good morning everyone and thank you for joining us. are and Executive Edwards. Chief morning and John this Financial Chief Operating me our Officer, Chief Idol; With Officer, Tom

presented us call acquisition the operating per we a Holdings call, Holdings discussion Limited on adopted this of referring closing Kors will Unless For Capri of share otherwise the to all the by will Michael earnings Limited, Versace. basis. name on income new be is be and upon today’s to of be non-GAAP which morning’s noted,

to this presentation addition website. section morning’s In have press posted to of release, a Relations we the Investor our

Following prepared we open questions. the call remarks, will for

differ Finally, in well to as today’s of the risk from discussion we as I expect. are the that information and the contained could subject presentation filings. note and which like SEC would contains uncertainties Slide forward-looking to cause X those the Please to that refer release statements, that our press results actual

turn call to Now, I Officer. Chief the over Idol, would Mr. Chairman Executive and to like John

John Idol

their craftsmanship brand one at perfectly been and the as everyone. way routed luxury and DNA. leaders group’s Good brand over storied The are their our our into S.p.A. a announce of Thank core. foundation fits founder-led is acquisition to Italian you, the years. style the XX at to excited Versace companies strategy of has of heritage Versace I’m of as in on world, of brands Fashion and extremely brand collections the Gianni luxury Versace one style. our have core most fashion that The the This in glamour House spanning Katina. has track. morning heritage always in focus international Versace well at Each

luxury of Versace, fashion groups. we one With leading the now the created world’s of have acquisition

della Campbell, XXXXs, its Through like not boutique Bundchen, clients Damon, developing Nicole models creative Bradley Kendall most also runway when Spiga. to as Versace. would Bella Via the Bloom and are started excitement continues Orlando of Cooper and its fragrance on with businesses. the Lawrence, including to The Claudia the Versace as years Crawford, Christy as Cindy models Turlington, Schiffer, over Gisele has brand. Naomi opened world first that Evangelista, global House Bruno for the a innovative the just brief overview Mars, inspiration Lady ready-to-wear only for designs footwear, became in Jolie, associated quickly watches, in few. glamorous Angelina a XXXX but men’s brand also Hadid with globally famous past give Elton Jennifer Elizabeth XXs known name Linda the the equally In The couture its the Milan's as brand Lopez, I Jenner. its exciting and celebrities you expansion and its Hurley. craftsmanship. The such and Madonna, The accessories, XX are its Versace glamorous Hadid, Versace been love grown brand Now of and has Jennifer eyewear, celebrities Versace jewelry XXs, Gigi in Kidman, the Gaga, and with Matt most Beyonce, John, world’s association Sting, led and by

inception. the the craftsmanship luxury in the has collection world. boutiques glamorous has XXX home has since Versace had an always that as become lifestyle. in creativity as inspiration well as Versace with Company the a of its iconic The Additionally, Today approximately house furnishings synonymous luxury foundation has most and Italian cities

Donatella awards surprise that of Fashion Council's, recent never throughout the UK, continued her the relevance. endless Versace Baroque. heritage, stronger. from Icon next career House fashion, into Donatella's design of accolades most consumers. the Best Versace Designer Versace's the and an design Company's It present adapting Donatella in XX continue some CFDA vision to have collections the of will had fashion style. Donatella the Award, iconic ensuring over has award the China and house honor and Versace having For received brands most and no the years, luxury Year continues including history, been culture the from International Germany. iconic while for press storied the evolving is Her design for intuition British Designer both Awards, the lead A has and greatest its and the with true in brand's rich its has won the GQ's received to recently chapter for constantly visionary Fashion Donatella

evokes Its Versace would unique like of rock as Its the telling, status for DNA distinctive world. house of signature the around world. the prints famous include glamour. world. codes the and and and signature and one the in rooted are iconic led brand. TP become a motif, Greek Next, the which spirit collections to comic the bold refined, recognized Versace's the Italian in displayed Versace boutiques most brands I Medusa and most elegantly as unique well have its Baroque has roll unmistakable become style luxury runway its Versace one signature both luxury the in highly symbols is the founders. of which of often in parts discuss are heritage the equal which fashion of House is to brands fashion look,

commands media of imagination the for a social the Donatella and In for years also powerful brand The leading has XX% XX its major with capture clearly has and globally. million followers message Versace Both consumers than continued worldwide. XX.X presence consumers X.X over markets, communication to million build this awareness. greater Versace brand many followers innovative brand to of Versace, Donatella. For unique, and

