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Business Wire
a day ago
- Business
- Business Wire
Cresco Labs Continues Track Record of Delivering Strong Operating Cash Flow
CHICAGO--(BUSINESS WIRE)--Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (' Cresco Labs ' or the ' Company '), the industry leader in branded cannabis products with a portfolio of America's most popular brands and the operator of Sunnyside dispensaries, today released its financial and operating results for the first quarter ended and year ended March 31, 2025. All financial information presented in this release is reported in accordance with U.S. GAAP and in U.S. dollars, unless otherwise indicated, and is available on the Company's investor website, here. First Quarter 2025 Highlights First quarter revenue of $166 million. First quarter operating cash flow of $30 million and Free Cash Flow 1 of $25 million. Gross profit of $79 million. Adjusted gross profit 1 of $82 million; and an Adjusted gross margin 1 of 49% of revenue. SG&A of $58 million or 35% of revenue. Net loss of $15 million. First quarter Adjusted EBITDA 1 of $36 million and Adjusted EBITDA margin 1 of 22%. Retained the No. 1 share position in multiple billion dollar markets. 2 Management Commentary "We entered 2025 with the flexibility and financial strength needed to navigate market volatility, complete our debt refinancing, and remain both strategic and patient as we invest thoughtfully for long-term growth." In Q1, we delivered $166 million in revenue, reflecting our successful plan to reduce AR exposure by limiting sales to wholesale accounts with credit risk. We generated $82 million in adjusted gross profit, and $36 million in Adjusted EBITDA. Most importantly, these actions translate into strong cash results. We generated $30 million in operating cash flow and ended the quarter with $162 million in cash, our highest balance in the past three years. "We're focused on ensuring our balance sheet remains in the strongest possible position to support long-term value creation," said Charlie Bachtell, Cresco Labs CEO and co-founder. "By staying disciplined and thoughtful in how we deploy capital, we're positioning Cresco Labs to drive margin expansion, gain market share, and invest in sustainable growth when the right opportunities arise." Balance Sheet, Liquidity, and Other Financial Information As of March 31, 2025, current assets were $311 million, including cash, cash equivalents, and restricted cash of $159 million. The Company had senior secured term loan debt, net of discount and issuance costs, of $353 million and a mortgage loan, net of discount and issuance costs of $18 million. Total shares on a fully converted basis to Subordinate Voting Shares were 484,592,240 as of March 31, 2025. Conference Call and Webcast The Company will host a conference call and webcast to discuss its financial results on Monday, June 2, 2025, at 8:30am Eastern Time (7:30am Central Time). The conference call may be accessed via webcast or by dialing 1-833-470-1428 (US Toll Free) or 1-404-975-4839 (US Local), providing access code 671160. Archived access to the webcast will be available for one year on Cresco Labs' investor website, here. Consolidated Financial Statements The financial information reported in this press release is based on unaudited management prepared financial statements for the quarter ended March 31, 2025. These financial statements have been prepared in accordance with U.S. GAAP. The Company expects to file its unaudited condensed interim consolidated financial statements for the quarter ended March 31, 2025, on SEDAR+ and EDGAR on or about May 30, 2025. Accordingly, such financial information may be subject to change. All financial information contained in this press release is qualified in its entirety with reference to such financial statements. While the Company does not expect there to be any material changes between the information contained in this press release and the consolidated financial statements it files on SEDAR+ and EDGAR, to the extent that the financial information contained in this press release is inconsistent with the information contained in the Company's financial statements, the financial information contained in this press release shall be deemed to be modified or superseded by the Company's filed financial statements. The making of a modifying or superseding statement shall not be deemed an admission, for any purposes, that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws. Further, the reader should refer to the additional disclosures in the Company's audited financial statements for the year ended December 31, 2024, filed on SEDAR+ and EDGAR. Cresco Labs references certain non-GAAP financial measures throughout this press release, which may not be comparable to similar measures presented by other issuers. Please see the 'Non-GAAP Financial Measures' section below for more detailed information. Non-GAAP Financial Measures This release reports its financial results in accordance with U.S. GAAP and includes certain non-GAAP financial measures that do not have standardized definitions under U.S. GAAP. The non-GAAP measures include: Earnings before interest, taxes, depreciation, and amortization ('EBITDA'); Adjusted EBITDA; Adjusted EBITDA margin; Adjusted gross profit; Adjusted gross profit margin; Adjusted selling, general, and administrative expenses ('Adjusted SG&A'), Adjusted SG&A margin; and Free Cash Flow are non-GAAP financial measures and do not have standardized definitions under U.S. GAAP. The Company defines these non-GAAP financial measures as follows: EBITDA as net loss (income) before interest, taxes, depreciation, and amortization; Adjusted EBITDA as EBITDA less other (expense) income, net, fair value mark-up for acquired inventory, adjustments for acquisition and non-core costs, impairment and share-based compensation; Adjusted EBITDA Margin as Adjusted EBITDA divided by revenues, net; Adjusted gross profit as gross profit less fair value mark-up for acquired inventory and adjustments for acquisition and non-core costs; Adjusted gross profit margin as Adjusted gross profit divided by revenues, net; Adjusted SG&A as SG&A less adjustments for acquisition and non-core costs; Adjusted SG&A margin as Adjusted SG&A divided by revenues, net; and Free Cash Flow as Net cash provided by operating activities less purchases of property and equipment and proceeds from tenant improvement allowances. The Company has provided the non-GAAP financial measures, which are not calculated or presented in accordance with U.S. GAAP, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with U.S. GAAP and may not be comparable to similar measures presented by other issuers. These supplemental non-GAAP financial measures are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-GAAP financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for or as an alternative to, and should only be considered in conjunction with, the U.S. GAAP financial measures presented herein. Accordingly, the Company has included below reconciliations of the supplemental non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. About Cresco Labs Inc. Cresco Labs' mission is to normalize and professionalize the cannabis industry through a CPG approach to building national brands and a customer-focused retail experience, while acting as a steward for the industry on legislative and regulatory-focused initiatives. As a leader in cultivation, production, and branded product distribution, the Company is leveraging its scale and agility to grow its portfolio of brands that include Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy's, and Remedi, on a national level. The Company also operates highly productive dispensaries nationally under the Sunnyside brand that focus on building patient and consumer trust and delivering ongoing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, workforce development, and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible. Learn more about Cresco Labs' journey by visiting or following the Company on Facebook, X or LinkedIn. Forward-Looking Statements This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute 'forward-looking statements' within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, 'forward-looking statements'). Such forward-looking statements are not representative of historical facts or information or current condition but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as, 'may,' 'will,' 'should,' 'could,' 'would,' 'expects,' 'plans,' 'anticipates,' 'believes,' 'estimates,' 'projects,' 'predicts,' 'potential,' or 'continue,' or the negative of those forms or other comparable terms. The Company's forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under 'Risk Factors' in the Company's Annual Information Form for the year ended December 31, 2024, filed on SEDAR+ and EDGAR, other documents filed by the Company with Canadian securities regulatory authorities; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company's forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco Labs' shares, nor as to the Company's financial performance in future financial periods. The Company does not intend to update any of these factors or to publicly announce the result of any revisions to any of the Company's forward-looking statements contained herein, whether as a result of new information, any future event, or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof or create any duty or commitment to update or supplement any information provided in this press release or otherwise. Cresco Labs Inc. Summarized Consolidated Statements of Financial Position As of March 31, 2025 and December 31, 2024 ($ in thousands) March 31, 2025 December 31, 2024 (unaudited) Cash, cash equivalents, and restricted cash (current) $ 158,867 $ 141,003 Other current assets 152,226 153,254 Property and equipment, net 338,399 344,846 Intangible assets, net 293,317 293,994 Goodwill 283,484 283,484 Other non-current assets 137,808 138,774 Total assets $ 1,364,101 $ 1,355,355 Total current liabilities $ 113,197 $ 94,338 Total non-current liabilities 875,335 872,841 Total shareholders' equity 375,569 388,176 Total liabilities and shareholders' equity $ 1,364,101 $ 1,355,355 Expand Cresco Labs Inc. Unaudited Reconciliation of SG&A to Adjusted SG&A (Non-GAAP) For the Three Months Ended March 31, 2025, December 31, 2024, and March 31, 2024 For the Three Months Ended ($ in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Selling, general, and administrative $ 57,811 $ 56,030 $ 54,013 Adjustments for acquisition and other non-core costs 4,841 2,299 2,297 Adjusted SG&A (Non-GAAP) $ 52,970 $ 53,731 $ 51,716 Adjusted SG&A % (Non-GAAP) 32.0 % 30.5 % 28.1 % Expand Cresco Labs Inc. Unaudited Reconciliation of Net (Loss) Income to Adjusted EBITDA (Non-GAAP) For the Three Months Ended ($ in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Net (loss) income 1 $ (15,234 ) $ 439 $ (2,055 ) Depreciation and amortization 12,906 13,904 15,331 Interest expense, net 14,824 13,079 14,071 Income tax expense 14,316 2,616 18,003 EBITDA (Non-GAAP) $ 26,812 $ 30,038 $ 45,350 Other (income) expense, net (317 ) 3,272 (856 ) Adjustments for acquisition and other non-core costs 7,015 4,493 4,470 Share-based compensation 2,723 3,705 4,197 Adjusted EBITDA (Non-GAAP) $ 36,233 $ 41,508 $ 53,161 Adjusted EBITDA % (Non-GAAP) 21.9 % 23.6 % 28.8 % 1 Net (loss) income includes amounts attributable to non-controlling interests. Expand Cresco Labs Inc. Unaudited Summarized Consolidated Statements of Cash Flows For the Three Months Ended March 31, 2025, December 31, 2024, and March 31, 2024 For the Three Months Ended ($ in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Net cash provided by operating activities $ 30,463 $ 29,486 $ 36,471 Net cash used in investing activities (6,869 ) (3,013 ) (5,677 ) Net cash used in financing activities (5,733 ) (42,034 ) (11,149 ) Effect of foreign currency exchange rate changes on cash and cash equivalents 2 9 (13 ) Net increase in cash and cash equivalents $ 17,863 $ (15,552 ) $ 19,632 Cash and cash equivalents and restricted cash, beginning of period 144,255 159,806 108,520 Cash and cash equivalents and restricted cash, end of period $ 162,118 $ 144,254 $ 128,152 Expand Cresco Labs Inc. Unaudited Reconciliation of Operating Cash Flow to Free Cash Flow (Non-GAAP) For the Three Months Ended March 31, 2025, December 31, 2024, and March 31, 2024 For the Three Months Ended ($ in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Net cash provided by operating activities $ 30,463 $ 29,486 $ 36,471 Purchases of property and equipment (5,818 ) (3,204 ) (3,782 ) Proceeds from tenant improvement allowances 50 439 478 Free Cash Flow (Non-GAAP) $ 24,695 $ 26,721 $ 33,167 Expand
