Discontinued Operations

6 Months Ended

Sep. 27, 2025

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On April 10, 2025, the Company and Prada entered into a Purchase Agreement whereby Prada has agreed to acquire certain subsidiaries of the Company which operate the Company’s Versace business for an aggregate purchase price of $1.375 billion in cash, subject to certain adjustments, including for net indebtedness, working capital and transaction expenses. The sale is anticipated to close in the second half of calendar 2025, subject to customary closing conditions.

The Company determined that the sale of the Versace business represented a strategic shift and the Company concluded that it met the held-for-sale and discontinued operations accounting criteria during the first quarter of Fiscal 2026. Accordingly, the Company is separately reporting the results of the Versace business as discontinued operations in its consolidated statements of operations and presenting the related assets and liabilities as held for sale in its consolidated balance sheets. These changes have been applied to all periods presented. Cash flows from the Company’s discontinued operations are presented as such in the consolidated statements of cash flows for all periods presented.

Additionally, beginning April 10, 2025, in accordance with ASC 360, Property, Plant and Equipment, the Company is no longer depreciating or amortizing Versace’s long-lived tangible and intangible assets or operating lease right-of-use assets.

The following table represents the carrying amounts of the major classes of assets and liabilities classified as held for sale in the consolidated balance sheets as of September 27, 2025 and March 29, 2025 (in millions):

	September 27, 2025		March 29, 2025
Cash and cash equivalents	$	101	$	59
Receivables, net	65		62
Inventories, net	194		168
Prepaid expenses and other current assets	39		53
Current assets held for sale	399		342
Property and equipment, net	124		120
Operating lease right-of-use assets	475		388
Intangible assets, net	577		534
Goodwill	528		489
Other assets	58		63
Noncurrent assets held for sale	1,762		1,594
Total assets held for sale	$	2,161	$	1,936
Accounts payable	$	109	$	106
Accrued payroll and payroll related expenses	32		28
Accrued income taxes	3		2
Short-term operating lease liabilities	113		101
Accrued expenses and other current liabilities	71		67
Current liabilities held for sale	328		304
Long-term operating lease liabilities	464		439
Deferred tax liabilities	113		106
Long-term debt	11		10
Other long-term liabilities	16		20
Noncurrent liabilities held for sale	604		575
Total liabilities held for sale	$	932	$	879

The operating results of the discontinued operations of the Versace business only reflect revenues and expenses that are directly attributable to the Versace business that will be eliminated from continuing operations. Discontinued operations do not include any allocation of corporate overhead expense. The following table presents the major components of discontinued operations, net of income taxes, in the Company’s consolidated statements of operations and comprehensive (loss) income:

	Three Months Ended				Six Months Ended
	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
Total revenue	$	203	$	201	$	386	$	420
Cost of goods sold	65		54		115		119
Selling, general and administrative expenses	125		142		262		300
Depreciation and amortization	1		14		5		29
Impairment of assets	—		23		—		23
Restructuring and other expense	1		—		4		—
Other expense, net	—		—		1		—
Foreign currency loss (gain)	3		(6)		(6)		(5)
Income (loss) from discontinued operations before income taxes	8		(26)		5		(46)
Provision (benefit) for income taxes	2		(7)		2		(10)
Net income (loss) from discontinued operations, net of tax	$	6	$	(19)	$	3	$	(36)