What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-06-01 compared with 2021-05-26 · 152 added, 136 removed, 231 unchanged (55% of the section changed)

4 unchanged sentences

Founded in 1978 in Milan, Versace is known for its iconic and unmistakable style and unparalleled craftsmanship.

Over the past several decades, the House of Versace has grown globally from its roots in haute couture, expanding into the design, manufacturing, distribution and retailing of ready-to-wear, accessories, footwear, eyewear, watches, jewelry, fragrance and home furnishings businesses.

Over the past several decades, the House of Versace has grown globally from its roots in haute couture, expanding into the design, manufacturing, distribution and retailing of accessories, ready-to-wear, footwear, eyewear, watches, jewelry, fragrance and home furnishings businesses.

Versace’s design team is led by Donatella Versace, who has been the brand’s Artistic Director for over 20 years.

Versace distributes its products through a worldwide distribution network, which includes boutiques located in the world’s most glamorous cities, its e-commerce site, as well as through the most prestigious department and specialty stores worldwide.

Our Jimmy Choo brand offers a distinctive, glamorous and fashion-forward product range, enabling it to develop into a leading global luxury accessories brand, whose core product offering is women’s luxury shoes, complemented by accessories, including handbags, small leather goods, scarves and belts, as well as a growing men’s luxury shoes and accessory business.

In addition, certain categories, such as fragrances and eyewear, are produced under licensing agreements.

Versace distributes its products through a worldwide distribution network, which includes boutiques in some of the world’s most glamorous cities, its e-commerce sites, as well as through the most prestigious department and specialty stores worldwide.

Our Jimmy Choo brand offers a distinctive, glamorous and fashion-forward product range, enabling it to develop into a leading global luxury accessories brand, whose core product offering is women’s luxury shoes, complemented by accessories, including handbags, small leather goods, jewelry, scarves and belts, as well as men’s luxury shoes and accessory business.

In addition, certain categories, such as fragrance and eyewear, are produced under licensing agreements.

Jimmy Choo’s design team is led by Sandra Choi, who has been the Creative Director for the brand since its inception in 1996.

2 unchanged sentences

Jimmy Choo is represented through its global store network, its e-commerce sites, as well as through the most prestigious department and specialty stores worldwide.

Our Michael Kors brand was launched 40 years ago by Michael Kors, whose vision has taken the Company from its beginnings as an American luxury sportswear house to a global accessories, footwear and apparel company with a global distribution network that has presence in over 100 countries through Company-operated retail stores and e-commerce sites, leading department stores, specialty stores and select licensing partners.

Our Michael Kors brand was launched over 40 years ago by Michael Kors, a world-renowned designer, whose vision has taken the Company from its beginnings as an American luxury sportswear house to a global accessories, footwear and ready-to-wear company with a global distribution network that has presence in over 100 countries through Company-operated retail stores and e-commerce sites, leading department stores, specialty stores and select licensing partners.

Michael Kors is a highly recognized luxury fashion brand in the Americas and Europe with growing brand awareness in other international markets.

2 unchanged sentences

the Michael Kors Collection luxury line, the MICHAEL Michael Kors accessible luxury line and the Michael Kors Mens line.

The Michael Kors Collection establishes the aesthetic authority of the entire brand and is carried by many of our retail stores, our e-commerce sites, as well as in the finest luxury department stores in the world.

MICHAEL Michael Kors has a strong focus on accessories, in addition to offering footwear and apparel, and addresses the significant demand opportunity in accessible luxury goods.

We have also been developing our men’s business in recognition of

the significant opportunity afforded by the Michael Kors brand’s established fashion authority and the expanding men’s market.

The Michael Kors Collection establishes the aesthetic authority of the entire brand and is carried by select retail stores, our e-commerce sites, as well as in the finest luxury department stores in the world.

MICHAEL Michael Kors has a strong focus on accessories, in addition to offering footwear and ready-to-wear, and addresses the significant demand opportunity in accessible luxury goods.

We have also been developing our

men’s business in recognition of the significant opportunity afforded by the Michael Kors brand’s established fashion authority and the expanding men’s market.

Taken together, our Michael Kors collections target a broad customer base while retaining our premium luxury image.

4 unchanged sentences

In addition to these reportable segments, we have certain corporate costs that are not directly attributable to our brands and, therefore, are not allocated to segments.

Such costs primarily include certain administrative, corporate occupancy, shared service and information systems expenses, including Enterprise Resource Planning (“ERP”) system implementation costs.

In addition, certain other costs are not allocated to segments, including restructuring and other charges (including transition costs related to our recent acquisitions), impairment costs and COVID-19 related charges.

In addition, certain other costs are not allocated to segments, including restructuring and other charges, impairment costs, COVID-19 related charges, charitable donations and the war in Ukraine.

The segment structure is consistent with how our chief operating decision maker plans and allocates resources, manages the business and assesses performance.

All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance.

For additional financial information regarding our segments and corporate unallocated expenses, see Segment Information note in the accompanying consolidated financial statements.

For additional financial information regarding our segments and corporate unallocated expenses, see Note 19 to the accompanying consolidated financial statements for additional information.

We operate in the global personal luxury goods industry.

Through 2019, the personal luxury goods market grew at a 5% rate over the past 20 years, with more recent growth driven by stronger Chinese demand from both international and local consumers and demographic and socioeconomic shifts resulting in younger consumers purchasing more luxury goods.

Through 2019, the personal luxury goods market grew at a mid-single digit rate over the past 20 years, with more recent growth driven by stronger Chinese demand from both international and local consumers and demographic and socioeconomic shifts resulting in younger consumers purchasing more luxury goods.

Then, in 2020, due to the impact of the COVID-19 crisis, the personal luxury goods market declined 22%.

According to Bain studies* , the personal luxury goods market is predicted to increase at a 10% compound annual growth rate between 2020 and 2025, and will return to 2019 levels by the end of 2021 or in 2022.

According to Bain* , the personal luxury goods market returned to 2019 levels in 2021, and the market is predicted to increase at a 10% compound annual growth rate between 2020 and 2025.