Yahoo
a day ago
- Business
- Yahoo
Cresco Labs Continues Track Record of Delivering Strong Operating Cash Flow
Q1 operating cashflow of $30 million CHICAGO, May 30, 2025--(BUSINESS WIRE)--Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) ("Cresco Labs" or the "Company"), the industry leader in branded cannabis products with a portfolio of America's most popular brands and the operator of Sunnyside dispensaries, today released its financial and operating results for the first quarter ended and year ended March 31, 2025. All financial information presented in this release is reported in accordance with U.S. GAAP and in U.S. dollars, unless otherwise indicated, and is available on the Company's investor website, here. First Quarter 2025 Highlights First quarter revenue of $166 million. First quarter operating cash flow of $30 million and Free Cash Flow1 of $25 million. Gross profit of $79 million. Adjusted gross profit1 of $82 million; and an Adjusted gross margin1 of 49% of revenue. SG&A of $58 million or 35% of revenue. Net loss of $15 million. First quarter Adjusted EBITDA1 of $36 million and Adjusted EBITDA margin1 of 22%. Retained the No. 1 share position in multiple billion dollar markets.2 Management Commentary "We entered 2025 with the flexibility and financial strength needed to navigate market volatility, complete our debt refinancing, and remain both strategic and patient as we invest thoughtfully for long-term growth." In Q1, we delivered $166 million in revenue, reflecting our successful plan to reduce AR exposure by limiting sales to wholesale accounts with credit risk. We generated $82 million in adjusted gross profit, and $36 million in Adjusted EBITDA. Most importantly, these actions translate into strong cash results. We generated $30 million in operating cash flow and ended the quarter with $162 million in cash, our highest balance in the past three years. "We're focused on ensuring our balance sheet remains in the strongest possible position to support long-term value creation," said Charlie Bachtell, Cresco Labs CEO and co-founder. "By staying disciplined and thoughtful in how we deploy capital, we're positioning Cresco Labs to drive margin expansion, gain market share, and invest in sustainable growth when the right opportunities arise." Balance Sheet, Liquidity, and Other Financial Information As of March 31, 2025, current assets were $311 million, including cash, cash equivalents, and restricted cash of $159 million. The Company had senior secured term loan debt, net of discount and issuance costs, of $353 million and a mortgage loan, net of discount and issuance costs of $18 million. Total shares on a fully converted basis to Subordinate Voting Shares were 484,592,240 as of March 31, 2025. Conference Call and Webcast The Company will host a conference call and webcast to discuss its financial results on Monday, June 2, 2025, at 8:30am Eastern Time (7:30am Central Time). The conference call may be accessed via webcast or by dialing 1-833-470-1428 (US Toll Free) or 1-404-975-4839 (US Local), providing access code 671160. Archived access to the webcast will be available for one year on Cresco Labs' investor website, here. 1 See "Non-GAAP Financial Measures" at the end of this press release for more information regarding the Company's use of non-GAAP financial measures. 2 According to Hoodie Analytics. Consolidated Financial Statements The financial information reported in this press release is based on unaudited management prepared financial statements for the quarter ended March 31, 2025. These financial statements have been prepared in accordance with U.S. GAAP. The Company expects to file its unaudited condensed interim consolidated financial statements for the quarter ended March 31, 2025, on SEDAR+ and EDGAR on or about May 30, 2025. Accordingly, such financial information may be subject to change. All financial information contained in this press release is qualified in its entirety with reference to such financial statements. While the Company does not expect there to be any material changes between the information contained in this press release and the consolidated financial statements it files on SEDAR+ and EDGAR, to the extent that the financial information contained in this press release is inconsistent with the information contained in the Company's financial statements, the financial information contained in this press release shall be deemed to be modified or superseded by the Company's filed financial statements. The making of a modifying or superseding statement shall not be deemed an admission, for any purposes, that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws. Further, the reader should refer to the additional disclosures in the Company's audited financial statements for the year ended December 31, 2024, filed on SEDAR+ and EDGAR. Cresco Labs references certain non-GAAP financial measures throughout this press release, which may not be comparable to similar measures presented by other issuers. Please see the "Non-GAAP Financial Measures" section below for more detailed information. Non-GAAP Financial Measures This release reports its financial results in accordance with U.S. GAAP and includes certain non-GAAP financial measures that do not have standardized definitions under U.S. GAAP. The non-GAAP measures include: Earnings before interest, taxes, depreciation, and amortization ("EBITDA"); Adjusted EBITDA; Adjusted EBITDA margin; Adjusted gross profit; Adjusted gross profit margin; Adjusted selling, general, and administrative expenses ("Adjusted SG&A"), Adjusted SG&A margin; and Free Cash Flow are non-GAAP financial measures and do not have standardized definitions under U.S. GAAP. The Company defines these non-GAAP financial measures as follows: EBITDA as net loss (income) before interest, taxes, depreciation, and amortization; Adjusted EBITDA as EBITDA less other (expense) income, net, fair value mark-up for acquired inventory, adjustments for acquisition and non-core costs, impairment and share-based compensation; Adjusted EBITDA Margin as Adjusted EBITDA divided by revenues, net; Adjusted gross profit as gross profit less fair value mark-up for acquired inventory and adjustments for acquisition and non-core costs; Adjusted gross profit margin as Adjusted gross profit divided by revenues, net; Adjusted SG&A as SG&A less adjustments for acquisition and non-core costs; Adjusted SG&A margin as Adjusted SG&A divided by revenues, net; and Free Cash Flow as Net cash provided by operating activities less purchases of property and equipment and proceeds from tenant improvement allowances. The Company has provided the non-GAAP financial measures, which are not calculated or presented in accordance with U.S. GAAP, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with U.S. GAAP and may not be comparable to similar measures presented by other issuers. These supplemental non-GAAP financial measures are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-GAAP financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for or as an alternative to, and should only be considered in conjunction with, the U.S. GAAP financial measures presented herein. Accordingly, the Company has included below reconciliations of the supplemental non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. About Cresco Labs Inc. Cresco Labs' mission is to normalize and professionalize the cannabis industry through a CPG approach to building national brands and a customer-focused retail experience, while acting as a steward for the industry on legislative and regulatory-focused initiatives. As a leader in cultivation, production, and branded product distribution, the Company is leveraging its scale and agility to grow its portfolio of brands that include Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy's, and Remedi, on a national level. The Company also operates highly productive dispensaries nationally under the Sunnyside brand that focus on building patient and consumer trust and delivering ongoing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, workforce development, and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible. Learn more about Cresco Labs' journey by visiting or following the Company on Facebook, X or LinkedIn. Forward-Looking Statements This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). Such forward-looking statements are not representative of historical facts or information or current condition but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as, 'may,' 'will,' 'should,' 'could,' 'would,' 'expects,' 'plans,' 'anticipates,' 'believes,' 'estimates,' 'projects,' 'predicts,' 'potential,' or 'continue,' or the negative of those forms or other comparable terms. The Company's forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2024, filed on SEDAR+ and EDGAR, other documents filed by the Company with Canadian securities regulatory authorities; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company's forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco Labs' shares, nor as to the Company's financial performance in future financial periods. The Company does not intend to update any of these factors or to publicly announce the result of any revisions to any of the Company's forward-looking statements contained herein, whether as a result of new information, any future event, or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof or create any duty or commitment to update or supplement any information provided in this press release or otherwise. Cresco Labs Inc. Financial Information and Non-GAAP Reconciliations (All amounts expressed in thousands of U.S. Dollars) Unaudited Consolidated Statements of Operations For the Three Months Ended March 31, 2025, December 31, 2024, and March 31, 2024 For the Three Months Ended ($ in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Revenue, net $ 165,757 $ 175,909 $ 184,295 Cost of goods sold 87,126 91,883 92,083 Gross profit 78,631 84,026 92,212 Gross profit % 47.4 % 47.8 % 50.0 % Operating expenses: Selling, general, and administrative 57,811 56,030 54,013 Share-based compensation 2,075 3,133 3,614 Depreciation and amortization 5,156 5,457 5,422 Total operating expenses 65,042 64,620 63,049 Income from operations 13,589 19,406 29,163 Other (expense) income, net: Interest