Revenue dips at Michael Kors
15/11/2016
Retail sales climbed 12.1% to $597.2 million. The company said this was primarily due to new store openings, including 137 associated with recent acquisitions in China and South Korea. Comparable sales were down 5.4%, however, due to declining mall traffic and tourism flows in major cities.
The American market, Michael Kors’s largest, was hit especially hard, registering an 11% drop in revenue. This was offset somewhat by a 1.9% increase in European sales and “substantial” growth of 96.5% in sales in Asia.
John D. Idol, Michael Kors chairman and CEO, said revenue and earnings were above company expectations. He pointed to the launch of the brand’s new autumn handbag collections as a success from the quarter.
“Despite these near-term challenges, we remain confident in our ability to drive long term growth and increase shareholder value,” he added.
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