Demand for luxury, new stores drive strong Q4 for Michael Kors

Hong Kong - Michael Kors Holdings attributed impressive growth in net income, total revenues and same-store sales during fourth quarter 2014 to strong global demand for luxury items. Net income for the three months ended March 29 rose 59% to $161 million, from $101.1 million last year.

Total revenue increased 53.6% to $917.5 million. from $597.2 million. Same-store sales grew 26%. The addition of 101 corporate stores and 150 licensed stores, including concessions, also helped fuel results.

During fiscal 2014, net income rose 66% to $661.5 million from $397.6 million in fiscal 2013. Total revenue for the year increased 51.8% to $3.3 billion from $2.2 billion, and same-store sales increased 26.2%.

“We believe that our expanding global brand awareness is driving continued strong demand for our luxury product and fueling our growth as a global luxury lifestyle brand,” said John D. Idol, chairman and CEO of Michael Kors. “In addition, Michael Kors and our talented design team continue to deliver exceptional products while the distinctive jet-set in-store experience that we offer in both our retail stores and our shop-in-shops continues to resonate well with our consumers. Overall, we have great momentum as we head into fiscal 2015 and remain very excited about our growth prospects for next year and beyond.”

For the first quarter of fiscal 2015, Michael Kors expects total revenue to be in the range of $840 million to $850 million. This assumes a same-store sales increase of approximately 20%. Total revenue for the full fiscal year is expected to be in the range of $4 billion to $4.1 billion. This assumes a same-store sales increase in the high teens.

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