capri holdings limited (cpri)

by:Joacii     2020-03-16
Securities and Exchange Commission of the United States (Washington, DC)C. 20549FORM 10-K(Mark One)
Annual Report submitted under Section 13 or 15 (d)
According to the annual Securities Trading Act of 2018 under Section 13 or 15, the annual transition report (d)
Provisions of the Securities Exchange Act of 1934 on the transition period from document 001 to commission documents
35368 Michael Kors Holdings Limited (
The exact name of the registrant specified in the articles of association)
Sn/A of the British Virgin Islands (
State or other jurisdiction registered or organized)(I. R. S.
Employer identity number)
33 KingswayLondon, KingdomWC2B monthly friends (
Main executive office address)
The registrant\'s telephone number, including area code: 44 207 632 8600 securities registered or to be registered under section 12th (b)
Part of the act: title to each class name of each exchange registered for common stock, and no face value of the New York Stock Exchange registered or registered under section 12th (g)
Key points of the act: if the registrant is healthy, it is not indicated by a check mark
Well-known experienced issuers as defined in Rule 405 of the Securities Act.
If the registrant does not need to submit a report under Section 13 or Section 15, it is not necessary to indicate by checking mark (d)of the Act.
Indicate whether the registrant (1)
All reports requested in Section 13 or 15 have been submitted (d)
Securities Trading Act of 1934 within the first 12 months (
Or a short period of time required for the registrant to submit such reports), and (2)
This filing requirement has been bound for the last 90 days.
Indicate by check mark whether the registrant has electronically submitted and posted on his company\'s website, if any, every interactive data submitted and posted under S-Regulation section 405thT (§232.
This Chapter 405)
Within the first 12 months (
Or in such a short time that the registrant is required to submit and publish these documents).
If a default declarant is disclosed under S-regulation 405th, it is not indicated by a check markK (§229.
This Chapter 405)
As the registrant is aware, it is not included here and will not be included in the final proxy or information statement referenced in Part 3 of this form --
K or any amendments to this form 10K.
Indicate by check mark whether the registrant is a large accelerated file manager, a non-accelerated file manager
A smaller reporting company.
See the definition of \"large accelerated file manager\", \"accelerated file manager\" and \"small Reporting Company\" in rule 12b
2 of the Trading Act. (Check one)
: Largeaccelatedfiler GmbH accelatedfiler \"Non-
Acceleration fee (
Do not check smaller reporting companies)
Small reporting companies emerging growth companies if emerging growth companies, indicate by check mark whether the registrant chooses not to use the extended transition period to comply with any new or revised financial accounting provided under section 13tha)
The Trading Act.
Indicate whether the registrant is a shell company by check mark (
Defined in Rule 12b-2 of the Act).
Yes, the total market value of registrant voting and non-voting
Non-Voting Ordinary Shares held
As of September 30, 2017, the registrant\'s affiliates were $6,957,593,123, and the last working day of the second fiscal quarter recently completed by the registrant, based on the closing price of common stock on the New York Stock Exchange.
As of 2018, Michael Kors Holdings Limited has issued 891,999 ordinary shares.
Referring to the included documents the information required in Part III of this report, to the extent not specified in this report, is incorporated by reference to the registrant\'s final proxy statement, the statement will be attended at the annual general meeting of shareholders in 2018 in June2018.
CONTENTSPagePART iitem 1 commercial website 1 factork factory 1 bunresoved employee review website 2 Real estate legal action website 4 mine safety disclosure part iiitem 5 contents of the registrant common stock market stability sheet related shareholder matters and issuers of stock securities purchasing Selected Financial Data 7 Management Discussion and Analysis of financial position and results of operations and financial disclosure and procedure information 10 directors, executive Officer and Corporate Governance Project 11 executive compensation project 12 safety ownership projects for certain beneficial owners and management and related shareholders 13 certain relationships and related transactions and director Independence Project 14 principal accountant fees and services
View Form 10-statements in this annual report
K, including the document incorporated into this agreement by reference, which refers to plans and expectations for future periods
Look at the report. These forward-
The current expectations of management are based.
Words such as \"expectation\", \"plan\", \"belief\", \"estimate\", \"possibility\", \"will, the \"should\" and variations of these words and similar expressions are designed to identify these forward-
Look at the report.
You should not rely too much on this statement. These forward-
Forward-looking statements are affected by some risks and uncertainties, many of which are beyond the control of the company, which may result in significant differences in the actual results of the company from those forward-looking statements
Look at the report.
These factors are more fully discussed in the risk factors of the company, as they may be modified from time to time, which is set out in the documents submitted by the company to the Securities and Exchange Commission (the “SEC”)
Included in this annual report, particularly under Item 1A.
Risk Factors \"and\" Project 7.
Management Discussion and Analysis of Financial Position and operational results.
\"There is no obligation of the company to update or modify any forwarding-
In addition to the requirements of applicable laws or regulations, look for statements that reflect subsequent events or circumstances.
The company\'s reporting investor website can be accessed electronically. michaelkors.
Com under \"Investor Relations.
Our annual report on Form10
Quarterly Report on table 10
Q and Current Report on Table 8
K submitted or provided to SEC under section 13 (a)or Section15(d)
The revised 1934 Securities Trading Act is available free of charge on our investor\'s website, titled \"SEC filing\", after we have filed the materials electronically, or to the SEC.
Any information contained on our website is not intended to be included as part of the form 10 annual report or by reference --K.
Information related to the corporate governance of our company, including our corporate governance guidelines, business conduct and ethics of all our directors, executives and employees, and information related to our directors, the Board of Directors Committee, including the board\'s articles of association, and directors and executive officers in corporate securities transactions, on our investor\'s website, titled \"corporate governance\" and \"SEC filing \".
\"Paper copies of these documents and corporate governance documents are provided to shareholders free of charge by written request to Investor Relations, Michael Kors Holdings Limited, Kingsway 33, London, UK, WC2B 6 UF.
Documents submitted to SEC can also be found on the website atwww of SEC. sec. gov.
3 ContentsPART IUnless unless otherwise required by the context, references to table 10 in this annual report-
K to \"MKHL\", \"our\", \"company\", \"our company\" and \"our business\" refer to Michael Kors Holdings Limited and its consolidated subsidiaries, unless otherwise required by the context.
