US: Retail surge drives Michael Kors Q3 profit
- Q3 adjusted net profit US$53.6m, versus $27.8m
- Revenue up 67.9% to $373.6m
- Retail revenues surge on new openings
Recently floated US fashion business Michael Kors Holdings posted adjusted third quarter net income of US$53.6m, nearly double last year’s figure.
The company was boosted by a 67.9% rise in revenue in the three months to 31 December, with retail sales soaring up 82.8% to $199.4m, thanks to 75 new store openings over the past year and a comparable store sales hike of 38%.
Wholesale revenues increased 55% to $154.6m, while royalty earnings rose 44% to $19.6m.
“Along with sustaining strong comparable store sales results in North America, we also delivered significant growth in our wholesale segment,” said John Idol, Michael Kors chairman and CEO.
“In Europe, revenues tripled in the third quarter as a result of a 34.4% comparable store sales increase over last year, in addition to strong performance in the wholesale operations.”
The company, which floated in December last year, now expects to record full-year revenues of $1.27-1.28bn and adjusted earnings per diluted share of $0.74-0.76.
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