Michael Kors reports increased revenues, pushes into China
02/06/2016
For the quarter to April 2, the company reported earnings of $176.3 million, down 3% on the $182.6 million recorded in the same period last year. Revenue for the quarter rose 10.9% to $1.2 billion, exceeding the forecast of $1.13 billion to $1.15 billion. This came off the back of a 22% increase in retail net sales, which Kors attributed to 142 net new-store openings and strong e-commerce sales from the company’s digital flagships.
Michael Kors saw revenue grow across all key regions. Sales in the Americas increased 4.6% to $879.1 million, European revenue was up 15.6% to $254.1 million and Asia led the way with a 216.4% increase to $65.5 million.
The company also announced the acquisition of Michael Kors (HK) Ltd, which is the exclusive licensee of its products in China and other regions of Asia. The value of the transaction was $500 million.
“We believe that our brand is gaining strong momentum in greater China, making it the ideal time for us to integrate this territory into our business and capitalise on the enormous growth potential in this region,” said Michael Kors CEO John Idol.
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