References to our stores, retail stores, and retail departments include all of our
Retail stores at prices (
Including offers), our e-
Commercial websites and stores, and the term \"finance\" for any year, refer to 52-
The week of Saturday as of the year closest to March31, except for \"fiscal 2016\", refers to 53-
The week ended on April 2, 2016.
Due to rounding, there may be some differences in the figures in the report form and in the text for this year.
All comparable store sales are 52-week basis. Item1.
We are a global fashion luxury industry group.
The world\'s leading fashion luxury brands
Class management team and well-known designers.
Michael Coles (“MK”)
He founded the brand 35 years ago.
Michael Kors\'s vision is to transform the MK brand from an American luxury sportswear brand to a global accessories brand, footwear and apparel companies with a global distribution network, with offices in more than 100 countries through the company
Retail and electronic stores
Business sites, leading department stores, specialty stores and selected authorized partners.
On November 1, 2017, we completed the project of Jimmy Choo Group Co. , Ltd (
Formerly known as Jimmy Choo PLC)
And its subsidiaries (
\"Jimmy Choo \").
The combination of Michael Kors and Jimmy Choo brings together two iconic brands that are industry-leading in style and trends, creating a global fashion luxury with a diverse geographic and product portfolio, we believe this will strengthen the company\'s future revenue growth opportunities.
Prior to ofFiscal 2018 in the third quarter, we operated the Michael Kors business in three areas of retail, wholesale and licensing.
With the acquisition of Jimmy Choo, the company began operations in the following four reportable market segments: MK Retail-
About 57.
Total revenue of 5% inFiscal 2018 and Central America including sales of Michael Kors products from379 retail stores
Including offers)
And450 international retail store (
Including offers)
Certain parts of Europe and Asia as a whole, and Michael Coles
Business websites in the United States (“U. S. ”)
Canada, parts of Europe, China, Japan and South Korea accounted for 2018. MK Wholesale —
Approximately 34.
7% of our total revenue flows to 2018, including the wholesale sales of Michael Kors products in 403 department stores and 875 specialty stores in the Americas and America, the doors of 048 specialty stores and 218 department stores are ofMarch31, 2018.
MK Wholesale also includes revenue from selling products to Michael Kors geographic license holders. MK Licensing —
About 3.
1% of the total revenue inFiscal 2018 and the trademark that includes the use fee and the authorized product and use obtained in the advertising Michael Kors donation, and the rights granted to third parties to operate retail stores and/or sell Michael Kors products in certain geographical areas. Jimmy Choo —
About 4.
7% of total income inFiscal 2018 (
From November 1-20, 2017 18)
Including the global sales of Jimmy Choo products in 182 retail stores (
Including offers)
Through Jimmy Choo e-
Business sites in the United StatesS.
Certain regions of Europe and Japan, through 629 wholesale doors, as well as through product and geographical licensing arrangements such as ofMarch31, 2018.
For additional financial information about our division, please see the segment information description in the consolidated financial statements attached.
Michael Kors offers three main collections: The Luxury Collection of the hael ichael Kors collection, the accessible ichael Michael Kors accessible luxury collection and the Michael Kors men\'s clothing collection.
The TheMichael Kors series establishes the aesthetic authority of the entire brand and is available at many of our Michael Kors retail stores, Michael Kors e-
Business sites, as well as the best luxury department stores in the world, include Bergdorf Goodman, Saks Fifth Avenue, Neiman Marcus, and Harrods.
In 2004, we saw an opportunity to take advantage of the brand strengths of the hael ichael Kors series and address the huge demand opportunities for barrier-free luxury goods, and we introduced Michael Kors, in addition to providing footwear and clothing, it also pays great attention to accessories.
MICHAEL Michael Kors sells in all of our Michael Kors lifestyle stores and leading department stores around the world, including Bloomingdale department store, Macy\'s department store, Harvey Nicola, Hyundai, Isetan, and liankaver.
Recently, we have begun to develop the Michael Kors men\'s clothing business in recognition of the fashion authority established by the Michael Kors brand and the important opportunities offered by the expanding men\'s clothing market.
All in all, our Michael Kors range is targeting a broad customer base while maintaining our high-end luxury image.
Since its inception in 1996, Jimmy Choo offers a unique, engaging and stylish content --
The product range has made it the world\'s leading luxury accessories brand. its core products include handbags, small leather goods and other accessories to supplement women\'s luxury shoes. Scarves and belts, and the growing business of luxury shoes and accessories for men.
In addition, certain categories such as perfumes, sunglasses and glasses are produced under the license agreement.
We operate in the global luxury industry.
The personal luxury market has recently experienced growth, and, driven by strong local and tourism consumption, has overcome some of the challenges facing the industry in the past few years.
Accessories are still the largest category of personal luxury goods and footwear, jewelry and handbags are the fastest growing product categories.
Although the slowdown in wholesale channel growth is mainly driven by the poor performance of department stores, retail channels continue to grow, mainly driven by the rapid growth of e-commerce.
Business channels, and increased
Retail sales of prices and tourism, which continue to have a negative impact on the sales of monobrand retail stores.
As the overall environment becomes more and more complete
Channels, increased customer engagement, and customized goods based on customer shopping and communication preferences have become key factors in winning market share.
We believe that our innovative products and customer engagement programs enable us to take full advantage of the continued growth in the category of luxury and footwear products, as they are one of the major product categories we focus on, it\'s also the focus of our sales growth in other product categories.
As mentioned above, geographic information we generate revenue globally through our four reporting departments.
We sell Michael Kors and Jimmy Choo products in three major geographic markets through retail and wholesale channels: America (U. S.
Canada and Latin America), EMEA (
Europe, Middle East and Africa)and Asia.
We also have wholesale arrangements under which we sell products to our geographic permit holders.
In addition, we have license agreements through which we license the use of our Michael Kors and Jimmy Choo brand names and trademarks, certain production rights, to third parties, and sales and/or distribution rights of our brand.
The following table details our revenue by market segment and geographical location (in millions)
: Financial year EndedMarch31, 208april1, retail revenue
America is $1,678. 4$1,713. 7$1,779.
Retail revenue-0MKEurope564. 4507. 7509.
Retail revenue-6MKAsia469. 0350. 7106.