this powerful creates a for believe aspirations dynamic these that brand. incredibly matrix, to our Given platform accelerate we the

execute Chief performance comparable year, growth. Turning look store helped the further has forward financial In We strong the have management management Executive potential to plan. strong The will has a since double-digit with our growth to Company experience world-class Donatella, revenue and strategic earnings brand. talented Versace, skills the Officer the Company. partnering Akeroyd the of the members particular and sales management of unlock Jonathan other and joining team Versace drive with team, for leadership Jonathan team to this the Versace Company to

are at thrilled achieve now and our are goal. discuss we Versace believe Versace future such an have time. We initiatives this of the five luxury to like to part on in over will will our revenue for strategic point exciting brand’s history. the to $X the would focus There grow group that in billion dynamic performance. We as Company’s I to expectations

incredible globally. heritage fashion luxury consumers build First, appeals for we Versace Versace on plan both to luxury runway momentum. holds

enhance messaging. powerful communication iconic Versace’s will we and Second,

Third, XXX we of stores. Versace’s approximately global will footprint increase retail XXX to

we opportunities at Our plan Europe and in open take is stores Fifth, there demand untapped to Versace’s to faster to omni-channel from expertise markets full experience. create believe be advantage men’s we where revenues. accessories will expand accelerate and to will for the Fourth, development XX% footwear particularly strong our of rate a leverage expansion e-commerce will we to Versace group’s of in XX% Asia. a and brand, women’s

$X time. which let strategy pleased our Versace, over group. Capri global discuss to benefit revenue positions achieve now our Versace growth, a includes this am that Starting to will in Now, addition five-pillar explained. will of we strategy with billion billion luxury Holdings growing goal how acquisition I focus fashion on accelerate luxury me to believe revenues the as $X active growth our to we increasing achieve has revenues. footwear Choo, that With accelerating focus new track previously firmly billion in $X of expanding accessories store with on Jimmy house penetration this a fashion for openings, and on us

on to are in XXXX Overall, billion continue on to we believe, we For Michael revenues momentum. our achieve Kors, build Kors. runway Michael track X for we

years increase of fashion revenue the of will of this the and a presence Versace in also earnings fashion these iconic market, Asia our achieve to notably which global already growth. our luxury strong immediately multiple long-term standing house key is together, enhances Taken into will integration growing driver growth. addition of us fast market. brands within our our The group three position The

opportunity also for Our our expand group. presence represents which another in Europe, growth will

we this name our to of result change decided a to company have Limited. As acquisition, Capri Holdings of the

recognized by luxury island, million and at long XXX formed of ago three spectacular in the Our timeless our is each heritage information core luxury. three-rock symbolic brands led global the of foundation new over glamorous been years iconic, an is island’s is inspired our The our name fabled that and of fashion strong as destination. has which a founder

luxury I’m of Versace, to in succeeded family our a we over demonstrated as have the building is fashion groups work we the With amount all team acquisition possibly recognize in building proud turn so and could year. Holdings. over that want that, of Tom. to short the a moment like entire better such to period have thank leading tremendous not take world’s just to We I for in they Holdings. With a and Capri of It one of together accomplished nothing one brands envision it Capri dedication of time. I of out and would in we of been have remarkable short have

Tom Edwards

and Thank good you, John, everyone. morning

along resonating Turning to expected and Creative has Donatella robustly, is Versace’s with double-digit revenue consumer growth aesthetic potential leadership has revenue Officer, approximately Officer, with deliver tremendous strong XX% growing EBITDA. Under be with Executive performance design increase Versace's the adding and in both believe Jonathan Chief growth. sales to thrilled connection This of and so an brand that growth. we in upside margin comparable led and consumers to a business to to the is opportunity, is double-digit we growth XXXX store are Versace Chief Versace; in deliver the compelling grounded Akeroyd, which

Versace to believe potential to contribute our we ahead, Looking significant group. has

margins billion to we line brands. percentage with in the and high-teens Over EBITDA achieve peer a luxury longer-term, expect revenue in range $X in

double-digit growth for margins strategy From third of the Given along we fiscal one that Company expect high $X.X anticipate support be the Choo. and in revenue the platform. year store the with Jimmy the acquisition as on These marketing in XXXX, focused will in successful the year invest drive similar Versace the to investments additional footwear year put to EPS e-commence expansion to approximately following in in an EBITDA place we acquisition. accessories teens current development, single-digits EPS to will and plan the diluted in rate, this initiative, mid billion accelerated fiscal brand's achieve Versace we we be perspective, in

