British Virgin Islands | N/A | |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |
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¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Emerging growth company | o |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o |
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS. |
Exhibit No. | ||
Press release issued by Michael Kors Holdings Limited, dated February 7, 2018. |
MICHAEL KORS HOLDINGS LIMITED | |||
Date: February 7, 2018 | |||
By: | /s/ Thomas J. Edwards, Jr. | ||
Name: | Thomas J. Edwards, Jr. | ||
Title: | Executive Vice President, Chief Financial Officer, Chief Operating Officer and Treasurer | ||
• | Results exceeded guidance, with better than expected performance from both the Michael Kors and Jimmy Choo brands. |
• | Successfully completed the integration of Jimmy Choo into Michael Kors Holdings Limited. |
• | Continued to make progress on Michael Kors Runway 2020 strategic plan. |
◦ | Elevated brand position through innovative fashion luxury offering. |
◦ | Accessories sales were better than expected as new product introductions infused with glamor and unique fashion elements resonated with consumers. |
◦ | Grew women’s footwear and ready-to-wear businesses as consumers embraced feminine and embellished holiday offerings. |
◦ | Comparable store sales exceeded expectations and favorable response to new product innovation combined with reduced promotional activity drove higher average unit retails in North America digital flagships and lifestyle stores. |
• | Total revenue increased 6.5% to $1.44 billion, including a $114.7 million contribution from Jimmy Choo, which the Company owned for two months of the quarter. On a constant currency basis, total revenue increased 4.6%. |
• | MK Retail revenue increased 1.1% to $846.3 million driven in large part by 32 net new store openings since the end of the third quarter of fiscal 2017. Comparable sales decreased 3.2%, with better than anticipated performance in the Americas and Europe during the Holiday season. On a constant currency basis, retail net sales decreased 1.0%, and comparable sales decreased 5.2%. |
• | MK Wholesale revenue decreased 8.9% to $430.8 million and on a constant currency basis decreased 10.5%, driven by a strategic reduction in inventory levels in the channel. |
• | MK Licensing revenue increased 12.3% to $48.3 million. |
• | Gross profit increased 9.7% to $884.0 million, and as a percentage of total revenue was 61.4%. Adjusted gross profit increased 9.9% to $885.6 million, and as a percentage of total revenue was 61.5%. This compares to 59.6% in the third quarter of fiscal 2017. The year-over-year growth was largely driven by improved MK Retail gross margin, favorable Michael Kors channel mix and the inclusion of the higher margin Jimmy Choo business, which contributed 20 basis points, partially offset by the expected decline in MK Wholesale gross margin. Foreign currency translation and transaction favorably impacted gross profit margin by approximately 10 basis points. |
• | Income from operations was $313.5 million, or 21.8% as a percentage of total revenue, including a $5.7 million contribution from Jimmy Choo after amortization of non-cash purchase accounting adjustments and transaction and transition related costs. Income from operations was $341.9 million, or 25.3% as a percentage of total revenue, for the third quarter of fiscal 2017. |