3 Total MK Retail2, 711. 82,572. 12,394.
Wholesale income-9MK
234 in the United States. 01,340. 91,628.
Wholesale income-6MKEMEA343. 9376. 5406.
Wholesale revenue-4MKAsia61. 458. 4108.
9 total MK wholesale1. 639. 31,775. 82,143.
9MK authorized revenue-the Americas83. 586. 199.
Authorized revenue from 0MK-EMEA61. 459. 774.
3 MK licensing144 total. 9145. 8173.
A total of 496 m, Michael Coles 4. 04,493. 74,712.
1 Jimmy Choo income-the Americas37. 3——
Jimmy Choo income-EMEA123. 0——
Jimmy Choo income-Asia62. 3——
Total wheat oo222. 6——Total revenue -
The Americas3, 033. 23,140. 73,506. 6 Total revenue-EMEA1,092. 7943. 9990. 3 Total revenue-Asia592. 7409. 1215.
Total income of $4,718. 6$4,493. 7$4,712.
We believe that the following advantages differentiate us from our competitors: the world\'s leading global fashion luxury group --
Class management team and well-known designers.
We are a global fashion luxury industry group-
The world\'s leading fashion luxury brands
Class management team and well-known designers.
With the acquisition of Jimmy Choo in November 1, 2017, we bring together two iconic brands that are industry-leading in style and trends.
The Michael Kors brand was made by Mr 35 years ago.
Michael Kors, a world
Famous designer who personally leads our experienced design team for the Michael Kors brand. Mr.
Kors and his team are responsible for conceptualizing and guiding the design of all our products, and their design leadership is a unique advantage we have. Mr.
Mr. Kors has received awards that recognize his contributions
Kors and his team have contributed to the fashion industry and our company.
We believe that the name of the Michael Kors brand has become synonymous with luxury fashion, which is timeless and elegant, expressed through sophisticated accessories and ready-made productsto-
Wear collection.
Each of our series shows jets.
High quality design, materials and workmanship provide you with the perfect lifestyle.
Some globally recognized Trendsetters
Including Kate Blanchett, Viola Davis, Ashley Graham, Kate Hudson, Scarlett Johnson, Angelina Jolie, Nicole Kidman, Jennifer Lawrence, the Duchess of Cambridge wearing our Michael kors series.
Design team for Jimmy Choo by Sandra Choi (niece of Mr. Jimmy Choo, O. B. E. )
Since he was founded in 1996, he has been the creative director of the Jimmy Choo brand.
Jimmy Choo\'s design team has a good track record in developing MS
Cui Tiankai\'s conceptual conception of \"pursuit\"
Through a structured process that includes line planning, design, prototyping, editing, and pre-launch samples.
Jimmy Choo\'s products are unique, instinctive and attractive and stylish.
The Jimmy Choo brand offers classic and timeless luxury goods, as well as innovative products designed to lead the fashion trend.
Jimmy Choo\'s products have a strong red carpet, often included are Jessica bill, Reese Witherspoon, Laura den, Michelle fiver, Mandy Moore, Emma Emily Blunt Rachel Weitz and Natalie Dormer.
Our design team is supported by our senior management team, who have extensive experience in a wide range of areas in the retail industry, including design, sales, marketing, public relations, merchandising, real estate supply chain and finance.
An average of 22 years of experience in the retail industry, including experience in a number of listed companies, with an average of 10 years of experience in the company, our senior management team has extensive experience in innovation and operations and has a track record of success.
Take advantage of our success in the accessory product category.
The strength of our Michael korsluxory collection and our accessibility luxury Michael Korsline enables us to expand our brand profile and position Michael Kors as a leader in the category of accessories products
With the success of our accessories product category, we will continue to develop and diversify our Michael Kors brand through other product categories such as men\'s and accessories, clothing and wearable technologies.
In addition, we are confident that we can take advantage of this success to further develop and develop the accessories product line for the recently acquired Jimmy Choo business. Proven Multi-
Provide future growth opportunities for Michael Kors retail business.
InFiscal 2018, our MK retail division, reported revenue of $2.
712 billion, representing a5.
Revenue was $2, up 4%.
572 billion inFiscal 2017.
In our MK retail segment we have four main retail store formats: Collection Store, lifestyle store (
Including offers)
Shops and e-commerce centercommerce sites.
Our collection store is located in some of the world\'s most prestigious shopping areas, such as Madison Avenue in New York and rodeo Avenue in California, which is generally 2,900 square feet.
Our lifestyle store is located in some of the world\'s most visited metropolitan shopping malls and leading regional shopping centers, which are generally 2,800 square feet.
We also extend our reach to other consumer groups through our direct sales outlets, which are typically 4,100 square feet. We also have e-
Business sites in the United StatesS.
Canada, parts of Europe, China, Japan and South Korea.
Established strong relationships with top Michael Kors wholesale customers.
We work with leading wholesale customers of the Michael Kors brand, such as Bergdorf in North America, Saks Fifth Avenue, Neiman Marcus, Harrods, Bloomingdale\'s and Macy\'s, there are also Harvey Nichols, Printemps, Selfridges and Lafayette in Europe.
These relationships enable us to reach a large number of key consumers in a targeted manner.
Our Michael Kors storein-
The \"shop\" has specially trained staff, as well as customized fixtures, wall enclosures, decorative items and floors, and provides Department Store consumers with a more personalized shopping experience than traditional retail department store configurations
Michael Kors has also engaged with wholesale customers on various initiatives and continues to build innovative supply chain partnerships with wholesale customers, aiming to increase the speed at which Michael Kors products reach the end consumers.
In DuringFiscal6Table at Contents2018, we continue to strategically reduce promotional activities, which leads to a decrease in shipments of Michael Kors products within our wholesale channels.
While we believe this is necessary to properly position the Michael Kors brand --
Revenue from our MK wholesale department has been reduced by seven times. 7% from$1.
$776 billion to $2017.
639 billion inFiscal 2018.
Innovative products authorized by Michael Kors.
The power of our global Michael Kors brand has played an important role in helping us build our licensing business.
We work with a number of specific product license holders who produce and sell products that we believe require expertise that are enhanced by the strength of our Michael Kors brand, including the fossil Partner LP. (“Fossil”)
Estee Lauder\'s watches and jewelry(“Estée Lauder”)
Perfume & Beauty & luxury group (“Luxottica”)
Glasses, etc.