We high accretion year and in the expect in in three. accretive two, low year accelerate single-digit Versace to be single-digit to

The discuss family Capri of like Holdings. I’d value the approximately $X.XX a transaction. will billion. will Next, of transaction. Versace be million the €X.XX cash purchase of also price primarily to this is receive transaction a €XXX the details of or shares This billion from The

to testament the extremely and pleased support creation future view family are value welcome equity Versace of as to our We strong Holdings and the Capri opportunity. in their a plan shareholders investment as

XXXX We term revolver acquisition of The on following hand, so fund quickly debt we our drawings fiscal significant the to of Jimmy and quarter. cash in expected pay-down cash portion just combination loans. we our expect as our have acquisition purchase new rapidly to fourth will prioritize close is closing, to our Post cash the with flow existing Choo. acquisition a done on the of

advantages growth. Now, strategic shareholder approximately provides target our benefits, enhanced Kors billion I group’s and Together with would Holdings like Versace to billion. acquisition the Versace opportunity the help for positions for to will Choo, drive revenues believe group. $X turn Jimmy $X our addition value that revenue of Versace’s to Michael financial the We Capri and

back of addition the that Versace call growth. office more that position to growth Versace revenue group Versace drive the forward we area perspective brand of With back I conclusion, our region. now and to believe after EPS value increases the help long-term presence closing support. Capri Asia a let luxury our also John and we that, and fast multiyear develop for discussing high turn broad Holdings. geographic globally our to expanding In are strategic synergy details believe diversification closes. further From will With me the remarks. as the luxury deliver in we create in and the third look Versace We excited shareholder to supply will have this long-term chain, the We information platform operational reiterate brand, to systems for the have opportunity savings transaction brand our leverage to extremely growing

John Idol

the group. important increase acquisition an The iconic execution our of acquisition, shareholder milestone our questions. we of expand stage Tom. our luxury significantly and Thanks, the value. set the of to up fashion for for is on long-term the will strategy open Versace growth call this House I company global now With to have

Operator

now will our We first from take [Operator ahead. you. ISI. Please Saad question Evercore Thank Instructions] from Omar go

Omar Saad

I a the you hoping the on think little was at Could of it really about growth could be of years been a slower cetera? accelerating positions and to talk changing are? Versace, seems if for price I the bit corner currently. few could regions, going has brand and it's and complement key turning what's talk elaborate guys about really And categories, your you three drivers what the I they some points, you ethos one various brands ask of fashion luxury also brand they're across et would how another the growth now

John Idol

they're Omar, leadership And her the today. the Omar. that has engaged seeing Donatella starts you, that right been runway. very a fast brand relevant also growth the has culture Thank pace today. is and Versace driven never by with really she by everyone. driven been number more growth design fact really morning the a of very, Good again at in the modern to is And than very of now by things.

So prepared remarks, has social as in gives us Instagram talked about platforms. we've Versace across incredible following, other the and power across celebrity which

herself going and we're are and very her she true follow they're some real on many thought Donatella is I again, a might the that unique about think and has you you in past. is cover more competitors fashion. And for actual about because what be say in our luxury to different of of you company what than call, have people this this to Secondly, icon an interested

her fashion field the component But the growth. even, leadership its to she's a and today time in relevant in her even is And historical voice more key other so very her any Company's, than history.

an driver a Akeroyd. company is second and this to got Jonathan history ever without Harrods at long he The really, previous has thing key Jonathan that merchant. the say as excellent quitting is would a I of he's And

Company all has our looked the men’s And this merchandising a past. XX% bit he more So, at of terms the brand. historically taken, the really of focused power is from at tool things it a company’s men's. box look the of It’s at from than in in incredible this Versace and business been has you almost standpoint company

many So kind fact strong realize, people that’s the of quite in now. really don’t right an is fashion unknown men’s so

So Versace a has men's very the powerful in business. place

that. amplified really has Jonathan Secondly,

from have of luxury is sales have selling Versace know, very doesn’t has Company, we as of of you that that while would it sneaker the The category. has been active area the business. penetration it Secondly, best growing of point strong in accessories like one the still, fashion items to the the third that

