British Virgin Islands | N/A | |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |
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o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | 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 May 30, 2018. |
MICHAEL KORS HOLDINGS LIMITED | |||
Date: May 30, 2018 | |||
By: | /s/ Thomas J. Edwards, Jr. | ||
Name: | Thomas J. Edwards, Jr. | ||
Title: | Executive Vice President, Chief Financial Officer, Chief Operating Officer and Treasurer | ||
• | Delivered better than anticipated revenue, operating margin and earnings results |
• | Began investments in the Jimmy Choo brand to lay the foundation for accelerated long term growth |
• | Made significant progress on the Michael Kors Runway 2020 strategic plan |
• | Comparable sales increased 2.3%, driven by strong response to innovative and elevated fashion luxury offering across accessories, footwear, ready-to-wear and men’s categories |
• | Launched KORSVIP loyalty program, with enrollment well ahead of initial expectations |
• | Transitioned additional store locations to new luxury concept and are pleased with the recent results at renovated stores, which are outperforming the balance of the chain |
• | Total revenue increased 10.8% to $1.18 billion, including a $107.9 million contribution from Jimmy Choo. On a constant currency basis, total revenue increased 7.2%. |
• | MK Retail revenue increased 4.4% to $600.6 million. Since the fourth quarter of last year, the Company opened 50 stores, primarily in Asia, and closed 48 stores. Comparable sales increased 2.3%, driven by growth in the accessories, footwear, ready-to-wear and men's categories. On a constant currency basis, retail revenue increased 0.1%, and comparable sales decreased 1.7%. |
• | MK Wholesale revenue decreased 3.2% to $441.3 million and on a constant currency basis decreased 6.1%, driven by the Company's strategic reduction in inventory levels in the channel to drive higher full price sell through and elevate brand positioning. |
• | MK Licensing revenue decreased 11.1% to $29.7 million. |
• | Gross profit increased 14.5% to $709.8 million and as a percentage of total revenue was 60.2%. Adjusted gross profit increased 14.9% to $712.3 million, and as a percentage of total revenue was 60.4%. This compares to 58.2% in the fourth quarter of fiscal 2017. This increase was the result of favorable channel mix due to a higher proportion of retail sales, expanded MK Retail and MK Wholesale gross margins, and the inclusion of Jimmy Choo, which contributed 80 basis points to the increase. |
• | Income from operations was $87.1 million, or 7.4% as a percentage of total revenue. Loss from operations was $42.6 million, or (4.0)% as a percentage of total revenue, for the fourth quarter of fiscal 2017. |
• | Adjusted income from operations increased 2.0% to $154.2 million, or 13.1% as a percentage of total revenue. This compares to $151.2 million, or 14.2% as a percentage of total revenue, for the same period in fiscal 2017. These results reflect higher income from operations for the Michael Kors brand, partially offset by accelerated investments related to Jimmy Choo in marketing, ecommerce and store openings during a seasonally low revenue period. |