Total revenue for licensed products declined slightly from $145.
8 million inFiscal 2017 to $144.
9 million inFiscal 2018, mainly due to our acquisition of previously licensed businesses in Greater China, as well as a reduction in licensing revenue related to fashion watches, jewelry and perfume sales, and a decrease in geographic licensing revenue, the higher license usage fees associated with Michael Kors ACCESS smartwatches and glasses basically offset this.
We continue to work with our authorized manufacturers to launch new and innovative products, including additional perfume and smartwatch products.
In fiscal 2019, we plan to launch a new boutique jewelry product line in partnership with Fossil.
Jimmy Choo is a powerful and iconic brand with a deep foundation in fashion.
In November 1, 2017, Jimmy Choo earned $2018 in incremental sales through 222 march31. 6 million.
The 182 stores run by Jimmy Choo are ofMarch31, 2018, of which about 63% are represented by the brand\'s new global retail store format, and over the past few years,
The average retail store at Jimmy Choo is about 1,280 square feet, with 10 flagship stores averaging 2,600 square feet.
Jimmy Choo also runs e-commerce.
Business sites in the United StatesS.
Certain regions of Europe and Japan are launching their full range
Channel capabilities in the United StatesS. and Europe.
On November 2017, Jimmy Choo took direct control of his business in South Korea from his former geographic licensing partner after the relevant licensing agreement expired.
Jimmy Choo works with luxury wholesale customers, including luxury department stores in the United States. S.
And professional and multi
Brand stores worldwide.
Jimmy Choo\'s wholesale customers include Nordstrom, Bergdorf Goodman of Neiman Marcus, Bloomingdales department store, Saks Forsyth Avenue, where there is a space for personality in many stores and specially trained personnel.
In addition, Jimmy Choo earns wholesale revenue by selling its products to its geographic licensing partners.
Jimmy Choo\'s growth potential has been successfully demonstrated through its product licensing category, in which it has a close partnership with the perfume Association SA and sunglasses and glasses safspa SpA.
Business strategy your goal is to continue to create shareholder value by increasing our revenue and profits, strengthening our global brand.
We plan to achieve our business strategy through the following five strategic initiatives: leading the trend and creating new products.
We will continue to introduce trends and innovative products and expand our products in the product category to strengthen our position as a fashion leader and achieve business growth by: tiered strategy-
Pricing products in our iconic Michael Kors accessories product line, introduction of new product groups and advanced products with unique design, style and workmanship;
Take advantage of current sports fashion trends in accessories and footwear products;
Continue to promote the growth of Michael Kors women\'s clothing by increasing the variety of clothing, coats and tops;
Expanded authorized products in our Michael Kors Smartwatch category and men\'s watches, new fragrances, and through the launch of the new Michael Kors boutique jewelry collection;
Our men\'s and footwear business has increased the supply of products with a focus on marketing and incorporating these product categories into our global advertising campaigns;
And strengthen the accessories and men\'s product categories of Jimmy Choo, while continuing to maintain the brand\'s authoritative position in the footwear field.
Increase brand engagement.
We intend to continue to increase our brand engagement and customer loyalty in a variety of ways, including: leveraging Mr.
Through a variety of news events and personal appearances, as well as through celebrity placement, editing and digital reporting, as well as social media and product advertising, kers\'s global reputation and visibility take advantage of Jimmy Choo\'s global iconic brand
Continue to grow our premium retail stores
Visibility locations around the world;
7 The content table delivers focused information and clear brand views across all marketing channels and ensures consistency of our product information through global marketing campaigns, maintain and improve our strong advertising position and global fashion publications;
Continue to develop our customer database to create a more personalized shopping experience to meet the customer\'s shopping preferences;
Develop our digital strategy in line with media consumption habits in our target market to ensure that we promote the right information to the right people at the right time, and use our social media reach goals to personalize services
Expand our Michael Kors VIP customer loyalty program, which was launched in the fourth quarter of 2018; holding semi-
Michael Kors\'s annual fashion show reinforces Mr.
High designer status
Create a fashion image around the Michael Kors brand and create a global multimedia media report;
On behalf of our Jimmy Choo brand
Celebrity events and global media coverage.
Optimize customer experience.
As part of omni, we plan to continue to focus on the customer relationship program
Channel strategy to provide seamless customer experience across different channels and regions by optimizing and further expanding our global e-commerce
In addition to launching 14 new Michael Kors E-commerce products,
Business websites in Europe and Asia for fiscal 2018;
Continue to enhance the global customer experience through omni
Channel order fulfillment including filling in online orders through our retail stores and our clicksand-
Collection of service products;
Continue to invest in new leading mobile technologies in our retail stores and e-commerce
Business Network with endless aisle features that allow our customers to order a wider range of products and ship them to their homes, enhancing styling and wardrobe-
Building tools and customers
Communication skills are preferred;
And continue to invest in our retail stores worldwide, including store renovations designed to enhance customer experience.
Invest in technology.
We intend to continue to invest in technology to support our business by: continuing to invest in the following
Storage technology and the development of our digital experience in response to the shift in consumer preferences to mobile devices, with a focus on meeting new levels of customer service expectations;
Investing in the information technology infrastructure that supports us, including the systems required by our financial system;
Invest in customer relationship management systems and processes to personalize our marketing efforts;
Place orders with our wholesale customers using our proprietary platform;
Expand our global business.
We will continue to increase our global penetration rates in Asia and Europe and leverage our existing operations in the international region to increase global brand awareness and market share: by opening new stores around the world, focusing on Asia, and developing the Jimmy Choo business we recently acquired by directly controlling certain businesses operated by geographic license holders, and continue to develop our tourism retail business;
Delivers consistent, advanced jets
Provide a lifestyle experience for our Michael Kors customers around the world;
Invest in new retail stores, mainly in Asia and further expand our international e-commerce
Commercial presence;
Enhance Michael Kors store experience and optimize Michael Kors store fleet by closing 100
There are 125 stores that improve the profitability of stores (
Retail fleet optimization program \")
And continue to develop Michael Kors mens business, apparel and footwear product categories around the world.
