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Segment Information | 12 Months Ended
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Apr. 01, 2023
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company operates its business through three operating segments — Versace, Jimmy Choo and Michael Kors, which are based on its business activities and organization. The reportable segments are segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by the Company’s chief operating decision maker (“CODM”) in deciding how to allocate resources, as well as in assessing performance. The primary key performance indicators are revenue and operating income for each segment. The Company’s reportable segments represent components of the business that offer similar merchandise, customer experience and sales/marketing strategies. The Company’s three reportable segments are as follows: •Versace — segment includes revenue generated through the sale of Versace luxury ready-to-wear, accessories and footwear through directly operated Versace boutiques throughout the Americas, certain parts of EMEA and certain parts of Asia, as well as through Versace outlet stores and e-commerce sites. In addition, revenue is generated through wholesale sales to distribution partners (including geographic licensing arrangements that allow third-parties to use the Versace trademarks in connection with retail and/or wholesale sales of Versace branded products in specific geographic regions), multi-brand department stores and specialty stores worldwide, as well as through product license agreements in connection with the manufacturing and sale of jeans, fragrances, watches, jewelry, eyewear and home furnishings. •Jimmy Choo — segment includes revenue generated through the sale of Jimmy Choo luxury footwear, handbags and small leather goods through directly operated Jimmy Choo retail and outlet stores throughout the Americas, certain parts of EMEA and certain parts of Asia, through its e-commerce sites, as well as through wholesale sales of luxury goods to distribution partners (including geographic licensing arrangements that allow third-parties to use the Jimmy Choo trademarks in connection with retail and/or wholesale sales of Jimmy Choo branded products in specific geographic regions), multi-brand department stores and specialty stores worldwide. In addition, revenue is generated through product licensing agreements, which allow third-parties to use the Jimmy Choo brand name and trademarks in connection with the manufacturing and sale of fragrances and eyewear. •Michael Kors — segment includes revenue generated through the sale of Michael Kors products through four primary Michael Kors retail store formats: “Collection” stores, “Lifestyle” stores (including concessions), outlet stores and e-commerce sites, through which the Company sells Michael Kors products, as well as licensed products bearing the Michael Kors name, directly to consumers throughout the Americas, certain parts of EMEA and certain parts of Asia. The Company also sells Michael Kors products directly to department stores, primarily located across the Americas and Europe, to specialty stores and travel retail shops, and to its geographic licensees. In addition, revenue is generated through product and geographic licensing arrangements, which allow third-parties to use the Michael Kors brand name and trademarks in connection with the manufacturing and sale of products, including watches, jewelry, fragrances and eyewear. In addition to these reportable segments, the Company has certain corporate costs that are not directly attributable to its brands and, therefore, are not allocated to its segments. Such costs primarily include certain administrative, corporate occupancy, shared service and information systems expenses, including enterprise resource planning system implementation costs and Capri transformation program costs. In addition, certain other costs are not allocated to segments, including restructuring and other charges, impairment costs, COVID-19 related charges and the war in Ukraine. The segment structure is consistent with how the Company’s CODM 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. The following table presents the key performance information of the Company’s reportable segments (in millions):
|  | Fiscal Years Ended
|  | April 1, 2023 |  | April 2, 2022 |  | March 27, 2021
Total revenue: |  |  |  |  |
| Versace | $ | 1,106 |  |  | $ | 1,088 |  |  | $ | 718 |
| Jimmy Choo | 633 |  |  | 613 |  |  | 418 |
| Michael Kors | 3,880 |  |  | 3,953 |  |  | 2,924 |
Total revenue | $ | 5,619 |  |  | $ | 5,654 |  |  | $ | 4,060 |
Income (loss) from operations: |  |  |  |  |
| Versace | $ | 152 |  |  | $ | 185 |  |  | $ | 21 |
| Jimmy Choo | 38 |  |  | 13 |  |  | (55) |