• | Adjusted income from operations was $345.7 million, or 24.0% as a percentage of total revenue, reflecting a $15.7 million contribution from Jimmy Choo. This compares to $342.4 million, or 25.3% as a percentage of total revenue, for the same period in fiscal 2017. |
• | Net income attributable to MKHL was $219.4 million, or $1.42 per diluted share, based on a 21.2% tax rate and 154.6 million weighted average diluted shares outstanding. Net income attributable to MKHL for the third quarter of fiscal 2017 was $271.3 million, or $1.64 per diluted share, based on a 20.6% tax rate and 165.2 million weighted average diluted shares outstanding. |
• | Adjusted net income attributable to MKHL was $273.4 million, or $1.77 per diluted share. This compares to $271.6 million, or $1.64 per diluted share, for the third quarter of fiscal 2017. |
• | At December 30, 2017, Michael Kors operated 848 retail stores, including concessions, and an additional 150 retail stores, including concessions, were operated through licensing partners. Including licensed locations, there were 998 Michael Kors stores worldwide at the end of the third quarter of fiscal 2018. |
• | At December 30, 2017, Jimmy Choo operated 179 retail stores, including concessions, and an additional 55 retail stores, including concessions, were operated through licensing partners. Including licensed locations, there were 234 Jimmy Choo stores worldwide at the end of the third quarter of fiscal 2018. |
Three Months Ended | Nine Months Ended | ||||||||||||||
December 30, 2017 | December 31, 2016 | December 30, 2017 | December 31, 2016 | ||||||||||||
Total revenue | $ | 1,440.1 | $ | 1,352.8 | $ | 3,539.1 | $ | 3,428.9 | |||||||
Cost of goods sold | 556.1 | 547.1 | 1,389.6 | 1,387.2 | |||||||||||
Gross profit | 884.0 | 805.7 | 2,149.5 | 2,041.7 | |||||||||||
Total operating expenses | 570.5 | 463.8 | 1,487.5 | 1,309.2 | |||||||||||
Income from operations | 313.5 | 341.9 | 662.0 | 732.5 | |||||||||||
Other income, net | (0.1 | ) | (4.1 | ) | (1.0 | ) | (4.7 | ) | |||||||
Interest expense, net | 8.3 | 3.4 | 10.2 | 5.1 | |||||||||||
Foreign currency loss (gain) | 27.0 | 0.9 | (14.7 | ) | 2.2 | ||||||||||
Income before provision for income taxes | 278.3 | 341.7 | 667.5 | 729.9 | |||||||||||
Provision for income taxes | 58.9 | 70.4 | 119.9 | 151.6 | |||||||||||
Net income | 219.4 | 271.3 | 547.6 | 578.3 | |||||||||||
Less: Net loss attributable to noncontrolling interest | — | — | (0.2 | ) | (1.0 | ) | |||||||||
Net income attributable to MKHL | $ | 219.4 | $ | 271.3 | $ | 547.8 | $ | 579.3 | |||||||
Weighted average ordinary shares outstanding: | |||||||||||||||
Basic | 152,047,963 | 163,148,597 | 152,772,067 | 168,000,933 | |||||||||||
Diluted | 154,623,339 | 165,214,045 | 155,220,984 | 170,222,588 | |||||||||||
Net income per ordinary share attributable to MKHL: | |||||||||||||||
Basic | $ | 1.44 | $ | 1.66 | $ | 3.59 | $ | 3.45 | |||||||
Diluted | $ | 1.42 | $ | 1.64 | $ | 3.53 | $ | 3.40 |
December 30, 2017 | April 1, 2017 | December 31, 2016 | ||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 317.1 | $ | 227.7 | $ | 368.8 | ||||||
Receivables, net | 288.0 | 265.8 | 252.4 | |||||||||
