NEW YORK — Michael Kors Holdings Ltd. on Tuesday posted fourth-quarter results that included a tripling of net income as well as a comparable-store sales growth of 36.1 percent.
For the three months ended March 31, the Hong Kong-based firm said income attributable to common shareholders was $43.6 million, or 22 cents a diluted share, up from $13.6 million, or 10 cents, a year ago.
Total revenues for the quarter rose 58.3 percent to $380 million from $240 million. That included a sales gain of 60.2 percent to $362.9 million from $226.5 million. Comparable-store sales rose 36.1 percent, the company said. The balance of revenues was from a 26.9 percent increase in licensing income to $17.1 million from $13.5 million.
By region, North American revenues rose 52 percent to $339 million in the quarter, with Europe up 123 percent to $37 million. Japan, which is still in the start-up phase, saw revenues rise to $4 million in the quarter.
The company grew retail sales by 80 percent to $172 million, helped by the opening of 71 stores since the fourth quarter of last year. In the wholesale segment, sales rose 46 percent to $191 million. The company believes it can have 600 stores globally, 400 in the U.S., 100 in Europe and 100 in Japan. The retail-wholesale mix is 55-45, but could shift to 70-30 over the next three to five years, John Idol, chairman and chief executive officer, told analysts on a conference call.
For the year, income more than doubled to $126.1 million, or 78 cents a diluted share, from $56.9 million, or 40 cents, last year. Total revenues rose 62.1 percent to $1.3 billion from $803.3 million, which included a 63.2 percent gain in sales to $1.24 billion from $757.8 million.
The company expects diluted earnings per share for the first quarter to be between 18 cents and 20 cents, with revenues in the range of $360 million to $370 million.
For fiscal year 2013, the company forecast diluted EPS at between $1.08 and $1.12, on total revenue guidance of $1.7 billion to $1.8 billion.
Shares of Kors rose 7.7 percent, or $2.29, to close at $41.10 in trading Tuesday on the New York Stock Exchange.
Idol opened the call to Wall Street analysts by stating that “product is the most important component of a luxury brand.”
Idol noted that designer Michael Kors and his design team provide the firm with its “unique” advantage, and then emphasized, “While the global economy is seeing mixed results by region, our brand and Michael’s designs are resonating with fashion consumers around the world.”
According to the ceo, “We are pleased that our key strategies have resulted in both revenue and earnings growth across all of our business segments and operating regions. We operate in the growing luxury marketplace, which we believe will continue to contribute to our global expansion.”
Among the strategies are a retail expansion in North America, which also included the conversion of wholesale department store doors into branded shop-in-shops, an expansion of its European presence through retail and wholesale door openings and the development of its business in Japan.
“In our accessories categories, we are seeing similar to or greater comp-store increases, as compared to our retail stores in department stores,” Idol added.
In an interview, the ceo said the firm plans to open 10 to 15 additional retail sites throughout Europe in fiscal year 2013. The lifestyle stores will continue to offer accessories from Michael Kors Collection and Michael Michael Kors, alongside a selection of apparel from Michael Michael Kors.
The firm’s strongest markets in Europe are the U.K., France, Italy, Germany and Spain. “While we do see traffic from global travelers, our stores have strong databases of local clientele as well,” Idol said.
Germany, according to a Boston Consulting Group survey last week, is poised to be a stronger player on the luxury front going forward. Idol said the company in December opened its first store in Düsseldorf, which follows on the opening of its very first store in Germany in Munich in 2010. “We are also searching for locations in Berlin, Frankfurt, Hamburg and Cologne. Similar to our other global markets, we are seeing increased tourist traffic in all major cities in Germany,” Idol said.
There are now 309 Michael Kors stores globally, including concessions in Europe, the Middle East, Asia and North America.
In addition, Idol said social media is playing a key role in the firm’s global strategy, through the translation and geo-targeting of universal content to individual markets as well as the generation of original localized content around an event or initiative within a special region.
“Our social media messaging is varied and comprehensive, ranging from coverage of product, brand news and events, and original video and editorial content, as well as more personal communication from Michael including fan questions and style tips,” Idol said.
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)
The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)
@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)
How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion
“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion