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Second Quarter Results Exceed Expectations
Jimmy Choo Results Better than Anticipated
Rough Full Year Adjusted Earnings per Share Outlook to $ 4.95 to $ 5.05 from $ 4.90 to $ 5.00
LONDON – (BUSINESS WIRE) – Michael Kors Holdings Limited (NYSE: KORS), a global fashion luxury group, today announced its financial results for the fiscal 2019 second quarter ended September 29, 2018.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181107005295/en/
MICHAEL KORS (Photo: Business Wire)
Second Quarter Fiscal 2019 Highlights
-
Delivered better than anticipated gross margin, operating margin and earnings per share
-
Revenues and comparable store sales in line with expectations
-
Michael Kors brand revenues were down 0.8%, in line with expectations
-
Comparable store sales were down low single digits, in line with expectations
-
Wholesale revenue expectations, reflecting strength in the Americas
-
-
Jimmy Choo delivered better than expected revenue driven by strength in footwear
John D. Idol, the Company's Chairman and Chief Executive Officer, said, 'We are pleased to report results that we are looking for a little bit more, and are raising our fiscal 2019 EPS guidance to a range of $ 4.95 to $ 5.05, reflecting double digit growth earnings for the year. As we enter the second half of fiscal 2019 we look forward to welcoming Versace into our group. With the acquisition of one of the world's leading fashion groups in just one year, we set the stage for accelerated revenue and earnings growth. This is a truly remarkable and historic moment for our company and we look forward to completing this transformational acquisition in the coming months.
Second Quarter Fiscal 2019 Results
Financial Results and Non-GAAP Reconciliation
The United States ('U.S. GAAP') is a non-GAAP basis. A reconciliation of GAAP to non-GAAP is provided for this purpose.
Overview of MKHL Second Quarter Fiscal 2019 Results:
-
Total revenue increased 9.3% to $ 1.25 billion, including a $ 116.7 million contribution from Jimmy Choo.
-
Gross profit was $ 763.1 million and was 60.9%, compared to $ 690.8 million and 60.2% in the prior year. Adjusted gross profit was $ 765.4 million and was 61.0%, compared to $ 690.8 million and 60.2% in the prior year.
-
Income from operations was $ 189.4 million and was 15.1% compared to $ 199.1 million and 17.4% in the prior year. Adjusted income from operations was $ 216.9 million and operating margin was 17.3%, compared to $ 237.4 million and 20.7% in the prior year.
-
Net income was $ 137.6 million, or $ 0.91 per diluted share compared to $ 202.9 million, or $ 1.32 per diluted share in the prior year. Adjusted net income was $ 192.5 million, or $ 1.27 per diluted share, compared to $ 204.5 million, or $ 1.33 per diluted share, in the prior year.
Michael Kors Segments Second Quarter Fiscal 2019 Results:
-
Michael Kors Retail revenue of $ 643.9 million was compared to the prior year. Comparable store sales decreased 2.1%, which was in line with expectations. We have a constant currency basis, comparable store sales decreased 1.3%.
-
Michael Kors Retail operating income was $ 67.9 million and operating margin was 10.5%, compared to $ 69.0 million and 10.7% in the prior year. Adjusted operating income was $ 79.6 million while operating margin was 12.4%, compared to $ 99.2 million and 15.4% in the prior year.
-
Michael Kors Wholesale revenue declined 1.3% to $ 457.8 million compared to the prior year.
-
Michael Kors Wholesale operating income was $ 130.1 million and operating margin was 28.4%, compared to $ 119.6 million and 25.8% in the prior year. On an operating basis was $ 134.2 million while the operating margin was 29.3% compared to $ 126.5 million and 27.3% in the prior year.
-
Michael Kors Licensing revenue decreased 6.8% to $ 35.4 million compared to the prior year.
-
Michael Kors Licensing operating income was $ 9.8 million and operating margin was 27.7%, compared to $ 10.5 million and 27.6% in the prior year. On an operating basis was $ 10.5 million and operating margin was 29.7%, compared to $ 11.7 million and 30.8% in the prior year.
-
Inventory for the Michael Kors brand at September 29, 2018 was $ 619.7 million, year 11% decrease as compared to the prior year.