Inventories | 677.2 | 549.3 | 586.2 | |||||||||
Prepaid expenses and other current assets | 162.3 | 121.9 | 160.3 | |||||||||
Total current assets | 1,444.6 | 1,164.7 | 1,367.7 | |||||||||
Property and equipment, net | 599.4 | 591.5 | 771.0 | |||||||||
Intangible assets, net | 1,215.4 | 418.1 | 453.7 | |||||||||
Goodwill | 822.0 | 119.7 | 119.7 | |||||||||
Deferred tax assets | 64.7 | 73.3 | 20.8 | |||||||||
Other assets | 70.7 | 42.3 | 38.1 | |||||||||
Total assets | $ | 4,216.8 | $ | 2,409.6 | $ | 2,771.0 | ||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | $ | 290.2 | $ | 176.3 | $ | 214.0 | ||||||
Accrued payroll and payroll related expenses | 85.7 | 61.1 | 60.7 | |||||||||
Accrued income taxes | 68.7 | 60.3 | 47.3 | |||||||||
Short-term debt | 0.1 | 133.1 | 147.8 | |||||||||
Accrued expenses and other current liabilities | 277.4 | 135.0 | 202.0 | |||||||||
Total current liabilities | 722.1 | 565.8 | 671.8 | |||||||||
Deferred rent | 134.8 | 137.8 | 128.1 | |||||||||
Deferred tax liabilities | 217.0 | 80.0 | 89.0 | |||||||||
Long-term debt | 992.4 | — | — | |||||||||
Other long-term liabilities | 70.2 | 31.0 | 27.6 | |||||||||
Total liabilities | 2,136.5 | 814.6 | 916.5 | |||||||||
Commitments and contingencies | ||||||||||||
Shareholders’ equity | ||||||||||||
Ordinary shares, no par value; 650,000,000 shares authorized; 210,302,628 shares issued and 152,167,403 outstanding at December 30, 2017; 209,332,493 shares issued and 155,833,304 outstanding at April 1, 2017, and 209,293,238 shares issued and 162,435,864 outstanding at December 31, 2016 | — | — | — | |||||||||
Treasury shares, at cost (58,135,225 shares at December 30, 2017; 53,499,189 shares at April 1, 2017; and 46,857,374 shares at December 31, 2016) | (2,815.9 | ) | (2,654.9 | ) | (2,404.9 | ) | ||||||
Additional paid-in capital | 803.3 | 767.8 | 760.0 | |||||||||
Accumulated other comprehensive loss | (18.4 | ) | (80.6 | ) | (90.1 | ) | ||||||
Retained earnings | 4,107.9 | 3,560.3 | 3,587.1 | |||||||||
Total shareholders’ equity of MKHL | 2,076.9 | 1,592.6 | 1,852.1 | |||||||||
Noncontrolling interest | 3.4 | 2.4 | 2.4 | |||||||||
Total shareholders’ equity | 2,080.3 | 1,595.0 | 1,854.5 | |||||||||
Total liabilities and shareholders’ equity | $ | 4,216.8 | $ | 2,409.6 | $ | 2,771.0 |
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 30, 2017 | December 31, 2016 | December 30, 2017 | December 31, 2016 | ||||||||||||||
Revenue by Segment and Region: | |||||||||||||||||
MK Retail | The Americas | $ | 558.0 | $ | 584.2 | $ | 1,335.6 | $ | 1,362.0 | ||||||||
Europe | 168.0 | 150.9 | 444.3 | 401.2 | |||||||||||||
Asia | 120.3 | 101.6 | 331.3 | 233.6 | |||||||||||||
MK Retail Revenue | 846.3 | 836.7 | 2,111.2 | 1,996.8 | |||||||||||||
MK Wholesale | The Americas | 338.2 | 372.9 | 905.8 | 987.6 | ||||||||||||
EMEA | 81.2 | 89.5 | 250.7 | 285.2 | |||||||||||||
Asia | 11.4 | 10.7 | 41.5 | 46.9 | |||||||||||||
MK Wholesale Revenue | 430.8 | 473.1 | 1,198.0 | 1,319.7 | |||||||||||||
MK Licensing | The Americas | 29.3 | 26.7 | 70.1 | 70.1 | ||||||||||||
EMEA | 19.0 | 16.3 | 45.1 | 42.3 | |||||||||||||
MK Licensing Revenue | 48.3 | 43.0 | 115.2 | 112.4 | |||||||||||||
Michael Kors Brand Revenue | 1,325.4 | 1,352.8 | 3,424.4 | 3,428.9 | |||||||||||||
