Hong Kong – Global luxury retailer Michael Kors increased net income during the third quarter of fiscal 2014 77% to $229.6 million from $130 million in the third quarter of fiscal 2013. Retail net sales grew 51.3% to $503.4 million, driven by a 27.8% increase in same-store sales and 98 net new store openings since the end of the third quarter of fiscal 2013.
John D. Idol, chairman and CEO of Michael Kors, cited holiday performance and the retailer’s luxury store environment, as well as brand awareness, in driving the impressive quarterly results.
“Michael Kors enjoyed an outstanding holiday season, as global brand awareness continued to drive strong demand for our luxury product,” said Idol. “Same-store sales increased 28%, which exceeded our expectation and represents our 31st consecutive quarter of growth. We believe that our consistently strong performance is attributable to the creative vision of Michael Kors and his talented design team as well as the distinctive jet-set in-store experience that we provide in both our retail stores and our shop-in-shops. We remain very excited about our future growth prospects as Michael Kors continues to gain momentum as a global luxury lifestyle brand.”
For the fourth quarter of fiscal 2014, Michael Kors expects total revenue to be in the range of $790 million to $800 million. This assumes a same-store sales increase in the range of 15% to 20%. For fiscal 2014, the company now expects total revenue to be in the range of $3.18 billion to $3.19 billion. This assumes a comparable store sales increase of approximately 25%.