Jimmy Choo Second Quarter Fiscal 2019 Results:
-
Jimmy Choo revenue was $ 116.7 million. The company acquired Jimmy Choo on November 1, 2017, and compared to Jimmy Choo's stand-alone results from the prior year, increased revenue double digits.
-
Jimmy Choo operating loss was $ 18.4 million and the operating loss was $ 7.4 million.
Outlook
The Company is raising full year adjusted earnings per share guidance by $ 0.05 to $ 4.95 to $ 5.05, reflecting better than expected in second quarter performance for both the Michael Kors and the Jimmy Choo brands.
For the full year, the company continues to expect $ 5.125 billion, including between $ 580 million and $ 590 million of incremental Jimmy Choo revenue. Reported comparable store sales for Michael Kors is expected to be in the low single digits, primarily driven by an unfavorable currency impact. The company has 18.2%. Diluted earnings per share are expected to be in the range of $ 4.95 to $ 5.05. The Company continues to expect EPS dilution from Jimmy Choo of $ 0.05 to flat. Earnings per share guidance assumed approximately 152 million weighted average diluted shares and a rate of approximately 15.5%.
For the third quarter of fiscal 2019, the company expects total revenue of approximately $ 1.46 billion, including approximately $ 165 million of incremental revenue from Jimmy Choo. The Company expects third quarter retail revenue for Michael Kors to grow in the low single digits. Comparable store sales are reported to decline in the single digits, primarily due to an unfavorable foreign currency impact. The Company expects wholesale revenue to decrease in the high single digits, and licensing revenue to decline in the mid-teens. Operating margin is expected to be approximately 20.8%. Diluted earnings per share are expected to be in the range of $ 1.52 to $ 1.57, which includes approximately $ 0.04 to $ 0.06 of accretion from Jimmy Choo. Earnings per share assumed approximately 152 million weighted average diluted shares and a rate of approximately 20%.
Conference Call Information
A conference call to discuss second quarter results is scheduled for today, November 7, 2018 at 8:30 am ET. A live webcast of the conference call will be available on the Company's investor relations website, www.investors.michaelkors.com. In addition, a replay will be available shortly after November 15, 2018. To access the telephone replay, listeners should dial 1-844-512-2921 or 1-412-317-6671 for international callers. The access code for the replay is 5309233. A replay of the webcast will also be available for two days and will be available on the website for 90 days.
Use of Non-GAAP Financial Measures
Constant currency effects are non-GAAP financial measures, which are used to supplement operating results and results in our operations, excluding the effects of foreign currency fluctuation. Because we are a global company, foreign currency exchange rates have a significant effect on our reported results. We calculate the currency and the foreign currency rates. All of the above stated performance measures in the United States of America are based on GAAP. Furthermore, this earnings release includes certain non-GAAP financial measures relating to certain one-time costs associated with Jimmy Choo acquisition and the agreement to acquire and restructure non-cash impairment charges primarily associated with underperforming retail stores. The Company uses non-GAAP financial measures, among other things, to evaluate its operating performance and in the context of the Company's conduct and views its business. The Company believes that non-recurring items helps its management and investors compare operating performance based on its ongoing operations. While the Company considers the non-GAAP measures to be useful, it is not intended to replace, nor is it a substitute for, any amounts presented in US GAAP and may be different from non-GAAP measures reported by other companies.
About Michael Kors Holdings Limited
Michael Kors Holdings Limited is a global fashion luxury group, consisting of iconic brands that are industry leaders in design, style and craftsmanship. Its brands cover the full spectrum of fashion luxury categories including women's and men's accessories, footwear and apparel as well as wearable technology, watches, jewelry, eyewear and a full line of fragrance products. The Company's goal is to continue the global reach of its brands while maintaining their independence and exclusive DNA. Michael Kors Holdings Limited is listed on the New York Stock Exchange under the ticker KORS. As previously announced, in connection with the closing of the Company's acquisition of Versace, the company will be renamed itself Capri Holdings Limited (NYSE: CPRI).