• | Net income attributable to MKHL was $44.1 million, or $0.29 per diluted share, based on 154.3 million weighted average diluted shares outstanding. Net loss attributable to MKHL for the fourth quarter of fiscal 2017 was $26.8 million, or $0.17 per diluted share, based on 161.8 million weighted average diluted shares outstanding. |
• | Adjusted net income attributable to MKHL was $96.5 million, or $0.63 per diluted share. This compares to $118.0 million, or $0.73 per diluted share, for the fourth quarter of fiscal 2017. |
• | At March 31, 2018, Michael Kors operated 829 retail stores, including concessions, and an additional 151 retail stores, including concessions, were operated through licensing partners. Including licensed locations, there were 980 Michael Kors stores worldwide at the end of the fourth quarter of fiscal 2018. |
• | At March 31, 2018, Jimmy Choo operated 182 retail stores, including concessions, and an additional 61 retail stores, including concessions, were operated through licensing partners. Including licensed locations, there were 243 Jimmy Choo stores worldwide at the end of the fourth quarter of fiscal 2018. |
• | Total revenue increased 5.0% to $4.72 billion from $4.49 billion, including a $222.6 million contribution from Jimmy Choo. On a constant currency basis, total revenue increased 3.6%. |
• | MK Retail revenue increased 5.4% to $2.71 billion. Comparable sales decreased 2.2%. On a constant currency basis, retail revenue increased 3.9%, and comparable sales decreased 3.7% |
• | MK Wholesale revenue decreased 7.7% to $1.64 billion and on a constant currency basis decreased 9.1%, driven by the Company's strategic reduction in inventory levels to drive higher full price sell through and elevate brand positioning. |
• | MK Licensing revenue decreased 0.6% to $144.9 million. |
• | Gross profit increased 7.4% to $2.86 billion, and as a percentage of total revenue was 60.6%, or 60.7% on an adjusted basis. This compares to 59.2% in the same period of fiscal 2017. This increase was primarily attributable to improved MK Retail gross margin and a 20 basis points contribution from the inclusion of Jimmy Choo, partially offset by the expected decline in the MK Wholesale gross margin. |
• | Income from operations was $749.1 million and as a percentage of total revenue was 15.9%. Income from operations was $689.9 million, or 15.4% as a percentage of total revenue, for the full fiscal year 2017. |
• | Adjusted income from operations was $888.0 million, or 18.8% as a percentage of total revenue. This compares to $900.4 million, or 20.0% as a percentage of total revenue, for the same period in fiscal 2017. |
