v3.26.1
Taxes
 12 Months Ended
Mar. 28, 2026
Income Tax Disclosure [Abstract]  
Taxes Taxes
The Company is a United Kingdom (“U.K.”) tax resident and is incorporated in the British Virgin Islands. Certain Capri subsidiaries are subject to taxation in the United Kingdom and the United States while various other Capri subsidiaries are subject to taxation in foreign jurisdictions and are aggregated in the “Other” caption below.
Income (loss) from continuing operations before income taxes consisted of the following (in millions):
 Fiscal Years Ended
 March 28,
2026		March 29,
2025		March 30,
2024
United Kingdom$55 $96 $38 
United States (66)(136)(25)
Other118 38 8 
Total income (loss) from continuing operations before income taxes$107 $(2)$21 
The provision for income taxes consisted of the following (in millions):
 Fiscal Years Ended
 March 28,
2026		March 29,
2025		March 30,
2024
Current
United Kingdom$18 
(1)
$61 $48 
United States(6)3 17 
Other25 9 50 
Total current provision for income taxes37 73 115 
Deferred
United Kingdom2 25 (45)
United States1 227 
(3)
(22)
Other(13)
(2)
199 
(3)
(40)
Total deferred provision (benefit) for income taxes(10)451 (107)
Total provision for income taxes$27 $524 $8 
(1)Primarily relates to lower income in the U.K. attributable to the changes in global financing activities in Fiscal 2026.
(2)Primarily relates to the release of valuation allowance on deferred tax assets in Fiscal 2026.
(3)Primarily relates to the valuation allowance on deferred tax assets recorded in Fiscal 2025.
The Company’s provision for income taxes for the fiscal year ended March 28, 2026 was different from the amount computed by applying the statutory U.K. income tax rate to the underlying income (loss) before provision for income taxes as a result of the following (dollars in millions):
Fiscal Year Ended
March 28,
2026
Amount
% (1)
U.K. federal statutory tax rate$27 25.0 %
Foreign tax effects (by jurisdiction):
Australia
Statutory tax rate difference between Australia and the U.K.(2)(1.5)%
Changes in valuation allowances(2)(1.8)%
Other adjustments1 1.3 %
Canada
Statutory tax rate difference between Canada and the U.K.(2)(1.5)%
China
Changes in valuation allowances(16)(15.0)%
Return to provision4 4.2 %
Germany
Return to provision2 1.5 %
Hong Kong
Statutory tax rate difference between Hong Kong and the U.K.(1)(0.9)%
Changes in valuation allowances7 6.6 %
Return to provision3 2.3 %
Other adjustments(1)(0.9)%
Italy
Nontaxable or nondeductible items(5)(5.4)%
Other adjustments1 0.8 %
Luxembourg
Return to provision3 3.0 %
Netherlands
Changes in valuation allowances3 2.8 %
Other adjustments(3)(2.6)%
Switzerland
Statutory tax rate difference between Switzerland and the U.K.(9)(8.6)%
Changes in valuation allowances4 3.3 %
Nontaxable or nondeductible items3 3.2 %
Return to provision(4)(3.6)%
Other adjustments2 1.8 %
United States
State and local income taxes, net of U.S. federal benefit1 1.3 %
Changes in valuation allowances14 12.9 %
Nontaxable or nondeductible items7 6.3 %
Tax credits(19)(18.2)%
Other adjustments2 2.3 %
Other foreign jurisdictions3 2.7 %
Changes in valuation allowances5 4.9 %
Nontaxable or nondeductible items6 6.1 %
Changes in unrecognized tax benefits(7)(6.9)%
Effective income tax rate$27 25.4 %
(1)Tax rates are calculated using unrounded numbers.
The Company’s provision for income taxes for the fiscal years ended March 29, 2025 and March 30, 2024 were different from the amount computed by applying the statutory U.K. income tax rates to the underlying income (loss) before provision for income taxes as a result of the following (dollars in millions):
 Fiscal Years Ended
 March 29,
2025		March 30,
2024
Amount
% (1)
Amount
% (1)
Provision for income taxes at the U.K. statutory tax rate$— 25.0 %$5 25.0 %
Effects of global financing arrangements(27)NM(30)NM
Differences in tax effects on foreign income(10)NM(19)(90.2)%
Liability for uncertain tax positions(48)NM(19)(87.1)%
Effect of changes in valuation allowances on deferred tax assets (2)
544 NM(8)(38.0)%
Non-deductible goodwill impairment (3)
16 NM48 NM
State and local income taxes, net of federal benefit17 NM9 42.2 %
Share based compensation5 NM10 44.5 %
Withholding tax4 NM5 21.4 %
Merger related costs— — %4 20.1 %
Other23 NM3 18.2 %
Effective tax rate$524 NM$8 (43.9)%
NM Not meaningful
(1)Tax rates are calculated using unrounded numbers.
(2)Includes a full valuation allowance recorded on the Company’s deferred tax assets in Fiscal 2025.
(3)Attributable to goodwill impairment charges related to Jimmy Choo in Fiscal 2025 and Fiscal 2024.
Income taxes paid, net of refunds received, in Fiscal 2026 were as follows (in millions):
Fiscal Year Ended
March 28,
2026
United Kingdom$42 
Foreign (by jurisdiction):
U.S. Federal13 
U.S. State6 
Luxembourg10 
Switzerland16 
Other15 
Total$102 
Income taxes paid, net of refunds received, were $125 million and $156 million in Fiscal 2025 and Fiscal 2024, respectively.