Future growth will be driven by e-commerce, Chinese consumers and younger generations.

By 2025, Bain studies estimate over 30% of personal luxury goods sales will occur online, Chinese consumers will represent nearly half of total global personal luxury goods sales, and Gen Z and Gen Y combined will make up at least two-thirds of the market.

By 2025, Bain studies estimate that approximately 30% of personal luxury goods sales will occur online, Chinese consumers will represent nearly half of total global personal luxury goods sales and Gen Z and Gen Y combined will make up at least two-thirds of the market.

As the personal luxury goods market continues to evolve, Capri is committed to creating engaging luxury experiences globally.

1 unchanged sentence

We believe that our innovative and luxurious product offerings and customer engagement initiatives across all three brands position us to capitalize on the continued growth of the global personal luxury goods industry.

* Comprised of:

Bain – Altagamma Luxury Goods Worldwide Market Study, Spring 2021, May 17th 2021 update and Bain – Altagamma Luxury Goods Worldwide Market Study, Spring 2021 (Together, the “Bain studies”).

These studies were prepared by the Bain & Company and Altagamma and can be obtained free of charge or at a nominal cost by contacting Bain & Company’s media contacts at aliza.medina@bain.com or dan.pinkney@bain.com.

* Bain – Altagamma Luxury Goods Worldwide Market Study, Fall 2021 (November 11, 2021).

These studies were prepared by Bain & Company and Altagamma and can be obtained free of charge or at a nominal cost by contacting Bain & Company’s media contacts at aliza.medina@bain.com or dan.pinkney@bain.com.

While we believe that each of these studies and publications is reliable, we have not independently verified market and industry data from third-party sources.

1 unchanged sentence

We generate revenue globally through our three reportable segments, as described above.

We sell our Versace, Jimmy Choo and Michael Kors products through retail and wholesale channels of distribution in three principal geographic markets:

the Americas (U.S., Canada and Latin America), EMEA (Europe, Middle East and Africa) and Asia (including Australia).

We also have wholesale arrangements pursuant to which we sell products to our geographic licensees.

We sell our Versace, Jimmy Choo and Michael Kors products through retail and wholesale channels in three principal geographic markets:

the Americas (United States, Canada and Latin America), EMEA (Europe, Middle East and Africa) and Asia (Asia and Oceania).

We also have wholesale arrangements pursuant to which we sell products to geographic licensees.

In addition, we have licensing agreements through which we license to third parties the use of our Versace, Jimmy Choo and Michael Kors brand names and trademarks, certain production rights and sales and/or distribution rights with respect to our brands.

6 unchanged sentences

Versace revenue - Asia 255 241 237

Total Versace

Total Versace revenue 1,088 718 843

Jimmy Choo revenue - the Americas 175 102 107

1 unchanged sentence

Jimmy Choo revenue - Asia 209 170 166

Total Jimmy Choo

Total Jimmy Choo revenue 613 418 555

Michael Kors revenue - the Americas 2,627 1,869 2,822

1 unchanged sentence

Michael Kors revenue - Asia 491 448 510

Total Michael Kors

2,924 4,153 4,511

Total Michael Kors revenue 3,953 2,924 4,153

Total revenue - the Americas 3,210 2,172 3,115

11 unchanged sentences

A true visionary with an intuition for how to blend fashion, design and culture, Donatella continues to honor the rich and storied Versace heritage founded in 1978, while constantly evolving and adapting the luxury house to ensure the brand’s continued relevance.

Donatella’s most recent collections for Versace are a testament to her unique design vision and are equal parts bold and refined, evoking both a rock and roll spirit as well as runway glamour.

Donatella’s most recent collections for Versace are a testament to her bold and fearless design vision that celebrate Versace’s Italian heritage and unapologetic glamour.

Versace designs have been worn by the world’s most famous celebrities and most sought-after super models.

Jimmy Choo’s design team is led by Sandra Choi, who has been the Creative Director for the Jimmy Choo brand since its inception in 1996.

Jimmy Choo products are unique, instinctively seductive and chic.

Jimmy Choo products are glamourous and daring.

The Jimmy Choo brand offers classic and timeless luxury products, as well as innovative products that are intended to set and lead fashion trends.

Jimmy Choo’s products have a strong red carpet presence and are often worn by global celebrities.

The Michael Kors brand was launched 40 years ago by Michael Kors, a world-renowned designer, who is responsible for conceptualizing and directing the design of our Michael Kors brand products.

The Michael Kors brand was launched over 40 years ago by Michael Kors, a world-renowned designer, who is responsible for conceptualizing and directing the design of our Michael Kors brand products.

We believe that the Michael Kors brand name has become synonymous with luxurious fashion that is timeless and elegant, expressed through the brand’s sophisticated accessories and ready-to-wear collections.

Each of our Michael Kors brand collections exemplifies the jet-set lifestyle and features high quality designs, materials and craftsmanship.

Michael Kors has received a number of awards, which recognize the contribution he and his team have made to the fashion industry and our Company.

Michael Kors has received a number of awards, which

recognize the contribution he and his team have made to the fashion industry and our Company.

Some of the most widely recognized global trendsetters and celebrities wear our Michael Kors brand collections.

Expertise in the Accessories and Footwear Product Categories.

We have strong group expertise in accessories and footwear.

Expertise in the Accessories Category.

We have strong group expertise in accessories.

The strength of our Michael Kors luxury collection and our accessible luxury MICHAEL Michael Kors line have allowed us to expand our brand awareness and position Michael Kors as one of the leading global luxury brands in the accessories product categories.

Capitalizing on the success of our accessories product category, we continue to further develop the accessories businesses for Jimmy Choo and Versace, bringing our accessories expertise, including our product category knowledge, our merchandising best practices and our substantial group buying power to these brands.

Our goal is to increase Versace’s women’s and men’s accessories and footwear penetration from less than 35% of revenues in Fiscal 2021 to 60% of Versace’s revenues over time, and to increase Jimmy Choo's women's accessories penetration from approximately 20% of revenues in Fiscal 2021 to 50% of Jimmy Choo’s revenues over time.