• | Net income attributable to MKHL was $591.9 million, or $3.82 per diluted share, based on 155.1 million weighted average diluted shares outstanding. Net income attributable to MKHL for the full year fiscal 2017 was $552.5 million, or $3.29 per diluted share, based on 168.1 million weighted average diluted shares outstanding. |
• | Adjusted net income attributable to MKHL was $701.0 million, or $4.52 per diluted share. This compares to $712.1 million, or $4.24 per diluted share, for the same period of fiscal 2017. |
Three Months Ended | Fiscal Years Ended | |||||||||||||||
March 31, 2018 | April 1, 2017 | March 31, 2018 | April 1, 2017 | |||||||||||||
Total revenue | $ | 1,179.5 | $ | 1,064.8 | $ | 4,718.6 | $ | 4,493.7 | ||||||||
Cost of goods sold | 469.7 | 445.1 | 1,859.3 | 1,832.3 | ||||||||||||
Gross profit | 709.8 | 619.7 | 2,859.3 | 2,661.4 | ||||||||||||
Total operating expenses | 622.7 | 662.3 | 2,110.2 | 1,971.5 | ||||||||||||
Income (loss) from operations | 87.1 | (42.6 | ) | 749.1 | 689.9 | |||||||||||
Other income, net | (0.7 | ) | (0.7 | ) | (1.7 | ) | (5.4 | ) | ||||||||
Interest expense (income), net | 12.1 | (1.0 | ) | 22.3 | 4.1 | |||||||||||
Foreign currency loss (gain) | 1.4 | 0.4 | (13.3 | ) | 2.6 | |||||||||||
Income (loss) before provision for income taxes | 74.3 | (41.3 | ) | 741.8 | 688.6 | |||||||||||
Provision (benefit) for income taxes | 29.8 | (14.5 | ) | 149.7 | 137.1 | |||||||||||
Net income (loss) | $ | 44.5 | $ | (26.8 | ) | $ | 592.1 | $ | 551.5 | |||||||
Less: Net income (loss) attributable to noncontrolling interests | 0.4 | — | 0.2 | (1.0 | ) | |||||||||||
Net income (loss) attributable to MKHL | $ | 44.1 | $ | (26.8 | ) | $ | 591.9 | $ | 552.5 | |||||||
Weighted average ordinary shares outstanding: | ||||||||||||||||
Basic | 150,818,144 | 159,944,132 | 152,283,586 | 165,986,733 | ||||||||||||
Diluted | 154,252,751 | 161,827,486 | 155,102,885 | 168,123,813 | ||||||||||||
Net income (loss) per ordinary share: | ||||||||||||||||
Basic | $ | 0.29 | $ | (0.17 | ) | $ | 3.89 | $ | 3.33 | |||||||
Diluted | $ | 0.29 | $ | (0.17 | ) | $ | 3.82 | $ | 3.29 |
March 31, 2018 | April 1, 2017 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 163.1 | $ | 227.7 | ||||
Receivables, net | 290.5 | 265.8 | ||||||
Inventories | 660.7 | 549.3 | ||||||
Prepaid expenses and other current assets | 147.8 | 121.9 | ||||||
Total current assets | 1,262.1 | 1,164.7 | ||||||
Property and equipment, net | 583.2 | 591.5 | ||||||
Intangible assets, net | 1,235.7 | 418.1 | ||||||
Goodwill | 847.7 | 119.7 | ||||||
Deferred tax assets | 56.2 | 73.3 | ||||||
Other assets | 74.1 | 42.3 | ||||||
Total assets | $ | 4,059.0 | $ | 2,409.6 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 294.1 | $ | 176.3 | ||||
Accrued payroll and payroll related expenses | 93.0 | 61.1 | ||||||
Accrued income taxes | 77.6 | 60.3 | ||||||
Short-term debt | 200.0 | 133.1 | ||||||
Accrued expenses and other current liabilities | 295.6 | 135.0 | ||||||
Total current liabilities | 960.3 | 565.8 | ||||||
Deferred rent | 128.4 | 137.8 | ||||||
Deferred tax liabilities | 186.3 | 80.0 | ||||||
Long-term debt | 674.4 | — | ||||||