Forward Looking Statements
This press release contains statements which are, or may be deemed to be, 'forward-looking statements.' Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Michael Kors Holdings Limited (the 'Company') could cause actual results to differ materially from the future results or implied by the forward-looking statements. All statements may be forward-looking statements. Without limitation, any statements preceded or followed by or include the words 'targets', 'plans', 'believes', 'expects', 'aims', 'intends', 'will', 'should', 'could', 'would', 'may', 'anticipates', 'estimates', 'synergy', 'cost-saving', 'projects', 'goal', 'strategy', 'budget', 'forecast' or 'might' or 'might' , words or terms of similar substance or the negative one, are forward-looking statements. Forward-looking statements include the following: (i) the expected effects of the Versace acquisition on the Company, (ii) the expected timing and scope of the acquisition, (iii) future capital expenditures, expenses, revenues, earnings , economic performance, indebtedness, financial condition, share buybacks, dividends policy, losses and future prospects; (iv) business and management strategies and the expansion and growth of the Company's operations and benefits from the acquisition; and (v) the effects of government regulation on the Company's or Versace's business.These forward-looking statements are not guarantees of future financial performance. Such forward-looking statements are likely to be significantly affected and expected to be certain. Many risks, uncertainties, and other factors could be expected in the future. These risks, uncertainties and other factors include: Versace acquisition, timing of closing of the Versace acquisition, the Company's ability to integrate the businesses of the future and the benefits of the Versace acquisition; the risk of disruptions to the Company's or Versace's businesses; the negative effects of the announcement of the proposal for the acquisition of the company and the acquisition of the company; significant transaction costs; unknown liabilities; the risk of litigation and / or regulatory actions related to the proposal Versace acquisition; fluctuations in demand for the Company's and Versace's products; future levels of indebtedness; future availability of credit; the timing and scope of future share buybacks, which may be suspended at any time and market conditions; changes in consumer traffic and retail trends; loss of market share and industry competition; fluctuations in the capital markets; fluctuations in interest and exchange rates; the occurrence of unforeseen disasters or disasters; political or economic instability in main markets; adverse outcomes in litigation; and general, local and global economic, political, business and market conditions, the US Securities and Exchange Commission, including the Company's Annual Report on Form 10- K for the fiscal year ended March 31, 2018 (File No. 001-35368). Other unknown or unpredictable factors could be considered in the future. Such