Revenue and growth up at Michael Kors

United States
Published:  10 November, 2014

Michael Kors Holdings Limited a global luxury lifestyle brand, announced on November 4 its financial results with revenue up 42.7% and 121 new net store openings globally. Revenue grew strongly in Europe and Japan.

Total revenue increased 42.7% to $1.1 billion from $740.3 million in the second quarter of fiscal 2014. Retail net sales increased 39.4% to $495.6 million driven by 121 net new store openings since the end of the second quarter of fiscal 2014 and a 16.4% increase in comparable store sales. Wholesale net sales increased 46.1% to $514.1 million and licensing revenue increased 42.8% to $46.9 million.

Revenue in North America increased 29.8% to $802.2 million, with a 10.8% increase in comparable store sales. European revenue grew 108.6% to $237.9 million, with comparable store sales increasing 41.1%. Revenue in Japan increased 106.3% to $16.5 million, with comparable store sales growth of 52.9%.

Gross profit increased 43.4% to $645.0 million, and as a percentage of total revenue increased to 61.0% compared to 60.8% in the second quarter of fiscal 2014.

Income from operations was $305.6 million, or 28.9% as a percentage of total revenue, as compared to $221.5 million, or 29.9% as a percentage of total revenue, for the second quarter of fiscal 2014.

At September 27, 2014, the Company operated 473 retail stores, including concessions, compared to 352 retail stores, including concessions, at the end of the same prior-year period. The Company had 176 additional retail stores, including concessions, operated through licensing partners. Including licensed locations, there were 649 Michael Kors stores worldwide at the end of the second quarter of fiscal 2015.

John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “Our strong second quarter results reflect our fashion leadership, aspirational product offering and jet-set luxury image that continue to resonate with customers globally. Once again, we delivered exceptional performance with both revenue and earnings per share growth in excess of 40%. This ongoing momentum reflects strength across our operating segments and geographies as we continue to expand our presence globally.”

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