Michael Kors posts record 49 percent growth in net income and targets $3 billion turnover
Affordable luxury house of Michael Kors reports record financials for the second fiscal quarter of 2013, with sales growth of 31 percent in the U.S. and 101 percent in Europe, thanks to almost doubling its retail presence. Michael Kors’ turnover jumped 38,9% to $740,3 million, compared to the same period last year. Net income rose 49% to $145,8 million.
Michael Kors once again lifted its earning outlook for the full year 2014. Following the news, shares of Michael Kors rose six percent on the New York Stock Exchange. For the fiscal year 2014, Michael Kors now expect earnings in the range of $2.77 to $2.81 per share on revenues of $2.9 billion to $3.0 billion. The company had earlier lifted its initial full year outlook in August while reporting first-quarter results. Twenty-one analysts polled by Thomson Reuters currently expects full-year 2014 earnings of $2.78 per share on revenues of $2.99 billion.
Chief Executive John Idol said, “Our strong financial results in the second quarter underscore Michael Kors’ expanding brand awareness and global presence.” Idol said the revenue growth reflected “strong acceptance” of its fashion luxury products. “Overall, we continue to see great demand for Michael Kors as a global luxury lifestyle brand,” he added.