Michael Kors Holdings Limited (NYSE:KORS) (the “Company”), a global luxury lifestyle brand, today announced its financial results for the fourth quarter and fiscal year ended March 29, 2014.
John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “We delivered outstanding financial performance in fiscal 2014 with comparable store sales growth of 26.2% and EPS growth of 63.5%. We believe that our expanding global brand awareness is driving continued strong demand for our luxury product and fueling our growth as a global luxury lifestyle brand. In addition, Michael Kors and our talented design team continue to deliver exceptional products while the distinctive jet-set in-store experience that we offer in both our retail stores and our shop-in-shops continues to resonate well with our consumers. Overall, we have great momentum as we head into fiscal 2015 and remain very excited about our growth prospects for next year and beyond.”
For the fourth quarter ended March 29, 2014:
- Total revenue increased 53.6% to $917.5 million from $597.2 million in the fourth quarter of fiscal 2013.
- Retail net sales increased 49.7% to $408.4 million driven by a 26.2% increase in comparable store sales and 101 net new store openings since the end of the fourth quarter of fiscal 2013. Wholesale net sales increased 55.5% to $473.7 million and licensing revenue increased 79.1% to $35.4 million.
- Gross profit increased 54.2% to $549.4 million, and as a percentage of total revenue increased to 59.9% compared to 59.7% in the fourth quarter of fiscal 2013.
- Income from operations was $245.9 million, or 26.8% as a percentage of total revenue, as compared to $155.3 million, or 26.0% as a percentage of total revenue, for the fourth quarter of fiscal 2013.
- Net income was $161.0 million, or $0.78 per diluted share, based on 207.0 million weighted average diluted shares outstanding. Net income for the fourth quarter of fiscal 2013 was $101.1 million, or $0.50 per diluted share, based on 203.8 million weighted average diluted shares outstanding.
- At March 29, 2014, the Company operated 405 retail stores, including concessions, compared to 304 retail stores, including concessions, at the end of the same prior-year period. The Company had 150 additional retail stores, including concessions, operated through licensing partners. Including licensed locations, there were 555 Michael Kors stores worldwide at the end of the fourth quarter of fiscal 2014.
Mr. Idol continued, “We continued to see strength across the business in the fourth quarter, with significant revenue growth in each of our retail, wholesale and licensing segments as well as in both our North American and international markets. Revenue in North America grew 43% and comparable store sales increased 20.6%, with performance driven primarily by accessories and watch offerings. In addition, our North America wholesale segment generated another quarter of strong sales growth, particularly in our accessories and footwear categories, and we continued to benefit from shop-in-shop conversions in department stores. In Europe, revenue grew 125% in the fourth quarter, with exceptional comparable store sales growth of 62.7%, which we believe was driven by growing brand awareness and demand across regions. Lastly, in our licensing segment, revenue increased 79%, with continued strong performance in watches, fragrance and eyewear. Looking ahead, we remain poised to capitalize on Michael Kors’ distinct position within the global luxury market as we continue to execute our long term growth strategies.”
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