Holidays fuel strong Q3 for Michael Kors
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%.
NRF: Fewer consumers celebrate Valentine’s Day, spend more
Washington, D.C. – Fewer U.S. consumers will celebrate Valentine’s Day this year, but will spend a little more than last year. According to the National Retail Federation’s 2014 Valentine’s Day spending survey conducted by Prosper Insights and Analytics, 54% of Americans will celebrate with their loved ones in 2014, compared to 60% in 2013.
The average person plans to spend $133.91 on candy, cards, gifts, dinner and more, up slightly from $130.97 last year. Total spending is expected to reach $17.3 billion.
Nearly half (48.7%) will buy candy, a third will give flowers (37.3%) and over half (51.2%) will send greeting cards. Jewelry spending will total $3.9 billion, and 37% will celebrate with an evening out, spending an estimated total of $3.5 billion. Others will give more practical gifts like clothing (15.8%) or gift cards (14%).
Men will spend $108.38 on gifts for their significant others, twice as much as women who will spend $49.41 on their special someone. People will also show their appreciation for family members (59.4%) friends (21.7%) teachers (20.4%) and colleagues (12.1%). About one-in-five (19%) will buy gifts for their pets, spending an average of $5.51.
In addition, the survey found that 26.1% plan to shop online this Valentine’s Day, flat with last year’s 26.3%. Many will turn to their tablets or smartphones before making their final gift decisions; 24% will research products or compare prices on their smartphones and 32.2% will do so on their tablets.
“While fewer are planning to celebrate Valentine’s Day this year, millions of shoppers will still make room in their discretionary budgets to send cards and gifts to loved ones or enjoy a special evening out,” says Prosper Insights and Analytics Director Pam Goodfellow. “Consumers can expect promotions on everything from flowers to date night dinner packages in the coming days, leaving plenty of ideas for those looking to spoil their Valentines.”
ShopRite tests mobile scanning app
KEASBEY, N.J. — ShopRite is piloting a program that takes shoppers beyond the traditional checkout lines and self-checkout lanes and enables them to check out from their smartphones.
The new ShopRite Mobile Scan app also alerts them to sales in the aisles in which they are shopping and automatically deducts Price Plus Club card savings as each item is scanned. Once their shopping orders are complete, customers can sync their mobile devices to designated self-service pay stations.
“Our customers can now enjoy the ease of shopping — and checking out — right on their smart phones, with the added convenience of product recommendations. Using their own phones, they can take advantage of ShopRite’s traditional low prices and speed through checkout, making for a quick and easy trip to the supermarket,” stated Cheryl Williams, VP of digital commerce and innovation for ShopRite.
The pilot is currently in eight ShopRite stores in New Jersey and Connecticut.