Our goal is to increase Versace’s women’s and men’s accessories penetration from 20% of revenues in Fiscal 2022 to 50% of Versace’s revenues over time and to increase Jimmy Choo’s women’s accessories penetration from approximately 20% of revenues in Fiscal 2022 to 30% of Jimmy Choo’s revenues over the next few years and to 50% over time.

Exceptional Retail Store Footprint.

1 unchanged sentence

boutiques, outlet and e-commerce.

We operated 210 Versace retail stores as of March 27, 2021, in some of the most fashionable cities and the most sought-after shopping destinations around the world.

We operated 209 Versace retail stores as of April 2, 2022 in some of the most fashionable cities and the most sought-after shopping destinations around the world.

During Fiscal 2022, we completed renovations at approximately 50% of our Versace retail stores to incorporate our new store design and will continue with these renovations in Fiscal 2023.

Versace’s products are distributed worldwide through a global network of highly specialized stores, which average approximately 1,800 square feet.

In addition, we operate Versace e-commerce sites in the U.S., Europe and China (covering 85 countries worldwide).

We operated 227 Jimmy Choo retail stores as of March 27, 2021, in some of the most premier locations worldwide.

During Fiscal 2021, we designed a refresh to our existing retail store format and will begin to roll out this new concept in Fiscal 2022 to both new stores and existing stores.

In addition, we operate Versace e-commerce sites in the United States, certain parts of Europe and China (covering 85 countries worldwide).

We operated 237 Jimmy Choo retail stores as of April 2, 2022, in some of the most premier locations worldwide.

Jimmy Choo retail stores, comprised of full-price stores and outlets, average approximately 1,400 square feet.

In addition, we operate Jimmy Choo e-commerce sites in the U.S., certain parts of Europe, Japan and have a localized site in China.

We operated 820 Michael Kors stores as of March 27, 2021 with four primary retail store formats:

In addition, we operate Jimmy Choo e-commerce sites in the United States, certain parts of Europe, Japan and China.

We operated 825 Michael Kors stores as of April 2, 2022 with four primary retail store formats:

collection stores, lifestyle stores, outlet stores and e-commerce sites.

2 unchanged sentences

We also extend our reach to additional consumer groups through our outlet stores, which average approximately 4,400 square feet in size.

In addition, we also operate Michael Kors e-commerce sites in the U.S., Canada, certain parts of Europe, China, Japan and South Korea.

In addition, we also operate Michael Kors e-commerce sites in North America, China, Japan, South Korea, certain parts of Europe, the Middle East, Africa and Oceania.

World-class Omni and CRM Capabilities.

We have omni-channel capabilities from best-in-class digital platforms to state-of-the-art distribution facilities globally, which we leverage across businesses.

As part of our plan to continue to implement omni-channel capabilities throughout our businesses, we have begun leveraging our world class distribution centers, including in Venlo, Netherlands and Teterboro, New Jersey, to serve multiple brands.

As part of our plan to continue to implement omni-channel capabilities throughout our businesses, we have begun leveraging our distribution centers globally to serve multiple brands.

Strong Relationships with Premier Department Stores .

2 unchanged sentences

Our “shop-in-shops” have specially trained staff, as well as customized fixtures, wall casings, decorative items, flooring and provide department store consumers with a more personalized shopping experience than traditional retail department store configurations.

We have engaged with our wholesale customers on various initiatives and have continued to enter into innovative supply chain partnerships designed to increase the speed at which our luxury fashion products reach the ultimate consumer.

We plan to increase Versace’s and Jimmy Choo’s presence in certain luxury department stores, and for Michael Kors, we have continued to strategically reduce shipments with the intent to drive more full-price sell through in the wholesale channel.

We have engaged with our wholesale customers on various initiatives and have continued to enter into supply chain partnerships designed to increase the speed at which our luxury fashion products reach the ultimate consumer.

We plan to increase Versace’s and Jimmy Choo’s presence in certain luxury department stores, and for Michael Kors, we continue to optimize deliveries with the intent to drive more full-price sell-through in the wholesale channel.

Business Strategy

5 unchanged sentences

We will continue to leverage our group expertise in accessories and footwear to fuel growth across our portfolio of brands, implementing the best practices from our Michael Kors core accessories business to our Versace and Jimmy Choo brands.

We will also continue to prioritize the development of our e-commerce platforms and omni-channel capabilities for our brands, leveraging our broad expertise and capabilities in this area.

With the addition of Versace, we see a number of opportunities to create long-term operational synergies as we combine our global competencies and footprint.

We will also continue to prioritize the development of our e-commerce

platforms and omni-channel capabilities for our brands, leveraging our broad expertise and capabilities in this area.

We see a number of opportunities to create long-term operational synergies as we combine our global competencies and footprint.

These synergies will be primarily focused on opportunities in our supply chain, information systems, back office support and manufacturing.

2 unchanged sentences

Integrate Versace and continue to build on the brand ’ s luxury image.

We plan to grow the Versace business to $2 billion in revenues over time.

There are five strategic initiatives that we will focus on to achieve this goal.

First, we plan to build on Versace’s luxury runway momentum and capitalize on our iconic brand codes.

Second, we will enhance Versace’s powerful and storied marketing.

Third, we plan to increase Versace’s global footprint from 210 stores to 300 retail stores.

Fourth, we will accelerate Versace’s e-commerce development to create a full omni-channel experience.

Finally, we plan to leverage our group’s expertise to expand Versace’s women’s and men’s accessories and footwear businesses from less than 35% of revenues to a target of 60% of the brand's revenues over time, while maintaining Versace’s authoritative presence in women’s and men’s ready-to-wear.

We plan to grow the Versace business to at least $2 billion in revenues over time.

To achieve this goal, we plan to build on Versace’s iconic brand codes - Virtus, La Medusa and La Greca.

Additionally, we will capitalize on Versace’s high brand awareness through bold and engaging consumer communication.

We also plan to expand and elevate Versace’s distribution by accelerating e-commerce and omni-channel capabilities, increasing our global retail footprint to 300 retail stores and continuing to renovate the remainder of the store fleet.

