Expansion pushes Michael Kors forward

Expansion pushes Michael Kors forward

Thanks to a strong rise in shop openings – no less than 67 in the past 12 months – the American fashion label Michael Kors has upped its sales by 67.5% and even doubled its net profits. And the chain says this is only the beginning…

Strong fourth quarter, super 2013

“Our robust fourth quarter results were driven by continued strength across all of our business segments and geographies", said CEO John D. Idol. Quarterly sales were 57.1% higher at 597.1 million dollar (about 460.7 million euro), while comparable sales rose by an impressive 36.7 percent.

 

Thanks to the opening of 67 new shops in the past fiscal year (lifting the total to over 300 stores), retail sales rose by 58.8%. Wholesale sales rose by 59.4% and sales from licences (like glasses and watches) by 15.7%.

 

On its most important market, North America, sales improved by 52% to 517 million dollar (almost 400 million euro). In Europe, where Michael Kors currently has 44 shops, sales even doubled: +97% to 73 million dollar (56 million euro). In Japan, were the company has 22 locations and sales of about 7 million dollar (5.4 million euro), Michael Kors had a similar growth (+96%).

 

And so Michael Kors closed the fiscal year 2013 with a net profit of 397.6 million dollar (just over300 million euro) – double that of the previous fiscal year – and with annual sales of 2.18 billion dollar (1.68 billion euro), a rise of 67.5%. ““Fiscal 2013 was another outstanding year. Our jet-set luxury accessories and ready to wear are resonating with consumers worldwide”, says John D. Idol. Among those fans are famous people such as Gwyneth Paltrow and Alicia Keys.

 

Almost 300 more shops by 2014

Michael Kors also focusses on new shops in its current fiscal year (fiscal year 2014): in Europe there will be 40 new boutiques, in North America about 50 and in the Far East some 200. These new stores in China, South Korea, Singapore, Malaysia, Japan, Indonesia and the Philippines the company wants to open in cooperation with local partners.

 

It is not known how big of an investment this will be. Idol does however warn investors that the group will invest all of its future profits in the operational branch and in the expansion of the business, which means no cash dividends will be paid in the near future.

 

“We believe that the Michael Kors luxury brand is ideally positioned within the global luxury lifestyle market and we look forward to continuing to advance on our long-term objectives in fiscal 2014 and beyond.” The company predicts sales of 2.65 to 2.75 billion dollar (2 to 2.1 billion euro) for the current fiscal year.

Questions or comments? Please feel free to contact the editors


Amazon launches its own meal box

20/07/2017

Amazon keeps up its innovation drive and has now turned its attention to the meal box industry. In several cities with a Amazon Fresh presence, customers can now order a meal box.

Decent profit growth for Unilever

20/07/2017

Over the first six months of 2017, Unilever’s profit and turnover grew substantially, mainly thanks to price increases and a positive evolution in the care and ice cream divisions.

Carrefour rolls out discount formula Supeco in Italy

19/07/2017

The Carrefour group just opened its first full-blown Supeco store in Italy. The soft discount formula targets both families and professional customers.

Amazon Fresh expands to Hamburg

19/07/2017

Amazon continues to expand its Amazon Fresh service across Germany after its launch several months ago. Following Berlin and Potsdam, it is now available in a large part of Hamburg.

Subway trials new formula

19/07/2017

Fast food chain Subway is trialing a new formula in several of its stores, with a visually altered design and several technological innovations.

Unilever will not get Reckitt Benckiser's food division

19/07/2017

American McCormick & Co has acquired Reckitt Benckiser’s food division for 4.2 billion dollars (3.6 billion euro), trumping Unilever to the purchase.

Back to top