Our total revenue by major product category is as follows (in millions)
: Financial year EndedMarch31 2018% ofTotalApril1 2017% ofTotalApril2 2016% ofTotalAccessories $3,057. 064. 8%$3,061. 468. 1%$3,179. 767. 5%Footwear656. 913. 9%462. 010. 3%491. 010. 4%Apparel604. 612. 8%543. 212. 1%543. 711.
5% authorized products 249. 75. 3%281. 36. 3%324. 46.
9% brand revenue150. 43. 2%145. 83. 2%173. 33.
Total income of 7% was $4,718. 6$4,493. 7$4,712.
There are three main collections of Michael KorsMichael Kors offering accessories, footwear and clothing: Michael Kors series, MICHAEL Michael Kors and Michael Kors men\'s clothing, all of this is provided through our MK retail and MK wholesale division.
We also provide licensed products through MK retail.
Michael Kors series hael ichael Kors series is a complex designer series designed for women based on a philosophy of basic luxury and pragmatic charm.
The collection includes ready-to-
Clothing and accessories including handbags and small leather goods, as well as footwear, many of which are made of premium leather.
In general, the retail price of our women\'s bags and small leather goods ranges from $300 to $6,000, the retail price of footwear ranges from $300 to $1,500, and our ready-to-wearto-
Clothing retail prices range from $400 to $7,500.
MICHAEL KorsMICHAEL Michael Kors is very concerned about women\'s accessories, mainly handbags and small leather products, as well as women\'s footwear and clothing, carry in all of our lifestyle stores as well as leading department stores around the world.
MICHAEL Korsoffers handbags are designed to meet the fashion and functional needs of our diverse consumer base;
Small leather goods such as clutch, wallet, wristband, cosmetic case; footwear;
Clothes, including dresses, tops, jeans, trousers, skirts, shorts and coats.
In general, our handbag retail prices range from $200 to $600, our small leather goods retail prices range from $45 to $250, and our footwear retail prices range from $50 to $300, the retail price of clothing ranges from $75 to $600.
Michael Kors MensMichael Kors men\'s clothing is an innovative men\'s clothing collectionto-
Modern American style clothing, accessories and footwear.
Our men\'s clothing retail prices range from $50 to $1,000, men\'s clothing accessories retail prices range from $40 to $800, and men\'s footwear retail prices range from $200 to $400.
Watch authorized by Michael Kors.
Fossil has been our only Michael Kors watch licensed since 2004.
Watches are sold in our retail stores, our electronics
In addition to the choice of watch retailers, commercial websites and wholesale fossil customers.
In general, the retail price of Our Watch ranges from $150 to $595.
Wearable technology
In addition to the stylish category of watches and jewelry products, smartwatches fossil is visited by forMichael Kors, our dedicated franchise holder, for the first time in cai2017 and retail from $350 to $500. Jewelry.
Fossil has been our only Michael Kors fashion jewelry licensee since 2010.
Our collection of jewellery products complement our collection of watches and accessories, consisting of bracelets, necklaces, rings and earrings.
Our jewelry is for sale in retail stores, our electronics
In addition to other specialty stores, commercial websites and wholesale fossil customers.
The retail price of our jewelry is generally between $55 and $500.
In fiscal 2019, Michael Kors plans to transition its fashion jewelry product category to a new boutique jewelry collection.
9 catalogues.
Luxottica has been the licensee of Michael Kors exclusive glasses since 2015, responsible for developing unique glasses inspired by our series.
Our glasses products focus on status glasses, and sunglasses are the key categories.
Glasses are sold in our retail store and on our electronics
In addition to the selection of sunglasses retailers and prescription glasses suppliers, the commercial website and Luxottica provide services to wholesale customers.
In general, the retail price of our glasses ranges from $100 to $210.
Fragrant and beautiful.
Estee Lauder has been the exclusive female and male perfume licensee for Michael Kors since 2003.
Perfumes are sold online in our retail stores
In addition to the choice of perfume retailers, the commercial website and Estee Lauder also provide services to wholesale customers.
The retail price of our perfumes and related products is generally between US $30 and US $125.
Jimmy Choo offers unique, charming and stylish services
The product range has made it a leading luxury brand in the world. its core products are women\'s luxury shoes, supplemented by accessories, scarves and belts including handbags and smaller leather goods, and the growing business of luxury footwear and accessories for men.
About 78% of Jimmy Choo\'s income is made up of luxurious shoes.
In general, Ms. Jimmy Choo\'s luxury shoes retail from $425 to $4,600, accessories retail from $600 to $4,800, and men\'s shoes retail from $170 to $2,500.
Certain product categories such as Jimmy Choo perfumes, sunglasses and glasses are produced under the product license agreement.
Interparfums SA is the exclusive licensee of Jimmy Choo perfume, and Safilo SpA is the exclusive licensee of Jimmy Choo sunglasses and glasses.
Usually, the retail price of Jimmy Choo glasses ranges from $295 to $645, and the retail price of Jimmy Choo perfume ranges from $55 to $115.
Advertising and marketing our marketing strategy is to deliver brand and product information that is consistent with each of our global brands at all customer touch points that are considered to be purchased from the brand.
Our global image is created and executed internally by our creative marketing, visual marketing and public relations teams, which helps to ensure consistency in our brand information.
InFiscal 2018, we confirm about $167.
Advertising and marketing costs 1 million worldwide.
We participate in a wide range of integrated marketing initiatives through various marketing channels, including, but not limited to, email marketing, print advertising, outdoor advertising, digital marketing, social network media, direct print mail, public relations outreach, visual marketing and partnership marketing, strive to attract our existing and potential customer base and ultimately stimulate a consumer
Shopping places are preferred.
Also, our Michael Kors are ready for spring and fallto-
New York Fashion Week features a collection of clothing and our latest accessories.
Michael Coles half
The annual fashion show and the star location of Jimmy Choo attracted wide media coverage.
Jimmy Choo is also the world\'s leading brand for women\'s luxury shoe editing reports. Our growing e-
The business provides us with an opportunity to increase the size of our customer database and communicate with our consumers to increase sales online and in-store, it also established brand awareness for Michael Kors and Jimmy Choo.
We are constantly improving the functions and features of our e-commerce.
The commercial website maintains our brand\'s leading position in the minds of consumers by offering a variety of products, including accessories, clothing and footwear, creating innovative ways. Since e-
Business growth is critical to our overall growth strategy.
