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Revenue expands 6.9% at Michael Kors in Q2FY16
06
Nov '15
For the second fiscal quarter ended September 26, 2015, revenue at Michael Kors Holdings, a luxury lifestyle brand expanded 6.9 per cent year over year.

“Total revenue rose 6.9 per cent to $1.13 billion from $1.06 billion in the second quarter of fiscal 2015, while on a constant currency basis, total revenue increased 12.3 per cent,” a Michael Kors press release stated.

For the second quarter of fiscal 2016, retail net sales grew 7.5 per cent to $532.8 million driven by 116 net new store openings since the end of the second quarter of fiscal 2015.

Retail sales growth was also helped by growth in e-commerce sales from the Company's North America digital flagships, partially offset by an 8.5 per cent decrease in comparable store sales.

On a constant currency basis, retail net sales went up 14.7 per cent, while comparable store sales declined 3.4 per cent.

Wholesale net sales climbed 7.8 per cent year on year to $554.0 million in the reporting quarter and on a constant currency basis, they grew 11.8 per cent, however, licensing revenue dipped 8.1 per cent from a fiscal ago period.

In the quarter under review, gross profit mounted 3.0 per cent from the second quarter of prior fiscal to $664.4 million, and as a percentage of total revenue was 58.8 per cent.

“Gross profit margin was reduced by approximately 89 basis points due to the change in foreign currency exchange rates,” the company explained.

Income from operations stood at $273.1 million or 24.2 per cent as a percentage of total revenue as against $305.6 million or 28.9 per cent as a percentage of total revenue, for the second quarter of fiscal 2015.

In the reporting period, net income was down at $193.1 million or $1.01 per diluted share vis-à-vis $207.0 million or $1.00 per diluted share in the same quarter of earlier fiscal.

At September 26, 2015, the Company operated 589 retail stores, including concessions, compared to 473 retail stores, including concessions, at the end of the second quarter of previous fiscal.

The Company had 215 additional retail stores, including concessions, operated through licensing partners and including licensed locations, there were 804 Michael Kors stores worldwide.

CEO John Idol said, “We drove growth in our retail and wholesale segments as well as across our operating regions in the Americas, Europe and Japan, with our compelling fashion products.”

“Importantly, in our retail segment, our North American digital flagship sales continued to accelerate this quarter and we drove sequential improvement in our comp performance,” he too added.

“Looking ahead, we believe we are well positioned for a positive holiday period with our exciting new product introductions and gifting assortments in addition to a captivating marketing campaign,” Idol noted. (AR)

Fibre2Fashion News Desk – India

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