And platform for Company. the that’s another been leading so

very have so to the Donatella, And broad communication consumers. this set of you power power of a her of

exploded footwear have dynamic business leadership, but and a you have accessories actually is that and women’s Jonathan’s men’s a to and growing, really be You've business our you expertise. given

the for power And the at billion. the also underdeveloped so approach of brands. that’s combination really mention shows double-digit to when And also of question. in is really comp second think our $X remarks, store answer your now. prepared I prepared us able say And right brands, to is. you would to roadmap I’ll business. how showed want the Company this right That the brand experiencing growth is part the acquire three it's I be I the your look We the for --

its is obviously grow size. brand a going going Kors because to large Michael I So, globally. more very to we’re, it’s slowly grow, of mean

more layer. think, pure layers, reported seamlessly Jimmy and we’ve integrated growth billion quarter luxury way billion next It’s accessible company. think acquisition, But the last and a gone in Company for strong top-line target it roughly want growth. our shown, $X to that’s I layer billion on that X.X we’ve way is Michael Choo great into to seamlessly and has $X Choo, the well Kors from that has today, perfectly. over have luxury. the to reiterate pure our And our we’ll Jimmy company luxury a we been and will two few company. its so strong we remain that for a double-digit I costs X.X years. integrated That’s billion go to by

been and ready great build shoe So that’s both which accessories we that. on the we’re can has And Versace, accessory we the we that to And in wear accessories. going more a believe feel then lastly world about to has obviously and component an and business components rapidly. grow

one really of really that But we've don’t another. balanced with another being our So are that we we’ve put brands companies own got we portfolio That one to compete compete said, another. outside that can with opposed as one of they have together think company. a three competition plenty of complement and

followers and on kind is group. has media these three So we a great to of the of that highly standpoint. built from But we our what more continue us that And you to not much brands. And nearly will thought Instagram how million can Choo brand confidence presence than for released Omar. recognized size question is that’s by X.X as gives we that social couldn’t process revenue brand its on you that thank pleased Jimmy the a that again have even the grow very be see data this

Operator

from take next from question We will go Company. the Chen Cowen Please Oliver ahead. now &

Oliver Chen

should creation categories happen also, atelier, be as product you by Versace? happening you collection maximizing Our as question what you And with over well? think how and structure sooner what within the about brands I and term? brand see which so longer Versace. the with to And will respect versus time, do are you have think the the [versus] and about? excited about brand you'll is value opportunities the Which at about the actions think ones most most the

John Idol

Oliver. you, Thank

from a along for and has like really now steadfast has in foremost, with you really led meet own runway vision, overtime. her and built Donatella's of and force right She's Jonathan year brand get the will Versace dynamic this in chance been has company to brother her hope condition Gianni, a all with and out is it's her but obviously really company. and previously this year with First

women's believe done the the business would will men's the in is for Versace you of of line. the size focus. is both first first I majority that our we the tell We the and where start always that Company, with given with So Company's runway Versace

only most and every which effort you in the brick the I world to that in growth building as all a e-commerce give time our and And on spend is double of business well. so is before, opportunity leads conclusion of that for comp the in your said region that store bit a one it having, great stores, as mortar us not non-existent digit

is the remarks to terrific of indicated the business. that, first business. we inside accessories you as biggest profitability get view team, prepared Tom understand that to that there the great a want profitability. impact that job has of that And in Company those where believe under our the is the have the know his the So stronger had we figures we still that we Jonathan accessories company because as only focus, luxury in at you to done we've with and has way the peers improving management on having turnaround are. shared this And profitability significantly is

effort men's men's strong company's both amount the putting I a and globe. the And women's. of that, footwear. initiative half and a accessories we around is and is men tremendous following powerful with remember, almost behind So men's market very this given Because again of have might amongst accessories add be business. and we will And

revenue So, and Company. we the having improvement margin the biggest that for in view return

thing that do we we'll Choo. Jimmy same the So at do

And of take canvas for design initiatives layer need the back In that lot most a very a our time don't stores will we invest some that Again, just growth it out the single on see some And pretty we in for heavily -- city, stores likely, period will today up step XX and we will distribution that bring then and every than months you online. build of We will more those marketing short around build we to have will XX are category and Company, really relatively quickly. deliver quickly. we accessory the spectacular. locations profitability the Company. that we and powerful have there to need think the

inside that's So, happen knows going I value And for Oliver, quite think creation again what's this than you nobody frankly. to really Versace. better the