| Michael Kors | 868 |  |  | 1,005 |  |  | 595 |
Total segment income from operations | 1,058 |  |  | 1,203 |  |  | 561 |
Less: | Corporate expenses | (233) |  |  | (190) |  |  | (152) |
| Impairment of assets (1) | (142) |  |  | (73) |  |  | (316) |
| COVID-19 related charges (2) | 9 |  |  | 14 |  |  | (42) |
| Impact of war in Ukraine (3) | 3 |  |  | (9) |  |  | — |
| Restructuring and other charges | (16) |  |  | (42) |  |  | (32) |
Total income from operations | $ | 679 |  |  | $ | 903 |  |  | $ | 19 |
(1)Impairment of assets during Fiscal 2023 include $110 million, $30 million and $2 million of impairment charges related to the Jimmy Choo, Michael Kors and Versace reportable segments, respectively. Impairment of assets during Fiscal 2022 includes $50 million, $19 million and $4 million of impairment charges related to the Michael Kors, Versace and Jimmy Choo reportable segments, respectively. Impairment of assets during Fiscal 2021 includes $191 million, $91 million and $34 million of impairment charges related to the Jimmy Choo, Michael Kors and Versace reportable segments, respectively. (2)COVID-19 related charges during Fiscal 2023, primarily include net inventory credits of $9 million. COVID-19 related charges during Fiscal 2022, primarily include net inventory credits and severance expense of $16 million and $2 million, respectively. COVID-19 related charges during Fiscal 2021, primarily include net inventory reserves and severance expense of $10 million and $24 million, respectively. Inventory related costs are recorded within costs of goods sold and severance expense and credit losses are recorded within selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). (3)These charges primarily relate to incremental credit losses and inventory reserves which are a direct impact of the war in Ukraine. Credit losses are recorded within selling, general and administrative expenses and inventory related costs are recorded within costs of goods sold in the consolidated statements of operations and comprehensive income (loss). Depreciation and amortization expense for each segment are as follows (in millions):
| Fiscal Years Ended
| April 1, 2023 |  | April 2, 2022 |  | March 27, 2021
Depreciation and amortization: |  |  |  |  |
Versace | $ | 51 |  |  | $ | 52 |  |  | $ | 54 |
Jimmy Choo | 29 |  |  | 31 |  |  | 31 |
Michael Kors | 95 |  |  | 110 |  |  | 127 |
Corporate | 4 |  |  | — |  |  | — |
Total depreciation and amortization | $ | 179 |  |  | $ | 193 |  |  | $ | 212 |
See Note 8 for the Company’s goodwill by reportable segment. Total revenue (based on country of origin) and long-lived assets by geographic location are as follows (in millions):
| Fiscal Years Ended
| April 1, 2023 |  | April 2, 2022 |  | March 27, 2021
Revenue: |  |  |  |  |
The Americas (1) | $ | 3,220 |  |  | $ | 3,210 |  |  | $ | 2,172 |
EMEA | 1,542 |  |  | 1,489 |  |  | 1,029 |
Asia | 857 |  |  | 955 |  |  | 859 |
Total revenue | $ | 5,619 |  |  | $ | 5,654 |  |  | $ | 4,060 |
| As of
| April 1, 2023 |  | April 2, 2022 |  | March 27, 2021
Long-lived assets: |  |  |  |  |
The Americas (1) | $ | 882 |  |  | $ | 908 |  |  | $ | 1,001 |
EMEA | 2,129 |  |  | 2,156 |  |  | 2,384 |
Asia | 599 |  |  | 617 |  |  | 596 |
Total long-lived assets | $ | 3,610 |  |  | $ | 3,681 |  |  | $ | 3,981 |
(1)Net revenues earned in the United States during Fiscal 2023, Fiscal 2022 and Fiscal 2021 were $2.951 billion, $2.989 billion and $2.016 billion, respectively. Long-lived assets located in the United States as of April 1, 2023, April 2, 2022 and March 27, 2021 were $826 million, $858 million and $942 million, respectively. As of April 1, 2023, the Company’s total long-lived assets on its consolidated balance sheet were $3.610 billion, of which, $1.691 billion related to Versace, $1.333 billion related to Michael Kors and $586 million related to Jimmy Choo. Total revenue by major product category are as follows (in millions):
| Fiscal Years Ended
| April 1, 2023 |  | % of Total |  | April 2, 2022 |  | % of Total |  | March 27, 2021 |  | % of Total
Accessories | $ | 2,826 |  |  | 50.3 | % |  | $ | 2,901 |  |  | 51.3 | % |  | $ | 2,158 |  |  | 53.2 | %
Footwear | 1,217 |  |  | 21.7 | % |  | 1,208 |  |  | 21.4 | % |  | 796 |  |  | 19.6 | %
Apparel | 1,107 |  |  | 19.7 | % |  | 1,027 |  |  | 18.2 | % |  | 720 |  |  | 17.7 | %
Licensed product | 222 |  |  | 4.0 | % |  | 241 |  |  | 4.3 | % |  | 185 |  |  | 4.6 | %
Licensing revenue | 211 |  |  | 3.8 | % |  | 212 |  |  | 3.7 | % |  | 155 |  |  | 3.8 | %
Other | 36 |  |  | 0.5 | % |  | 65 |  |  | 1.1 | % |  | 46 |  |  | 1.1 | %
Total revenue | $ | 5,619 |  |  |  |  | $ | 5,654 |  |  |  |  | $ | 4,060 |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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