forward-looking statements should therefore be construed in the light of such factors. Unless otherwise required by the law, the Company does not provide any representation, or guarantee the occurrence of the occurrence of the occurrence of any of the above. Due to such uncertainties and risks, readers are cautioned not to place such reliance on such forward-looking statements. All subsequent oral or written forward-looking statements attributable to the Company are expressly qualified in their entirety by the above cautionary statement. The Company disclaims any obligation to update or revise any forward-looking or other statements.
|
SCHEDULE 1 |
|||||||||||||||||
|
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES |
|||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||
|
September 29, |
September 30, |
September 29, |
September 30, |
||||||||||||||
|
Total revenue |
$ |
1253.8 |
$ |
1146.6 |
$ |
2456.3 |
$ |
2099.0 |
|||||||||
|
Cost of goods sold |
490.7 |
455.8 |
942.4 |
833.5 |
|||||||||||||
|
Gross profit |
763.1 |
690.8 |
1513.9 |
1265.5 |
|||||||||||||
|
Total operating expenses |
573.7 |
491.7 |
1109.3 |
917.0 |
|||||||||||||
|
Income from operations |
189.4 |
199.1 |
404.6 |
348.5 |
|||||||||||||
|
Other income, net |
(1.5 |
) |
(0.3 |
) |
(2.3 |
) |
(0.9 |
) |
|||||||||
|
Interest expense, net |
5.9 |
0.8 |
13.4 |
1.9 |
|||||||||||||
|
Foreign currency loss (gain) |
33.0 |
(40.5 |
) |
35.9 |
(41.7 |
) |
|||||||||||
|
Income before provision for income taxes |
152.0 |
239.1 |
357.6 |
389.2 |
|||||||||||||
|
Provision for income taxes |
14.9 |
36.4 |
34.3 |
61.0 |
|||||||||||||
|
Net income |
137.1 |
202.7 |
323.3 |
328.2 |
|||||||||||||
|
Less: Net loss attributable to noncontrolling interests |
(0.5 |
) |
(0.2 |
) |
(0.7 |
) |
(0.2 |
) |
|||||||||
|
Net income attributable to MKHL |
$ |
137.6 |
$ |
202.9 |
$ |
324.0 |
$ |
328.4 |
|||||||||
|
Weighted average ordinary shares outstanding: |
|||||||||||||||||
|
Basic |
149575112 |
151781340 |
149538607 |
153134119 |
|||||||||||||
|
diluted |
151705685 |
154168094 |
152052671 |
155519806 |
|||||||||||||
|
Net income per ordinary share: |
|||||||||||||||||
|
Basic |
$ |
0.92 |
$ |
1.34 |
$ |
2.17 |
$ |
2.14 |
|||||||||
|
diluted |
$ |
0.91 |
$ |
1.32 |
$ |
2.13 |
$ |
2.11 |
|||||||||
|
SCHEDULE 2 |
||||||||||||
|
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||||
|
September 29, |
March 31, |
September 30, |
||||||||||
| assets | ||||||||||||
|
Current assets |
||||||||||||
|
Cash and cash equivalents |
$ |
155.2 |
$ |
163.1 |
$ |
178.2 |
||||||
|
Receivables, net |
339.9 |
290.5 |
274.5 |
|||||||||
|
Inventories |
767.6 |
660.7 |
696.5 |
|||||||||
|
Prepaid expenses and other current assets |
211.4 |
147.8 |
181.5 |
|||||||||
|
Total current assets |
1474.1 |
1262.1 |
1330.7 |
|||||||||
|
Property and equipment, net |
552.0 |
583.2 |
562.7 |
|||||||||
|
Intangible assets, net |
1158.6 |
1235.7 |
405.7 |
|||||||||
|
goodwill |
796.9 |
847.7 |
119.7 |
|||||||||
|
Deferred tax assets |
47.1 |
56.2 |
69.2 |
|||||||||
|
Other assets |
78.6 |
74.1 |
