Michael Kors delivers better than expected third quarter performance
Luxury fashion brand Michael Kors saw its revenue rise by 6.5% to $1.44 billion in its third quarter.
The company said its recently acquired Jimmy Choo footwear brand, which it owned for two months of the period, contributed £114.7 million.
In the three months to 30 December, retail revenue edged up 1.1% to $846.3 million after the company opened 32 net new stores although like-for-like sales decreased by 3.2% despite a better than expected performance in the Americas and Europe in the quarter.
Meanwhile, gross profit was up 9.7% to $884 million. Adjusted gross profit rose by 9.9% to $885.6 million.
The company said it benefited from reduced promotional activity in the period.
John Idol, Michael Kors chairman and chief executive, added: “We are pleased with our third quarter performance, which delivered better than expected results and saw the successful integration of Jimmy Choo into our luxury group.
“The Michael Kors brand continued to make progress on Runway 2020 initiatives across product innovation, brand engagement and customer experience.
“Our innovative fashion luxury product offerings for the holiday season created excitement among consumers. At Jimmy Choo, we continued to deliver glamorous luxury product and engaging brand communications, which helped drive revenue during the quarter.”
At 30 December 2017, Michael Kors had 848 retail stores, including concessions. It also had an additional 150 retail stores, including concessions, operating through licensing partners.
