Michael Kors boosted by strong performance at Jimmy Choo
US luxury fashion retailer Michael Kors increased its total revenue by 26.3% to $1.2 billion in its first quarter after sales at its Jimmy Choo footwear brand exceeded expectations.
The three months to 30 June saw Michael Kors’ like-for-like sales edge up 0.2% as a positive performance in the Americas and Asia was partially offset by declines in Europe. Michael Kors' retail revenue increased by 3.2% to $639.5 million, driven mostly by nine net new store openings since the end of the first quarter of the previous year.
Revenue at Jimmy Choo was better than expected at $172.7 million.
During the period Michael Kors continued to transform its stores with a new luxury concept. Including licensed locations, there were 1,000 Michael Kors stores operating worldwide at the end of the quarter.
John Idol, the company’s chairman and chief executive, said: “We are encouraged by our first quarter performance, with growth in revenues, gross margin, operating margin as well as earnings per share all exceeding our expectations.
”Our fashion leadership remains strong, which drove consumers to respond favourably to both new fashion introductions and core products. Our global fashion luxury group continues to see the benefits of our long-term growth strategy which is driven by both the Michael Kors and Jimmy Choo brands.”
The company now expects total revenue for its full year to come in at $5.125 billion, including between $580 million and $590 million of incremental Jimmy Choo revenue.
Idol added: “Looking ahead we remain optimistic about our business for the remainder of fiscal 2019 and beyond.”
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