43.7 |
|||||||||
|
Total assets |
$ |
4107.3 |
$ |
4059.0 |
$ |
2531.7 |
||||||
| Liabilities and Shareholders' Equity | ||||||||||||
|
Current liabilities |
||||||||||||
|
Accounts payable |
$ |
290.5 |
$ |
294.1 |
$ |
174.0 |
||||||
|
Accrued payroll and payroll |
82.7 |
93.0 |
51.9 |
|||||||||
|
Accrued income taxes |
23.9 |
77.6 |
60.1 |
|||||||||
|
Short-term debt |
255.0 |
200.0 |
– |
|||||||||
|
Accrued expenses and other current liabilities |
345.8 |
295.6 |
188.7 |
|||||||||
|
Total current liabilities |
997.9 |
960.3 |
474.7 |
|||||||||
|
Deferred rent |
133.5 |
128.4 |
131.7 |
|||||||||
|
Deferred tax liabilities |
181.5 |
186.3 |
78.7 |
|||||||||
|
Long-term debt |
504.6 |
674.4 |
– |
|||||||||
|
Other long-term liabilities |
106.5 |
88.1 |
41.4 |
|||||||||
|
Total liabilities |
1924.0 |
2037.5 |
726.5 |
|||||||||
|
Commitments and contingencies |
||||||||||||
|
Shareholders' equity |
||||||||||||
|
Ordinary shares, no by value; 650,000,000 shares authorized; 213,208,924 shares issued and 150,150,297 outstanding at September 29, 2018; 210,991,091 shares issued and 149,698,407 outstanding at March 31, 2018, and 210,200,479 shares issued and 152,066,668 outstanding at September 30, 2017 |
– |
– |
– |
|||||||||
|
Treasury shares, at cost (63,058,627 shares at September 29, 2018, 61,292,684 shares at March 31, 2018 and 58,133,811 shares at September 30, 2017) |
(3123.0 |
) |
(3015.9 |
) |
(2815.8 |
) |
||||||
|
Additional paid-in capital |
877.9 |
831.1 |
791.9 |
|||||||||
|
Accumulated other comprehensive (loss) income |
(62.9 |
) |
50.5 |
(59.6 |
) |
|||||||
|
Retained earnings |
4487.7 |
4152.0 |
3888.5 |
|||||||||
|
Total shareholders' equity of MKHL |
2179.7 |
2017.7 |
1805.0 |
|||||||||
|
Noncontrolling interest |
3.6 |
3.8 |
0.2 |
|||||||||
|
Total shareholders' equity |
2183.3 |
2021.5 |
1805.2 |
|||||||||
|
Total liabilities and shareholders' equity |
$ |
4107.3 |
$ |
4059.0 |
$ |
2531.7 |
||||||
|
SCHEDULE 3 |
|||||||||||||||||||
|
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES |
|||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||||||||||
|
September 29, |
September 30, |
September 29, |
September 30, |
||||||||||||||||
| Revenue by Segment and Region: | |||||||||||||||||||
|
MK Retail |
The Americas |
$ |
394.9 |
$ |
385.5 |
$ |
797.1 |
$ |
777.6 |
||||||||||
|
Europe |
139.2 |
154.2 |
258.7 |
276.3 |
|||||||||||||||
|
asia |
109.8 |
105.3 |
227.6 |
211.0 |
|||||||||||||||
| MK Retail Revenue |
643.9 |
645.0 |
1,283.4 |
1264.9 |
|||||||||||||||
|
MK Wholesale |
The Americas |
354.3 |
340.4 |
629.4 |
567.6 |
||||||||||||||
|
EMEA |
80.9 |
104.5 |
149.3 |
169.5 |
|||||||||||||||
|
asia |
22.6 |
18.7 |
41.9 |
30.1 |
|||||||||||||||
| MK Wholesale Revenue |
457.8 |
463.6 |
820.6 |
767.2 |
|||||||||||||||
|
MK Licensing |
The Americas |
23.1 |
26.0 |
38.4 |
40.8 |
||||||||||||||
|
EMEA |
12.3 |
12.0 |
24.5 |
26.1 |
|||||||||||||||
| MK Licensing Revenue |
35.4 |
38.0 |
62.9 |
66.9 |
|||||||||||||||
| Michael Kors Revenue |
1137.1 |
1146.6 |
2166.9 |
2099.0 |
|||||||||||||||
|
Jimmy Choo |
