Michael Kors Reports Q3 Income Up 30%
Michael Kors Holdings reported third-quarter revenue up 29.9 percent to $1.3 billion with net income up 33.3 percent $303.7 million ($1.48 per diluted share). The good news was tempered by a Q4 outlook that disappointed Wall Street.
“Our third quarter marked the 13th consecutive period of growth in revenue, comparable store sales and earnings, since our initial public offering,” said CEO John Idol in a statement. “We had a strong holiday season, with comparable stores sales performance led by double digit growth in our accessories category, both in our retail and wholesale channels. We also saw continued momentum across our operating segments and geographies driven by our compelling fashion product offering and jet-set luxury experience that resonated well with customers. In addition, we continued to advance on our multiple growth strategies and in particular, we saw exceptional performance from our recently launched Company-owned U.S. e-commerce site, which exceeded our expectations. E-commerce sales increased 73% in the quarter, as compared to sales at the previous outsourced site. Had we included e-commerce in our comparable store base, North America comparable store sales results would have been 380 basis points higher, which we believe is a more accurate reflection of our performance. It is clear that Michael Kors remains a leader within the global fashion luxury market and our brand continues to resonate with consumers around the world. Overall, we see continued momentum in our business, remain confident in our long-term potential and are committed to enhancing value for our shareholders.”
The company is expecting fourth-quarter revenue in the $1.05 billion to $1.08 billion range.