Italian If remain you doing euros luxury look the will of today. nameless, they at other some which in are billions the of brands

the against that us. take is and and very really to corporate have now excited of they'll So, behind will he's team our part thrilled building development of Capri change the with them, terribly and and the execute step just resources reign much a going Jonathan Versace underdeveloped have strategies been is full that’s Versace. to And the of left everyone to next I here entire in really that

and think you, out So, got excited Thank a to we’re excellent from. build we Oliver. platform we've

Operator

We Stanley. go will next ahead. Greenberger now Please from take our from Kimberly question Morgan

Kimberly Greenberger

little a execution question. Versace growth the are each up aspirational follow other as what -- merchandizing to then revenue there contemplating line wanted of been think the more And here lower diffusion three a years? or about you I a sort you last of is longer-term has there a driving priced and keep Can Versace about recent to that it in talk you as over the more of bit fashion you on the or Is of inflection. if luxury or John, drivers? was brand And then development, that’s sort prowess addition? strictly intention are brand line Omar’s

John Idol

I’m Kimberly. again Tom to going the talk you, to rate. growth let Kimberly, Thank

be to and we and by mean good, Gianni we're line, question the over and some very better of broad a awareness part we We’re And in very really the interesting with Donatella weren't before, vision for only rock millennial on Oliver's know mean vision these as projected of what said consumer that just here it’s Company. kind brought the a this a high over of and the held true that final, not with I in clearly competitors brand here and to if before happening you question months us as in than appeal to for brands. of as if Donatella customer, again, glamorous. seen really have is the XX first following has we only discuss years. who a young going will projected speak months. have years, part focus at I before to here we’re we other said gives much was can was unique built doing what fun previous platform And company again don’t market with last really this that I the which to the we I billions to We has Company and we’re the our But we XX luxury the Omar’s roll, the last glamour luxury or months historically, understand as the the of and the are Italian in runway of always because Versace is people go Company just really terms euros. one so XX

we’re at merchandizing that again an a very And to opportunity brand to characteristics So, see that very than stores, very, customer. our from more buildings we so we positive away us giving doing platform from really more build can look standpoint base really DNA locations standpoint. competitors talk have significantly a doing incredible you given know us, as what where today and of two incredible developed out us to that’s we even the are build volume will broad those we from do

be decide if at that initiatives done and months why the the our speak on focus where we rationalization of when there's to again close that’s line So, the on acquisition. or to we’re post you portfolio growth? be look next don't And first focused. to the Tom, with we'll all will the going needs few over

Tom Edwards

Sure.

revenues tremendous very overall stores business 'XX. has a is from in XXXX it's business. was in both XX% growth 'XX had of take pause coming momentum a And million frame to a year, Kimberly Under leadership, sale. a double-digit of the over further significant key invest the $XXX grown I'd a last forecasts going for very overall the longer from double-digit back that to growth that CAGR So bit little current time so 'XX rate there years, brand see it in been then strongly love for million of three and And over a this as $XXX something John of terms build we're growth the comparable time slight over the for moving growth value Jonathan's mentioned, as terms into to we business. growth that and drivers and and on the for to

John Idol

not that actually that Kimberly, brand. for to And opened into each during you not and locations of very were Kimberly pause, some also year, the Jonathan predecessor had also -- get stores but in slight his good to have understand that wrong closed lot a

an the up job So cleaning he's what not in looked excellent appropriate way. at done probably was

increasing to well. as he It's And them really EBITDA two of that accomplished well and team and that strong management the so, been for years. Company the give have for I he has as at what look when as basically the extraordinary here compliments in

Kimberly Greenberger

Thanks. Okay.

Operator

will from take next question We Group. now Telsey from go our Telsey Dana Advisory ahead. Please

Dana Telsey

Versace As there? you've to is level? What teens that that you to the move to you path for to talked buckets at think margin of that about. growth about rate high the should and acquisition How that look getting the line EBITDA get

John Idol

that three Dana, will us morning there. get good things help and there's you really Thank Dana.

