Thread by @_SeanDavid

CAPRI HOLDINGS INVESTOR DAY
(LIVE UPDATES HERE)

1:30PM EST

**Disclosure: We are shareholders of Capri. (~$10.1M)

👇🏼

1. Again, to recap yesterday John Idol the CEO purchased $20M worth of equity. CFO also picked up shares.

2. Agenda for the day

3. John Idol on stage. The main part of the acquisition strategy thus far is finding brand houses that are founder-led.

4. The second slide focused on Instagram followers for each brand, something we have been talking about in critical detail. This is how you will win today and tomorrow.

5. Update on revenue by brand and geo. More diversified global brand with $6B in revenue today with goal of $8B.

6. Large market. John points out the biggest opportunity within accessories for the entire company.

7. The company as a whole has the ability given its diverse segments.

8. The acquisition strategy is also creating synergies. From technology to materials to logistics. They have the largest solar energy facility in the Netherlands and plan to move Jimmy Choo to this facility.

Cost savings from these synergies are NOT in their estimates. Big point

9. One of the biggest risks to the investment story is debt. As the company brought on significant debt for the acquisitions after having a pristine balance sheet.

Very good to know they are focused on debt reduction.

They also plan to return cash to shareholders.

10. They plan to invest about $300M in the business. Across stores, IT and operations. Most of which are fixed and business will leverage after these initiatives.

11. We got a 10-minute break...

12. Versace up 1st. Outside of legacy of the brand and many of the key elements, they just said Versace is the reason why Google created Google Images.

Keys outside of $GOOGL
- Many brand codes that are underserved
- Social strength
- Donatella's vision
- Defined roots in Italy.

13. 100 million views after the Met GALA for Versace.

14. Versace Chain Reaction shoe is their best SKU and now they are making different iterations. @2chainz mentioned as key.

Favorite @2chainz quote "I'm in the kitchen. Yams erwhere."

15. Versace social growth on a stand-alone. 28% growth year over year.

16. Versace Growth

- E-commerce: Quick to get up in running
- Store growth: 200 to 300
- Accessories: Quick
- Fragrance (top seller already)
- Men's: Medium term, underwear focus
- Footwear: Quick
- Higher SKU count

$900M to $2B in revenue

17. The cadence of store opening is 30 or 40 stores a year until they get to 300. Here is the track.

18. Outside of pure growth, they are focusing on production per store. Michael Kors is known for this. We are already seeing the uptick.

Equation is

+ More stores
+ Producing more per store
+ More products per person
= TBD

19. E-commerce focus.

Targeting $100M in online sales.
New website on the way
800,000 visits a WEEK today
Looking to offer global delivery

20. Here's margin profile overtime for Versace. Clear that margin is compressed from investments and will expand over time. John also mentioned this on the earnings call last week.

Now onto Jimmy Choo.

21. Here is Jimmy Choo. #IWANTCHOO

Sandra Choi video on right now.

22. Interesting, 95% of product made in Italy,

23. Credits the acquisition as it is allowing them to move much faster. From marketing to design to logistics.

24. Here's a look at Jimmy Choo's store network.

25. Growth Strategy

- Accelerate footwear
- Accessories to 50% of revenue
- Grow mens business (9% of biz today)
- Launch new logo

26. Interesting note. Jimmy Choo is buying shoe factories to increase speed to market and apply customization.

27. A glance at the ramp in stores. Jimmy Choo is already very productive, so new stores is a very profitable effort.

They plan to go from $2,200 per store per SQ FT ----> $2,750

Big boost for margins if so.

28. 77% of stores are renovated so less capital intensive today and now it is on to growth.

Jimmy Choo will be all about growing their accessories business. WIll be the focus on all calls going forward.

Mid-teen operating margin target 2022.

29. Jimmy Choo done. Now to Michael Kors brand...

SPEED
ENERGY
OPTIMISM

New goal

30. Michael Kors video on right now...

31. Side note: The teen survey from PJ showed that Michael Kors remains the top handbag brand for Gen-Z. Kind of a big deal...

32. We track mostly Instagram, Facebook, and Twitter followers but they just announced Michael Kors all by itself has 45 million global multi social followings.

Also, their lead Asian brand ambassador has 100M followers.

33. The big item we were waiting for. KORS VIP. Their VIP loyalty program.

Now up to 2 million users.
Plan to get to 2.3 million by year-end.

34. Core Michael Kors focus.

- Grow Asian business to $1B
- Build men's business ($200m to $500m)
- Stabilize comps

35. As Asia becomes a bigger part of the business, they expect a margin boost, while the loss of licensing and growth in mens will be headwinds to margins. Net-net somewhere flat between.

More
That is it. Done with Versace, Kors, and Choo.

Now to Q&A but will focus on this session offline.

Overall high cash flow business trading near 7x cash flow with 2 growth companies along with one stabilizing company. 3 first class designers and management team