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Michael Kors 2018 gross profit up 7.4% to $2.86 billion
01
Jun '18
Courtesy: Michael Kors
Courtesy: Michael Kors
The gross profit of Michael Kors for fiscal 2018 has increased 7.4 per cent to $2.86 billion, and as a percentage of total revenue was 60.6 per cent. This compares to 59.2 per cent in the same period of fiscal 2017. For the fourth quarter, gross profit went up 14.5 per cent to $709.8 million and as a percentage of total revenue was 60.2 per cent.

For fiscal 2018, total revenue increased 5.0 per cent to $4.72 billion from $4.49 billion, including a $222.6 million contribution from Jimmy Choo. On a constant currency basis, total revenue increased 3.6 per cent. The revenue in the fourth quarter grew 10.8 per cent to $1.18 billion, including a $107.9 million contribution from Jimmy Choo. On a constant currency basis, total revenue increased 7.2 per cent.

Income from operations for 2018 was $749.1 million and as a percentage of total revenue was 15.9 per cent, compared to $689.9 million, or 15.4 per cent as a percentage of total revenue, in 2017. Income from operations was $87.1 million, or 7.4 per cent as a percentage of total revenue. Loss from operations was $42.6 million, or (4.0) per cent as a percentage of total revenue, for the fourth quarter of fiscal 2017

"Fiscal 2018 was an exciting year for our company as we established a foundation to support long term growth. We created a global fashion luxury group with the acquisition of Jimmy Choo and completed the first year of our Runway 2020 strategic plan for the Michael Kors brand, ending the year significantly ahead of our expectations," John D Idol, chairman and chief executive officer, said.

For the fourth quarter, earnings per diluted share were $0.29, a $0.46 increase compared to last year. On an adjusted basis, earnings per diluted share were $0.63 compared to $0.73 in the prior year. Comparable sales increased 2.3 per cent, driven by strong response to innovative and elevated fashion luxury offering across accessories, footwear, ready-to-wear and men’s categories

Until March 31, 2018, Michael Kors operated 829 retail stores, including concessions, and an additional 151 retail stores, including concessions, were operated through licensing partners. Including licensed locations, there were 980 Michael Kors stores worldwide at the end of the fourth quarter of fiscal 2018.

"Looking to fiscal 2019, we have a number of initiatives planned to drive growth in both of our luxury brands. For Michael Kors, we expect growth to be led by our retail business, as we remain focused on executing initiatives across fashion luxury product, brand engagement and customer experience. For Jimmy Choo, we will continue to make strategic investments to expand our retail fleet globally, capitalize on the significant opportunity to grow our accessories business and increase brand engagement through glamorous red-carpet marketing communications. Additionally, we will continue to explore acquisitions to complement our existing luxury portfolio. Overall, we are well-positioned to deliver long-term growth and enhance shareholder value by executing on the strategies in place for both Michael Kors and Jimmy Choo," Idol concluded. (RR)

Fibre2Fashion News Desk – India


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