Other long-term liabilities | 88.1 | 31.0 | ||||||
Total liabilities | 2,037.5 | 814.6 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity | ||||||||
Ordinary shares, no par value; 650,000,000 shares authorized; 210,991,091 shares issued and 149,698,407 outstanding at March 31, 2018; 209,332,493 shares issued and 155,833,304 outstanding at April 1, 2017 | — | — | ||||||
Treasury shares, at cost (61,292,684 shares at March 31, 2018 and 53,499,189 shares at April 1, 2017) | (3,015.9 | ) | (2,654.9 | ) | ||||
Additional paid-in capital | 831.1 | 767.8 | ||||||
Accumulated other comprehensive income (loss) | 50.5 | (80.6 | ) | |||||
Retained earnings | 4,152.0 | 3,560.3 | ||||||
Total shareholders’ equity of MKHL | 2,017.7 | 1,592.6 | ||||||
Noncontrolling interest | 3.8 | 2.4 | ||||||
Total shareholders’ equity | 2,021.5 | 1,595.0 | ||||||
Total liabilities and shareholders’ equity | $ | 4,059.0 | $ | 2,409.6 |
Three Months Ended | Fiscal Years Ended | |||||||||||||||||
March 31, 2018 | April 1, 2017 | March 31, 2018 | April 1, 2017 | |||||||||||||||
Revenue by Segment and Region: | ||||||||||||||||||
MK Retail | The Americas | $ | 342.8 | $ | 351.7 | $ | 1,678.4 | $ | 1,713.7 | |||||||||
Europe | 120.1 | 106.5 | 564.4 | 507.7 | ||||||||||||||
Asia | 137.7 | 117.1 | 469.0 | 350.7 | ||||||||||||||
MK Retail Revenue | 600.6 | 575.3 | 2,711.8 | 2,572.1 | ||||||||||||||
MK Wholesale | The Americas | 328.2 | 353.3 | 1,234.0 | 1,340.9 | |||||||||||||
EMEA | 93.2 | 91.3 | 343.9 | 376.5 | ||||||||||||||
Asia | 19.9 | 11.5 | 61.4 | 58.4 | ||||||||||||||
MK Wholesale Revenue | 441.3 | 456.1 | 1,639.3 | 1,775.8 | ||||||||||||||
MK Licensing | The Americas | 13.4 | 16.0 | 83.5 | 86.1 | |||||||||||||
EMEA | 16.3 | 17.4 | 61.4 | 59.7 | ||||||||||||||
MK Licensing Revenue | 29.7 | 33.4 | 144.9 | 145.8 | ||||||||||||||
Michael Kors Revenue | 1,071.6 | 1,064.8 | 4,496.0 | 4,493.7 | ||||||||||||||
Jimmy Choo | The Americas | 16.3 | — | 37.3 | — | |||||||||||||
EMEA | 58.0 | — | 123.0 | — | ||||||||||||||
Asia | 33.6 | — | 62.3 | — | ||||||||||||||
Jimmy Choo Revenue | 107.9 | — | 222.6 | — | ||||||||||||||
Total Revenue | $ | 1,179.5 | $ | 1,064.8 | $ | 4,718.6 | $ | 4,493.7 | ||||||||||
Income from Operations: | ||||||||||||||||||
MK Retail | $ | (7.8 | ) | $ | (154.6 | ) | $ | 333.8 | $ | 159.8 | ||||||||
MK Wholesale | 110.2 | 100.9 | 373.8 | 468.1 | ||||||||||||||
MK Licensing | 7.1 | 11.1 | 58.2 | 62.0 | ||||||||||||||
Michael Kors | 109.5 | $ | (42.6 | ) | 765.8 | 689.9 | ||||||||||||
Jimmy Choo | (22.4 | ) | — | (16.7 | ) | — | ||||||||||||
Total Income (loss) from operations | $ | 87.1 | $ | (42.6 | ) | $ | 749.1 | $ | 689.9 | |||||||||
Operating Margin: | ||||||||||||||||||
MK Retail | (1.3 | )% | (26.9 | )% | 12.3 | % | 6.2 | % | ||||||||||
MK Wholesale | 25.0 | % | 22.1 | % | 22.8 | % | 26.4 | % | ||||||||||
MK Licensing | 23.9 | % | 33.2 | % | 40.2 | % | 42.5 | % | ||||||||||
Michael Kors | 10.2 | % | (4.0 | )% | 17.0 | % | 15.4 | % | ||||||||||
Jimmy Choo | (20.8 | )% | — | % | (7.5 | )% | — | % | ||||||||||