The Americas |
20.4 |
– |
46.0 |
– |
||||||||||||||
|
EMEA |
56.8 |
– |
158.5 |
– |
|||||||||||||||
|
asia |
39.5 |
– |
84.9 |
– |
|||||||||||||||
| Jimmy Choo Revenue |
116.7 |
– |
289.4 |
– |
|||||||||||||||
| Total Revenue | $ | 1253.8 | $ | 1146.6 | $ | 2456.3 | $ | 2099.0 | |||||||||||
| Income from Operations: | |||||||||||||||||||
|
MK Retail |
$ |
67.9 |
$ |
69.0 |
$ |
160.4 |
$ |
161.2 |
|||||||||||
|
MK Wholesale |
130.1 |
119.6 |
227.6 |
163.1 |
|||||||||||||||
|
MK Licensing |
9.8 |
10.5 |
18.9 |
24.2 |
|||||||||||||||
|
Michael Kors |
207.8 |
199.1 |
406.9 |
348.5 |
|||||||||||||||
|
Jimmy Choo |
(18.4 |
) |
– |
(2.3 |
) |
– |
|||||||||||||
| Total Income from Operations | $ | 189.4 | $ | 199.1 | $ | 404.6 | $ | 348.5 | |||||||||||
| Operating Margin: | |||||||||||||||||||
|
MK Retail |
10.5 |
% |
10.7 |
% |
12.5 |
% |
12.7 |
% |
|||||||||||
|
MK Wholesale |
28.4 |
% |
25.8 |
% |
27.7 |
% |
21.3 |
% |
|||||||||||
|
MK Licensing |
27.7 |
% |
27.6 |
% |
30.0 |
% |
36.2 |
% |
|||||||||||
|
Michael Kors |
18.3 |
% |
17.4 |
% |
18.8 |
% |
16.6 |
% |
|||||||||||
|
Jimmy Choo |
(15.8 |
)% |
– |
% |
(0.8 |
)% |
– |
% |
|||||||||||
| Total Operating Margin | 15.1 | % | 17.4 | % | 16.5 | % | 16.6 | % | |||||||||||
|
SCHEDULE 4 |
||||||||||
|
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||
|
September 29, 2018 |
||||||||||
| Retail Store Information: |
Store Count |
Square Footage |
||||||||
|
The Americas |
398 |
1365108 |
||||||||
|
Europe |
195 |
535.103 |
||||||||
|
asia |
261 |
560.401 |
||||||||
|
Michael Kors |
854 |
2460612 |
||||||||
|
Jimmy Choo |
204 |
268.251 |
||||||||
|
Total MKHL |
1,058 |
2728863 |
||||||||
|
SCHEDULE 5 |
|||||||||||||
|
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES |
|||||||||||||
|
Three Months Ended |
% Change |
||||||||||||
|
September 29, |
September 30, |
ace |
Constant |
||||||||||
|
Total revenue: |
|||||||||||||
|
MK Retail |
$ |
643.9 |
$ |
645.0 |
(0.2 |
)% |
0.5 |
% |
|||||
|
MK Wholesale |
457.8 |
463.6 |
(1.3 |
)% |
(0.9 |
)% |
|||||||
|
MK Licensing |
35.4 |
38.0 |
(6.8 |
)% |
(6.8 |
)% |
|||||||
|
Michael Kors |
1137.1 |
1146.6 |
(0.8 |
)% |
(0.3 |
)% |
|||||||
|
Jimmy Choo |
116.7 |
– |
NM |
NM |
|||||||||
| Total revenue | $ | 1253.8 | $ | 1146.6 | 9.3 | % | 9.9 | % | |||||
|
Six Months Ended |
% Change |
||||||||||||
|
September 29, |
September 30, |
ace |
Constant |
||||||||||
|
Total revenue: |
|||||||||||||
|
MK Retail |
$ |
1283.4 |
$ |
1264.9 |
1.5 |
% |
0.6 |
% |
|||||
|
MK Wholesale |
820.6 |
767.2 |
7.0 |
% |
6.5 |
% |
|||||||
|
MK Licensing |
62.9 |
66.9 |
(6.0 |
)% |
(6.0 |
)% |
|||||||
|
Michael Kors |
2166.9 |
2099.0 |
3.2 |
% |
2.6 |
% |
|||||||
|
Jimmy Choo |
289.4 |
– |
NM |
NM |
|||||||||
| Total revenue | $ | 2456.3 | $ | 2099.0 | 17.0 | % | 16.4 | % | |||||
|
SCHEDULE 6 |
||||||||||||||||||||||||
|
NON-GAAP RECONCILIATIONS OF REPORTED TO ADJUSTED MEASURES, |
||||||||||||||||||||||||
|
Three Months Ended September 29, 2018 |
||||||||||||||||||||||||
|
As Reported |
Impairment |
Restructuring |
Inventory |
Acquisition |
As Adjusted |
