Michael Kors Holdings Limited has announced a growth of +38.9% in total revenue to US$740.3 million in the second quarter of fiscal 2014, ended 28 September 2013.
The company’s Chairman and Chief Executive Officer John D Idol commented: “Our strong financial results in the second quarter underscore Michael Kors’ expanding brand awareness and global presence. Comparable stores sales increased +23%, representing our 30th consecutive quarter of growth.
“The outstanding revenue performance was driven by strong acceptance of the fashion luxury products created by Michael Kors and our design teams, as well as the exceptional jet-set in-store experience that we offer to customers in our retail stores and in-store shops. Overall, we continue to see great demand for Michael Kors as a global luxury lifestyle brand. ”
Retail net sales increased +46.8% to US$355.6 million driven by a +22.9% increase in comparable store sales and 83 net new store openings since the end of the second quarter of fiscal 2013.
Wholesale net sales increased +29.9% to US$351.9 million and licensing revenue increased +65.4% to US$32.9 million.
Gross profit increased +42.4% to US$449.9 million and as a percentage of total revenue increased to 60.8% compared to 59.3% in the second quarter of fiscal 2013.
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Including licensed locations, there were 477 Michael Kors stores worldwide at the end of the second quarter of fiscal 2014 |
At 28 September, the company operated 352 retail stores, including concessions, compared to 269 retail stores, including concessions, at the end of the same prior-year period. The company had 125 additional retail stores, including concessions, operated through licensing partners. Including licensed locations, there were 477 Michael Kors stores worldwide at the end of the second quarter of fiscal 2014.
Idol continued: “We continue to see strong performance across our retail, wholesale and licensing segments both in our North American and international markets. Sales in North America grew +31% and comparable store sales increased +21%, driven by strength across our accessories and watch offerings and strong consumer response to our jet-set in-store experience.
“In addition, we remain pleased with the performance of our North America wholesale segment with strong growth driven by our accessories and footwear categories as well as the continued sales lift from shop-in-shop conversions in department stores.
“In Europe, sales grew +101% in the second quarter, as brand awareness continued to drive comparable store sales growth of +45%. Finally, in our licensing segment, revenue increased +65%, driven primarily by the strength in watches and eyewear. In summary, we believe that we are uniquely positioned within the growing global luxury market and we remain excited about the long-term potential of the Michael Kors brand.”
For the first six months ended 28 September 2013:
• Total revenue for the first six months increased +45.7% to US$1,381.2 million from US$947.8 million in the same period of fiscal 2013.
• Retail net sales increased +49.0% to US$681.2 million. Comparable store sales increased +25.0%. Wholesale net sales increased +41.8% to US$642.4 million and licensing revenue increased +53.8% to US$57.5 million.
• Gross profit for the first six months increased +49.4% to US$847.1 million, and as a percentage of total revenue increased to 61.3% as compared to 59.8% in the same period of fiscal 2013.
For the third quarter of fiscal 2014, the company expects total revenue to be in the range of US$845 million to US$855 million. This assumes a comparable store sales increase in the range of +15% to +20%.
For fiscal 2014, the company now expects total revenue to be in the range of US$2.9 billion to US$3.0 billion. This assumes a comparable store sales increase of approximately +20%.
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