Significant components of the Company’s deferred tax assets (liabilities) consist of the following (in millions):
As of
March 28,
2026		March 29,
2025
Deferred tax assets
Operating lease liabilities$270 $268 
Net operating loss carryforwards239 222 
Capital loss carryforwards238 19 
Accrued interest241 

214 
Depreciation29 27 
Accrued expenses13 12 
Inventories4 7 
Capitalized research and development3 14 
Stock compensation3 4 
Payroll related accruals2 2 
Other21 24 
Total deferred tax assets1,063 813 
Valuation allowance(763)
(1)
(515)
Net deferred tax assets300 298 
Deferred tax liabilities
Goodwill and intangibles(146)

(150)
Operating lease right-of-use-assets(221)(211)
Derivative financial instruments(21)(159)
Other— (11)
Total deferred tax liabilities(388)(531)
Net deferred tax liabilities$(88)$(233)
(1)Includes valuation allowance recorded against capital loss during Fiscal 2026.
The Company maintains a valuation allowance for deferred tax assets applicable to subsidiaries in jurisdictions for which separate income tax returns are filed by assessing both positive and negative available evidence to determine whether it is more likely than not that the deferred tax assets will be recoverable. The Company recorded an increase of $248 million, $361 million and $122 million to its valuation allowance in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. As of March 28, 2026, the Company maintained its full valuation allowance position which was initially recorded in Fiscal 2025 as a result of its three year cumulative loss at a consolidated level. The valuation allowance is evaluated periodically and can be reversed partially or in full depending on the future expectations of the realization of deferred tax assets on a jurisdictional level.
As of March 28, 2026, the Company had net operating loss carryforwards of $1.389 billion, a portion of which will begin to expire in Fiscal 2027.
As of March 28, 2026 and March 29, 2025, the Company had liabilities related to its uncertain tax positions, including accrued interest, of $101 million and $112 million, respectively, which are included in other long-term liabilities in the Company’s consolidated balance sheets.
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate, was $101 million, $112 million and $159 million as of March 28, 2026, March 29, 2025 and March 30, 2024, respectively. A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding accrued interest, for Fiscal 2026, Fiscal 2025 and Fiscal 2024, are presented below (in millions):
Fiscal Years Ended
March 28,
2026		March 29,
2025		March 30,
2024
Unrecognized tax benefits beginning balance$95 $132 $176 
Additions related to prior period tax positions1 1 16 
Additions related to current period tax positions— — 5 
Decreases related to audit settlements— (12)(46)
(2)
Decreases related to prior period tax positions(8)(24)
(1)
(16)
Decreases in prior period positions due to lapses in statute of limitations(6)(2)(3)
Unrecognized tax benefits ending balance$82 $95 $132 
(1)This amount is primarily related to a favorable Italian tax ruling related to stock compensation during Fiscal 2025.
(2)This amount is primarily related to settlements of Italian transfer pricing and Hong Kong corporate income tax audits during Fiscal 2024.
The Company classifies interest and penalties related to unrecognized tax benefits as components of the provision for income taxes. The Company recognized an increase of $2 million in interest and penalties in the consolidated statements of operations and comprehensive (loss) income for Fiscal 2026. The Company recognized a reduction of $10 million and $11 million in interest and penalties in the consolidated statements of operations and comprehensive (loss) income for Fiscal 2025 and Fiscal 2024, respectively.
The total amount of unrecognized tax benefits relating to the Company’s tax positions is subject to change based on future events including, but not limited to, the settlement of ongoing tax audits and assessments and the expiration of applicable statutes of limitations. The Company anticipates that the balance of gross unrecognized tax benefits, excluding interest and penalties, will be reduced by $62 million during the next 12 months, primarily due to the anticipated settlement of tax examinations as well as statute of limitation expirations. However, the outcomes and timing of such events are highly uncertain and changes in the occurrence, expected outcomes and timing of such events could cause the Company’s current estimate to change materially in the future.
The Company files income tax returns in the United States and in various foreign, state and local jurisdictions. Most examinations have been completed by tax authorities or the statute of limitations has expired for United States federal, foreign, state and local income tax returns filed by the Company for years through Fiscal 2020.
Prior to the enactment of the Jobs Act, the Company’s undistributed foreign earnings were considered permanently reinvested and, as such, United States federal and state income taxes were not previously recorded on these earnings. As a result of the Jobs Act, substantially all of the Company’s earnings in foreign subsidiaries generated prior to the enactment of the Jobs Act were deemed to have been repatriated. It remains the Company’s intent to either reinvest indefinitely substantially all of its foreign earnings outside of the United States or repatriate them tax neutrally. However, if future earnings are repatriated, the potential exists that the Company may be required to accrue and pay additional taxes, including any applicable foreign withholding tax and income taxes. It is not practicable to estimate the amount of tax that might be payable if these earnings were repatriated due to the complexities associated with the hypothetical calculation.
On July 4, 2025, the U.S. government enacted the OBBBA which includes, among other provisions, changes to the U.S. corporate income tax system including the allowance of immediate expensing of qualifying research and development expenses and permanent extensions of certain provisions within the Jobs Act. Based upon the Company’s analysis, the OBBBA did not have a material impact on the Company’s consolidated financial statements.