|||||||||||||||||||
|
Jimmy Choo gross profit |
$ |
82.4 |
$ |
– |
$ |
– |
$ |
2.3 |
$ |
– |
$ |
84.7 |
||||||||||||
|
Total gross profit |
$ |
763.1 |
$ |
– |
$ |
– |
$ |
2.3 |
$ |
– |
$ |
765.4 |
||||||||||||
|
MK Retail operating income |
$ |
67.9 |
$ |
5.7 |
$ |
6.0 |
$ |
– |
$ |
– |
$ |
79.6 |
||||||||||||
|
MK Wholesale operating income |
130.1 |
– |
4.1 |
– |
– |
134.2 |
||||||||||||||||||
|
MK Licensing operating income |
9.8 |
– |
0.7 |
– |
– |
10.5 |
||||||||||||||||||
|
Michael Kors operating income |
207.8 |
5.7 |
10.8 |
– |
– |
224.3 |
||||||||||||||||||
|
Jimmy Choo operating loss |
(18.4 |
) |
1.3 |
7.4 |
2.3 |
– |
(7.4 |
) |
||||||||||||||||
|
Total income from operations |
$ |
189.4 |
$ |
7.0 |
$ |
18.2 |
$ |
2.3 |
$ |
– |
$ |
216.9 |
||||||||||||
|
Michael Kors operating expense |
$ |
472.9 |
$ |
(5.7 |
) |
$ |
(10.8 |
) |
$ |
– |
$ |
– |
$ |
456.4 |
||||||||||
|
Jimmy Choo operating expense |
100.8 |
(1.3 |
) |
(7.4 |
) |
– |
– |
92.1 |
||||||||||||||||
|
Total operating expenses |
$ |
573.7 |
$ |
(7.0 |
) |
$ |
(18.2 |
) |
$ |
– |
$ |
– |
$ |
548.5 |
||||||||||
|
Foreign currency loss |
$ |
33.0 |
$ |
– |
$ |
– |
$ |
– |
$ |
(30.4 |
) |
$ |
2.6 |
|||||||||||
|
Income before provision for income taxes |
$ |
152.0 |
$ |
7.0 |
$ |
18.2 |
$ |
2.3 |
$ |
30.4 |
$ |
209.9 |
||||||||||||
|
Provision for income taxes |
$ |
14.9 |
$ |
1.0 |
$ |
1.6 |
$ |
0.4 |
$ |
– |
$ |
17.9 |
||||||||||||
|
Net income attributable to MKHL |
$ |
137.6 |
$ |
6.0 |
$ |
16.6 |
$ |
1.9 |
$ |
30.4 |
$ |
192.5 |
||||||||||||
|
Diluted net income per ordinary share – MKHL |
$ |
0.91 |
$ |
0.04 |
$ |
0.11 |
$ |
0.01 |
$ |
0.20 |
$ |
1.27 |
||||||||||||
|
______________________ |
||
| (1) |
Gianni Versace S.p.A., Inc., record 4, et. |
|
|
SCHEDULE 7 |
|||||||||||||||||||||||
|
NON-GAAP RECONCILIATIONS OF REPORTED TO ADJUSTED MEASURES, |
|||||||||||||||||||||||
|
Six Months Ended September 29, 2018 |
|||||||||||||||||||||||
|
As Reported |
Impairment |
Restructuring |
Inventory |
Acquisition |
As Adjusted |
||||||||||||||||||
|
Gross profit |
$ |
1513.9 |
$ |
– |
$ |
– |
$ |
4.7 |
$ |
– |
$ |
1518.6 |
|||||||||||
|
MK Retail operating income |
$ |
160.4 |
$ |
10.0 |
$ |
10.6 |
$ |
– |
$ |
– |
$ |
181.0 |
|||||||||||
|
MK Wholesale operating income |
227.6 |
– |
4.5 |
– |
– |
232.1 |
|||||||||||||||||
|
MK Licensing operating income |
18.9 |
– |
0.8 |
– |
– |
19.7 |
|||||||||||||||||
|
Michael Kors operating income |
406.9 |
10.0 |
15.9 |
– |
– |
432.8 |
|||||||||||||||||
|
Jimmy Choo operating (loss) income |
(2.3 |
) |
1.3 |
13.6 |
4.7 |
– |
17.3 |
||||||||||||||||
|
Total income from operations |
$ |
404.6 |
$ |
11.3 |
$ |
29.5 |
$ |
4.7 |
$ |
– |
$ |
450.1 |
|||||||||||
|
Michael Kors operating expense |
$ |
912.4 |
$ |
(10.0 |
) |
$ |
(15.9 |
) |
$ |
– |
$ |
– |
$ |
886.5 |
|||||||||
|
Jimmy Choo operating expense |
196.9 |
(1.3 |
) |
(13.6 |
) |
– |
– |
182.0 |
|||||||||||||||
|
Total operating expenses |
$ |
1109.3 |
$ |
(11.3 |
) |
$ |
(29.5 |
) |
$ |
– |
$ |
– |
$ |
1068.5 |
|||||||||
|
Foreign currency loss |
$ |
35.9 |
$ |