expense, net (14,824 ) (13,079 ) (14,071 ) Other income (expense), net 317 (3,272 ) 856 Total other expense, net (14,507 ) (16,351 ) (13,215 ) (Loss) income before income taxes (918 ) 3,055 15,948 Income tax expense (14,316 ) (2,616 ) (18,003 ) Net (loss) income 1 $ (15,234 ) $ 439 $ (2,055 ) 1 Net (loss) income includes amounts attributable to non-controlling interests. Cresco Labs Inc. Unaudited Reconciliation of Gross Profit to Adjusted Gross Profit (Non-GAAP) For the Three Months Ended March 31, 2025, December 31, 2024, and March 31, 2024 For the Three Months Ended ($ in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Revenue, net $ 165,757 $ 175,909 $ 184,295 Cost of goods sold1 87,126 91,883 92,083 Gross profit $ 78,631 $ 84,026 $ 92,212 Cost of goods sold adjustments for acquisition and other non-core costs 3,144 3,121 2,662 Adjusted gross profit (Non-GAAP) $ 81,775 $ 87,147 $ 94,874 Adjusted gross profit % (Non-GAAP) 49.3 % 49.5 % 51.5 % 1 Production (cultivation, manufacturing, and processing) costs related to products sold during the period. Cresco Labs Inc. Summarized Consolidated Statements of Financial Position As of March 31, 2025 and December 31, 2024 ($ in thousands) March 31, 2025 December 31, 2024 (unaudited) Cash, cash equivalents, and restricted cash (current) $ 158,867 $ 141,003 Other current assets 152,226 153,254 Property and equipment, net 338,399 344,846 Intangible assets, net 293,317 293,994 Goodwill 283,484 283,484 Other non-current assets 137,808 138,774 Total assets $ 1,364,101 $ 1,355,355 Total current liabilities $ 113,197 $ 94,338 Total non-current liabilities 875,335 872,841 Total shareholders' equity 375,569 388,176 Total liabilities and shareholders' equity $ 1,364,101 $ 1,355,355 Cresco Labs Inc. Unaudited Reconciliation of SG&A to Adjusted SG&A (Non-GAAP) For the Three Months Ended March 31, 2025, December 31, 2024, and March 31, 2024 For the Three Months Ended ($ in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Selling, general, and administrative $ 57,811 $ 56,030 $ 54,013 Adjustments for acquisition and other non-core costs 4,841 2,299 2,297 Adjusted SG&A (Non-GAAP) $ 52,970 $ 53,731 $ 51,716 Adjusted SG&A % (Non-GAAP) 32.0 % 30.5 % 28.1 % Cresco Labs Inc. Unaudited Reconciliation of Net (Loss) Income to Adjusted EBITDA (Non-GAAP) For the Three Months Ended March 31, 2025, December 31, 2024, and March 31, 2024 For the Three Months Ended ($ in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Net (loss) income1 $ (15,234 ) $ 439 $ (2,055 ) Depreciation and amortization 12,906 13,904 15,331 Interest expense, net 14,824 13,079 14,071 Income tax expense 14,316 2,616 18,003 EBITDA (Non-GAAP) $ 26,812 $ 30,038 $ 45,350 Other (income) expense, net (317 ) 3,272 (856 ) Adjustments for acquisition and other non-core costs 7,015 4,493 4,470 Share-based compensation 2,723 3,705 4,197 Adjusted EBITDA (Non-GAAP) $ 36,233 $ 41,508 $ 53,161 Adjusted EBITDA % (Non-GAAP) 21.9 % 23.6 % 28.8 % 1 Net (loss) income includes amounts attributable to non-controlling interests. Cresco Labs Inc. Unaudited Summarized Consolidated Statements of Cash Flows For the Three Months Ended March 31, 2025, December 31, 2024, and March 31, 2024 For the Three Months Ended ($ in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Net cash provided by operating activities $ 30,463 $ 29,486 $ 36,471 Net cash used in investing activities (6,869 ) (3,013 ) (5,677 ) Net cash used in financing activities (5,733 ) (42,034 ) (11,149 ) Effect of foreign currency exchange rate changes on cash and cash equivalents 2 9 (13 ) Net increase in cash and cash equivalents $ 17,863 $ (15,552 ) $ 19,632 Cash and cash equivalents and restricted cash, beginning of period 144,255 159,806 108,520 Cash and cash equivalents and restricted cash, end of period $ 162,118 $ 144,254 $ 128,152 Cresco Labs Inc. Unaudited Reconciliation of Operating Cash Flow to Free Cash Flow (Non-GAAP) For the Three Months Ended March 31, 2025, December 31, 2024, and March 31, 2024 For the Three Months Ended ($ in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Net cash provided by operating activities $ 30,463 $ 29,486 $ 36,471 Purchases of property and equipment (5,818 ) (3,204 ) (3,782 ) Proceeds from tenant improvement allowances 50 439 478 Free Cash Flow (Non-GAAP) $ 24,695 $ 26,721 $ 33,167 View source version on Contacts Media Press@ Investors TJ Cole, Cresco LabsSVP, Corporate Development & Investor Relationsinvestors@ For general Cresco Labs inquiries: 312-929-0993info@
Business Wire
2 days ago
- Business
- Business Wire
Source Capital Declares June, July, and August 2025 Distribution on Common Stock
LOS ANGELES--(BUSINESS WIRE)--The Board of Trustees of Source Capital (NYSE: SOR) (the 'Fund'), approved maintaining the Fund's regular monthly distribution rate for June, July, and August 2025 as follows: Regular Monthly Distributions: About Source Capital Source Capital is a closed-end investment company managed by First Pacific Advisors, LP. Its shares are listed on the New York Stock Exchange under the symbol 'SOR.' The investment objective of the Fund is to seek maximum total return for shareholders from both capital appreciation and investment income to the extent consistent with protection of invested capital. The Fund may invest in longer duration assets like dividend paying equities and illiquid assets like private loans in pursuit of its investment objective and is thus intended only for those investors with a long-term investment horizon (greater than or equal to ~5 years). You can obtain additional information by visiting the website at by email at crm@ toll free by calling 1-800-982-4372, or by contacting the Fund in writing. Important Disclosures You should consider the Fund's investment objectives, risks, and charges and expenses carefully before you invest. Distributions may include ordinary income, net capital gains and/or returns of capital. Generally, a return of capital would occur when the amount distributed by the Fund includes a portion of (or is comprised entirely of) your investment in the Fund in addition to (or rather than) your pro-rata portion of the Fund's net income or capital gains. The Fund's distributions in any period may be more or less than the net return earned by the Fund on its investments, and therefore should not be used as a measure of performance or confused with 'yield' or 'income.' A return of capital is not taxable; rather it reduces a shareholder's tax basis in his or her shares of the Fund. If the Fund estimates that a portion of its distribution may be comprised of amounts from sources other than net investment income, the Fund will notify shareholders of the estimated composition of such distribution through a separate written Section 19 notice. Such notices are provided for informational purposes only, and should not be used for tax reporting purposes. Final tax characteristics of all Fund distributions will be provided on Form 1099-DIV, which is mailed after the close of the calendar year. It is important to note that differences exist between the Fund's daily internal accounting records and practices, the Fund's financial statements prepared in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. Please see the Fund's most recent shareholder reports for more detailed tax information. The Fund's distribution rate may be affected by numerous factors, including changes in realized and projected market returns, Fund performance, and other factors. There can be no assurance that a change in market conditions or other factors will not result in a change in the Fund's distribution rate at a future time. As with any stock, the price of the Fund's common shares will fluctuate with market conditions and other factors. Shares of closed-end management investment companies frequently trade at a price that is less than (a 'discount') or more than (a 'premium') their net asset value. If the Fund's shares trade at a premium to net asset value, there is no assurance that any such premium will be sustained for any period of time and will not decrease, or that the shares will not trade at a discount to net asset value thereafter. The Fund's portfolio statistics and performance are available by visiting the website at by email at crm@ toll free by calling 1-800-279-1241 (option 1), or by contacting the Fund in writing. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful under the securities laws of any such state. In the event of a tender offer, there may be tax consequences for a stockholder. For example, a stockholder may owe capital gains taxes on any increase in the value of the shares over your original cost. Investments, including investments in closed-end funds, carry risks and investors may lose principal value. Capital markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. It is important to remember that there are risks inherent in any investment and there is no assurance that any investment or asset class will provide positive performance over time. Value style investing presents the risk that the holdings or securities may never reach our estimate of intrinsic value because the market fails to recognize what the portfolio management team considers the true business value or because the portfolio management team has misjudged those values. In addition, value style investing may fall out of favor and underperform growth or other style investing during given periods. Non-U.S. investing presents additional risks, such as the potential for adverse political, currency, economic, social or regulatory developments in a country, including lack of liquidity, excessive taxation, and differing legal and accounting standards. Non-U.S. securities, including American Depository Receipts (ADRs) and other depository receipts, are also subject to interest rate and currency exchange rate risks. Fixed income instruments are subject to interest rate, inflation and credit risks. Such investments may be secured, partially secured or unsecured and may be unrated, and whether or not rated, may have speculative characteristics. The market price of the Fund's fixed income investments will change in response to changes in interest rates and other factors. Generally, when interest rates rise, the values of fixed income instruments fall, and vice versa. Certain fixed income instruments are subject to prepayment risk and/or default risk. Private placement securities are securities that are not registered under the federal securities laws, and are generally eligible for sale only to certain eligible investors. Private placements may be illiquid, and thus more difficult to sell, because there may be relatively few potential purchasers for such investments, and the sale of such investments may also be restricted under securities laws. The Fund may use leverage. While the use of leverage may help increase the distribution and return potential of the Fund, it also increases the volatility of the Fund's net asset value (NAV), and potentially increases volatility of its distributions and market price. There are costs associated with the use of leverage, including ongoing dividend and/or interest expenses. There also may be expenses for issuing or administering leverage. Leverage changes the Fund's capital structure through the issuance of preferred shares and/or debt, both of which are senior to the common shares in priority of claims. If short-term interest rates rise, the cost of leverage will increase and likely will reduce returns earned by the Fund's common stockholders. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.
