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Taxes
 12 Months Ended
Mar. 29, 2025
Income Tax Disclosure [Abstract]  
Taxes Taxes
The Company is a United Kingdom tax resident and is incorporated in the British Virgin Islands. Certain Capri subsidiaries are subject to taxation in the United States while various other Capri subsidiaries are subject to taxation in foreign jurisdictions and are aggregated in the “Non-United States” caption below.
(Loss) income before provision (benefit) for income taxes consisted of the following (in millions):
 Fiscal Years Ended
 March 29,
2025		March 30,
2024		April 1,
2023
United States $(149)$(15)$85 
Non-United States (578)(268)563 
Total (loss) income before provision (benefit) for income taxes$(727)$(283)$648 
The provision (benefit) for income taxes consisted of the following (in millions):
 Fiscal Years Ended
 March 29,
2025		March 30,
2024		April 1,
2023
Current
United States - Federal$— $14 $62 
United States - State1 5 22 
Non-United States63 
(1)
114 
(3)
46 
(5)
Total current provision for income taxes64 133 130 
Deferred
United States - Federal197 
(2)
(12)(40)
United States - State30 (5)(6)
Non-United States 161 
(2)
(170)
(4)
(55)
Total deferred provision (benefit) for income taxes388 (187)(101)
Total provision (benefit) for income taxes$452 $(54)$29 
(1)Primarily relates to the release of uncertain tax positions in Fiscal 2025.
(2)Primarily relates to the valuation allowance on deferred tax assets recorded in Fiscal 2025.
(3)Primarily relates to the UK tax restructuring activities in Fiscal 2024.
(4)Primarily relates to the impairment of Jimmy Choo and Versace indefinite-lived intangible assets in Fiscal 2024.
(5)Primarily relates to the remeasurement of an Asian income tax reserve.
The Company’s provision (benefit) for income taxes for the fiscal years ended March 29, 2025, March 30, 2024 and April 1, 2023 were different from the amount computed by applying the statutory U.K. income tax rates to the underlying (loss) income before provision (benefit) for income taxes as a result of the following (in millions):
 Fiscal Years Ended
 March 29,
2025		March 30,
2024		April 1,
2023
Amount
% (1)
Amount
% (1)
Amount
% (1)
Provision (benefit) for income taxes at the U.K. statutory tax rate (2)
$(182)25.0 %$(71)25.0 %$123 19.0 %
Effects of global financing arrangements (3)
(27)3.7 %(28)9.9 %(78)(12.1)%
Differences in tax effects on foreign income(17)2.3 %(25)8.8 %(1)(0.2)%
Liability for uncertain tax positions(48)6.6 %(11)3.9 %(3)(0.4)%
Effect of changes in valuation allowances on deferred tax assets(4)
573 (78.8)%(9)3.1 %(37)(5.8)%
Non-deductible goodwill impairment (5)
107 (14.7)%48 (17.0)%15 2.4 %
State and local income taxes, net of federal benefit16 (2.2)%11 (3.9)%10 1.5 %
Share based compensation7 (1.0)%15 (5.4)%6 0.9 %
Withholding tax4 (0.6)%5 (1.6)%3 0.5 %
Merger related costs— — %4 (1.5)%— — %
Other19 (2.6)%7 (2.3)%(9)(1.3)%
Effective tax rate$452 (62.2)%$(54)19.0 %$29 4.5 %
(1)Tax rates are calculated using unrounded numbers.
(2)The UK statutory tax rate increased from 19% to 25% on April 1, 2023.
(3)Includes the tax related impacts of hedge terminations in conjunction with global financing arrangements.
(4)Includes a full valuation allowance recorded on the Company’s deferred tax assets in Fiscal 2025.
(5)Attributable to goodwill impairment charges related to Jimmy Choo and Versace in Fiscal 2025 and Jimmy Choo in Fiscal 2024 and Fiscal 2023.
Significant components of the Company’s deferred tax assets (liabilities) consist of the following (in millions):
Fiscal Years Ended
March 29,
2025		March 30,
2024
Deferred tax assets
Operating lease liabilities$402 $458 
Net operating loss carryforwards303 
(1)
334 
Accrued interest214 
(2)
108 
Depreciation46 47 
Sales allowances25 29 
Inventories27 23 
Capitalized research and development14 18 
Stock compensation6 4 
Payroll related accruals2 2 
Other28 18 
Total deferred tax assets1,067 1,041 
Valuation allowance (4)
(691)(176)
Net deferred tax assets376 865 
Deferred tax liabilities
Goodwill and intangibles(259)
(3)
(333)
(5)
Operating lease right-of-use-assets(305)(359)
Derivative financial instruments(140)(183)
Other(11)— 
Total deferred tax liabilities(715)(875)
Net deferred tax liabilities$(339)$(10)
(1)Includes foreign losses true-up from tax return filed in Fiscal 2025.