– |
$ |
– |
$ |
– |
$ |
(30.4 |
) |
$ |
5.5 |
||||||||||
|
Income before provision for income taxes |
$ |
357.6 |
$ |
11.3 |
$ |
29.5 |
$ |
4.7 |
$ |
30.4 |
$ |
433.5 |
|||||||||||
|
Provision for income taxes |
$ |
34.3 |
$ |
1.9 |
$ |
4.0 |
$ |
0.8 |
$ |
– |
$ |
41.0 |
|||||||||||
|
Net income attributable to MKHL |
$ |
324.0 |
$ |
9.4 |
$ |
25.5 |
$ |
3.9 |
$ |
30.4 |
$ |
393.2 |
|||||||||||
|
Diluted net income per ordinary share – MKHL |
$ |
2.13 |
$ |
0.06 |
$ |
0.17 |
$ |
0.03 |
$ |
0.20 |
$ |
2.59 |
|||||||||||
|
______________________ |
||
| (1) |
Gianni Versace S.p.A., Inc., record 4, et. |
|
|
SCHEDULE 8 |
||||||||||||||||||||
|
NON-GAAP RECONCILIATIONS OF REPORTED TO ADJUSTED MEASURES, |
||||||||||||||||||||
|
Three Months Ended September 30, 2017 |
||||||||||||||||||||
|
As Reported |
Impairment |
Restructuring |
Acquisition |
As Adjusted |
||||||||||||||||
|
MK Retail operating income |
$ |
69.0 |
$ |
16.3 |
$ |
13.9 |
$ |
– |
$ |
99.2 |
||||||||||
|
MK Wholesale operating income |
119.6 |
– |
6.9 |
– |
126.5 |
|||||||||||||||
|
MK Licensing operating income |
10.5 |
– |
1.2 |
– |
11.7 |
|||||||||||||||
|
Total income from operations |
$ |
199.1 |
$ |
16.3 |
$ |
22.0 |
$ |
– |
$ |
237.4 |
||||||||||
|
Operating expenses |
$ |
491.7 |
$ |
(16.3 |
) |
$ |
(22.0 |
) |
$ |
– |
$ |
453.4 |
||||||||
|
Foreign currency gain |
$ |
(40.5 |
) |
$ |
– |
$ |
– |
$ |
36.7 |
$ |
(3.8 |
) |
||||||||
|
Income before provision for income taxes |
$ |
239.1 |
$ |
16.3 |
$ |
22.0 |
$ |
(36.7 |
) |
$ |
240.7 |
|||||||||
|
Provision for income taxes |
$ |
36.4 |
$ |
2.9 |
$ |
4.1 |
$ |
(7.0 |
) |
$ |
36.4 |
|||||||||
|
Net income attributable to MKHL |
$ |
202.9 |
$ |
13.4 |
$ |
17.9 |
$ |
(29.7 |
) |
$ |
204.5 |
|||||||||
|
Diluted net income per ordinary share – MKHL |
$ |
1.32 |
$ |
0.09 |
$ |
0.11 |
$ |
(0.19 |
) |
$ |
1.33 |
|||||||||
|
Six Months Ended September 30, 2017 |
||||||||||||||||||||
|
As Reported |
Impairment |
Restructuring |
Acquisition |
As Adjusted |
||||||||||||||||
|
MK Retail operating income |
$ |
161.2 |
$ |
16.3 |
$ |
14.5 |
$ |
– |
$ |
192.0 |
||||||||||
|
Total income from operations |
$ |
348.5 |
$ |
16.3 |
$ |
23.3 |
$ |
– |
$ |
388.1 |
||||||||||
|
Operating expenses |
$ |
917.0 |
$ |
(16.3 |
) |
$ |
(23.3 |
) |
$ |
– |
$ |
877.4 |
||||||||
|
Foreign currency gain |
$ |
(41.7 |
) |
$ |
– |
$ |
– |
$ |
36.7 |
$ |
(5.0 |
) |
||||||||
|
Net income attributable to MKHL |
$ |
328.4 |
$ |
13.4 |
$ |
19.0 |
$ |
(29.7 |
) |
$ |
331.1 |
|||||||||
|
Diluted net income per ordinary share – MKHL |
$ |
2.11 |
$ |
0.09 |
$ |
0.12 |
$ |
(0.19 |
) |
$ |
2.13 |
|||||||||
|
______________________ |
||
| (1) |
Jimmy Choo Group Limited, Jimmy Choo Group Limited, Jimmy Choo Group Limited. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20181107005295/en/
Michael Kors Holdings Limited
Katina Metzidakis, 201-514-8234
[email protected]
gold
Digital:
Michael Kors Holdings Limited
Dinesh Kandiah, 917-934-2427
[email protected]
Source: Michael Kors Holdings Limited
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