Luxury clothing brand Michael Kors Holdings Limited has more than doubled its fourth quarter profit thanks to strong performances across all of its business segments, and says it sees continued growth in the year ahead.
The company, which went public in December, today (12 June) said net income in the three months to 31 March surged to $43.6m or $0.22 per share, up from $17.4m or $0.10 per share in the same period last year.
Total revenues rose 58.3% to $380.0m from $240.0m. New store openings helped retail sales jump 80.3% to $172.2m, with a 36.1% increase in comparable store sales. Wholesale net sales climbed 45.5% to $190.7m and royalty revenue increased 26.9% to $17.1m.
Gross profit in the quarter surged 63.4% to $219.1m, and rose to 57.7% of total revenue from 55.9% last time.
“Our results for the quarter were driven by strong performance across each of our retail, wholesale and licensing segments,” said chairman and CEO John Idol.
“Our North American comparable store sales increase was 37.2%, reflecting the strong demand for the Michael Kors luxury brand, our exciting assortment of fashion merchandise and our exceptional jet-set in-store experience.
“We also delivered significant growth in our wholesale segment, reflecting the strength of our brand and the favourable results from our transition to shop-in-shops in department stores.
“In Europe, total revenue increased 122.6% for the quarter as a result of a 13.6% comparable store sales increase, in addition to strong performance in our wholesale operations. In Japan, we are cautiously encouraged by our results for this business, which is in the start-up phase.”
For the year, net income more than doubled to $147.4m or $0.78 per share, up from $72.5m or $0.40 per share a year earlier. Total revenue jumped 62.1% to $1.3bn from $803.3m, with retail sales up 82.1% to $626.9m, wholesale revenues rising 47.5% to $610.2m and royalty revenue increasing 43.1% to $65.2m.
“We are uniquely positioned to continue to build the Michael Kors global luxury lifestyle brand, and are pleased that our momentum has continued into the first quarter of fiscal 2013,” Idol added.
Looking ahead, the company expects first quarter earnings per share in the range of $0.18 to $0.20, on revenues rising to $360m to $370m.
For the fiscal year, earnings per share are expected to be in the range of $1.08 to $1.12 and total revenue of $1.7bn to $1.8bn.
The company operates 237 retail stores, including concessions, with another 64 operated through licensing partners. There are 301 Michael Kors stores worldwide.