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Michael Kors sales for Q2 FY18 grow 8% to $645.0 mn
10
Nov '17
Courtesy: Michael Kors
Courtesy: Michael Kors
The retail net sales of global fashion luxury brand Michael Kors for the second quarter of 2018 ending September 30, 2017, has been recorded at $645.0 million, up 8.0 per cent. This is driven in large by 56 net new store openings since the end of the second quarter of fiscal 2017, as well as the increase in e-commerce sales in Europe and Asia.

On a constant currency basis, retail net sales increased 7.2 per cent, while comparable sales decreased 2.5 per cent. The company's wholesale net sales increased 2.5 per cent to $463.6 million and on a constant currency. For the reported period, total revenue rose 5.4 per cent to $1.15 billion from $1.09 billion in the second quarter of fiscal 2017. On a constant currency basis, total revenue increased 4.4 per cent.

For the second quarter of 2018, gross profit increased 7.2 per cent to $690.8 million, and as a percentage of total revenue was 60.2 per cent. Foreign currency translation and transaction favorably impacted gross profit margin by approximately 20 basis points. This compared to gross margin of 59.2 per cent in the second quarter of fiscal 2017.

For the six ended September 30, 2017, total revenue increased 1.1 per cent to $2.10 billion from $2.08 billion in the same period of fiscal 2017. On a constant currency basis, total revenue increased 1.0 per cent. The same period also witnessed 9 per cent rise in retail net sales to $1.26 billion while the comparable store sales decreased 3.8 per cent. On a constant currency basis, retail net sales grew 9.3 per cent, and comparable sales decreased 3.7 per cent. Wholesale net sales decreased 9.4 per cent to $0.8 billion and on a constant currency basis, wholesale net sales decreased 9.9 per cent. Licensing revenue decreased 3.6 per cent to $66.9 million for the reported period.

"This is a transformative time for Michael Kors Holdings Limited as we established our global fashion luxury group with the recently completed acquisition of Jimmy Choo. We believe that bringing together these two iconic brands further strengthens our growth opportunities, increases our product and geographic diversification, and importantly, creates a platform for future acquisitions. We look forward to capitalising on the great opportunities that lay ahead for our brands and believe that we are well positioned to drive long term growth as we expand our global fashion luxury group," said John D Idol, the company’s chairman and chief executive officer.

"Our second quarter results were better than expected, and we are pleased with our continued progress executing on our strategic plan, Runway 2020. The positive signs that we are seeing in our business illustrate that our efforts across product innovation, brand engagement and our customer experience are beginning to take hold. While we continue to expect fiscal 2018 to be a transition year for the Michael Kors brand, ultimately we believe that these efforts will drive improved financial performance," Idol concluded. (RR)

Fibre2Fashion News Desk – India


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