Michael Kors fiscal quarter exceeds guidance

Worldwide
Published:  12 February, 2018

Results for both the Michael Kors and Jimmy Choo brands have exceeded guidance, with better than expected performance in the fiscal 2018 third quarter ending December 30, 2017.

Michael Kors Holding’s total revenue increased 6.5% to US$1.44 billion, including a US$114.7 million contribution from Jimmy Choo, which the Company owned for two months of the quarter. On a constant currency basis, total revenue increased 4.6%. Gross profit is reported to have increased 9.7% to US$884.0 million, and as a percentage of total revenue was 61.4%. Adjusted gross profit increased 9.9% to US$885.6 million (61.5% as a percentage of total revenue). Income from operations stood at US$313.5 million, or 21.8% as a percentage of total revenue, including a US$5.7 million contribution from Jimmy Choo after amortisation of non-cash purchase accounting adjustments and transaction and transition related costs.

Retail revenue for the Michal Kors brand increased 1.1% to US$846.3 million in the quarter, said to be largely driven by 32 net new store openings since the end of the third quarter of fiscal 2017.

For the fourth quarter of fiscal 2018, the Company says it expects total revenue to be between US$1.11 billion and US$1.13 billion, including between US$110 million and US$115 million of incremental Jimmy Choo revenue. Comparable sales for Michael Kors are expected to decline in the low-single digits.