New Michael Kors E-Commerce
In fiscal 2018, business sites in 14 other countries in Europe and South Korea increased our total e-commerce
25 existence of Michael Kors E-commerce website
The commercial website is ofMarch31, 2018.
Jimmy Choo also runs e-commerce.
Business sites in the United StatesS.
Some parts of Europe and Japan, such as 2018.
Manufacturing and purchasing we mainly sign finished product purchase contracts with independent third parties
The manufacturing contractor, that is, the manufacturing contractor, is usually responsible for the entire manufacturing process, including the purchase of a single piece of goods and decoration.
We assign the manufacturing of Michael Kors brand to third parties
According to their capacity, availability of production capacity, pricing and delivery, party agency.
Michael Kors has also established relationships with various agents who purchase our finished products on behalf of our numerous manufacturing contractors.
Although our relationship with our manufacturing contractors or agents can usually be terminated at any time, we believe that our relationship with these third parties is satisfactory. This multi-
The vendor strategy provides expertise, scalability, flexibility, and speed to market, and spreads risks.
Fiscal 2018 and fiscal 2017, 1 out of 3-
About 23 sources of third-party agents. 9% and21.
According to the unit volume, 8% of our Michael Kors completed 10 content item purchase sheets.
InFiscal 2018, Michael Kors\'s largest manufacturing contractor, mainly produces products in China, and Michael Kors has worked with him for more than 10 years, accounting for 19 years of production.
According to unit volume, 9% of its finished product.
InFiscal 2018 is approximately 94 in dollar terms.
7% of our Michael Kors products are made in Asia and Europe.
See \"import restrictions and other government regulations\" and Item 1a. —\"Risk Factors\"
\"We mainly use foreign manufacturing contractors and independent third parties --
Party A\'s agent for our finished goods procurement, which brings legal, regulatory, political and economic risks to our business operations.
\"Our Michael Kors brand\'s manufacturing contractors and agents operate under the close supervision of Michael Kors global manufacturing division and procurement agents based in North America, Europe and Asia.
All products are produced according to our specifications.
The production personnel monitor the production at the supplier\'s factory in order to correct the problem before the final product is shipped.
During the production process, the focus of quality assurance is to be as early as possible, to allow goods to be received at the delivery facility and to be shipped to the customer with minimal disruption.
Jimmy Choo\'s products are also made by third parties.
Party A manufacturing contractor
About 92% of Jimmy Choo\'s products are produced by experts in the Florence and Veneto regions of Italy, and the remaining 8% are produced in Spain.
During the period from 2018 to November 1, 2017, about 16 were manufacturers.
According to the number of units, the finished product of Jimmy Choo 0% is purchased.
Jimmy Choo has a product development facility in Florence and has a long-term close partnership with its supplier base.
Jimmy Choo has 33% ownership of a factory dedicated to the production of Jimmy Choo.
Jimmy Choo usually only buys finished products and does not buy raw materials except for development purposes.
Our main Michael Kors distribution agency in the United StatesS.
It is a 284,420 square foot rental facility in Whittier, California, and we directly operate and serve our Michael Kors retail store, Michael Kors e-
Business website, and our Michael Kors wholesale business in the United StatesS.
We\'re also involved in omni-
Achieve channel orders through our Michael Kors retail store and our Click to fill in online ordersand-
Collect service products.
Our main Michael Kors distribution agency in Europe is our company-
Own and operate 108,680 square feet of distribution facilities in the Netherlands to support the European business of the Michael Kors brand, including our European e-commercecommerce sites.
We also have a leased regional Michael Kors distribution center in Canada, as well as regional Michael Kors distribution centers in China, Hong Kong, Japan, South Korea and Taiwan, operated by third parties-parties.
Jimmy Choo uses a shared central warehouse facility in Contone, Switzerland, which is the global hub for all of Jimmy Choo\'s businesses.
From there, products are shipped to regional warehouses in the United Kingdom, the United StatesS.
China, Hong Kong, South Korea, Japan and the UAE mainly support Jimmy Choo retail and e-commerce
Business Enterprise.
The goods of global wholesale customers come from Switzerland and the United States. S.
With the further implementation of the local.
All delivery facilities used by Jimmy Choo are operated by third parties and shared with other businesses.
This flexible approach strengthens the speed and efficiency of the supply chain and allows businesses to quickly deliver Jimmy Choo products and collections to the market based on the industry\'s fashion calendar.
Intellectual property we own the trademarks of hael ichael Kors, MICHAEL Michael Kors and Jimmy Choo, as well as other material trademark rights related to the production, marketing and distribution of our products, our products are mainly sold in the United States and other countries.
We also have trademark applications for various related trademarks and logos.
We expect that they will remain fully effective and effective as long as we continue to use and update our material trademarks.
According to the agreement signed by Mr.
Mr. Kors has something to do with the acquisition of a majority stake in the company by our former major shareholders in 2003. Kors (i)
All intellectual property rights related to the company\'s business at that time were owned by the company ,(ii)
Assigned to the company (
To the extent that the company has not yet allocated and owned)
The name and trademark of \"Michael Kors\" and all its derivatives and Mr.
Signature and portrait of Kors, and all goodwill associated with it ,(iii)
Agree not to take any action inconsistent with the ownership of the company (
Including, but not limited to, the maintenance of any privacy, publicity or moral rights)and (iv)
Agrees not to use any such intellectual property rights relating to any commercial enterprise, whether or not he is employed by the company (
However, he can only use the name Michael Kors as his legal name, not as a Service trademark or trademark name, in his personal capacity, engage in charity activities and other activities that do not compete with any business of the company).
Again, in 2001,Jimmy Choo O. B. E.
Transfer of the name of Jimmy Choo and all rights, ownership and equity of the copyright and design rights in question (
And related registration and application)to Jimmy Choo. Mr. Jimmy Choo O. B. E.
Not involved in Jimmy Choo\'s business.
We actively protect our trademarks and hold perpetrators accountable at home and abroad.
We also hunt down counterfeiters through internal leads, online and offline channels in the United States, Europe, the Middle East, the Far East and the rest of the world, and through our network of customs authorities, law enforcement, legal representation and brand experts around the world.
At the end of 2018, 2017 and 2016, the total number of our employees was about 846, 13,702, 12,689 and respectively.