Total Operating Margin | 7.4 | % | (4.0 | )% | 15.9 | % | 15.4 | % |
March 31, 2018 | April 1, 2017 | |||||||||||||
Retail Store Information: | Store Count | Square Footage | Store Count | Square Footage | ||||||||||
The Americas | 379 | 1,250,061 | 398 | 1,280,168 | ||||||||||
Europe | 198 | 534,752 | 201 | 541,627 | ||||||||||
Asia | 252 | 523,590 | 228 | 436,164 | ||||||||||
Michael Kors | 829 | 2,308,403 | 827 | 2,257,959 | ||||||||||
Jimmy Choo | 182 | 233,492 | — | — | ||||||||||
Total MKHL | 1,011 | 2,541,895 | 827 | 2,257,959 |
Three Months Ended | % Change | |||||||||||||
March 31, 2018 | April 1, 2017 | As Reported | Constant Currency | |||||||||||
Total revenue: | ||||||||||||||
MK Retail | $ | 600.6 | $ | 575.3 | 4.4 | % | 0.1 | % | ||||||
MK Wholesale | 441.3 | 456.1 | (3.2 | )% | (6.1 | )% | ||||||||
MK Licensing | 29.7 | 33.4 | (11.1 | )% | (11.2 | )% | ||||||||
Michael Kors | 1,071.6 | 1,064.8 | 0.6 | % | (2.9 | )% | ||||||||
Jimmy Choo | 107.9 | — | NM | NM | ||||||||||
Total revenue | $ | 1,179.5 | $ | 1,064.8 | 10.8 | % | 7.2 | % |
Fiscal Years Ended | % Change | |||||||||||||
March 31, 2018 | April 1, 2017 | As Reported | Constant Currency | |||||||||||
Total revenue: | ||||||||||||||
MK Retail | $ | 2,711.8 | $ | 2,572.1 | 5.4 | % | 3.9 | % | ||||||
MK Wholesale | 1,639.3 | 1,775.8 | (7.7 | )% | (9.1 | )% | ||||||||
MK Licensing | 144.9 | 145.8 | (0.6 | )% | (0.6 | )% | ||||||||
Michael Kors | 4,496.0 | 4,493.7 | 0.1 | % | (1.4 | )% | ||||||||
Jimmy Choo | 222.6 | — | NM | NM | ||||||||||
Total revenue | $ | 4,718.6 | $ | 4,493.7 | 5.0 | % | 3.6 | % |
Three Months Ended March 31, 2018 | ||||||||||||||||||||
As Reported | Impairment Charges | Restructuring and Other Charges(1) | Inventory Step-up Adjustment | As Adjusted | ||||||||||||||||
Total revenue | $ | 1,179.5 | $ | — | $ | — | $ | — | $ | 1,179.5 | ||||||||||
Gross profit | $ | 709.8 | $ | — | $ | — | $ | 2.5 | $ | 712.3 | ||||||||||
Gross profit margin | 60.2 | % | — | % | — | % | 0.2 | % | 60.4 | % | ||||||||||
Operating expenses | $ | 622.7 | $ | (13.8 | ) | $ | (50.8 | ) | $ | — | $ | 558.1 | ||||||||
Operating expense as percentage of revenue | 52.8 | % | (1.2 | )% | (4.3 | )% | — | % | 47.3 | % | ||||||||||
Total income from operations | $ | 87.1 | $ | 13.8 | $ | 50.8 | $ | 2.5 | $ | 154.2 | ||||||||||
Total operating margin | 7.4 | % | 1.2 | % | 4.3 | % | 0.2 | % | 13.1 | % | ||||||||||
MK Retail revenue | $ | 600.6 | $ | — | $ | — | $ | — | $ | 600.6 | ||||||||||
MK Retail operating (loss) income | $ | (7.8 | ) | $ | 12.4 | $ | 45.4 | $ | — | $ | 50.0 | |||||||||
MK Retail operating margin | (1.3 | )% | 2.1 | % | 7.5 | % | — | % | 8.3 | % | ||||||||||
MK Wholesale revenue | $ | 441.3 | $ | — | $ | — | $ | — | $ | 441.3 | ||||||||||
MK Wholesale operating income | $ | 110.2 | $ | 1.4 | $ | 0.9 | $ | — | $ | 112.5 | ||||||||||
MK Wholesale operating margin | 25.0 | % | 0.3 | % | 0.2 | % | — | % | 25.5 | % | ||||||||||
MK Licensing revenue | $ | 29.7 | $ | — | $ | — | $ | — | $ | 29.7 | ||||||||||