Finally, we plan to leverage our group’s expertise to expand Versace’s women’s and men’s accessories to 50% of the brand’s revenues over time, while maintaining Versace’s authoritative presence in women’s and men’s ready-to-wear.

Continue to execute on our strategies to grow the Jimmy Choo brand.

We plan to continue to implement our growth strategies for Jimmy Choo with a goal of reaching $1 billion in revenues over time.

To achieve this goal, we plan to expand Jimmy Choo’s distribution by accelerating e-commerce and omni-channel developments and increasing our global retail footprint to 300 retail stores in the most fashionable shopping destinations around the world.

We also have a significant opportunity to increase women’s accessories to approximately 50% of Jimmy Choo’s revenue by expanding the breadth of new collections.

At the same time, we plan to continue to grow footwear sales, in part by expanding our fashion active and casual offerings.

Our overarching strategy is rooted in reinforcing the brand’s glamorous DNA through consumer experience and communications, as well as through product – from formal to casual, across accessories and footwear.

Additionally, we plan to expand Jimmy Choo’s distribution by accelerating e-commerce and omni-channel developments and increasing our global retail footprint to 300 retail stores in the most fashionable shopping destinations around the world.

We also have a significant opportunity to increase women’s accessories to approximately 50% of Jimmy Choo’s revenue over time by expanding the breadth of new collections.

At the same time, we plan to continue to grow footwear sales by capitalizing on the success of glamour while expanding our fashion active and casual offerings.

Continue to leverage the strength of our Michael Kors brand, which remains the foundation for our fashion luxury group.

Our goal is to position Michael Kors to become a stronger and more profitable brand.

Our focus on product innovation has greatly improved newness across all product categories for our Michael Kors brand.

In accessories, we continue to introduce new product groups, as well as unique design, style and craftsmanship.

In footwear, we plan to grow our fashion active product offerings and continue fashion innovation.

In women’s apparel, our KORS style head-to-toe dressing remains our key focus, along with our strategic dress and outerwear categories.

We will continue to increase product offerings within menswear, including our new men's footwear collection.

We also plan to continue to focus on brand engagement, capitalizing on Michael Kors’ leading red carpet and social media presence.

Our goal is to continue to elevate Michael Kors to become a stronger and more profitable brand.

We are capitalizing on high brand awareness and consumer engagement by embracing Michael Kors jet set heritage through a modern lens.

Expanding our highly recognizable Signature pattern across all product categories remains a core growth strategy and our goal is to increase penetration to approximately 50% of our overall product assortments.

In accessories, we continue to refresh and celebrate brand icons while evolving Signature styles with newness.

Additionally, we plan to grow our men’s business by leading with accessories and maximizing our Signature brand codes.

Our strategy to enhance customer experience by expanding our omni-channel capabilities also remains a key priority.

Finally, we plan to double Michael Kors revenue in Asia over time.

Execute on our corporate social responsibility strategy.

Our corporate social responsibility strategy is divided into three areas:

(i) Our World :

focused on actions across our operations and supply chain, meant to significantly reduce our environmental impact;

(ii) Our Community :

fostering a supportive, healthy, diverse and inclusive workplace for all of our employees;

and (iii) Our Philanthropy :

connecting the talents, energy and success of each of our brands to those in need around the world.

We have set targets to be 100% carbon neutral in our direct operations and to source 100% of energy for our owned and operated facilities from renewable sources by 2025.

Building on our net zero carbon emissions commitment, and in an effort to deliver on the goals of the Paris Agreement, we will also set emissions reduction targets across our operations and supply chain with the Science Based Targets initiative by the end of calendar 2022.

We have additionally committed to, and have already been working towards, a number of important initiatives, including:

• All plastic in packaging to be recyclable, compostable, recycled or reusable by 2025

• 100% of point-of-sale packaging materials to be recyclable or sustainably sourced by 2025

• Partnering with key suppliers to reduce water use

• Traceability of our supply chain

• Sourcing at least 95% of our leather from certified tanneries by 2025

• Furthering diversity and inclusion within the organization, including through our Global D&I Council

• Supply chain empowerment programs focused on human rights and fair wages to be implemented in line with the United Nations Framework for Corporate Action on Workplace Women’s Health and Empowerment by 2025

We believe that the success of our company is directly linked to the sustainability of the world around us.

In April 2020, we shared Capri's group-wide, global corporate social responsibility (CSR) strategy, set around the environmental and social sustainability opportunities and challenges most important to our company and its stakeholders.

Within each of our strategy’s three foundational pillars – Our World, Our Community, Our Philanthropy – are key CSR focus areas that guide our work in support of the United Nations Sustainable Development Goals (SDGs).

Over the past year, we continued to improve the way we work in order to better the world in which we live.

Our key sustainability goals, our plans for getting there, and an update on the progress we have made can be found in our annual CSR report located at www.capriholdings.com/responsibility.

The content on this website and the content in our CSR reports are not incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC.

Collections and Products

10 unchanged sentences

Total revenue $ 5,654 $ 4,060 $ 5,551

Versace is one of the leading international fashion design houses and a symbol of Italian luxury worldwide, which has developed its expertise in haute couture to include ready-to-wear, accessories, footwear and home furnishings.

Versace is one of the leading international fashion design houses, representing the brand’s creative vision through a wide range of products.

From haute-couture, to ready-to-wear, footwear, accessories and home decor, Versace delivers a unique lifestyle that welcomes customers in its elegant yet glamorous universe.

Generally, Versace’s haute couture retails up to $250,000, ready-to-wear retails from $220 to $17,000, accessories retail from $55 to $3,900 and footwear retails from $300 to $4,100.

Certain product categories, such as Versace Jeans Couture, eyewear, fragrances, jewelry, watches and home furnishings, are produced under product licensing agreements.

Swinger SA is the exclusive licensee for Versace Jeans Couture, Luxottica is the exclusive licensee for Versace eyewear, Euroitalia is the exclusive licensee for Versace fragrances, Samra International is the exclusive licensee for Versace jewelry, Vertime is the exclusive licensee for Versace watches and Poltrona Frau is the exclusive licensee for Versace home furnishings.