Business Wire
3 days ago
- Business
- Business Wire
Capri Holdings Limited Announces Fourth Quarter and Full Year Fiscal 2025 Results
LONDON--(BUSINESS WIRE)--Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, today announced its financial results for the fourth quarter and full year fiscal 2025 ended March 29, 2025. Fourth Quarter Fiscal 2025 Highlights John D. Idol, the Company's Chairman and Chief Executive Officer said, "Fiscal 2025 was a challenging year for Capri Holdings, but we are optimistic about our path forward as we enter fiscal 2026. While there is uncertainty around the impact of tariffs on the global economic environment, we remain focused on executing against our new strategic initiatives that are designed to return Capri Holdings to future growth. The Company is still in the early stages of its turnaround and we are seeing positive indicators that our strategies are beginning to work." Mr. Idol continued, "As previously announced, we entered into a definitive agreement to sell Versace to Prada Group. This transaction positions us to invest in our future growth, substantially reduce our debt levels and reinstate a share repurchase program in the future. With our new strategies in place, a focused senior leadership team, and a strong balance sheet we are well positioned to improve performance of both Michael Kors and Jimmy Choo." Mr. Idol concluded, "Looking ahead, we continue to expect trends to improve throughout fiscal year 2026 positioning us to return to growth in fiscal 2027 and beyond. We are confident in our ability to grow Michael Kors to $4 billion in revenue and Jimmy Choo to $800 million over time, while restoring operating margin to the double-digit range." Fourth Quarter Fiscal 2025 Results Financial Results and non-GAAP Reconciliation The Company's results are reported in this press release in accordance with accounting principles generally accepted in the United States ('U.S. GAAP') and on an adjusted, non-GAAP basis. A reconciliation of GAAP to non-GAAP financial information is provided at the end of this press release. Overview of Capri Holdings Fourth Quarter Fiscal 2025 Results Total revenue of $1.0 billion decreased 15.4% compared to last year. On a constant currency basis, total revenue decreased 14.1%. Gross profit was $631 million and gross margin was 61.0%, compared to $767 million and 62.7% in the prior year. Loss from operations was $116 million and operating margin was (11.2)% compared to an operating loss of $543 million and operating margin of (44.4)% in the prior year. Adjusted loss from operations was $33 million and adjusted operating margin was (3.2)%, compared to adjusted operating income of $78 million and adjusted operating margin of 6.4% in the prior year. Net loss was $645 million, or $(5.44) per diluted share, compared to a net loss of $472 million, or $(4.03) per diluted share, in the prior year. Adjusted net loss was $581 million, or $(4.90) per diluted share, compared to adjusted net income of $50 million, or $0.42 per diluted share, in the prior year. Results include a non-cash tax valuation allowance of $545 million taken against the Company's deferred tax assets, of which $119 million was related to Versace. Net inventory as of March 29, 2025 was $869 million, a 1% increase compared to the prior year, primarily reflecting $60 million of earlier than anticipated receipts. Cash flow from operating activities for fiscal year 2025 was $281 million, while capital expenditures were $128 million, resulting in free cash flow of $153 million. Cash and cash equivalents totaled $166 million, and total borrowings outstanding were $1.5 billion, resulting in net debt of $1.3 billion as of March 29, 2025 versus $1.5 billion last year. Michael Kors Fourth Quarter Fiscal 2025 Results Michael Kors revenue of $694 million decreased 15.6% on a reported basis and 14.4% on a constant currency basis. Michael Kors gross profit was $407 million and gross margin was 58.6%, compared to $500 million and 60.8% in the prior year. Michael Kors operating income was $32 million and operating margin was 4.6%, compared to $116 million and 14.1% in the prior year. Jimmy Choo Fourth Quarter Fiscal 2025 Results Jimmy Choo revenue of $133 million decreased 2.9% on a reported basis and 1.5% on a constant currency basis. Jimmy Choo gross profit was $88 million and gross margin was 66.2%, compared to $96 million and 70.1% in the prior year. Jimmy Choo operating loss was $10 million and operating margin was (7.5)%, compared to an operating loss of $8 million and operating margin of (5.8)% in the prior year. Versace Fourth Quarter Fiscal 2025 Results Versace revenue of $208 million decreased 21.2% on a reported basis and 19.7% on a constant currency basis. Versace gross profit was $136 million and gross margin was 65.4%, compared to $171 million and 64.8% in the prior year. Versace operating loss was $13 million and operating margin was (6.3)% compared to an operating income of $1 million and operating margin of 0.4% in the prior year. Versace Update As previously announced, on April 10, 2025, Capri Holdings announced that it entered into a definitive agreement to sell Versace to Prada S.p.A. for $1.375 billion in cash subject to certain adjustments. The transaction is expected to close in the second half of calendar 2025, subject to customary closing conditions including regulatory approvals. Beginning in fiscal 2026 Versace will be classified as a discontinued operation. Outlook The following guidance is provided on an adjusted, non-GAAP basis. Financial results could differ materially from the current outlook due to a number of external events which are not reflected in our guidance, including changes in global macroeconomic conditions, changes in tariff rates, greater than anticipated inflationary pressures or weakening consumer confidence, and further considerable fluctuations in foreign currency exchange rates. The Company's fiscal 2026 outlook is based on continuing operations, reflecting the Versace business being classified as a discontinued operation. Fiscal Year 2026 Outlook Due to the uncertainty around tariffs, including the potential impact on consumer spending, as well as fluctuating foreign currency exchange rates, we are providing guidance assuming a range of outcomes. For Capri Holdings, the Company expects the following: Total revenue of approximately $3.3 to $3.4 billion Operating income in a range around $100 million, including the estimated tariff impact Net interest income of approximately $85 to $90 million Effective tax rate of approximately 15% Weighted average diluted shares outstanding of approximately 119 million Diluted earnings per share of approximately $1.20 to $1.40 Ending inventory to decline in the mid-single-digit range Capital expenditures of approximately $110 million For Michael Kors, the Company expects the following: Total revenue of approximately $2.75 to $2.85 billion Operating margin in the high-single-digit range For Jimmy Choo, the Company expects the following: Total revenue of approximately $540 to $550 million Operating margin in the negative mid-single-digit range First Quarter Fiscal 2026 Outlook For Capri Holdings, the Company expects the following: Total revenue of approximately $765 to $780 million Operating margin of approximately break-even Net interest income of approximately $15 million Effective tax rate of approximately 15% Weighted average diluted shares outstanding of approximately 119 million Diluted earnings per share of approximately $0.10 to $0.15 For Michael Kors, the Company expects the following: Total revenue of approximately $615 to $625 million Operating margin in the mid-single-digit range For Jimmy Choo, the Company expects the following: Total revenue of approximately $150 to $155 million Operating margin of approximately break-even Conference Call Information A conference call to discuss fourth quarter and full year fiscal 2025 results is scheduled for today, May 28, 2025 at 8:30 a.m. ET. A live webcast of the conference call will be available on the Company's website, In addition, a replay will be available shortly after the conclusion of the call and remain available until June 4, 2025. 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 13751838. A replay of the webcast will also be available within two hours of the conclusion of the call. Additionally, a fourth quarter fiscal 2025 earnings highlights presentation is posted on the company's website. Use of Non-GAAP Financial Measures Constant currency effects are non-GAAP financial measures, which are provided to supplement our reported operating results to facilitate comparisons of our operating results and trends in our business, excluding the effects of foreign currency rate fluctuations. Because we are a global company, foreign currency exchange rates may have a significant effect on our reported results. The Company believes presenting metrics on a constant currency basis will help investors to understand the effect of significant year-over-year foreign currency exchange rate fluctuations and provide a framework to assess how business is performing and expected to perform excluding these effects. We calculate constant currency measures and the related foreign currency impacts by translating the current year's reported amounts into comparable amounts using prior year's foreign exchange rates for each currency. All constant currency performance measures discussed in this press release should be considered a supplement to and not in lieu of our operating performance measures calculated in accordance with U.S. GAAP. The Company also presents free cash flow, which is a non-GAAP measure and is calculated by taking net cash provided by operating activities less capital expenditures for the