Jimmy Choo | The Americas | 21.0 | — | 21.0 | — | ||||||||||||
EMEA | 65.0 | — | 65.0 | — | |||||||||||||
Asia | 28.7 | — | 28.7 | — | |||||||||||||
Jimmy Choo Revenue | 114.7 | — | 114.7 | — | |||||||||||||
Total Revenue | $ | 1,440.1 | $ | 1,352.8 | $ | 3,539.1 | $ | 3,428.9 | |||||||||
Income from Operations: | |||||||||||||||||
MK Retail | $ | 180.4 | $ | 178.2 | $ | 341.6 | $ | 314.4 | |||||||||
MK Wholesale | 100.5 | 140.2 | 263.6 | 367.2 | |||||||||||||
MK Licensing | 26.9 | 23.5 | 51.1 | 50.9 | |||||||||||||
Michael Kors | 307.8 | 341.9 | 656.3 | 732.5 | |||||||||||||
Jimmy Choo | 5.7 | — | 5.7 | — | |||||||||||||
Total Income from Operations | $ | 313.5 | $ | 341.9 | $ | 662.0 | $ | 732.5 | |||||||||
Operating Margin: | |||||||||||||||||
MK Retail | 21.3 | % | 21.3 | % | 16.2 | % | 15.7 | % | |||||||||
MK Wholesale | 23.3 | % | 29.6 | % | 22.0 | % | 27.8 | % | |||||||||
MK Licensing | 55.7 | % | 54.7 | % | 44.4 | % | 45.3 | % | |||||||||
Michael Kors | 23.2 | % | 25.3 | % | 19.2 | % | 21.4 | % | |||||||||
Jimmy Choo | 5.0 | % | — | % | 5.0 | % | — | % | |||||||||
Total Operating Margin | 21.8 | % | 25.3 | % | 18.7 | % | 21.4 | % |
December 30, 2017 | |||||||||||
Retail Store Information: | Store Count | Square Footage | |||||||||
The Americas | 395 | 1,304,161 | |||||||||
Europe | 202 | 544,175 | |||||||||
Asia | 251 | 516,943 | |||||||||
Michael Kors | 848 | 2,365,279 | |||||||||
Jimmy Choo | 179 | 228,807 |
Three Months Ended | % Change | |||||||||||||
December 30, 2017 | December 31, 2016 | As Reported | Constant Currency | |||||||||||
Total revenue: | ||||||||||||||
MK Retail | $ | 846.3 | $ | 836.7 | 1.1 | % | (1.0 | )% | ||||||
MK Wholesale | 430.8 | 473.1 | (8.9 | )% | (10.5 | )% | ||||||||
MK Licensing | 48.3 | 43.0 | 12.3 | % | 12.3 | % | ||||||||
Michael Kors brand | 1,325.4 | 1,352.8 | (2.0 | )% | (3.9 | )% | ||||||||
Jimmy Choo | 114.7 | — | NM | NM | ||||||||||
Total revenue | $ | 1,440.1 | $ | 1,352.8 | 6.5 | % | 4.6 | % |
Nine Months Ended | % Change | |||||||||||||
December 30, 2017 | December 31, 2016 | As Reported | Constant Currency | |||||||||||
Total revenue: | ||||||||||||||
MK Retail | $ | 2,111.2 | $ | 1,996.8 | 5.7 | % | 5.0 | % | ||||||
MK Wholesale | 1,198.0 | 1,319.7 | (9.2 | )% | (10.1 | )% | ||||||||
MK Licensing | 115.2 | 112.4 | 2.5 | % | 2.5 | % | ||||||||
Michael Kors brand | 3,424.4 | 3,428.9 | (0.1 | )% | (0.9 | )% | ||||||||
Jimmy Choo | 114.7 | — | NM | NM | ||||||||||
Total revenue | $ | 3,539.1 | $ | 3,428.9 | 3.2 | % | 2.4 | % |
Three Months Ended December 30, 2017 | ||||||||||||||||||||||||
As Reported | Impairment Charges | Restructuring and Other Charges(1) | Inventory Step-up Adjustment | Acquisition Price Derivative Contract | As Adjusted | |||||||||||||||||||
Total revenue | $ | 1,440.1 | $ | — | $ | — | $ | — | $ | — | $ | 1,440.1 | ||||||||||||
Gross profit | 884.0 | $ | — | $ | — | $ | 1.6 | $ | — | $ | 885.6 | |||||||||||||
Gross profit margin | 61.4 | % | — | % | — | % | 0.1 | % | — | % | 61.5 | % | ||||||||||||
Operating expenses | $ | 570.5 | $ | (2.6 | ) | $ | (28.0 | ) | $ | — | $ | — | $ | 539.9 | ||||||||||
Operating expense as percentage of revenue | 39.6 | % | (0.2 | )% | (1.9 | )% | — | % | — | % | 37.5 | % | ||||||||||||
Total income from operations | $ | 313.5 | $ | 2.6 | $ | 28.0 | $ | 1.6 | $ | — | $ | 345.7 | ||||||||||||