Generally, Versace Jeans Couture retail from $50 to $2,000, Versace eyewear retails from $200 to $500, Versace fragrances retail from $70 to $400, Versace jewelry retails from $500 to $7,500, Versace watches retail from $500 to $3,500 and Versace home furnishings, which includes a variety of products, generally retails from $700 to $52,000.

Jimmy Choo is a leading global luxury accessories brand and offers a distinctive, glamorous and fashion-forward product range, whose core product offerings are women’s luxury shoes, complemented by accessories, including handbags, small leather goods, scarves and belts, as well as a men’s luxury shoes and accessories business.

Swinger SA is the exclusive licensee for Versace Jeans Couture, Luxottica is the exclusive licensee for Versace eyewear, EuroItalia is the exclusive licensee for Versace fragrances, Vertime is the exclusive licensee for Versace watches and Poltrona Frau is the exclusive licensee for Versace home furnishings.

Generally, Versace Jeans Couture retail from $45 to $2,000, Versace eyewear retails from $240 to $500, Versace fragrances retail from $50 to $400, Versace watches retail from $480 to $3,500 and Versace home furnishings, which include a variety of products, generally retails from $990 to $100,000.

Jimmy Choo is a leading global luxury accessories brand and offers a distinctive, glamorous and fashion-forward product range, whose core product offerings are women’s luxury shoes, complemented by accessories, including handbags, small leather goods, jewelry, scarves and belts, as well as a men’s luxury shoes and accessories business.

Generally, Jimmy Choo women’s and men’s luxury shoes retail from $400 to $5,500 and accessories retail from $200 to $4,500.

Certain product categories, such as Jimmy Choo fragrances and eyewear, are produced under product licensing agreements.

Certain product categories, such as Jimmy Choo fragrance and eyewear, are produced under product licensing agreements.

Interparfums SA is the exclusive licensee for Jimmy Choo fragrances and Safilo SpA is the exclusive licensee for Jimmy Choo eyewear.

13 unchanged sentences

Luxottica is our exclusive licensee for Michael Kors distinctive eyewear inspired by our collections.

Estée Lauder is Michael Kors exclusive women’s and men’s fragrance licensee.

Estee Lauder has historically been Michael Kors exclusive women’s and men’s fragrance licensee.

The Company is transitioning its fragrance business to EuroItalia during Fiscal 2023.

Generally, Michael Kors fashion watches retail from $200 to $600, Michael Kors ACCESS smartwatches retail from $250 to $450, Michael Kors jewelry retails from $50 to $500, Michael Kors eyewear retails from $100 to $350 and Michael Kors fragrance and related products generally retail from $30 to $150.

7 unchanged sentences

Jimmy Choo is also the leading brand in editorial coverage for women’s luxury shoes globally.

We believe our renowned brand founders, as well as our high-profile brand ambassadors and well-known social media influencers across our marketing programs helps expand brand awareness and drive cultural relevance.

We believe our renowned brand founders, as well as our high-profile brand ambassadors and well-known social media influencers across our marketing programs help expand brand awareness and drive cultural relevance.

In Fiscal 2022, we recognized approximately $329 million in advertising and marketing expenses globally.

2 unchanged sentences

We are continuously improving the functionalities and features on our e-commerce sites to create innovative ways to keep our brands at the forefront of consumers’ minds by offering a broad selection of products, including accessories, apparel and footwear.

Since e-commerce growth is critical to our overall growth strategy, we plan to accelerate Versace’s and Jimmy Choo’s e-commerce and omni-channel development, while continuing to work with select e-commerce partners.

Since e-commerce growth is critical to our overall growth strategy, we plan to accelerate Versace’s and Jimmy Choo’s e-commerce and omni-channel development and we are also in the process of re-platforming our brands’ e-commerce sites to expand our global capabilities.

“Risk Factors” — “If we are unable to effectively execute our e-commerce business and provide a reliable digital experience for our customers, our reputation and operating results may be harmed.”

Manufacturing and Sourcing

4 unchanged sentences

The vast majority of Versace’s production is located in Italy.

The remaining production occurs elsewhere in EMEA and a small portion is produced in Asia.

Jimmy Choo products are manufactured by independent third-party manufacturing contractors and our recently acquired Italian atelier and shoe manufacturer Alberto Gozzi S.r.L ("Gozzi").

The remaining production occurs elsewhere in Europe and a small portion is produced in Asia or North Africa.

Jimmy Choo products are manufactured by independent third-party manufacturing contractors and our Italian atelier and shoe manufacturer.

Most of Jimmy Choo’s products are produced by specialists in Italy, supported by other factories across Europe, with a small portion produced in Asia.

Jimmy Choo has a product development facility in Florence.

Jimmy Choo typically purchases finished goods and does not purchase raw materials, except for product development purposes.

In addition to purchasing finished goods, Jimmy Choo also purchases raw materials for both product development and manufacturing purposes.

Michael Kors contracts for the purchase of finished goods principally with independent third-party manufacturing contractors that are generally responsible for the entire manufacturing process, including the purchase of piece goods and trim.

Product manufacturing for the Michael Kors brand is allocated among third-party agents based on their capabilities, the availability of production capacity, pricing and delivery.

Michael Kors also has relationships with various agents who source finished goods with numerous manufacturing contractors on its behalf.

This multi-supplier strategy provides specialist skills, scalability, flexibility and speed to market, as well as diversifies risk.

In Fiscal 2021 and Fiscal 2020, one third-party agent sourced approximately 26% of Michael Kors finished goods purchases, based on unit volume.

Product manufacturing for the Michael Kors brand is allocated among third-party manufacturing contractors based on their capabilities, the availability of production capacity, pricing and delivery.

For certain product categories, Michael Kors also has relationships with various agents who source finished goods with numerous manufacturing contractors on its behalf.

This multi-supplier strategy provides specialized skills, scalability, flexibility and speed to market, as well as diversifies risk.

In Fiscal 2022 and Fiscal 2021, one third-party buying agent sourced approximately 24% of Michael Kors finished goods purchases, based on unit volume.