period. The Company believes that free cash flow is an important liquidity measure of cash that is available after giving effect to our capital and strategic plans, and that it is a useful to investors because it measures the Company's ability to generate or use cash. Additionally, this earnings release includes certain non-GAAP financial measures that exclude certain costs associated with impairment charges, restructuring and other charges, ERP implementation costs, Capri transformation costs and transaction related expenses. The Company uses non-GAAP financial measures, among other things, to evaluate its operating performance and in order to represent the manner in which the Company conducts and views its business. The Company believes that excluding these 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 supplemental measures in analyzing its results, they are not intended to replace, nor act as a substitute for, any amounts presented in its consolidated financial statements prepared in conformity with U.S. GAAP and may be different from non-GAAP measures reported by other companies. About Capri Holdings Limited Capri Holdings is a global fashion luxury group consisting of iconic brands Michael Kors, Jimmy Choo and Versace. Our commitment to glamorous style and craftsmanship is at the heart of each of our luxury brands. We have built our reputation on designing exceptional, innovative products that cover the full spectrum of fashion luxury categories. Our strength lies in the unique DNA and heritage of each of our brands, the diversity and passion of our people and our dedication to the clients and communities we serve. Capri Holdings Limited is publicly listed on the New York Stock Exchange under the ticker 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 Capri about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. All statements other than statements of historical facts included herein, may be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words "plans", "believes", "expects", "intends", "will", "should", "could", "would", "may", "anticipates", "might" or similar words or phrases, are forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions, which could cause actual results to differ materially from those projected or implied in any forward-looking statements. These risks, uncertainties and other factors include but are not limited to, macroeconomic pressures and general uncertainty regarding the overall future economic environment, the imposition or threat of imposition of new or additional duties, tariffs or trade restrictions on the importation of our products; changes in fashion, consumer traffic and retail trends; fluctuations in demand for our products; loss of market share and increased competition; risks associated with operating in international markets and global sourcing activities, including currency fluctuations, disruptions or delays in manufacturing or shipments; departure of key employees or failure to attract and retain highly qualified personnel; levels of cash flow and future availability of credit, Capri's ability to successfully execute its growth strategies or cost reduction measures; the risk of cybersecurity threats and privacy or data security breaches; reductions in our wholesale channel; high consumer debt levels, recession and inflationary pressures and general economic, political, business or market conditions; the impact of epidemics, pandemics, disasters or catastrophes; our ability to successfully execute the proposed sale of Versace to the Prada Group and other risks related to the transaction; extreme weather conditions and natural disasters; acts of war and other geopolitical conflicts; the risk of any litigation relating to the Company's previously proposed merger with Tapestry, Inc., the termination of the merger agreement and/or public disclosures related thereto; as well as the risk factors identified in the Company's Annual Report on Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission. Please consult these documents for a more complete understanding of these risks and uncertainties. Any forward-looking statement in this press release speaks only as of the date made and Capri disclaims any obligation to update or revise any forward-looking or other statements contained herein other than in accordance with legal and regulatory obligations. SCHEDULE 2 CAPRI HOLDINGS LIMITED AND SUBSIDIARIES (In millions, except share data) (Unaudited) March 30, 2024 Assets Current assets Cash and cash equivalents $ 166 $ 199 Receivables, net 277 332 Inventories, net 869 862 Prepaid expenses and other current assets 209 215 Total current assets 1,521 1,608 Property and equipment, net 513 579 Operating lease right-of-use assets 1,213 1,438 Intangible assets, net 1,116 1,394 Goodwill 688 1,106 Deferred tax assets — 352 Other assets 162 212 Total assets $ 5,213 $ 6,689 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 485 $ 352 Accrued payroll and payroll related expenses 109 107 Accrued income taxes 68 64 Short-term operating lease liabilities 350 400 Short-term debt 24 462 Accrued expenses and other current liabilities 300 310 Total current liabilities 1,336 1,695 Long-term operating lease liabilities 1,253 1,452 Deferred tax liabilities 339 362 Long-term debt 1,476 1,261 Other long-term liabilities 437 319 Total liabilities 4,841 5,089 Commitments and contingencies Shareholders' equity Ordinary shares, no par value; 650,000,000 shares authorized; 227,672,351 shares issued and 117,913,201 outstanding at March 29, 2025; 226,271,074 shares issued and 116,629,634 outstanding at March 30, 2024 — — Treasury shares, at cost (109,759,150 shares at March 29, 2025 and 109,641,440 shares at March 30, 2024) (5,462 ) (5,458 ) Additional paid-in capital 1,476 1,417 Accumulated other comprehensive income 57 161 Retained earnings 4,297 5,479 Total shareholders' equity of Capri 368 1,599 Noncontrolling interest 4 1 Total shareholders' equity 372 1,600 Total liabilities and shareholders' equity $ 5,213 $ 6,689 Expand SCHEDULE 4 CAPRI HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED SEGMENT DATA ($ in millions) (Unaudited) Three Months Ended Fiscal Years Ended March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024 Total revenue: Versace $ 208 $ 264 $ 821 $ 1,030 Jimmy Choo 133 137 605 618 Michael Kors 694 822 3,016 3,522 Total revenue 1,035 1,223 4,442 5,170 Gross profit: Versace $ 136 $ 171 $ 575 $ 724 Jimmy Choo 88 96 405 426 Michael Kors 407 500 1,846 2,189 Total gross profit 631 767 2,826 3,339 Selling, general and administrative expenses: Versace $ 136 $ 154 $ 571 $ 644 Jimmy Choo 91 96 393 394 Michael Kors 355 364 1,426 1,473 Corporate 31 68 191 273 Total selling, general and administrative expenses 613 682 2,581 2,784 Depreciation and amortization: Versace $ 14 $ 15 $ 58 $ 55 Jimmy Choo 7 7 29 29 Michael Kors 20 21 79 82 Corporate 7 6 27 22 Total depreciation and amortization 48 49 193 188 Loss from operations: Versace $ (13 ) $ 1 $ (54 ) $ 25 Jimmy Choo (10 ) (8 ) (17 ) 3 Michael Kors 32 116 341 634 9 109 270 662 Less: Corporate expenses (55 ) (65 ) (233 ) (275 ) Restructuring and other charges (7 ) (30 ) (7 ) (33 ) Impairment of assets (79 ) (549 ) (797 ) (575 ) Transaction related income (costs) 16 (8 ) 15 (20 ) Total loss from operations $ (116 ) $ (543 ) $ (752 ) $ (241 ) Operating margin: Versace (6.3 )% 0.4 % (6.6 )% 2.4 % Jimmy Choo (7.5 )% (5.8 )% (2.8 )% 0.5 % Michael Kors 4.6 % 14.1 % 11.3 % 18.0 % Capri (11.2 )% (44.4 )% (16.9 )% (4.7 )% Expand SCHEDULE 5 CAPRI HOLDINGS LIMITED AND SUBSIDIARIES (Unaudited) As of Retail Store Information: March 29, 2025 March 30, 2024 Versace 228 236 Jimmy Choo 219 234 Michael Kors 711 769 Total number of retail stores 1,158 1,239 Expand SCHEDULE 6 CAPRI HOLDINGS LIMITED AND SUBSIDIARIES (In millions) (Unaudited) Three Months Ended % Change March 29, 2025 March 30, 2024 As Reported Constant Currency Total revenue: Versace $ 208 $ 264 (21.2 )% (19.7 )% Jimmy Choo 133 137 (2.9 )% (1.5 )% Michael Kors 694 822 (15.6 )% (14.4 )% Total revenue $ 1,035 $ 1,223 (15.4 )% (14.1 )% Expand Fiscal Years Ended % Change March 29, 2025 March 30, 2024 As Reported Constant Currency Total revenue: Versace $ 821 $ 1,030 (20.3 )% (19.6 )% Jimmy Choo 605 618 (2.1 )% (1.5 )% Michael Kors 3,016 3,522 (14.4 )% (13.8 )% Total revenue $ 4,442 $ 5,170 (14.1 )% (13.5 )% Expand ______________________ (1) Amounts impacting operating expenses primarily relate to Global Optimization Plan severance, lease termination gains and other store closure costs. (2) Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. (3) The Capri transformation program represents a multi-year, multi-project initiative intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure. During Fiscal 2024, the majority of our operational and IT projects were paused and we will continue to reassess these projects, along with related timing, in Fiscal 2026. (4) Relates to costs incurred by the Company in connection with the previously terminated merger agreement with Tapestry, Inc as well as the previously announced sale of Versace to Prada. Expand ______________________ (1) Amounts impacting operating expenses primarily relate to Global Optimization Plan severance, lease termination gains and other store closure costs. (2) Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. (3) The Capri transformation program represents a multi-year, multi-project initiative intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure. During Fiscal 2024, the majority of our operational and IT projects were paused and we will continue to reassess these projects, along with related timing, in Fiscal 2026. (4) Relates to costs incurred by the Company in connection with the previously terminated merger agreement with