For the reported period, the company's gross profit increased 9.7 per cent to $884.0 million, and as a percentage of total revenue was 61.4 per cent. Adjusted gross profit increased 9.9 per cent to $885.6 million, and as a percentage of total revenue was 61.5 per cent. This compares to 59.6 per cent in the third quarter of fiscal 2017. The year-over-year growth was largely driven by improved MK Retail gross margin, favourable Michael Kors channel mix and the inclusion of the higher margin Jimmy Choo business.
Income from operations was $313.5 million, or 21.8 per cent as a percentage of total revenue, including a $5.7 million contribution from Jimmy Choo after amortisation of non-cash purchase accounting adjustments and transaction and transition related costs. Income from operations was $341.9 million, or 25.3 per cent as a percentage of total revenue, for the third quarter of fiscal 2017.
Adjusted income from operations was $345.7 million, or 24.0 per cent as a percentage of total revenue, reflecting a $15.7 million contribution from Jimmy Choo. This compares to $342.4 million, or 25.3 per cent as a percentage of total revenue, for the same period in fiscal 2017.
"We are pleased with our third quarter performance, which delivered better than expected results and saw the successful integration of Jimmy Choo into our luxury group. The Michael Kors brand continued to make progress on Runway 2020 initiatives across product innovation, brand engagement and customer experience. Our innovative fashion luxury product offerings for the holiday season created excitement among consumers. At Jimmy Choo, we continued to deliver glamorous luxury product and engaging brand communications, which helped drive revenue during the quarter," said John D Idol, the company’s chairman and chief executive officer.
For the fourth quarter of fiscal 2018, the company expects total revenue to be between $1.11-$1.13 billion, including between $110-$115 million of incremental Jimmy Choo revenue. Comparable sales for Michael Kors are expected to decline in the low-single digits. The Company expects operating margin to be approximately 10.0%. Diluted earnings per share are expected to be in the range of $0.50 to $0.55, including the dilution from Jimmy Choo of approximately $0.07.
For fiscal 2018, the Company hopes total revenue to be around $4.66 billion, including between $225-$230 million of incremental Jimmy Choo revenue. Comparable sales for Michael Kors are expected to decline in the mid-single digits. The company expects operating margin to be approximately 18.0 per cent. Diluted earnings per share are forecast to be in the range of $4.40 to $4.45, with no incremental impact from Jimmy Choo. (RR)
Fibre2Fashion News Desk – India
Textiles | On 23rd May 2018
Indian Oil Corporation (IOC) has teamed up with Materials Chemicals...
Apparel/Garments | On 23rd May 2018
Marks & Spencer (M&S), a leading British multi-national retailer,...
Textiles | On 23rd May 2018
Garment products dominate across all textile businesses, with sports...
e-Commerce is still evolving fast with constant flux and surprises
Textile & apparel bodies
The mid-term review of FTP is progressive, growth oriented
Defining MSMEs on the basis of turnover makes it simpler to do business
<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...
Describing itself as the best body shape and garment fit company in the...
Established in 1956 with a small beginning, Embee today manufactures a...
Larry L Kinn
Larry L Kinn, Senior Vice President - Operations Americas of Suominen...
The Indian market has huge potential in technical textiles, and by far,...
Coating at a fibre level is a practice not usually seen in the...