foremost, at greater. that are approximately Milan significant here have on Company again, competitors able XX% being by First or to and rate in improvement margin. will that the to And accessories develop penetrate our at us where will accessories are luxury all

today, Jonathon, conversations with for It's just of And you very space media use come feel with watched Donatella's is the we're designer, of going show. in to again, meetings here with to and major social remember, their because develop Versace's able knowledge We've And board Also, the going Donatella. modern and we're not voice both do. that's some she model runway figure and given iconic and to the we wants confident world that too. everyone, some power and of in we on shows. how And last to is her. part of long Company. started had the have Donatella careers be models the we're greatest So, and many going an completely the who our every that of what to be

us of she And and of with on as or gives people, viewed for those these icon many is also celebrities. strong an so, that ability many put product to

able are, amplify amount So demand And our through a we ready great buying socially Donatella that our there’s to such there think think I celebrities. we'll association wear. accessories been pent-up fact to of the and a with models be consumers our given have through our

would it be sense achieve able to that that. So, would we make

the So that’s path. of the part first

stores that the we going to the point part they’ve and of time profitability. significant at that think Company’s synergies luxury to we’re remarks the believe impact bring be. The that our Again lastly, we know second wonderful with job. of the we’ll is has at But done higher will in be square by doing discuss efficiencies in to foot to it to a where run than business could that Versace is What this margin today. much we then world the the we Company. just mentioned very some on the in sales productivity And prepared impact below of And a not we a will Tom many group. per able we're bring really a we but it’s be family solid believe, have number, and that needs to processes in as Company it’s his at going the Versace,

the we’ve initiatives So will we think quite those to management Thank frankly, with been which working you, on already together the here three over come XX team next months. Dana.

Operator

will take next with go We from Sachs. Alexandra now Please Walvis our question Goldman ahead.

Alexandra Walvis

in at stores through those you right stores? the the been you said closing you gives store now you the store of look a process. firstly, response or the question that anticipating stores of for of XXX this We the confidence have you changes size existing the there’s recent confidence and what a stores to What go base. business? you open And years. the gives this in believe opening prior feel question I had And some to base about then opportunity shape fleet stores any of that will size to the the material from further are new finally, is, the as all differ is

John Idol

as great one, cetera. leases cleaning some said were really et closing earlier, so, the locations that number wrong up. or had or some months I some stores done job bad a last XX that Jonathan spent He’s or in So

close So we to next that over few months. look XX a go have the will we to to more XX

Now that markets. don’t where huge locations such stores being incredible said, have we in and a runway we opportunity of have

significant Japan. So Multi-hundreds would I strong I would the of Company, with business marketplace for such present Years an us a following is Japan, give Michael that various you the Jimmy with dollars, revenue the with Kors. have and any we the Choo. very strong company a from very it’s, of business millions And base opportunity Company, for withdrew group a as examples in reasons. ago brand the

know the quite rapidly. and think business we the So, we market build we can there

Secondly, in significant not in a Europe, developed many markets really that Company has way. the there are

So also we rapidly business. Korea, a opening and has be small the very very, stores marketplace there. Company will basically able to move go in in into Again, the

big think us. that’s we for So a opportunity

the when going the So in the of street locations. the brands look They’re world. on known best you at to be as amount same sitting luxury

we newer more competitors have per in that’s the be square be stores to And given probably productivity will some on some of to we’re as than won't stores. number of size they have We foot front the large going on where think this right our as of terms us, be of actually today. stores I want open -- for that XXX. that tell you flagships would the we

a X,XXX look at going think store, around us on basis. you I to something can as X,XXX of foot kind close the to forward benchmark probably foot X,XXX for a

when it, kind model that I you So range. think a of would in

research So, that previously a model brought and of we Choo lot we believe also when it Jimmy we as this do assessing well.

relatively Choo. with Versace Jimmy of what to terms had was and we the easy done it for opportunity in research us in come assess given So

Operator

question take our next Mallela Please ahead. from Chethan We go will now Barclays. from

Chethan Mallela

this accelerate your for think more detail provide you currently. relatively how for a about the channel Chanel that to brand. business when the And outlook? how pace opportunity think you benchmarking, It little think on fasters focus. the can about margin investing your you And investment sounds near How it's e-commerce mentioned and But be? insignificant priorities. talked omni-channel large do you've So I in could you're you the of behind like development into do just Versace that term

John Idol

I million have robust. a think good previous capability other very has Kors Kors. in following. is Number along the our that it that you having over $XXX Thank morning. Michael tell spent the one, on global that we e-commerce mentioned with platform And and you calls we platform we would of Michael developing brands

very work are our to develop to with so we rapidly And company Versace the going come to to platform. on

got also We very very, have good omni-channel capabilities.

a systems Versace to they position will from have better than today. standpoint, So get much we a up

