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Michael Kors first quarter revenue jumps 43,4%

Michael Kors today announced its financial results for the first quarter ended June 28, 2014, with an impressive 43,4% revenue increase to $919.2 million from $640.9 million in the first quarter of fiscal 2014. Other key financials:

  • Retail net sales increased 47.5% to $480.2 million driven by a 24.2% increase in comparable store sales and 115 net new store openings since the end of the first quarter of fiscal 2014. Wholesale net sales increased 40.0% to $406.8 million and licensing revenue increased 30.5% to $32.1 million.
  • Gross profit increased 43.9% to $571.6 million, and as a percentage of total revenue increased to 62.2% compared to 62.0% in the first quarter of fiscal 2014.
  • Income from operations was $276.8 million, or 30.1% as a percentage of total revenue, as compared to $197.6 million, or 30.8% as a percentage of total revenue, for the first quarter of fiscal 2014.
  • Net income was $187.7 million, or $0.91 per diluted share, based on 207.2 million weighted average diluted shares outstanding. Net income for the first quarter of fiscal 2014 was $125.0 million, or $0.61 per diluted share, based on 204.3 million weighted average diluted shares outstanding.
  • At June 28, 2014, the Company operated 443 retail stores, including concessions, compared to 328 retail stores, including concessions, at the end of the same prior-year period. The Company had 162 additional retail stores, including concessions, operated through licensing partners. Including licensed locations, there were 605 Michael Kors stores worldwide at the end of the first quarter of fiscal 2015.

In North America, revenue increased 30%, with comparable store sales growth of 18.7%. In Europe, revenue increased 128%, driven by a comparable store sales increase of 54.2%, as well as strength in the wholesale business. Revenue in Japan increased 89%, driven by comparable store sales growth of 48.8%.

For the second quarter of fiscal 2015, Michael Kors expects total revenue to be in the range of $950 million to $960 million. This assumes a comparable store sales increase in the high teens. Diluted earnings per share are expected to be in the range of $0.85 to $0.87 for the second quarter of fiscal 2015. This assumes 208.0 million weighted average diluted shares outstanding and a tax rate of approximately 32.5%.

For fiscal 2015, the Company now expects total revenue to be in the range of $4.25 billion to $4.35 billion. This assumes a comparable store sales increase in the high teens. Diluted earnings per share are now expected to be in the range of $4.00 to $4.05 for fiscal 2015. This assumes 208.4 million weighted average diluted shares outstanding and a tax rate of approximately 32.5%.

Michael Kors, Fall Winter 2014-15 ad campaign

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