Capri Holdings Limited Goldman Sachs Global Consumer and Retail Conference

Thank you. Nice to be here.

Capri, as you know, is the home to two, I believe, incredible luxury brands. First, Michael Kors and second, Jimmy Choo. These brands have a very strong resonance globally with consumers around the world, and we have the ability to speak to consumers and to create trends and create fashion excitement with these consumers. That's the starting place. These brands have the ability to grow. We have been on a journey, particularly the last 18 months, in both Michael Kors and Jimmy Choo, to reset some of the product strategies, some of the marketing initiatives, and in the case of Michael Kors in particular, some of the store presentations and formats. The early signs, and we call them the green shoots, are starting to really take hold, and those green shoots are turning into more tangible results for the company.

I think we're in a very good place, and in particular, to accelerate our growth in the back half of this year, which will serve as a great platform for us to grow in the future.

The luxury accessories market globally has seen some small declines over the last couple of years, mainly driven by some of the results out of Asia, although that market is starting to recover. Europe has softened, as we've talked about on our earnings calls. But North America has been incredibly strong and resilient. We see the overall market as being roughly flat. We do believe the market will return to growth next year. That really positions our two luxury brands well. Secondly, what we're seeing is in the luxury market, brands that have more, first and foremost, have very strong fashion and/or trend products are doing extremely well. Secondly, brands that have a value associated with them.

Whether that's a price value relationship or whether that's the quality that you're delivering at a price, and I think I'll point out examples of that as we talk with Michael Kors and Jimmy Choo, consumers are responding to that. Consumers are definitely more choiceful today. Choiceful just doesn't mean they want something that's inexpensive or cheap, but it means they want value for how they're spending their money.

Certainly. As I think most of you know, North America is a very strong market. The consumer is very healthy in this market. We haven't benefited from that in Michael Kors because of the repositioning work we've been doing, but we can see the underlying health of that consumer is very strong. On the flip side, we've had tremendous benefit from that in Jimmy Choo, from the strength of the luxury consumer, and that resonating with our business. In Europe, unfortunately, we've seen the business soften there, and we're not the only company. I think most companies that you hear from are talking about the softness in the EMEA market, and that's number one, led by what is happening in the Middle East, and that is impeding business on the ground there in that market. It's also impeding travel, both into that market and into Europe.

We definitely are seeing a softening, and I think I talked about that some months ago. We do not see that really kind of strengthening at any point in the near future. I think we would look at Europe or EMEA as a market that will continue to remain challenged. Lastly, in Asia and China in particular, we are seeing a very steady return to growth in that market, and the consumer is out. They are shopping. In particular, again, brands that have a bit more value associated with them, and that is at multiple levels in the luxury spectrum, are seeing some quite interesting and strong results in the marketplace. We are optimistic about what that market holds for us for growth over the next few years.

Yeah. I think we have said that we went from cautiously optimistic, and I think we stated at another conference that we spoke at, that we have become optimistic about where we are in that brand transformation. First, Michael Kors is a brand that is 45 years old. It is a luxury brand. It has got tremendous history. You can look across the landscape of luxury brands, and they go through moments, and it is moments where brands either their communication strategy or their marketing strategies are no longer relevant. Their product gets off trend. You lose the attention or the zeitgeist of the consumer. I would say very much Michael Kors was in that position some 18 plus months ago. We have been on this journey to really reset the Michael Kors brand.

We started that with the brand, our halo, which is Jet Set, and we changed the strategy around that, and we are positioning that where our vision of the consumer is that she or he are traveling the world in style. You do not see them on the airplane and in the cars and on the boats anymore. You see them in hotels, or they are glamping or they are having a fun experience. People love to travel, and this is an an experience economy, and we think that our marketing strategies really dovetail perfectly into that zeitgeist. In particular, of a younger consumer. We are pleased with what is happening there with the marketing, and the storytelling that is based around that. We need to do more work on the platforms that we are communicating on. Maybe we will talk about that later. The second thing is I think we are borderline excited about product.