MK Licensing operating income | $ | 7.1 | $ | — | $ | 0.2 | $ | — | $ | 7.3 | ||||||||||
MK Licensing operating margin | 23.9 | % | — | % | 0.7 | % | — | % | 24.6 | % | ||||||||||
Michael Kors revenue | $ | 1,071.6 | $ | — | $ | — | $ | — | $ | 1,071.6 | ||||||||||
Michael Kors operating expense | $ | 529.0 | $ | (13.8 | ) | $ | (46.5 | ) | $ | — | $ | 468.7 | ||||||||
Michael Kors operating expense as percentage of revenue | 49.4 | % | (1.3 | )% | (4.4 | )% | — | % | 43.7 | % | ||||||||||
Michael Kors operating income | $ | 109.5 | $ | 13.8 | $ | 46.5 | $ | — | $ | 169.8 | ||||||||||
Michael Kors operating margin | 10.2 | % | 1.3 | % | 4.3 | % | — | % | 15.8 | % | ||||||||||
Jimmy Choo revenue | $ | 107.9 | $ | — | $ | — | $ | — | $ | 107.9 | ||||||||||
Jimmy Choo operating expenses | $ | 93.7 | $ | — | $ | (4.3 | ) | $ | — | $ | 89.4 | |||||||||
Jimmy Choo operating income | $ | (22.4 | ) | $ | — | $ | 4.3 | $ | 2.5 | $ | (15.6 | ) | ||||||||
Jimmy Choo operating margin | (20.8 | )% | — | % | 4.0 | % | 2.3 | % | (14.5 | )% | ||||||||||
Net income attributable to MKHL | $ | 44.1 | $ | 10.7 | $ | 39.7 | $ | 2.0 | $ | 96.5 | ||||||||||
Weighted average diluted ordinary shares outstanding | 154,252,751 | — | — | — | 154,252,751 | |||||||||||||||
Diluted net income per ordinary share attributable to MKHL | $ | 0.29 | $ | 0.07 | $ | 0.26 | $ | 0.01 | $ | 0.63 |
(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). |
Fiscal Year Ended March 31, 2018 | ||||||||||||||||||||||||
As Reported | Impairment Charges | Restructuring and Other Charges(1) | Inventory Step-up Adjustment | Acquisition Price Derivative Contract | As Adjusted | |||||||||||||||||||
Total revenue | $ | 4,718.6 | $ | — | $ | — | $ | — | $ | — | $ | 4,718.6 | ||||||||||||
Gross profit | $ | 2,859.3 | $ | — | $ | — | $ | 4.1 | $ | — | $ | 2,863.4 | ||||||||||||
Gross profit margin | 60.6 | % | — | % | — | % | 0.1 | % | — | % | 60.7 | % | ||||||||||||
Operating expenses | $ | 2,110.2 | $ | (32.7 | ) | $ | (102.1 | ) | $ | — | $ | — | $ | 1,975.4 | ||||||||||
Operating expense as percentage of revenue | 44.7 | % | (0.7 | )% | (2.1 | )% | — | % | — | % | 41.9 | % | ||||||||||||
Total income from operations | $ | 749.1 | $ | 32.7 | $ | 102.1 | $ | 4.1 | $ | — | $ | 888.0 | ||||||||||||
Total operating margin | 15.9 | % | 0.7 | % | 2.1 | % | 0.1 | % | — | % | 18.8 | % | ||||||||||||
MK Retail revenue | $ | 2,711.8 | $ | — | $ | — | $ | — | $ | — | $ | 2,711.8 | ||||||||||||
MK Retail operating income | $ | 333.8 | $ | 31.3 | $ | 70.8 | $ | — | $ | — | $ | 435.9 | ||||||||||||
MK Retail operating margin | 12.3 | % | 1.2 | % | 2.6 | % | — | % | — | % | 16.1 | % | ||||||||||||
MK Wholesale revenue | $ | 1,639.3 | $ | — | $ | — | $ | — | $ | — | $ | 1,639.3 | ||||||||||||
MK Wholesale operating income | $ | 373.8 | $ | 1.4 | $ | 15.8 | $ | — | $ | — | $ | 391.0 | ||||||||||||
MK Wholesale operating margin | 22.8 | % | 0.1 | % | 1.0 | % | — | % | — | % | 23.9 | % | ||||||||||||