As of 2018, we already have about 166.
Time staff and about 680 parts-time employees.
About 197 of employees are engaged in retail and administrative positions, and 2018 are engaged in other aspects of our business.
All employees of the Michael Kors brand are not currently covered by the collective bargaining agreement.
Jimmy Choo signed a collective bargaining agreement with employees in France, Italy and Spain.
We consider our relationship with trade unions and non-trade unions.
Union employees should do well.
Competition we are facing fierce competition in the product series and the market. in these product series and markets, we have both competitors and new competitors.
Our products compete with other branded products in their product category.
To varying degrees, we compete on the basis of style, price, customer service, quality, brand reputation and recognition according to the product category involved.
In our wholesale business, we compete with manufacturers, importers and distributors of numerous accessories, footwear and apparel for limited space for product display.
In addition, the prevalence of manufacturing contractors enables new entrants to easily enter our competitive market, which may increase the number of our competitors and adversely affect our competitive position and business
However, we believe that we have a significant competitive advantage due to the recognition of our brand and the acceptance of our brand by consumers. See Item1A.
\"Risk Factors\"
\"Both in North America and in international markets, the markets we operate are very competitive, and increased competition based on some factors may lead to a decline in our profitability.
\"Seasonality we have experienced certain seasonal effects in business.
Due to holiday season sales, sales in our MK retail division are generally higher in the third fiscal quarter.
Our MK wholesale division typically has the lowest sales in the first fiscal quarter.
In the third fiscal quarter, our Jimmy Choo division typically experiences larger sales, driven primarily by product release calendars and holiday season sales.
Overall, sales in our first fiscal quarter are usually less compared to the other three quarters, and sales in our third fiscal quarter are usually higher than in the other three quarters.
Almost all of our Michael Kors products are imported from the United States. S.
Tariffs on Canada, Europe and Asia.
For Jimmy Choo, tariffs are imposed on imports to certain countries, including the United States. S.
China, Japan and South Korea.
No tariffs are paid in the European Union (the “EU”)
Because all the Jimmy Choo products are made there.
Most of the countries we ship to can implement protection quotas to protect local industries from the threat of a surge in imports, which can cause market confusion. The U. S.
Other countries may also unilaterally impose additional tariffs on specific products imported at an unfair transaction price, an increase in such prices that can cause or threaten harm to the relevant domestic industry (
Often called\"
Dumping Act).
If the United States suspects dumpingS. , the U. S.
The government can
A dumping case on behalf of a particular industry.
In addition, it is generally referred to as an additional tariff on countervailing duties. if the import damage or threat of such subsidized goods damages US industry, the US government can also force the cancellation of subsidies provided by foreign governments to foreign manufacturers.
We are also bound by other international trade agreements and regulations, such as the North American Free Trade Agreement (“NAFTA”). See Item1A.
\"Risk Factors\"
\"We mainly use foreign manufacturing contractors and independent third parties --
Party A\'s agent for our finished goods procurement, which brings legal, regulatory, political and economic risks to our business operations.
\"The accessories, footwear and kimono we sell are also regulated in the United States. S.
And government agencies in other countries, including in the United States. S.
Federal Trade Commission and consumer goods safety commission
These regulations mainly involve product labeling, licensing requirements, flammable testing and product safety.
We must also abide by environmental laws and regulations.
Similarly, the accessories, footwear and clothing we sell are also subject to US import regulationsS.
And other countries on the use of wildlife products for commercial and non-
Commercial trade including the United StatesS.
Fish and Wildlife Services (“F&W”).
We do not estimate any significant capital expenditures on environmental control matters in the near future.
Our licensed products and authorized partners are also regulated.
Our agreement requires our licensed partners to comply with all applicable laws and regulations and we are not aware of any violations that may have a significant adverse effect on our business or operational results.
We are also required to comply with the disclosure requirements of the United States. S.
The revised 1934 Securities Trading Act deals with the use of conflict minerals in our products.
Therefore, in order to comply with this rule, we have and are expected to continue to incur additional costs.
While we used to do business in the ideal market without any substantial restrictions, we cannot guarantee that there will be no major obstacles in the future as we expand our product supply and introduce more trademarks to the new market. Item1A.
Risk factors you should read this complete report carefully, including but not limited to the following risk factors and the section entitled \"Notes on forward risks\" in this annual report
Look at the report.
\"Any of the following factors may have a significant adverse effect on our business, operational results and financial position.
Additional risks and uncertainties that we do not currently know or that we currently consider irrelevant may also have a significant adverse impact on our business, operational results and financial position.
The acquisition may not be able to integrate successfully or achieve the desired benefits.
We face additional risks associated with our strategy to grow our business by acquiring other brands and geographical license holders, such as our acquisition of Jimmy Choo in November 2017.
We may not be able to successfully integrate any licensee or any other business we may obtain into our own business or achieve any expected cost savings or synergies through such integration, or we may decide to limit the integration of our brands.
The potential difficulties we may face may result in the acquisition of a previously licensed business like Jimmy Choo, or any other business that we may acquire that does not meet our expectations includes, among other things: failure to implement our business plan for the consolidated business or failure to achieve the expected revenue or profit target;
Delays or difficulties in completing the consolidation of acquired companies or assets;
Costs are higher than expected, cost savings are lower than expected and/or resources need to be allocated to manage unexpected operational difficulties;
Unexpected problems integrating logistics, information and other systems;
Unexpected changes in applicable laws and regulations;
Retain key customers, suppliers and employees;
Acquisition business and operational risks inherent in our business;
Attention to management and transfer of resources;
To retain and obtain the required regulatory approvals, permits and permits;
Unexpected changes have taken place in the consolidation business due to potential divestiture or other requirements imposed by the antitrust regulator;
Undertake liabilities not identified in due diligence or other unforeseen issues, expenses and liabilities;
And the impact on our internal control and compliance with the requirements of the Sabans act
The Oakley Act of 2002.
The performance of our acquisition of Jimmy Choo or any other entity we may acquire may not be as good as originally expected, which may have a significant adverse effect on our operational results and financial position.
In addition, we need to test goodwill, brand and any other intangible assets acquired due to impairment acquisition.
If such tests show that the book value of goodwill, brand or other intangible assets exceeds the relevant fair value, we will be required to record the impairment cost of the difference, this may have a significant adverse effect on our operational results and financial position.
