Michael Kors expects leather accessories to drive profits
US fashion brand Michael Kors Holdings has reported robust quarterly results as its namesake luxury brand saw strong demand, and said it expects its accessories business to drive profits in the coming quarters.
Chief executive John Idol attributed the quarterly performance to “the strong demand for the Michael Kors luxury brand, our exciting assortment of fashion merchandise and our exceptional jet-set in-store experience”.
The company, named after its founder Michael Kors said same-store sales grew 38% in the third quarter. Third-quarter revenue was driven by higher sales of luxury leather accessories, such as handbags and small leathergoods, and watches.
Revenue at Michael Kors’ Europe market tripled on a 34% jump in same-store sales and the company said it was cautiously encouraged by the results in its wholesale operations business in Japan, which is in the start-up phase.
As of December 31, 2011, Michael Kors operated 231 retail stores, including concessions, up from 156 retail stores a year ago. The company had said at the time of its listing that it intended to more than double its store count in North America, and have about 100 stores each in Europe and Japan.
Revenue rose 68% to $373.6 million.