So between over online. that. million we will so Versace develop us to for e-commerce, omni-channel, represent this least it'll $XXX business time some at time that believe Again take

And omni-channel Choo as We disciplines to think investing that again the and initiatives has well Michael marketing we'll digital well very initiatives be we consumers these a And drive Versace. will Jimmy as e-commerce also are also both at of reach capabilities. broadening different that and platform the further today quite know robust the Kors. we on

the from. something Company will we that think So benefit that that

Operator

will ahead. our from We go Genuity. now next take Camilo Canaccord from question Lyon Please

Camilo Lyon

currently customer bigger on was I is the the from than this to brand curious opportunities it's business perspective. clearly, get that's generating. what your that thoughts a untapped John

describing brand, little just how currently and heritage longer and touched spoke that consumer to this You've And hear consumer new to a opportunity the of brand the when is the curious about penetrate much market on the the new plan? about a the think term but of bringing that brand? I not to wholesale bit DNA retail opportunity expect the stores you then with and you the the also reaching secondly, you you're represented. Is see part a how there to

John Idol

that media issue first we social through broader its indicate customer metrics. So, is than reaching actually Versace see today and that, the would is I believe the this some interesting of can revenues only

So, clearly brand the there interest than a the in larger revenues is are generating.

generate So, that to the Company then made quickly channel. we the online, have stores, up increased obviously going decision marketing able the XX% to they’ve and to that we for not many convert by shop first things it but We’ll speed one do the more in the revenues and consumer quite you of of is XX% e-commerce store. capabilities those of through purchase think in metrics companies frankly much know we’re getting be only as make but purchases online,

are Our enough online and the able of need that robust be very to we we offer full today offer merchandize to that able not to stores have, consumers array of service very, we to fast consumer. products

that they we as CRM, lot are job And huge too. to today. be the for work and up capabilities competitors directly think to a that Company Versace a again, will speed very can They’re the pretty amplifying that’s with much consumers. spending very much big and on have CRM again with a database, luxury team, that of along bigger we to a that marketing to to a just, will going us obviously And we a doing by good So opportunity have on market money a develop think have quickly. base to to Company their opportunity that sophisticated our the base e-commerce bring our a with broader

love certain have Germany will brand low much quite really hanging awareness are in So, are important to to for formal Japan, and the frankly brand with love I customers that today higher think the markets things with kind we that levels be like existing so like Korea, getting off in we of who in fruit with. begin that like those us. Donatella with But can who

Bloomingdales. world, luxury that’s absolutely, next that what’s is whether business. really that's the that's that profitability And this own existing the of stores. a true amazing the focused a All part Company. show whether has does their And their terms And to big up that to have luxury going so that's when coming department inspiration, first, this which I letting Galeries fashion want a that's what of she he Harrods, wholesale is say whether In driving will do is as a the that a organizing be that the I’m this wholesale [Lexington] customers the the is job is way Donatella stores all in be disciplined, that whether all they of is focused Lafayette, in for stores Versace performance retail on opportunity the reality. around on on a should luxury presence company more best, the so our that, that and tell and an And being our focus with presence really wardrobe. really in metrics -- in Jonathan have why why exciting, Donatella sales equal retail what’s the And Company is, today. clearly what done they the competitors. and we world, said, there is that’s proud team could a of being void to in, Again a stronger but Italian for Jonathan,

Operator

question Altschwager now will take Baird. our from We ahead. go Please Mark next

Mark Altschwager

Good Hi. congratulations. morning and

John Idol

speak need Operator, I can’t I Could to you again? when hear you’re up. introducing say you that please people.

Operator

Please go ahead caller.

is line open. Your

Mark Altschwager

ask like This and from footwear. chain. the just women's men's from congratulations to of is Altschwager you're Hi, Mark John, and is Baird. planning growth nearly coming looks supply XX% at accessories It wanted about Versace

to long Kors luxury what capabilities Michael broader to with within landscaping in maybe just areas? mid comparison the to developing goal execute margins understand margins, then Kors looking in terms that to generate the perhaps and Jimmy the margin, including more XXs, opportunity today? even of that's EBITDA EBITDA to supply long-term teens, range plans and curious is your the low where separately extent the just us there delta help to on place high the line in and I the those are and existing Versace's follow-up and assessment in to Choo you chain for on chain plan that And leverage quickly in supply Kors Just going wanted

