Capri Holdings Ltd (NYSE:CPRI) Q2 2020 Earnings Conference Call Transcript

Nov 06, 2019 • 08:30 am ET

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Capri Holdings Ltd (NYSE:CPRI) Q2 2020 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day everyone, and welcome to the Capri Holdings Limited, Second Quarter 2020, Earnings Conference Call. [Operator Instructions].

At this time, I would like to turn the conference over to Jennifer Davis, VP of IR at Capri. Please go ahead, ma'am.

Executive
Jennifer Davis

Thank you, Shannon. Good morning everyone and thank you for joining us on Capri Holdings Limited's Second Quarter Fiscal 2020 Conference Call. With me this morning are Chief Executive Officer John Idol; and Chief Financial and Chief Operating Officer Tom Edwards. Before we begin let me remind you that certain statements made on today's call may constitute forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ from those we expect. Those risks and uncertainties are described in today's press release and in the company's SEC filings which are available on the company's website. Investors should not assume that the statements made during this call will remain operative at a later time and the company undertakes no obligation to update any information discussed on the call.

In addition, certain financial information discussed today will be presented on a non-GAAP basis. These non-GAAP measures exclude certain items related to transaction transition and integration costs associated with the Jimmy Choo and Versace acquisitions restructuring and noncash impairment charges. Unless otherwise noted all financial information on today's call will be presented on a non-GAAP basis and all comparable store sales numbers will be presented on a constant currency basis. To view the corresponding GAAP measures and related reconciliation please view the earnings release posted on our website earlier today at capriholdings.com.

Now I would like to turn the call over to Mr. John Idol, Chairman, and Chief Executive Officer.

Executive
John D. Idol

Thank you Jennifer, and good morning. Capri Holdings has in a short period of time assembled an outstanding family of founder-led fashion luxury houses. The diversification of our portfolio is a key component for our long-term growth strategy. Now I would like to update you on the progress we are making developing our fashion luxury group. Starting with Versace. We continue to execute against our five strategic growth pillars. First, we are building on Versace's luxury runway momentum driven by Donatella's fashion vision. Second, we are enhancing the brand's powerful and iconic marketing. Third, we are rapidly increasing the brand's global retail footprint toward our goal of 300 stores. Fourth we are accelerating our e-commerce platform to improve our capabilities. And fifth we are expanding our accessories and footwear businesses with compelling new collections including our Virtus group featuring the recently introduced Barocco V signature logo. Turning to Jimmy Choo. We continue to make progress on our strategic initiatives. Starting with footwear innovation the brand is seeing positive trends for active footwear a key growth category. Our strategy to expand accessories penetration remains on track with very encouraging results from new groups including our recently introduced VARENNE JC signature collection.

Lastly, due to our successful store expansion, we recently raised Jimmy Choo global fleet retail goal to 300