Tapestry, Inc as well as the previously announced sale of Versace to Prada. In November 2024, the Company received approximately $45 million from Tapestry, Inc. as reimbursement for merger related costs. Expand ______________________ (1) Asset impairment charges primarily relate to the impairment of the Jimmy Choo Retail and Wholesale reporting units goodwill and Versace and Jimmy Choo brand intangible assets, as well as the impairment of certain operating lease right-of-use assets. (2) Amounts impacting operating expenses primarily relate to Global Optimization Plan costs, equity awards associated with Capri's acquisition of Gianni Versace S.r.l and severance expenses incurred during the fourth quarter. (3) Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. (4) The Capri transformation program represents a multi-year, multi-project initiative intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure. Expand ______________________ (1) Asset impairment charges primarily relate to the impairment of the Jimmy Choo Retail and Wholesale reporting units goodwill and Versace and Jimmy Choo brand intangible assets, as well as the impairment of certain operating lease right-of-use assets. (2) Amounts impacting operating expenses primarily relate to Global Optimization Plan costs, equity awards associated with Capri's acquisition of Gianni Versace S.r.l and severance expense. (3) Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. (4) The Capri transformation program represents a multi-year, multi-project initiative intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure. Expand
Yahoo
3 days ago
- Business
- Yahoo
Capri Holdings Limited Announces Fourth Quarter and Full Year Fiscal 2025 Results
LONDON, May 28, 2025--(BUSINESS WIRE)--Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, today announced its financial results for the fourth quarter and full year fiscal 2025 ended March 29, 2025. Fourth Quarter Fiscal 2025 Highlights Revenue decreased 15.4% on a reported basis and 14.1% in constant currency Operating margin of (11.2)%; adjusted operating margin of (3.2)% Loss per share of $(5.44); adjusted loss per share of $(4.90) primarily due to a non-cash tax valuation allowance charge John D. Idol, the Company's Chairman and Chief Executive Officer said, "Fiscal 2025 was a challenging year for Capri Holdings, but we are optimistic about our path forward as we enter fiscal 2026. While there is uncertainty around the impact of tariffs on the global economic environment, we remain focused on executing against our new strategic initiatives that are designed to return Capri Holdings to future growth. The Company is still in the early stages of its turnaround and we are seeing positive indicators that our strategies are beginning to work." Mr. Idol continued, "As previously announced, we entered into a definitive agreement to sell Versace to Prada Group. This transaction positions us to invest in our future growth, substantially reduce our debt levels and reinstate a share repurchase program in the future. With our new strategies in place, a focused senior leadership team, and a strong balance sheet we are well positioned to improve performance of both Michael Kors and Jimmy Choo." Mr. Idol concluded, "Looking ahead, we continue to expect trends to improve throughout fiscal year 2026 positioning us to return to growth in fiscal 2027 and beyond. We are confident in our ability to grow Michael Kors to $4 billion in revenue and Jimmy Choo to $800 million over time, while restoring operating margin to the double-digit range." Fourth Quarter Fiscal 2025 Results Financial Results and non-GAAP Reconciliation The Company's results are reported in this press release in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and on an adjusted, non-GAAP basis. A reconciliation of GAAP to non-GAAP financial information is provided at the end of this press release. Overview of Capri Holdings Fourth Quarter Fiscal 2025 Results Total revenue of $1.0 billion decreased 15.4% compared to last year. On a constant currency basis, total revenue decreased 14.1%. Gross profit was $631 million and gross margin was 61.0%, compared to $767 million and 62.7% in the prior year. Loss from operations was $116 million and operating margin was (11.2)% compared to an operating loss of $543 million and operating margin of (44.4)% in the prior year. Adjusted loss from operations was $33 million and adjusted operating margin was (3.2)%, compared to adjusted operating income of $78 million and adjusted operating margin of 6.4% in the prior year. Net loss was $645 million, or $(5.44) per diluted share, compared to a net loss of $472 million, or $(4.03) per diluted share, in the prior year. Adjusted net loss was $581 million, or $(4.90) per diluted share, compared to adjusted net income of $50 million, or $0.42 per diluted share, in the prior year. Results include a non-cash tax valuation allowance of $545 million taken against the Company's deferred tax assets, of which $119 million was related to Versace. Net inventory as of March 29, 2025 was $869 million, a 1% increase compared to the prior year, primarily reflecting $60 million of earlier than anticipated receipts. Cash flow from operating activities for fiscal year 2025 was $281 million, while capital expenditures were $128 million, resulting in free cash flow of $153 million. Cash and cash equivalents totaled $166 million, and total borrowings outstanding were $1.5 billion, resulting in net debt of $1.3 billion as of March 29, 2025 versus $1.5 billion last year. Michael Kors Fourth Quarter Fiscal 2025 Results Michael Kors revenue of $694 million decreased 15.6% on a reported basis and 14.4% on a constant currency basis. Michael Kors gross profit was $407 million and gross margin was 58.6%, compared to $500 million and 60.8% in the prior year. Michael Kors operating income was $32 million and operating margin was 4.6%, compared to $116 million and 14.1% in the prior year. Jimmy Choo Fourth Quarter Fiscal 2025 Results Jimmy Choo revenue of $133 million decreased 2.9% on a reported basis and 1.5% on a constant currency basis. Jimmy Choo gross profit was $88 million and gross margin was 66.2%, compared to $96 million and 70.1% in the prior year. Jimmy Choo operating loss was $10 million and operating margin was (7.5)%, compared to an operating loss of $8 million and operating margin of (5.8)% in the prior year. Versace Fourth Quarter Fiscal 2025 Results Versace revenue of $208 million decreased 21.2% on a reported basis and 19.7% on a constant currency basis. Versace gross profit was $136 million and gross margin was 65.4%, compared to $171 million and 64.8% in the prior year. Versace operating loss was $13 million and operating margin was (6.3)% compared to an operating income of $1 million and operating margin of 0.4% in the prior year. Versace Update As previously announced, on April 10, 2025, Capri Holdings announced that it entered into a definitive agreement to sell Versace to Prada S.p.A. for $1.375 billion in cash subject to certain adjustments. The transaction is expected to close in the second half of calendar 2025, subject to customary closing conditions including regulatory approvals. Beginning in fiscal 2026 Versace will be classified as a discontinued operation. Outlook The following guidance is provided on an adjusted, non-GAAP basis. Financial results could differ materially from the current outlook due to a number of external events which are not reflected in our guidance, including changes in global macroeconomic conditions, changes in tariff rates, greater than anticipated inflationary pressures or weakening consumer confidence, and further considerable fluctuations in foreign currency exchange rates. The Company's fiscal 2026 outlook is based on continuing operations, reflecting the Versace business being classified as a discontinued operation. Fiscal Year 2026 Outlook Due to the uncertainty around tariffs, including the potential impact on consumer spending, as well as fluctuating foreign currency exchange rates, we are providing guidance assuming a range of outcomes. For Capri Holdings, the Company expects the following: Total revenue of approximately $3.3 to $3.4 billion Operating income in a range around $100 million, including the estimated tariff impact Net interest income of approximately $85 to $90 million Effective tax rate of approximately 15% Weighted average diluted shares outstanding of approximately 119 million Diluted earnings per share of approximately $1.20 to $1.40 Ending inventory to decline in the mid-single-digit range Capital expenditures of approximately $110 million For Michael Kors, the Company expects the following: Total revenue of approximately $2.75 to $2.85 billion Operating margin in the high-single-digit range For Jimmy Choo, the Company expects the following: Total revenue of approximately $540 to $550 million Operating margin in the negative mid-single-digit range First Quarter Fiscal 2026 Outlook For Capri Holdings, the Company expects the following: Total revenue of approximately $765 to $780 million Operating margin of approximately break-even Net interest income of approximately $15 million Effective tax rate of approximately 15% Weighted average diluted shares outstanding of approximately 119 million Diluted earnings per share of approximately $0.10 to $0.15 For Michael Kors, the Company expects the following: Total revenue of approximately $615 to $625 million Operating margin in the mid-single-digit range For Jimmy Choo, the Company expects the following: Total revenue of approximately $150 to $155 million Operating margin of approximately break-even Conference Call Information A conference call to discuss fourth quarter and full year fiscal 2025 results is scheduled for today, May 28, 2025 at 8:30 a.m. ET. A live webcast of the conference call will be available on the Company's website, In addition, a replay will be available shortly after the conclusion of the call and remain available until June 4, 2025. 