Michael Kors Holdings Limited (NYSE:KORS) (the “Company”), a global luxury lifestyle brand, today announced its financial results for its fiscal 2014 second quarter ended September 28, 2013.
John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “Our strong financial results in the second quarter underscore Michael Kors’ expanding brand awareness and global presence. Comparable stores sales increased 23%, representing our 30 th consecutive quarter of growth. The outstanding revenue performance was driven by strong acceptance of the fashion luxury products created by Michael Kors and our design teams, as well as the exceptional jet-set in-store experience that we offer to customers in our retail stores and in-store shops. Overall, we continue to see great demand for Michael Kors as a global luxury lifestyle brand. ”
For the second quarter ended September 28, 2013:
- Total revenue increased 38.9% to $740.3 million from $532.9 million in the second quarter of fiscal 2013.
- Retail net sales increased 46.8% to $355.6 million driven by a 22.9% increase in comparable store sales and 83 net new store openings since the end of the second quarter of fiscal 2013. Wholesale net sales increased 29.9% to $351.9 million and licensing revenue increased 65.4% to $32.9 million.
- Gross profit increased 42.4% to $449.9 million, and as a percentage of total revenue increased to 60.8% compared to 59.3% in the second quarter of fiscal 2013.
- Income from operations was $221.5 million, or 29.9% as a percentage of total revenue, as compared to $157.9 million, or 29.6% as a percentage of total revenue, for the second quarter of fiscal 2013.
- Net income was $145.8 million, or $0.71 per diluted share, based on 205.2 million weighted average diluted shares outstanding. Net income for the second quarter of fiscal 2013 was $97.8 million, or $0.49 per diluted share, based on 200.2 million weighted average diluted shares outstanding.
- At September 28, 2013, the Company operated 352 retail stores, including concessions, compared to 269 retail stores, including concessions, at the end of the same prior-year period. The Company had 125 additional retail stores, including concessions, operated through licensing partners. Including licensed locations, there were 477 Michael Kors stores worldwide at the end of the second quarter of fiscal 2014.
Mr. Idol continued, “We continue to see strong performance across our retail, wholesale and licensing segments both in our North American and international markets. Sales in North America grew 31% and comparable store sales increased 21%, driven by strength across our accessories and watch offerings and strong consumer response to our jet-set in-store experience. In addition, we remain pleased with the performance of our North America wholesale segment with strong growth driven by our accessories and footwear categories as well as the continued sales lift from shop-in-shop conversions in department stores. In Europe, sales grew 101% in the second quarter, as brand awareness continued to drive comparable store sales growth of 45%. Finally, in our licensing segment, revenue increased 65%, driven primarily by the strength in watches and eyewear. In summary, we believe that we are uniquely positioned within the growing global luxury market and we remain excited about the long-term potential of the Michael Kors brand.”
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