Total operating margin | 21.8 | % | 0.2 | % | 1.9 | % | 0.1 | % | — | % | 24.0 | % | ||||||||||||
MK Retail revenue | $ | 846.3 | $ | — | $ | — | $ | — | $ | — | $ | 846.3 | ||||||||||||
MK Retail operating income | $ | 180.4 | $ | 2.6 | $ | 11.0 | $ | — | $ | — | $ | 194.0 | ||||||||||||
MK Retail operating margin | 21.3 | % | 0.3 | % | 1.3 | % | — | % | — | % | 22.9 | % | ||||||||||||
MK Wholesale revenue | $ | 430.8 | $ | — | $ | — | $ | — | $ | — | $ | 430.8 | ||||||||||||
MK Wholesale operating income | $ | 100.5 | $ | — | $ | 7.3 | $ | — | $ | — | $ | 107.8 | ||||||||||||
MK Wholesale operating margin | 23.3 | % | — | % | 1.7 | % | — | % | — | 25.0 | % | |||||||||||||
Jimmy Choo revenue | $ | 114.7 | $ | — | $ | — | $ | — | $ | — | $ | 114.7 | ||||||||||||
Jimmy Choo operating income | $ | 5.7 | $ | — | $ | 8.4 | $ | 1.6 | $ | — | $ | 15.7 | ||||||||||||
Jimmy Choo operating margin | 5.0 | % | — | % | 7.3 | % | 1.4 | % | — | % | 13.7 | % | ||||||||||||
Foreign currency loss (gain) | $ | 27.0 | $ | — | $ | — | $ | — | $ | (32.0 | ) | $ | (5.0 | ) | ||||||||||
Net income attributable to MKHL | $ | 219.4 | $ | 2.1 | $ | 24.7 | $ | 1.3 | $ | 25.9 | $ | 273.4 | ||||||||||||
Weighted average diluted ordinary shares outstanding | 154,623,339 | — | — | — | — | 154,623,339 | ||||||||||||||||||
Diluted net income per ordinary share attributable to MKHL | $ | 1.42 | $ | 0.01 | $ | 0.16 | $ | 0.01 | $ | 0.17 | $ | 1.77 |
(1) | Includes store closure costs recorded in connection with the Michael Kors Retail Fleet Optimization Plan, as well as transaction and transition costs recorded in connection with the acquisition of Jimmy Choo Group Limited (formerly known as Jimmy Choo PLC). |
Nine Months Ended December 30, 2017 | ||||||||||||||||||||||||
As Reported | Impairment Charges | Restructuring and Other Charges(1) | Inventory Step-up Adjustment | Acquisition Price Derivative Contract | As Adjusted | |||||||||||||||||||
Total revenue | $ | 3,539.1 | $ | — | $ | — | $ | — | $ | — | $ | 3,539.1 | ||||||||||||
Gross profit | $ | 2,149.5 | $ | — | $ | — | $ | 1.6 | $ | — | $ | 2,151.1 | ||||||||||||
Gross profit margin | 60.7 | % | — | % | — | % | 0.1 | % | — | % | 60.8 | % | ||||||||||||
Operating expenses | $ | 1,487.5 | $ | (18.9 | ) | $ | (51.3 | ) | $ | — | $ | — | $ | 1,417.3 | ||||||||||
Operating expense as percentage of revenue | 42.0 | % | (0.5 | )% | (1.5 | )% | — | % | — | % | 40.0 | % | ||||||||||||
Total income from operations | $ | 662.0 | $ | 18.9 | $ | 51.3 | $ | 1.6 | $ | — | $ | 733.8 | ||||||||||||
Total operating margin | 18.7 | % | 0.5 | % | 1.4 | % | 0.1 | % | — | % | 20.7 | % | ||||||||||||
MK Retail revenue | $ | 2,111.2 | $ | — | $ | — | $ | — | $ | — | $ | 2,111.2 | ||||||||||||
MK Retail operating income | $ | 341.6 | $ | 18.9 | $ | 25.4 | $ | — | $ | — | $ | 385.9 | ||||||||||||
MK Retail operating margin | 16.2 | % | 0.9 | % | 1.2 | % | — | % | — | % | 18.3 | % | ||||||||||||
MK Wholesale revenue | $ | 1,198.0 | $ | — | $ | — | $ | — | $ | — | $ | 1,198.0 | ||||||||||||
MK Wholesale operating income | $ | 263.6 | $ | — | $ | 14.9 | $ | — | $ | — | $ | 278.5 | ||||||||||||
MK Wholesale operating margin | 22.0 | % | — | % | 1.2 | % | — | % | — | % | 23.2 | % | ||||||||||||