Jimmy Choo revenue | $ | 222.6 | $ | — | $ | — | $ | — | $ | — | $ | 222.6 | ||||||||||||
Jimmy Choo operating income | $ | (16.7 | ) | $ | — | $ | 12.7 | $ | 4.1 | $ | — | $ | 0.1 | |||||||||||
Jimmy Choo operating margin | (7.5 | )% | — | % | 5.7 | % | 1.8 | % | — | % | — | % | ||||||||||||
Foreign currency gain | $ | (13.3 | ) | $ | — | $ | — | $ | — | $ | 4.7 | $ | (8.6 | ) | ||||||||||
Net income attributable to MKHL | $ | 591.9 | $ | 26.2 | $ | 83.4 | $ | 3.3 | $ | (3.8 | ) | $ | 701.0 | |||||||||||
Weighted average diluted ordinary shares outstanding | 155,102,885 | — | — | — | — | 155,102,885 | ||||||||||||||||||
Diluted net income per ordinary share attributable to MKHL | $ | 3.82 | $ | 0.17 | $ | 0.54 | $ | 0.02 | $ | (0.03 | ) | $ | 4.52 |
Three Months Ended April 1, 2017 | ||||||||||||
As Reported | Impairment Charges | As Adjusted | ||||||||||
Total revenue | $ | 1,064.8 | $ | — | $ | 1,064.8 | ||||||
Operating expenses | $ | 662.3 | $ | (193.8 | ) | $ | 468.5 | |||||
Operating expenses as percentage of revenue | 62.2 | % | (18.2 | )% | 44.0 | % | ||||||
Total (loss) income from operations | $ | (42.6 | ) | $ | 193.8 | $ | 151.2 | |||||
Total operating margin | (4.0 | )% | 18.2 | % | 14.2 | % | ||||||
MK Retail revenue | $ | 575.3 | $ | — | $ | 575.3 | ||||||
MK Retail operating income | $ | (154.6 | ) | $ | 193.8 | $ | 39.2 | |||||
MK Retail operating margin | (26.9 | )% | 33.7 | % | 6.8 | % | ||||||
Net (loss) income attributable to MKHL | $ | (26.8 | ) | $ | 144.8 | $ | 118.0 | |||||
Weighted average diluted ordinary shares outstanding | 161,827,486 | — | 161,827,486 | |||||||||
Diluted net (loss) income per ordinary share attributable to MKHL | (0.17 | ) | 0.90 | 0.73 |
Fiscal Year Ended April 1, 2017 | ||||||||||||||||
As Reported | Impairment Charges | Transaction Costs Related to Greater China Acquisition | As Adjusted | |||||||||||||
Total revenue | $ | 4,493.7 | $ | — | $ | — | $ | 4,493.7 | ||||||||
Operating expenses | $ | 1,971.5 | $ | (199.2 | ) | $ | (11.3 | ) | $ | 1,761.0 | ||||||
Operating expenses as percentage of revenue | 43.9 | % | (4.4 | )% | (0.3 | )% | 39.2 | % | ||||||||
Total income from operations | $ | 689.9 | $ | 199.2 | $ | 11.3 | $ | 900.4 | ||||||||
Total operating margin | 15.4 | % | 4.4 | % | 0.2 | % | 20.0 | % | ||||||||
MK Retail revenue | $ | 2,572.1 | $ | — | $ | — | $ | 2,572.1 | ||||||||
MK Retail operating income | $ | 159.8 | $ | 198.7 | $ | 11.3 | $ | 369.8 | ||||||||
MK Retail operating margin | 6.2 | % | 7.7 | % | 0.5 | % | 14.4 | % | ||||||||
MK Wholesale revenue | $ | 1,775.8 | $ | — | $ | — | $ | 1,775.8 | ||||||||
MK Wholesale operating income | $ | 468.1 | $ | 0.5 | $ | — | $ | 468.6 | ||||||||
MK Wholesale operating margin | 26.4 | % | — | % | — | % | 26.4 | % | ||||||||
Net income attributable to MKHL | $ | 552.5 | $ | 148.3 | $ | 11.3 | $ | 712.1 | ||||||||
Weighted average diluted ordinary shares outstanding | 168,123,813 | — | — | 168,123,813 | ||||||||||||
Diluted net income per ordinary share attributable to MKHL | $ | 3.29 | $ | 0.88 | $ | 0.07 | $ | 4.24 |