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 13751838. A replay of the webcast will also be available within two hours of the conclusion of the call. Additionally, a fourth quarter fiscal 2025 earnings highlights presentation is posted on the company's website. Use of Non-GAAP Financial Measures Constant currency effects are non-GAAP financial measures, which are provided to supplement our reported operating results to facilitate comparisons of our operating results and trends in our business, excluding the effects of foreign currency rate fluctuations. Because we are a global company, foreign currency exchange rates may have a significant effect on our reported results. The Company believes presenting metrics on a constant currency basis will help investors to understand the effect of significant year-over-year foreign currency exchange rate fluctuations and provide a framework to assess how business is performing and expected to perform excluding these effects. We calculate constant currency measures and the related foreign currency impacts by translating the current year's reported amounts into comparable amounts using prior year's foreign exchange rates for each currency. All constant currency performance measures discussed in this press release should be considered a supplement to and not in lieu of our operating performance measures calculated in accordance with U.S. GAAP. The Company also presents free cash flow, which is a non-GAAP measure and is calculated by taking net cash provided by operating activities less capital expenditures for the period. The Company believes that free cash flow is an important liquidity measure of cash that is available after giving effect to our capital and strategic plans, and that it is a useful to investors because it measures the Company's ability to generate or use cash. Additionally, this earnings release includes certain non-GAAP financial measures that exclude certain costs associated with impairment charges, restructuring and other charges, ERP implementation costs, Capri transformation costs and transaction related expenses. The Company uses non-GAAP financial measures, among other things, to evaluate its operating performance and in order to represent the manner in which the Company conducts and views its business. The Company believes that excluding these 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 supplemental measures in analyzing its results, they are not intended to replace, nor act as a substitute for, any amounts presented in its consolidated financial statements prepared in conformity with U.S. GAAP and may be different from non-GAAP measures reported by other companies. About Capri Holdings Limited Capri Holdings is a global fashion luxury group consisting of iconic brands Michael Kors, Jimmy Choo and Versace. Our commitment to glamorous style and craftsmanship is at the heart of each of our luxury brands. We have built our reputation on designing exceptional, innovative products that cover the full spectrum of fashion luxury categories. Our strength lies in the unique DNA and heritage of each of our brands, the diversity and passion of our people and our dedication to the clients and communities we serve. Capri Holdings Limited is publicly listed on the New York Stock Exchange under the ticker 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 Capri about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. All statements other than statements of historical facts included herein, may be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words "plans", "believes", "expects", "intends", "will", "should", "could", "would", "may", "anticipates", "might" or similar words or phrases, are forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions, which could cause actual results to differ materially from those projected or implied in any forward-looking statements. These risks, uncertainties and other factors include but are not limited to, macroeconomic pressures and general uncertainty regarding the overall future economic environment, the imposition or threat of imposition of new or additional duties, tariffs or trade restrictions on the importation of our products; changes in fashion, consumer traffic and retail trends; fluctuations in demand for our products; loss of market share and increased competition; risks associated with operating in international markets and global sourcing activities, including currency fluctuations, disruptions or delays in manufacturing or shipments; departure of key employees or failure to attract and retain highly qualified personnel; levels of cash flow and future availability of credit, Capri's ability to successfully execute its growth strategies or cost reduction measures; the risk of cybersecurity threats and privacy or data security breaches; reductions in our wholesale channel; high consumer debt levels, recession and inflationary pressures and general economic, political, business or market conditions; the impact of epidemics, pandemics, disasters or catastrophes; our ability to successfully execute the proposed sale of Versace to the Prada Group and other risks related to the transaction; extreme weather conditions and natural disasters; acts of war and other geopolitical conflicts; the risk of any litigation relating to the Company's previously proposed merger with Tapestry, Inc., the termination of the merger agreement and/or public disclosures related thereto; as well as the risk factors identified in the Company's Annual Report on Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission. Please consult these documents for a more complete understanding of these risks and uncertainties. Any forward-looking statement in this press release speaks only as of the date made and Capri disclaims any obligation to update or revise any forward-looking or other statements contained herein other than in accordance with legal and regulatory obligations. SCHEDULE 1 CAPRI HOLDINGS LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share data) (Unaudited) Three Months Ended Fiscal Years Ended March 29,2025 March 30,2024 March 29,2025 March 30,2024 Total revenue $ 1,035 $ 1,223 $ 4,442 $ 5,170 Cost of goods sold 404 456 1,616 1,831 Gross profit 631 767 2,826 3,339 Total operating expenses 747 1,310 3,578 3,580 Loss from operations (116 ) (543 ) (752 ) (241 ) Other expense (income), net 8 (1 ) 8 (1 ) Interest (income) expense, net (15 ) (6 ) (37 ) 6 Foreign currency (gain) loss (7 ) 21 4 37 Loss before provision (benefit) for income taxes (102 ) (557 ) (727 ) (283 ) Provision (benefit) for income taxes 542 (85 ) 452 (54 ) Net loss (644 ) (472 ) (1,179 ) (229 ) Less: Net income attributable to noncontrolling interest 1 — 3 — Net loss attributable to Capri $ (645 ) $ (472 ) $ (1,182 ) $ (229 ) Weighted average ordinary shares outstanding: Basic 118,573,945 117,156,327 118,256,350 117,014,420 Diluted 118,573,945 117,156,327 118,256,350 117,014,420 Net loss per ordinary share: Basic $ (5.44 ) $ (4.03 ) $ (10.00 ) $ (1.96 ) Diluted $ (5.44 ) $ (4.03 ) $ (10.00 ) $ (1.96 ) SCHEDULE 2 CAPRI HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except share data) (Unaudited) March 29,2025 March 30,2024 Assets Current assets Cash and cash equivalents $ 166 $ 199 Receivables, net 277 332 Inventories, net 869 862 Prepaid expenses and other current assets 209 215 Total current assets 1,521 1,608 Property and equipment, net 513 579 Operating lease right-of-use assets 1,213 1,438 Intangible assets, net 1,116 1,394 Goodwill 688 1,106 Deferred tax assets — 352 Other assets 162 212 Total assets $ 5,213 $ 6,689 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 485 $ 352 Accrued payroll and payroll related expenses 109 107 Accrued income taxes 68 64 Short-term operating lease liabilities 350 400 Short-term debt 24 462 Accrued expenses and other current liabilities 300 310 Total current liabilities 1,336 1,695 Long-term operating lease liabilities 1,253 1,452 Deferred tax liabilities 339 362 Long-term debt 1,476 1,261 Other long-term liabilities 437 319 Total liabilities 4,841 5,089 Commitments and contingencies Shareholders' equity Ordinary shares, no par value; 650,000,000 shares authorized; 227,672,351 shares issued and 117,913,201 outstanding at March 29, 2025; 226,271,074 shares issued and 116,629,634 outstanding at March 30, 2024 — — Treasury shares, at cost (109,759,150 shares at March 29, 2025 and 109,641,440 shares at March 30, 2024) (5,462 ) (5,458 ) Additional paid-in capital 1,476 1,417 Accumulated other comprehensive income 57 161 Retained earnings 4,297 5,479 Total shareholders' equity of Capri 368 1,599 Noncontrolling interest 4 1 Total shareholders' equity 372 1,600 Total liabilities and shareholders' equity $ 5,213 $ 6,689 SCHEDULE 3 CAPRI HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED REVENUE DATA ($ in millions) (Unaudited) Three Months Ended Fiscal Years Ended March 29,2025 March 30,2024 March 29,2025 March 30,2024 Revenue by Segment and Region: Versace The Americas $ 68 $ 87 $ 260 $ 338 EMEA 79 105 344 444 Asia 61 72 217 248 Versace Revenue 208 264 821 1,030 Jimmy Choo The Americas 38 41 168 176 EMEA 63 58 287 266 Asia 32 38 150 176 Jimmy Choo Revenue 133 137 605 618 Michael Kors The Americas 455 519 2,051 2,298 EMEA 160 189 665 791 Asia 79 114 300 433 Michael Kors Revenue 694 822 3,016 3,522 Capri The Americas 561 647 2,479 2,812 EMEA 302 352 1,296 1,501 Asia 172 224 667 857 Total Capri Revenue $ 1,035 $ 1,223 $ 4,442 $ 5,170 SCHEDULE 4 CAPRI HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED