Michael Kors to add 50 stores in North America
New York — Michael Kors Holdings Ltd. is on a roll. The white-hot luxury fashion and accessories company plans to open up to 50 stores in North America in its current fiscal year, plus additional units in Europe and the Far East. Michael Kors currently has 44 stores in Europe, with another 40 planned for its new fiscal year.
“Given how strongly our brand has performed in the market, how well it resonates with European consumers . . . we have concluded that the retail store growth potential is greater than the hundred locations we initially targeted [in Europe],” CEO John Idol said during a conference call with investors.
On Wednesday, Michael Kors reported that its profit more than doubled on surging sales in the fourth quarter, ended March 30, topping another strong year for the company. Net income was $101.1 million, up from $43.6 million in the year-ago period.
Revenue jumped 57% to $597.1 million.
For the year ended March 30, net income nearly tripled to $397.6 million from $147.4 million a year ago.
Revenue surged 67% to $2.18 billion for the year from $1.3 billion. Same-store sales rose 35% in North America.
Registration open for Kids In Need gala
The Kids In Need Foundation will hold its 15th annual Kids In Need Foundation Education Celebration Gala Wednesday, Sept. 25, at the Depot, in Minneapolis, Minn.
A cocktail reception, sponsored by Target, will kick things off at 6:30 p.m., followed by the Gala Dinner, sponsored by 3M, at 7:30 p.m.
Attending the gala will be representatives from major retailers and manufacturers, who will be able to network with others in the school supplies and office products industry, as well as companies outside the industry who partner with Kids In Need.
All proceeds from the gala will help the foundation provide children and teachers with free school supplies from the Kids In Need National Network of Resource Centers. Last year, Kids In Need distributed more than $42 million worth of school supplies to the centers in its network. Since its inception, the Kids In Need Foundation has distributed more than $400 million in school supplies to low-income schools free. The foundation serves 2.4 million students and 100,000 teachers annually, and has awarded $1.4 million in grants to teachers.
Other sponsors of this year’s gala include Darice, Art Skills, Blue Sky, Crayola, Acco, Elmer’s, Horizon Group USA, Pilot, OfficeMax, Tung Yung, Zebra, Mega and Bic. Registration for the event is now open. The Depot is located at 225 Third Ave. South, Minneapolis, Minn. 55401.
The Kids In Need Foundation is a nonprofit organization that was founded in 1995. The foundation spends less than 2% on administration, and allocates 98% of revenue to teachers and students.
Online consumers spending more on floor care
Floor care, water filtration devices and air purifiers generate higher average prices online than in brick-and-mortar stores, according to research from NPD Group.
The research company’s Consumer Tracking Service, looking back at the 12 months ended March 2013, found that consumers are spending significantly more for these home environment cleaning appliances purchased online.
In floor care, the average online selling price for the period was $140, compared with $97 in stores. (See chart.) Online dollar sales also gained a larger share of consumer spend — up 16% for floor care, and up 27% for water filtration devices.
“The success of the online channel is a result of broader product selection, a wider range of price points and the convenient platform to research and compare product features,” said Debra Mednick, executive director and home industry analyst. “Layering on the incentive of free shipping (often with a minimum shopping cart), increases the likelihood that consumers are willing to trade up, thus, spending more on their purchase.”