(2)Includes incremental U.S. accrued interest recorded during Fiscal 2025.
(3)Includes the impact of the Jimmy Choo and Versace indefinite-lived intangible asset impairment recorded during Fiscal 2025.
(4)Includes the impact of the full valuation allowance recorded during Fiscal 2025 and an incremental Swiss valuation allowance recorded during Fiscal 2024.
(5)Includes the impact of the Jimmy Choo and Versace indefinite-lived intangible asset impairment recorded during Fiscal 2024.
The Company maintains a valuation allowance for deferred tax assets applicable to subsidiaries in jurisdictions for which separate income tax returns are filed by assessing both positive and negative available evidence to determine whether it is more likely than not that the deferred tax assets will be recoverable. As a result of the three year cumulative loss at a consolidated level, the Company recorded a full valuation allowance resulting in an increase of $516 million of the valuation allowance in Fiscal 2025. In Fiscal 2024 and Fiscal 2023 the valuation allowance increased by $124 million and decreased by $40 million, respectively. In certain jurisdictions, the Company increased the valuation allowance by $549 million, $135 million and $6 million and decreased valuation allowances $33 million, $11 million and $14 million in Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. The valuation allowance is evaluated periodically and can be reversed partially or in full depending on the future expectations of the realization of deferred tax assets on a jurisdictional level.
As of March 29, 2025, the Company had non-United States and United States net operating loss carryforwards of $1.656 billion, a portion of which will begin to expire in Fiscal 2026.
As of March 29, 2025 and March 30, 2024, the Company had liabilities related to its uncertain tax positions, including accrued interest, of $117 million and $188 million, respectively, which are included in other long-term liabilities in the Company’s consolidated balance sheets.
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate, was $117 million, $173 million and $221 million as of March 29, 2025, March 30, 2024 and April 1, 2023, respectively. A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding accrued interest, for Fiscal 2025, Fiscal 2024 and Fiscal 2023, are presented below (in millions):
Fiscal Years Ended
March 29,
2025		March 30,
2024		April 1,
2023
Unrecognized tax benefits beginning balance$157 $200 $221 
Additions related to prior period tax positions1 16 12 
Additions related to current period tax positions— 6 14 
Decreases related to audit settlements(12)(46)
(2)
(2)
Decreases related to prior period tax positions(31)
(1)
(16)(42)
Decreases in prior period positions due to lapses in statute of limitations(16)(3)(3)
Unrecognized tax benefits ending balance$99 $157 $200 
(1)This amount is primarily related to a favorable Italian tax ruling related to stock compensation during Fiscal 2025.
(2)This amount is primarily related to settlements of Italian transfer pricing and Hong Kong corporate income tax audits during Fiscal 2024.
The Company classifies interest and penalties related to unrecognized tax benefits as components of the provision for income taxes. The Company recognized a reduction of $13 million and $11 million in interest and penalties in the consolidated statements of operations and comprehensive (loss) income for Fiscal 2025 and Fiscal 2024, respectively. The Company recognized an increase of $14 million in interest and penalties in the consolidated statements of operations and comprehensive (loss) income for Fiscal 2023.
The total amount of unrecognized tax benefits relating to the Company’s tax positions is subject to change based on future events including, but not limited to, the settlement of ongoing tax audits and assessments and the expiration of applicable statutes of limitations. The Company anticipates that the balance of gross unrecognized tax benefits, excluding interest and penalties, will be reduced by $16 million during the next 12 months, primarily due to the anticipated settlement of tax examinations as well as statute of limitation expirations. However, the outcomes and timing of such events are highly uncertain and changes in the occurrence, expected outcomes and timing of such events could cause the Company’s current estimate to change materially in the future.
The Company files income tax returns in the United States and in various foreign, state and local jurisdictions. Most examinations have been completed by tax authorities or the statute of limitations has expired for United States federal, foreign, state and local income tax returns filed by the Company for years through Fiscal 2019.
Prior to the enactment of the Tax Cuts and Jobs Act (“Tax Act”), the Company’s undistributed foreign earnings were considered permanently reinvested and, as such, United States federal and state income taxes were not previously recorded on these earnings. As a result of the Tax Act, substantially all of the Company’s earnings in foreign subsidiaries generated prior to the enactment of the Tax Act were deemed to have been repatriated. It remains the Company’s intent to either reinvest indefinitely substantially all of its foreign earnings outside of the United States or repatriate them tax neutrally. However, if future earnings are repatriated, the potential exists that the Company may be required to accrue and pay additional taxes, including any applicable foreign withholding tax and income taxes. It is not practicable to estimate the amount of tax that might be payable if these earnings were repatriated due to the complexities associated with the hypothetical calculation.