MICHAEL KORS REVENUE INCREASES BY 6.3% IN THIRD QUARTER
Global lifestyle brand Michael Kors Holdings Limited announced strong financial results for the fiscal 2016 third quarter ended December 26, 2015.
Total revenue increased 6.3% to $1.40 billion from $1.31 billion in the third quarter of fiscal 2015. On a constant currency basis, total revenue increased 9.9%. Retail net sales increased 11.1% to $766.2 million driven primarily by e-commerce sales from the Company’s digital flagships and 114 net new store openings since the end of the third quarter of fiscal 2015. Comparable store sales decreased 0.9%. On a constant currency basis, retail net sales grew 15.7%, and comparable store sales increased 2.0%. Wholesale net sales increased 0.3% to $575.5 million and on a constant currency basis, wholesale net sales grew 3.0%. Licensing revenue increased 8.4% to $55.8 million.
Gross profit increased 4.0% to $832.0 million, and as a percentage of total revenue was 59.5%. Income from operations was $409.3 million, or 29.3% as a percentage of total revenue. Net income was $303.7 million, or $1.48 per diluted share.
John D. Idol, Chairman and CEO, said, “We are pleased with our third quarter results, as we delivered revenue, comparable store sales and earnings growth ahead of our expectations. Our performance was driven primarily by strong consumer response to our luxury fashion product offering, particularly in our accessories and footwear categories, the continued momentum in our digital flagship business and outstanding growth in our international markets. In addition, we remain focused on further developing our digital flagship strategy as we offer our customers a seamless omni-channel experience, the build-out of our men’s business, and leveraging our strong brand awareness to expand our business globally. We believe that the continued execution of these strategic initiatives positions us well to deliver long term growth.”
As of 09:30am on Wednesday, February 3, Michael Kors’ stock had increased over 22% and was trading at 50.13.