Michael Kors’ largest manufacturing contractor, who produces its products in Asia and who Michael Kors has worked with for approximately 20 years, accounted for the production of approximately 17% of its finished products, based on dollar volume in Fiscal 2022.

Nearly all of our Michael Kors products were produced in Asia in Fiscal 2022.

The manufacturing contractors and agents for our brands operate under the close supervision of our global manufacturing divisions and buying agents located in North America, Europe and Asia.

The manufacturing contractors for our brands operate under the close supervision of our global manufacturing divisions and buying agents located in North America, Europe and Asia.

All products are produced according to our specifications.

4 unchanged sentences

Our future manufacturing and sourcing strategy includes purchasing luxury manufacturing facilities in Italy to support all of our brands, pursuing manufacturing synergies across brands and securing capacity and improving our expertise in development and delivery.

While the fashion design process will remain independently managed by each of our brands, we believe that creating a manufacturing center of excellence, which would combine all functions that support our design teams, from leather and hardware purchases to investment in machinery and systems, will create synergies and efficiencies for our global fashion luxury group.

While the fashion design process will remain independently managed by each of our brands, we believe that in-sourcing luxury manufacturing capacity will create synergies and support expansion for our global fashion luxury group.

Versace owns a central warehouse in Novara, Italy, managed by a third party, which acts as a global hub for Versace’s primary operations.

Versace also has a leased warehouse near Novara operated by the same third party, which serves as a distribution point for e-commerce operations and reverse logistics.

From these warehouses, products are shipped to regional warehouses that are operated by third parties.

The main regional warehouses are located in New Jersey, Hong Kong, Beijing and Tokyo, and support the Versace retail and e-commerce businesses.

The e-commerce distribution for the other regions is conducted through third party providers in Columbus, Ohio and Beijing, China.

Versace also has a leased warehouse near Novara operated by the same third party, which serves as a distribution point for other Versace lines.

From these warehouses, products are shipped to regional warehouses that are operated by third parties in New Jersey, Hong Kong, Mainland China and Japan, and supports the Versace retail and e-commerce businesses.

E-commerce distribution for the United States market is conducted through third party providers in New Jersey.

Versace’s wholesale business is mainly serviced from three central warehouses located in Italy, the United States and Japan.

Jimmy Choo’s primary distribution facility is our Company-owned and operated distribution facility in the Netherlands.

From there, products are shipped to regional warehouses in the United Kingdom, the United States, Canada, China, Hong Kong, South Korea, Japan and United Arab Emirates, largely supporting the Jimmy Choo retail and e-commerce businesses.

From there, products are shipped to regional warehouses in the United States, Canada, Mainland China, Hong Kong, South Korea, Japan and United Arab Emirates, largely supporting the Jimmy Choo retail and e-commerce businesses.

Shipments to wholesale customers globally are made from the Netherlands and the United States, with some further local fulfillment.

4 unchanged sentences

Our primary Michael Kors distribution facility in Europe is our Company-owned and operated distribution facility in the Netherlands, which supports our European operations for our Michael Kors brand, including our European e-commerce sites.

We also have a regional Michael Kors distribution center in Canada, which is leased, as well as regional Michael Kors distribution centers in New Jersey, China, Hong Kong, Japan, South Korea and Taiwan, which are operated by third-parties.

We also have a regional Michael Kors distribution center in Canada, which is leased, as well as regional Michael Kors distribution centers in New Jersey, Mainland China, Hong Kong, Japan, South Korea and Taiwan, which are operated by third-parties.

Intellectual Property

7 unchanged sentences

Each of our three brands currently operates using their legacy systems for finance and accounting, supply chain, inventory control, point-of-sale transactions, store replenishment and other functions.

Our long-term strategy includes consolidating certain systems across our brands over time to create operational efficiencies, as well as to achieve a common platform across the Company.

During Fiscal 2020, we embarked on a multi-year ERP implementation, to conform the majority of our processes onto one global system that would support finance and accounting, procurement, inventory control and store replenishment.

The implementation of the ERP required a significant investment in human and financial resources.

Our long-term strategy includes consolidating certain systems across our brands over time to create operational efficiencies.

During Fiscal 2020, we embarked on a multi-year ERP implementation to conform various processes onto one global system that would support certain finance, accounting and operational functions.

The implementation of the ERP requires a significant investment in human and financial resources.

As a result of COVID-19 and our need to significantly reduce our capital expenditures in order to protect our liquidity and cash flows, we temporarily suspended our ERP project.

The project has resumed as of the fourth quarter of Fiscal 2021.

Certain phases of the project have resumed as of the fourth quarter of Fiscal 2021 and a portion of the system will go live in Fiscal 2023.

“Risk Factors” — “A material delay or disruption in our information technology systems or e-commerce websites or our failure or inability to upgrade our information technology systems precisely and efficiently could have a material adverse effect on our business, results of operations and financial condition.”

2 unchanged sentences

Through our benefits packages, learning and development programs, focus on diversity and inclusion, wellness programs and supply chain empowerment initiatives, we continue to make significant investments in our Capri community.

Governance and Oversight.

Our Board of Directors has delegated oversight of matters relating to human capital management, including compensation, learning and development and diversity and inclusion to our Compensation and Talent Committee.

Our Compensation and Talent Committee receives regular updates on our talent development strategies and other applicable areas of human capital management.

Employee Profile.

At the end of Fiscal 2022, 2021 and 2020, we had approximately 14,600, 13,800 and 17,000 total employees, respectively.

As of March 27, 2021, we had approximately 9,300 full-time employees and approximately 4,500 part-time employees.

Approximately 10,400 of our employees were engaged in retail selling and administrative positions and our remaining employees were engaged in other aspects of our business as of March 27, 2021.

As of March 27, 2021, we have approximately 2,400 employees covered by collective bargaining agreements in certain European countries.

As of April 2, 2022, we had approximately 9,700 full-time employees and approximately 4,900 part-time employees.

Approximately 11,000 of our employees were engaged in retail selling and administrative positions and our remaining employees were engaged in other aspects of our business as of April 2, 2022.

