Michael Kors Holdings Limited Announces First Quarter Fiscal 2013 Results

Forward Looking Statements

This press release contains forward-looking statements. You should not place undue reliance on such statements because they are subject to numerous uncertainties and factors relating to the Company’s operations and business environment, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements include information concerning the Company’s possible or assumed future results of operations, including descriptions of its business strategy. These statements often include words such as “may,” “will,” “should,” “believe,” “expect,” “seek,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. The forward-looking statements contained in this press release are based on assumptions that the Company has made in light of management’s experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors that it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual financial results or results of operations and could cause actual results to differ materially from those in these forward-looking statements. These factors are more fully discussed in the “Risk Factors” section and elsewhere in the Company’s Annual Report on Form 20-F for the fiscal year ended March 31, 2012 (File No. 001-35368), filed on June 12, 2012 with the U.S. Securities and Exchange Commission.

SCHEDULE 1
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except share and per share data)
(Unaudited)
					Three Months Ended
					June 30,					July 2,
					2012					2011
Net sales					$	397,370				$	232,282
Licensing revenue						17,495					10,844
Total revenue						414,865					243,126
Cost of goods sold						163,865					106,157
Gross profit						251,000					136,969
Total operating expenses						139,057					91,993
Income from operations						111,943					44,976
Interest expense, net						435					671
Foreign currency (gain) loss						(375	)				1,507
Income before provision for income taxes						111,883					42,798
Provision for income taxes						43,238					18,683
Net income						68,645					24,115
Net income applicable to preference shareholders						-					5,198
Net income available for ordinary shareholders					$	68,645				$	18,917
Weighted average ordinary shares outstanding:
Basic						192,790,454					140,554,377
Diluted						199,391,127					179,177,268
Net income per ordinary share (1):
Basic					$	0.36				$	0.13
Diluted					$	0.34				$	0.13
Statements of Comprehensive Income:
Net income					$	68,645				$	24,115
Foreign currency translation adjustments						(3,278	)				1,979
Comprehensive income					$	65,367				$	26,094

(1)		The calculation for basic earnings per ordinary share is based on net income available for ordinary shareholders divided by basic ordinary shares. The calculation for diluted earnings per share is based on net income divided by diluted shares.

SCHEDULE 2
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
							June 30,				March 31,				July 2,
			Assets				2012				2012				2011
Current assets
Cash and cash equivalents							$	162,075			$	106,354			$	58,198
Receivables, net								104,700				127,226				47,986
Inventories								246,601				187,413				122,015
Deferred tax assets								15,518				11,145				7,925
Prepaid expenses and other current assets								40,298				31,925				20,129
Total current assets								569,192				464,063				256,253
Property and equipment, net								180,317				170,755				120,731
Intangible assets, net								13,684				14,146				15,449
Goodwill								14,005				14,005				14,005
Deferred tax assets								3,942				3,952				1,357
Other assets								6,780				7,504				3,827
Total assets							$	787,920			$	674,425			$	411,622
			Liabilities and Shareholders' Equity
Current liabilities
Revolving line of credit							$	27,667			$	22,674			$	13,238
Accounts payable								82,464				67,326				50,989
Accrued payroll and payroll related expenses								17,270				33,710				9,615
Accrued income taxes								40,342				8,199				16,646
Accrued expenses and other current liabilities								28,505				33,097				20,653
Total current liabilities								196,248				165,006				111,141
Note payable to parent								-				-				101,650
Deferred rent								46,137				43,292				31,999
Deferred tax liabilities								6,816				6,300				5,495
Other long-term liabilities								3,069				3,590				3,218
Total liabilities								252,270				218,188				253,503
Commitments and contingencies
Contingently redeemable ordinary shares								-				-				6,706
Shareholders' equity *
Ordinary shares, no par value; 650,000,000 shares authorized, and 193,226,091 shares issued and
outstanding at June 30, 2012, and 192,731,390 shares issued and outstanding at March 31, 2012.								-				-				-
Additional paid-in capital								242,367				228,321				39,999
Accumulated other comprehensive loss								(4,013	)			(735	)			6,012
Retained earnings								297,296				228,651				105,402
Total shareholders' equity								535,650				456,237				151,413
Total liabilities and shareholders' equity							$	787,920			$	674,425			$	411,622

* Share amounts applicable to July 2, 2011 were omitted as they reflect our equity structure prior to our restructuring and initial public offering.

SCHEDULE 3
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED SEGMENT DATA
(In thousands)
(Unaudited)
				Three Months Ended
				June 30,				July 2,
				2012				2011
Revenue by Region:
North America (U.S. and Canada)				$	377,149			$	225,768
Europe					33,387				15,864
Other Regions					4,329				1,494
Total Revenue:				$	414,865			$	243,126
Revenue by Segment:
Net sales:	Retail			$	215,004			$	122,344
	Wholesale				182,366				109,938
Licensing					17,495				10,844
Total Revenue:				$	414,865			$	243,126
Income from Operations:
Retail				$	59,879			$	27,922
Wholesale					40,718				10,868
Licensing					11,346				6,186
Total Income from Operations				$	111,943			$	44,976

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