SEGMENT DATA ($ in millions) (Unaudited) Three Months Ended Fiscal Years Ended March 29,2025 March 30,2024 March 29,2025 March 30,2024 Total revenue: Versace $ 208 $ 264 $ 821 $ 1,030 Jimmy Choo 133 137 605 618 Michael Kors 694 822 3,016 3,522 Total revenue 1,035 1,223 4,442 5,170 Gross profit: Versace $ 136 $ 171 $ 575 $ 724 Jimmy Choo 88 96 405 426 Michael Kors 407 500 1,846 2,189 Total gross profit 631 767 2,826 3,339 Selling, general and administrative expenses: Versace $ 136 $ 154 $ 571 $ 644 Jimmy Choo 91 96 393 394 Michael Kors 355 364 1,426 1,473 Corporate 31 68 191 273 Total selling, general and administrative expenses 613 682 2,581 2,784 Depreciation and amortization: Versace $ 14 $ 15 $ 58 $ 55 Jimmy Choo 7 7 29 29 Michael Kors 20 21 79 82 Corporate 7 6 27 22 Total depreciation and amortization 48 49 193 188 Loss from operations: Versace $ (13 ) $ 1 $ (54 ) $ 25 Jimmy Choo (10 ) (8 ) (17 ) 3 Michael Kors 32 116 341 634 9 109 270 662 Less: Corporate expenses (55 ) (65 ) (233 ) (275 ) Restructuring and other charges (7 ) (30 ) (7 ) (33 ) Impairment of assets (79 ) (549 ) (797 ) (575 ) Transaction related income (costs) 16 (8 ) 15 (20 ) Total loss from operations $ (116 ) $ (543 ) $ (752 ) $ (241 ) Operating margin: Versace (6.3 )% 0.4 % (6.6 )% 2.4 % Jimmy Choo (7.5 )% (5.8 )% (2.8 )% 0.5 % Michael Kors 4.6 % 14.1 % 11.3 % 18.0 % Capri (11.2 )% (44.4 )% (16.9 )% (4.7 )% SCHEDULE 5 CAPRI HOLDINGS LIMITED AND SUBSIDIARIES SUPPLEMENTAL RETAIL STORE INFORMATION (Unaudited) As of Retail Store Information: March 29, 2025 March 30, 2024 Versace 228 236 Jimmy Choo 219 234 Michael Kors 711 769 Total number of retail stores 1,158 1,239 SCHEDULE 6 CAPRI HOLDINGS LIMITED AND SUBSIDIARIES CONSTANT CURRENCY DATA (In millions) (Unaudited) Three Months Ended % Change March 29,2025 March 30,2024 AsReported ConstantCurrency Total revenue: Versace $ 208 $ 264 (21.2 )% (19.7 )% Jimmy Choo 133 137 (2.9 )% (1.5 )% Michael Kors 694 822 (15.6 )% (14.4 )% Total revenue $ 1,035 $ 1,223 (15.4 )% (14.1 )% Fiscal Years Ended % Change March 29,2025 March 30,2024 AsReported ConstantCurrency Total revenue: Versace $ 821 $ 1,030 (20.3 )% (19.6 )% Jimmy Choo 605 618 (2.1 )% (1.5 )% Michael Kors 3,016 3,522 (14.4 )% (13.8 )% Total revenue $ 4,442 $ 5,170 (14.1 )% (13.5 )% SCHEDULE 7 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except share and per share data) (Unaudited) Three Months Ended March 29, 2025 AsReported Impairmentof Assets Restructuringand OtherCharges(1) ERPImplementation(2) CapriTransformation(3) TransactionRelatedExpenses(4) AsAdjusted Gross profit $ 631 $ — $ — $ — $ — $ — $ 631 Operating expenses $ 747 $ (79 ) $ (7 ) $ (1 ) $ (12 ) $ 16 $ 664 Total loss from operations $ (116 ) $ 79 $ 7 $ 1 $ 12 $ (16 ) $ (33 ) Operating Margin (11.2 )% 7.5 % 0.7 % 0.1 % 1.2 % (1.5 )% (3.2 )% Loss before provision for income taxes $ (102 ) $ 79 $ 7 $ 1 $ 12 $ (16 ) $ (19 ) Provision for income taxes $ 542 $ 18 $ 1 $ — $ 2 $ (2 ) $ 561 Net loss attributable to Capri $ (645 ) $ 61 $ 6 $ 1 $ 10 $ (14 ) $ (581 ) Weighted average diluted ordinary shares outstanding 118,573,945 118,573,945 Diluted net loss per ordinary share - Capri $ (5.44 ) $ 0.51 $ 0.05 $ 0.01 $ 0.08 $ (0.11 ) $ (4.90 ) ______________________ (1) Amounts impacting operating expenses primarily relate to Global Optimization Plan severance, lease termination gains and other store closure costs. (2) Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. (3) The Capri transformation program represents a multi-year, multi-project initiative intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure. During Fiscal 2024, the majority of our operational and IT projects were paused and we will continue to reassess these projects, along with related timing, in Fiscal 2026. (4) Relates to costs incurred by the Company in connection with the previously terminated merger agreement with Tapestry, Inc as well as the previously announced sale of Versace to Prada. SCHEDULE 8 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except share and per share data) (Unaudited) Fiscal Year Ended March 29, 2025 AsReported Impairmentof Assets Restructuringand OtherCharges(1) ERPImplementation(2) CapriTransformation(3) TransactionRelatedExpenses(4) AsAdjusted Gross profit $ 2,826 $ — $ — $ — $ — $ — $ 2,826 Operating expenses $ 3,578 $ (797 ) $ (7 ) $ (10 ) $ (44 ) $ 15 $ 2,735 Total (loss) income from operations $ (752 ) $ 797 $ 7 $ 10 $ 44 $ (15 ) $ 91 Operating Margin (16.9 )% 17.8 % 0.2 % 0.2 % 1.0 % (0.3 )% 2.0 % (Loss) income before provision for income taxes $ (727 ) $ 797 $ 7 $ 10 $ 44 $ (15 ) $ 116 Provision for income taxes $ 452 $ 101 $ 1 $ 1 $ 6 $ (2 ) $ 559 Net loss attributable to Capri $ (1,182 ) $ 696 $ 6 $ 9 $ 38 $ (13 ) $ (446 ) Weighted average diluted ordinary shares outstanding 118,256,350 118,256,350 Diluted net loss per ordinary share - Capri $ (10.00 ) $ 5.89 $ 0.05 $ 0.08 $ 0.32 $ (0.11 ) $ (3.77 ) ______________________ (1) Amounts impacting operating expenses primarily relate to Global Optimization Plan severance, lease termination gains and other store closure costs. (2) Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. (3) The Capri transformation program represents a multi-year, multi-project initiative intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure. During Fiscal 2024, the majority of our operational and IT projects were paused and we will continue to reassess these projects, along with related timing, in Fiscal 2026. (4) Relates to costs incurred by the Company in connection with the previously terminated merger agreement with Tapestry, Inc as well as the previously announced sale of Versace to Prada. In November 2024, the Company received approximately $45 million from Tapestry, Inc. as reimbursement for merger related costs. SCHEDULE 9 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except share and per share data) (Unaudited) Three Months Ended March 30, 2024 AsReported Impairmentof Assets(1) Restructuringand OtherCharges(2) ERPImplementation(3) CapriTransformation(4) TransactionRelatedExpenses AsAdjusted Gross profit $ 767 $ — $ — $ — $ — $ — $ 767 Operating expenses $ 1,310 $ (549 ) $ (30 ) $ (5 ) $ (29 ) $ (8 ) $ 689 Total (loss) income from operations $ (543 ) $ 549 $ 30 $ 5 $ 29 $ 8 $ 78 Operating Margin (44.4 )% 44.8 % 2.5 % 0.4 % 2.4 % 0.7 % 6.4 % Foreign currency loss $ 21 $ — $ — $ — $ — $ — $ 21 (Loss) income before (benefit) provision for income taxes $ (557 ) $ 549 $ 30 $ 5 $ 29 $ 8 $ 64 (Benefit) provision for income taxes $ (85 ) $ 86 $ 7 $ 1 $ 4 $ 1 $ 14 Net (loss) income attributable to Capri $ (472 ) $ 463 $ 23 $ 4 $ 25 $ 7 $ 50 Weighted average diluted ordinary shares outstanding 117,156,327 118,221,490 Diluted net (loss) income per ordinary share - Capri $ (4.03 ) $ 3.93 $ 0.20 $ 0.04 $ 0.22 $ 0.06 $ 0.42 ______________________ (1) Asset impairment charges primarily relate to the impairment of the Jimmy Choo Retail and Wholesale reporting units goodwill and Versace and Jimmy Choo brand intangible assets, as well as the impairment of certain operating lease right-of-use assets. (2) Amounts impacting operating expenses primarily relate to Global Optimization Plan costs, equity awards associated with Capri's acquisition of Gianni Versace S.r.l and severance expenses incurred during the fourth quarter. (3) Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. (4) The Capri transformation program represents a multi-year, multi-project initiative intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure. SCHEDULE 10 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except share and per share data) (Unaudited) Fiscal Year Ended March 30, 2024 AsReported Impairmentof Assets(1) Restructuringand OtherCharges(2) ERPImplementation(3) CapriTransformation(4) TransactionRelatedExpenses AsAdjusted Gross profit $ 3,339 $ — $ — $ — $ — $ — $ 3,339 Operating expenses $ 3,580 $ (575 ) $ (33 ) $ (18 ) $ (113 ) $ (20 ) $ 2,821 Total (loss) income from operations ` $ (241 ) $ 575 $ 33 $ 18 $ 113 $ 20 $ 518 Operating Margin (4.7 )% 11.2 % 0.6 % 0.3 % 2.2 % 0.4 % 10.0 % Foreign currency loss $ 37 $ — $ (17 ) $ — $ — $ — $ 20 (Loss) Income before provision for income taxes $ (283 ) $ 575 $ 50 $ 18 $ 113 $ 20 $ 493 (Benefit) Provision for income taxes $ (54 ) $ 92 $ 11 $ 4 $ 23 $ 4 $ 80 Net (loss) income attributable to Capri $ (229 ) $ 483 $ 39 $ 14 $ 90 $ 16 $ 413 Weighted average diluted ordinary shares outstanding 117,014,420 118,057,806 Diluted net (loss) income per ordinary share - Capri $ (1.96 ) $ 4.10 $ 0.33 $ 0.12 $ 0.77 $ 0.14 $ 3.50 ______________________ (1) Asset impairment charges primarily relate to the impairment of the Jimmy Choo Retail and Wholesale reporting units goodwill and Versace and Jimmy Choo brand intangible assets, as well as the impairment of certain operating lease right-of-use assets. (2) Amounts impacting operating expenses primarily relate to Global Optimization Plan costs, equity awards associated with Capri's acquisition of Gianni Versace S.r.l and severance expense. (3) Represents a multi-year ERP implementation which includes accounting, finance and wholesale and retail inventory solutions in order to create standardized finance IT applications across our organization. (4) The Capri transformation program represents a multi-year, multi-project initiative intended to improve the operating effectiveness and efficiency of our organization by creating best in class shared platforms across our brands and by expanding our digital capabilities. These initiatives cover multiple aspects of our operations including supply chain, marketing, omni-channel customer experience, e-commerce, data analytics and IT infrastructure. View source version on Contacts Investor Relations:Jennifer Media:Press@ Sign in to access your portfolio
