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Michael Kors Q4 2017 revenue drops 11.2%
01
Jun '17
Total revenue of Michael Kors for the fourth quarter of 2017 has decreased 11.2 per cent to $1.06 billion from $1.20 billion in the fourth quarter of fiscal 2016. On a constant currency basis, total revenue decreased 10.6 per cent. However, for the first quarter of fiscal 2018, the company expects total revenue to be between $910 and $930 million.

The company's retail net sales for the fourth quarter of 2017 increased 0.5 to $575.3 million, driven primarily by 159 net new store openings since the end of the fourth quarter of fiscal 2016, including 111 stores associated with the company's acquisition of the previously licensed operation in Greater China. However, its comparable sales decreased 14.1 per cent. With $619.7 million, there was 11.1 per cent decrease in the company's gross profit for the fourth quarter of 2017. Foreign currency translation and transaction unfavorably impacted gross profit margin by approximately 20 basis points.

"Fiscal 2017 was a challenging year, as we continued to operate in a difficult retail environment with elevated promotional levels. In addition, our product and store experience did not sufficiently engage and excite consumers. We acknowledge that we need to take further steps to elevate the level of fashion innovation in our accessories assortments and enhance our store experience in order to deepen consumer desire and demand for our products. Looking ahead, as we expand the fashion innovation in our accessories assortments, right-size our store fleet and elevate our store experience, fiscal 2018 will be a transition year in which we establish a new baseline before returning to long-term growth. We have a strong brand, led by Michael Kors, with a history of fashion innovation and leadership, a global footprint with stores positioned in the best locations around the world and the marketing expertise to effectively convey our fashion stories," John D Idol, chairman and chief executive officer, said. (RR)

Fibre2Fashion News Desk – India


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