Business Context and Reporting Period
This Form 8-K, filed on May 29, 2019, by Capri Holdings Ltd. (the "Company"), reports a material change in its operating and reportable segment structure effective for the fourth quarter of Fiscal 2019 (ended March 30, 2019). The change follows the acquisition of Gianni Versace S.r.l. ("Versace").
Key Financial Metrics
This filing does not contain specific financial data such as revenue, profit, cash flow, margins, debt, or liquidity figures. It serves solely to announce the restructuring of segment reporting. The filing notes that the primary key performance indicators for the new segments are revenue and operating income, but no values are provided in this document.
Material Changes Versus Prior Period
The Company has realigned its business from four operating segments to three, effective Q4 Fiscal 2019:
- Prior Structure: MK Retail, MK Wholesale, MK Licensing, and Jimmy Choo.
- New Structure: Versace, Jimmy Choo, and Michael Kors.
All prior period segment information has been recast to reflect this new structure on a comparable basis. The filing explicitly states that consolidated financial statements for any period are not restated or reclassified, only the segment presentation is adjusted.
Segment Details and Management Commentary
The new reportable segments are defined as follows:
- Versace: Includes luxury ready-to-wear, accessories, footwear, and home furnishings sold via boutiques, outlets, e-commerce, wholesale, and licensing (jeans, fragrances, watches, jewelry, eyewear).
- Jimmy Choo: Includes luxury footwear, handbags, and small leather goods sold via stores, e-commerce, wholesale, and licensing (fragrances, sunglasses, eyewear).
- Michael Kors: Includes products sold through "Collection," "Lifestyle," outlet stores, and e-commerce, as well as wholesale and licensing (watches, jewelry, fragrances, eyewear).
Corporate costs, including administrative expenses, restructuring charges, and impairment costs, are not allocated to these segments. The Company states this structure aligns with how the Chief Operating Decision Maker (CODM) evaluates performance and allocates resources.
Investor Verification Checklist
- Review Exhibit 99.1 of this filing for the specific recasted segment data for Fiscal 2019 and Fiscal 2018.
- Consult the Fiscal 2019 Form 10-K for the full context of the new segment reporting and consolidated financial results.
- Verify that historical comparisons in future reports utilize the recasted data rather than the original four-segment structure.
- Note that this filing does not alter the Company's previously reported consolidated financial statements.