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Better than expected results at Michael Kors

Nov 10, 2017 / United States
Better than expected results at Michael Kors
For the second quarter ended on the 30th of September total revenue increased by 5.4%, better than expected. The company is going through a transformative moment and recently has acquired Jimmy Choo
John D. Idol, Michael Kors' Chairman and Chief Executive Officer, commented: “This is a transformative time for Michael Kors Holdings Limited as we established our global fashion luxury group with the recently completed acquisition of Jimmy Choo”. Mr. Idol continued: “Our second quarter results were better than expected, and we are pleased with our continued progress executing on our strategic plan, Runway 2020. The positive signs that we are seeing in our business illustrate that our efforts across product innovation, brand engagement and our customer experience are beginning to take hold. While we continue to expect fiscal 2018 to be a transition year for the Michael Kors brand, ultimately we believe that these efforts will drive improved financial performance.”

For the second quarter ended on the 30th of September total revenue increased by 5.4% totaling 1.15 billion US dollars from 1.09 billion US dollars in similar period last year. On a constant currency basis, total revenue increased by 4.4%.

Retail net sales increased by 8.0% totaling 645.0 million US dollars driven in large part by 56 net new store openings since the end of the second quarter of fiscal 2017, as well as the increase in ecommerce sales in Europe and Asia. Comparable sales decreased by 1.8%. On a constant currency basis, retail net sales increased by 7.2%, and comparable sales decreased by 2.5%. Wholesale net sales increased 2.5% to 463.6 million US dollars and on a constant currency basis, wholesale net sales increased by 1.2%. Licensing revenue decreased by 2.1% totaling 38.0 million US dollars.

Total revenue in the Americas increased by 0.9% to 751.9 million US dollars on a reported basis and increased by 0.6% on a constant currency basis. European revenue increased by 9.2% to 270.7 million US dollars on a reported basis, and increased by 4.6% on a constant currency basis. Revenue in Asia increased by 30.4% reaching 124.0 million US dollars on a reported basis, and increased by 33.5% on a constant currency basis.


Retail network

As at the 30th of September Michael Kors operated 843 retail stores, including concessions, compared to 787 retail stores, including concessions, at the end of the same prior-year period. The company had 142 additional retail stores, including concessions, operated through licensing partners. Including licensed locations, there were 985 Michael Kors stores worldwide at the end of the second quarter of fiscal 2018.

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