As of April 2, 2022, we have approximately 2,600 employees covered by collective bargaining agreements in certain European countries.

We consider our relations with both our union and non-union employees to be good.

1 unchanged sentence

We maintain comprehensive benefits and compensation packages to attract, retain and recognize our employees.

Our health and welfare benefit program is designed to provide a wide range of benefits to meet the health care, financial and work/life needs of eligible employees.

Benefits include, among others, medical, dental and vision plans, life insurance, short and long-term disability coverage, retirement plans (with matching contributions where applicable), paid parental leave, gender reassignment coverage and fertility support benefits in the United States, and a corporate wellness program.

We also offer employees paid time off, including to volunteer with select charitable organization, to get the COVID-19 vaccine and to quarantine in accordance with government or health organization recommended quarantine guidelines (in addition to any COVID-19 mandated paid sick leave at the federal, state, or local level).

Our health and welfare benefit program is designed to provide a wide range of benefits to meet the health care, financial, work/life and mental wellbeing needs of eligible employees.

Benefits include, among others, medical, dental and vision plans, life insurance, short and long-term disability coverage, retirement plans (with matching contributions where applicable), paid parental leave for all parents, gender reassignment coverage and fertility support benefits in the United States, and a wellness program focused on mental wellbeing, including several digital therapeutic programs to assist with therapy, anxiety and worry and sleep.

We also offer employees paid time off, including to volunteer with select charitable organizations, to get the COVID-19 vaccine and to quarantine in accordance with government or health organization recommended quarantine guidelines (in addition to any COVID-19 mandated paid sick leave at the federal, state, or local level).

Employees are also entitled to discounts on our merchandise.

1 unchanged sentence

We honor our employees through our dedication to development.

A majority of our executives have participated in an executive leadership development program offered in partnership with the Center for Creative Leadership, and more than 800 of our people managers have participated in leadership development programs.

In 2022, we launched a new leadership development program for our mid-level management centered around the facets of Emotional Intelligence, to help our employees succeed in our changed and everchanging global environment.

Additionally, we have implemented a new Learning Management System (LMS), which has allowed us to extend access to development resources to an even broader employee population.

Dating back to the program’s inception in 2015, a majority of our senior leaders have participated in an executive leadership development program offered in partnership with the Center for Creative Leadership, and more than 800 of our people managers have participated in leadership development programs.

These programs are aimed at equipping our leaders with strategies to effectively navigate and drive change, and to build and strengthen cross-functional relationships.

All full-time employees also participate in a formal performance review process annually, and receive annual trainings on important topics including compliance, ethics and integrity, respect in the workplace and information security as a part of our efforts to maintain a safe, positive and inclusive work environment.

In Fiscal 2021, we also implemented diversity and inclusion trainings focused on unconscious bias, microaggressions and workplace diversity, sensitivity and inclusion.

To build on the diversity and inclusion trainings that we implemented in Fiscal 2021 to address unconscious bias, microaggressions and workplace diversity, sensitivity, and inclusion, in Fiscal 2022 we added Diversity & Inclusion training workshops for our senior leaders to attend live with peers across all functions of the organization.

Diversity and Inclusion.

Diversity and inclusion are embedded in our DNA.

We foster an inclusive environment where employees and customers of diverse backgrounds are respected, valued and celebrated.

We foster an inclusive environment where employees, vendors and customers of diverse backgrounds are respected, valued and celebrated.

We are proud of our commitment to diversity, equality and inclusion, and will continue to advance these principles through meaningful short and long term actions across the globe.

We recently appointed a Head of Diversity and Inclusion and established a Global Diversity and Inclusion Council, comprised of leaders across our brands focused on bringing Capri’s diversity and inclusion strategy to life.

Our commitment to diversity and inclusion is supported by three pillars:

Capri Culture - Our commitment to diversity extends beyond representation.

We are building an inclusive space where all employees have the opportunity to realize their full potential and excel, while contributing to our success in a meaningful way.

We aim to build an inclusive space where all employees have the opportunity to realize their full potential and excel, while contributing to our success in a meaningful way.

Capri Talent - Differences in ideas and experiences allow our Company to thrive.

2 unchanged sentences

Our responsibility to promote equality is not just to those who work with us, but to our industry, the customers we serve and the communities around us.

In Fiscal 2021, we formed The Capri Holdings Foundation for the Advancement of Diversity in Fashion.

The Company has pledged $20 million to further the foundation’s mission of supporting diversity, inclusion and equality throughout the fashion industry.

Health and Safety .

Everyone working on behalf of our Company is entitled to work in a safe environment.

In Fiscal 2022, we continued our commitment to fostering a diverse and inclusive workplace.

We launched our Ambassador Program with 43 active members.

Our Diversity and Inclusion (“D&I”) ambassadors act as additional D&I champions that will help communicate, promote, and cascade D&I goals and initiatives to our Capri Community.

In addition, we submitted data to the Human Rights Campaign’s Corporate Equality Index, a United States benchmarking tool measuring policies, practices and benefits pertinent to LGBTQ+ employees, and scored an 90 out of 100 earning a Best Place to Work for LGBTQ+ Equality designation.

We also signed the Black In Fashion Council’s pledge to raise the percentage of Black employees in executive- and junior-level positions within our organization.

Capri is also proud to partner with a wide array of organizations and pledges in furtherance of driving equality, including:

The CEO Action for Diversity & Inclusion, Cristo Rey, Open To All, and Pride in Fashion.

Finally, Capri launched its first employee resource group focused on the LGBTQ+ community within Capri, Pride@Capri.

Through The Capri Holdings Foundation for the Advancement in Diversity in Fashion, we are driving diversity, inclusion and equality throughout the fashion industry by working collaboratively with colleges and high schools to create meaningful opportunities in fashion for underrepresented communities.

In Fiscal 2022, the Foundation announced an expansive new scholarship program in partnership with the Fashion Institute of Technology (FIT), Howard University, PENSOLE Academy and Central Saint Martins – University of the Arts London.

Over the next four years, the Foundation will fund scholarships for nearly 100 students from historically underrepresented communities pursuing degrees in fashion and merchandising across these four educational institutions.