In addition, Jimmy Choo outsourced its information technology, accounting and other back office activities to third parties
According to the agreement that came into effect on October 2, 2017, Party A\'s service provider.
We may incur additional costs for the new third.
Third-party service providers
In addition, we may encounter delays or difficulties in completing the transition to the new Phase 3
Third-party service providers that may cause major operational disruptions and have a significant adverse impact on our business, operational results and financial situation.
Content of table 13
The long-term growth of our business depends on the successful implementation of our strategic plan.
As part of our long-term cooperation
Long-term strategy, we intend to expand our market share and revenue through the following initiatives: leading the trend and creating new products;
Enhance brand participation;
Optimize Customer Experience;
Investment in technology;
Expand our global business.
As mentioned earlier, we also intend to optimize the fleet of Michael Kors retail stores, including closing 100 to 125 of Michael Kors, our underperforming
To save costs and focus on our most productive locations, price retail stores for the next two years.
As of 2018, we have closed all 47 of Michael Kors.
Pricing retail stores according to our retail fleet optimization program.
We cannot guarantee that we will be able to execute this plan successfully or achieve the expected cost savings, efficiency or other benefits associated with the retail fleet optimization plan.
In addition, we intend to support the growth of Jimmy Choo sales by opening retail stores and further developing Jimmy Choo\'s online business, using Zhou Yangjie\'s strong influence in Asia to enter the luxury market.
We cannot guarantee the successful implementation of these strategic initiatives.
If we are not able to execute our strategic plan, our business, results of operations and financial position may be significantly adversely affected.
The markets we operate in are highly competitive in North America and international, and increased competition based on multiple factors may lead to a decline in our profitability.
We face fierce competition from other domestic and international brands of accessories, footwear and apparel manufacturers and retailers, including the following brands: coach, Burberry, Guess, Ralph Lauren, Hermes, Louis Vuitton, Gucci, Marc Jacobs, chlo é, Burch, Prada, Kate Spade, Tommy Hilfiger and Calvin Klein
Again, we face competition from the Jimmy Choo brands of: Christian Louboutin, Manolo Blahnik, Giuseppe zan, Tod Ferragamo, Todd, Roger Saint Laurent, Louis Vuitton and Chanel.
We also face competition through third-party distribution channels, such as e-commerce.
Business, department stores and specialty stores.
Competition is based on many factors, including but not limited to: timely forecasting and responding to changing consumer needs;
Build and maintain a good brand
Name identification;
Determination and maintenance of product quality;
Maintain key employees;
Maintain and expand market share;
Develop high-quality differentiated products to attract consumers;
Establish and maintain an acceptable relationship with retail customers;
Pricing products appropriately;
Provide appropriate services and support to retailers;
Optimize retail and supply chain capabilities;
Determine the size and location of retail and department store sales space;
Protect intellectual property.
In addition, some of our competitors may be much larger, more diverse, and may have greater financial, technical, manufacturing, sales, marketing, and distribution resources than we do.
Their greater capabilities in these areas may enable them to better withstand cyclical declines in the accessories, footwear and apparel industries, compete more effectively on a price and production basis, and develop new products faster
The widespread presence of manufacturing contractors and agents also allows new entrants to easily enter our competitive market, which may increase the number of our competitors and adversely affect our competitive position and business
Any increased competition, or our failure to adequately address these competitive factors, can lead to a decrease in revenue, which may adversely affect our business, operational results, and financial position.
The content competition table and other factors, such as integration, changes in consumer consumption patterns and an environment of high promotion, can also lead to significant pricing pressures.
These factors may lead us to lower the sales price of wholesale customers and retail consumers, which may lead to a decline in our gross profit margin, if we are unable to properly manage inventory levels and/or otherwise offset the reduction by comparable reductions in operating costs.
If our sales price drops, we cannot fully reduce the cost of our products or operating expenses, our profitability may decline, which may have a significant adverse impact on our business, results of operational and financial conditions.
Our retail stores rely heavily on the ability and desire of consumers to travel and shop, the decline in consumer traffic may have a negative impact on our comparable store sales and/or average sales per square, resulting in the foot and store profitability of impairment costs, this can have a significant adverse impact on our business, the results of operational and financial conditions.
Reduced travel due to economic conditions, fuel shortages, rising fuel prices, travel restrictions, travel problems and other conditions, including severe weather conditions, disease epidemics and other health conditions
Related concerns, wars, terrorist attacks or perceived threats of war or terrorist attacks can have a significant adverse impact on us, especially if these events affect our customers\' desire to travel to retail stores.
In addition, other factors that may affect the success of our retail store include :(i)
The location of the shopping center or the location of a particular store within the shopping center; (ii)
Other tenants who occupy space in the mall; (iii)
Vacancies in shopping malls; (iv)
The competition in the area where the mall is located is intensified; (v)
The amount of advertising and promotion used to attract consumers to the shopping center; and (vi)
The shift to online shopping.
The decline in consumer traffic may have a negative impact on our comparable store sales and/or average sales per square foot and store profitability.
If our retail store is performing poorly due to declining consumer traffic or other reasons, and the expected future cash flow of our underlying retail store asset in question does not exceed the book value of that asset, we may charge for store impairment.
Future decline in comparable store sales or decline in average sales per square foot or failure to meet market expectations, or occurrence of impairment costs associated with our retail store fleet, may be the result of our business, operations and financial situation.
In addition, the total operating performance of our store has fluctuated in the past and is expected to continue to fluctuate in the future.
Various factors affect comparable store sales and average sales per square foot, these include fashion trends, competition, current economic conditions, pricing, inflation, timing of launch of new merchandise and promotions, changes in commodity portfolios, success of marketing initiatives, and weather conditions.
If we misjudge the market of our products, we may generate redundant inventory of some of our products and miss the opportunity of other products.
These factors may result in our comparable store sales results and the average sales per square foot in the future being much lower than in the most recent period and our expectations, this can have a significant adverse effect on our business, operational results and financial position.
We may not be able to respond to changing fashion and retail trends in a timely manner, which may have a significant adverse impact on our brand, business, operational results and financial position, if we misjudge the demand for our products, including Overstock.
Custom message
Chat Online
Chat Online
Chat Online inputting...