Jimmy Choo revenue | $ | 114.7 | $ | — | $ | — | $ | — | $ | — | $ | 114.7 | ||||||||||||
Jimmy Choo operating income | $ | 5.7 | $ | — | $ | 8.4 | $ | 1.6 | $ | — | $ | 15.7 | ||||||||||||
Jimmy Choo operating margin | 5.0 | % | — | % | 7.3 | % | 1.4 | % | — | % | 13.7 | % | ||||||||||||
Foreign currency gain | $ | (14.7 | ) | $ | — | $ | — | $ | — | $ | 4.7 | $ | (10.0 | ) | ||||||||||
Net income attributable to MKHL | $ | 547.8 | $ | 15.5 | $ | 43.7 | $ | 1.3 | $ | (3.8 | ) | $ | 604.5 | |||||||||||
Weighted average diluted ordinary shares outstanding | 155,220,984 | — | — | — | — | 155,220,984 | ||||||||||||||||||
Diluted net income per ordinary share attributable to MKHL | $ | 3.53 | $ | 0.10 | $ | 0.28 | $ | 0.01 | $ | (0.03 | ) | $ | 3.89 |
(1) | Includes store closure costs recorded in connection with the Michael Kors Retail Fleet Optimization Plan, as well as transaction and transition costs recorded in connection with the acquisition of Jimmy Choo Group Limited. |
Three Months Ended December 31, 2016 | ||||||||||||
As Reported | Impairment Charges | As Adjusted | ||||||||||
Total revenue | $ | 1,352.8 | $ | — | $ | 1,352.8 | ||||||
Operating expenses | $ | 463.8 | $ | (0.5 | ) | $ | 463.3 | |||||
Operating expense as percentage of revenue | 34.3 | % | (0.1 | )% | 34.2 | % | ||||||
Total income from operations | $ | 341.9 | $ | 0.5 | $ | 342.4 | ||||||
Total operating margin | 25.3 | % | — | % | 25.3 | % | ||||||
MK Wholesale revenue | $ | 473.1 | $ | — | $ | 473.1 | ||||||
MK Wholesale operating income | $ | 140.2 | $ | 0.5 | $ | 140.7 | ||||||
MK Wholesale operating margin | 29.6 | % | 0.1 | % | 29.7 | % | ||||||
Net income attributable to MKHL | $ | 271.3 | $ | 0.3 | $ | 271.6 | ||||||
Weighted average diluted ordinary shares outstanding | 165,214,045 | — | 165,214,045 | |||||||||
Diluted net income per ordinary share attributable to MKHL | $ | 1.64 | $ | — | $ | 1.64 |
Nine Months Ended December 31, 2016 | ||||||||||||||||
As Reported | Impairment Charges | Transaction Costs(1) | As Adjusted | |||||||||||||
Total revenue | $ | 3,428.9 | $ | — | $ | — | $ | 3,428.9 | ||||||||
Operating expenses | $ | 1,309.2 | $ | (5.4 | ) | $ | (11.3 | ) | $ | 1,292.5 | ||||||
Operating expense as percentage of revenue | 38.2 | % | (0.2 | )% | (0.3 | )% | 37.7 | % | ||||||||
Total income from operations | $ | 732.5 | $ | 5.4 | $ | 11.3 | $ | 749.2 | ||||||||
Total operating margin | 21.4 | % | 0.1 | % | 0.3 | % | 21.8 | % | ||||||||
MK Retail revenue | $ | 1,996.8 | $ | — | $ | — | $ | 1,996.8 | ||||||||
MK Retail operating income | $ | 314.4 | $ | 4.9 | $ | 11.3 | $ | 330.6 | ||||||||
MK Retail operating margin | 15.7 | % | 0.3 | % | 0.6 | % | 16.6 | % | ||||||||
MK Wholesale revenue | 1,319.7 | — | — | 1,319.7 | ||||||||||||
MK Wholesale operating income | 367.2 | 0.5 | — | 367.7 | ||||||||||||
MK Wholesale operating margin | 27.8 | % | 0.1 | % | — | % | 27.9 | % | ||||||||
Net income attributable to MKHL | $ | 579.3 | $ | 3.5 | $ | 11.3 | $ | 594.1 | ||||||||
Weighted average diluted ordinary shares outstanding | 170,222,588 | — | — | 170,222,588 | ||||||||||||
Diluted net income per ordinary share attributable to MKHL | $ | 3.40 | $ | 0.02 | $ | 0.07 | $ | 3.49 |
(1) | Includes transition costs recorded in connection with the acquisition of Michael Kors (HK) Limited and Subsidiaries. |