John Idol

on --actually, you, and Italy. number things, of made two piece brands Mark. two Kors a company is small Michael focused have now manufacturing piece, as couple a A our in now we heavily Thank one, of our are of two

a embarking a own. base Company the that as So on company, will factory will we be developing

that's going now on to leverage we create the side. So, we to be think scale have enough -- manufacturing

much so with to the factories our consistent And again next produce making XX And that actual will you of our it's and us see very some into over ownership control months, investments peers. product. luxury

is Jimmy Secondly, a We Kors, and get that's have some through little going organized flow base how to Versace. our that Michael And factory with but that -- as a of again, on existing we power us all X our both companies in take suppliers. now know and material I'll definitely fine bit our very what group. benefit strategy Choo to and we're we of time clear from have

what our But space our only we that that feel goal of are. business, whether have level In buy made also ready-to-wear that's margin, have not we handbag accessories whether at know but want in a not always compromise quality. EBITDA to and incredible you have is $X anything historical business. that reach when companies forefront. an buy, that luxury you dress you billion higher the know the And margins margin for it given We are a buy, or terms our to shoe, to always do than it’s be to beautifully there you Versace, the some it’s quality. will it's Versace is to whether known shirt that that, a projections

its of products you locations products. when look of world the luxury on In fact any it the that luxury of Versace company the receives highest resell some goods resale at in some of

we company which so and and to maintain that don't So, because Mark. do anything that we has quality, that we we're such of as history maintain of Thanks that's must our something that building that this as incredible we move an think is lose forward. we know craftsmanship

Operator

take will Please Piper Murphy now go from Erinn We ahead. from our last question Jaffray.

Erinn Murphy

earlier trying follow the to just growth to an forward. on wanted and question up going of wholesale complexion understand on I

And assumptions store comp And just speak your So thinking what the then plan of grow plans your to distribution that licensing could to overall where business to about today? you the 'XX? you’re then for Versace fit from there sales wholesale segment are And is how business? does growth? 'XX and

John Idol

licensing growing, with on our no business, we existing the The last obviously plans first. yes. have I’ll start with licensing,

products licensing plans and with have believe competencies on ourselves those no exception and that the the can Kors, much for Choo the are, business of we product manufacturing of adding Company believe core any don’t as Michael in We consistent we for have with own us. Jimmy as with disciplines our that

cetera. point fragrance of worldwide. the very And for incredible et us the gives large the a fragrance Company be given has very, how potentially business, again there. we wear size I So fragrance way, have partners which the And business big company another data by this could

your we’re through to comps growth giving In terms projections the at be Versace this store from projected on growth, going comp of point. not

the We bit February full in in of talking Investor terms will our give of then overview financials. point directionally the time. be in-depth management will call, to more conducting our you And an in a meet we significant little more we at a will in be where you’ll some of Versace and really into depth -- team in be Day going we’ll June, that you

I’ve you think, the an world. the a of mentioned around the those it’s very complement be or opportunity ground Versace of to these Lafayette, shopping consumers. [indiscernible] consumer just high-end their I offerings Haussmann terms in there’s or their those perfect few Galeries wholesale floors stores And it’s us business, Boulevard have in, those will for for stores In XX locations are, probably whether places names they very, see Again, a XXX% luxury. will are where the of basically a

that’s an on thought process. that days again, So early

have where with place and help really us the accessories and at develop to vision design tools And We do that the on the sought that helm after she’ll we the line consumer. consumer our right to communications, we’ll by it journey. have and a Donatella to lead of will be think

today Capri opportunity on the largest of for Holdings about thank that luxury us want is I the one We’re say now note, you to terribly We, global for that joining excited groups. fashion us. And everyone call. on

in of and the what management proud very of time. short very, very put we’ve a We’re together team period

We we brands right now. on the will remain that have focused three

any are moment. be We to further the not focused acquisitions for on going

Our from and efforts Kors, to you We quickly Choo, priority plan for acquisition Look runway company the shareholders with growth. with share speaking revenue on to per that will debt us those with Versace, our of on continue all Versace and to believe grow of along Thank believe, earnings down this acquisition be joining you our the deliver things for the which future. forward to XXXX. the will today. and in to Michael position growth we our long-term to is ability the Jimmy continue for pay

Operator

That conference you you call. your disconnect. now gentlemen, for today’s will participation. and may Thank conclude Ladies

Capri Holdings Limited (CPRI) 25 Sep 182007 Q1 Earnings call transcript