Well-being and Safety .

Everyone working on behalf of our Company is entitled to work in a safe environment while maintaining their health and well-being.

Capri’s global safe workplace program, which includes employee traveler and emergency response alerts, raises awareness and provides safety resources tailored for workers in different work environments – from our distribution centers to our retail stores.

1 unchanged sentence

We enhanced health and safety protocols at our retail stores, distribution centers and corporate offices, adhered to social distancing measures and provided contact-free shopping opportunities when safe to do so.

As the landscape of this pandemic evolves, we continue to adapt and enforce safety protocols at our retail stores, distribution centers and corporate offices.

The COVID-19 pandemic also changed the way we work with many of our corporate employees working remotely

during the pandemic.

While we have welcomed employees back to work, we continue to explore flexible work options and have implemented a hybrid working environment.

Beyond the threat COVID-19 has posed to physical health and the way we work, we also recognize the significant impact the pandemic has had on our employees’ overall well-being.

We have significantly expanded our Thrive global wellness program, designed to inspire employees to improve their physical, emotional, and financial well-being.

Supply Chain Empowerment.

2 unchanged sentences

Through our Code of Conduct for Business Partners and Factory Social Compliance Program, we partner with our suppliers on important human rights, health and safety, environmental and compliance issues.

Capri is also signatory to the UN Women’s Empowerment Principles, and partnered with the Fashion Makes Change campaign to support the empowerment and education of women in the fashion supply chain.

We face intense competition in the product lines and markets in which we operate from both existing and new competitors.

10 unchanged sentences

In addition, countries to which we ship our products may impose safeguard quotas to limit the quantity of products that may be imported.

We rely on free trade agreements and other supply chain initiatives in order to maximize efficiencies and cost savings relating to product importation.

For example, we have historically received benefits from duty-free imports on certain products from certain countries pursuant to the U.S.

We utilize free trade agreements and other supply chain initiatives in order to maximize efficiencies and cost savings relating to product importation.

For example, we have historically received benefits from duty-free imports on certain products from certain countries pursuant to the United States.

Generalized System of Preferences (“GSP”) program.

The GSP program expired on December 31, 2020.

If the GSP program is not renewed or otherwise made retroactive, we would experience significant additional duties and our gross margin could be negatively impacted.

Additionally, we are subject to government regulations relating to importation activities, including related to U.S.

If the GSP program is not renewed or otherwise made retroactive, we will continue to experience significant additional duties and our gross margin will continue to be negatively impacted.

Additionally, we are subject to government regulations relating to importation activities, including related to United States.

Customs and Border Protection (“CBP”) withhold release orders.

The imposition of taxes, duties and quotas, the withdrawal from or material modification to trade agreements and/or if CBP detains shipments of our goods pursuant to a withhold release order could have a material adverse effect on our business, results of operations and financial condition.

If additional tariffs or trade restrictions are implemented by the U.S.

or other countries, the cost of our products could increase which could adversely affect our results of operations and financial condition.

If additional tariffs or trade restrictions are implemented by the United States or other countries, the cost of our products could increase which could adversely affect our results of operations and financial condition.

Additionally, we are subject to government regulations relating to product labeling, testing and safety.

We maintain a global customs and product compliance organization to help manage our import and related regulatory activity.

Corporate Social Responsibility

As a global fashion luxury group, we recognize the impact that our operations can have on the environment and the social well-being of others.

We have developed a corporate social responsibility strategy in order to drive positive change within our organization and our world.

Our Corporate Social Responsibility strategy outlines our global strategy to achieve significant, measurable goals across a range of important environmental and social sustainability issues, including material sourcing, greenhouse gas emissions, water use, waste reduction, diversity and inclusion and philanthropic giving.

See “Business Strategy” — “Execute on our corporate social responsibility strategy.”

Our Company’s corporate social responsibility strategy is divided into three areas:

• Our World – focused on actions across our operations and supply chain, meant to significantly reduce our environmental impact.

• Our Community – fostering a supportive, healthy, diverse and inclusive workplace for all of our employees.

• Our Philanthropy – connecting the talents, energy and success of each of our brands to those in need around the world.

A copy of our Corporate Social Responsibility report is available on our website at www.capriholdings.com/csr .

Corporate Social Responsibility (“CSR”)

In April 2020, we shared Capri's group-wide, global CSR strategy, set around the environmental and social sustainability opportunities and challenges most important to our company and its stakeholders relating to environmental sustainability and climate change, human rights, diversity and inclusion, and philanthropy.

Our CSR strategy is divided into three foundational pillars:

• Our World – We believe that the success of our Company is directly linked to the sustainability of the world around us.

Our brands strive to create the highest quality luxury products with longevity and sustainability in

We endeavor to operate responsibly in order to lower our impact on the planet.

• Our Community – We believe we have a responsibility to those who work with us.

Our Company strives to create inclusive workplaces where all of our employees are empowered and respected.

We are committed to creating meaningful opportunities for our diverse Capri community to grow.

• Our Philanthropy – Giving back is embedded in Capri’s culture.

We are dedicated to supporting and driving positive change in the communities where we live and work.

Within each of our three foundational pillars are key CSR focus areas that guide our work in support of the United Nations Sustainable Development Goals (SDGs).

Our sustainability governance model includes a multi-level structure to ensure our Board of Directors, executive management team and business leaders across our brands are aligned on the most important ESG risks and opportunities for Capri.

The Board has delegated oversight of ESG activities to the Governance, Nominating and CSR Committee.

On at least an annual basis, our sustainability goals and action plans are presented to the Governance, Nominating and CSR Committee for review and approval, along with CSR progress updates which are presented quarterly.

Additional information can be found at www.capriholdings.com/responsibility.

The content on this website and the content in our CSR reports are not incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC.

Available Information

Our investor website can be accessed at www.capriholdings.com .

The content of our website is not incorporated by reference into this Annual Report on Form 10-K.

Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with or furnished to the SEC pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended, are available free of charge on our website under the caption “Financials” and then “SEC Filings” promptly after we electronically file such materials with, or furnish such materials to, the SEC.

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business