default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Michael Kors Lifts Revenue Forecast, Benefiting From Jimmy Choo

Second-quarter revenue rose 5.4 percent to $1.15 billion, marking the first increase in more than a year.
Michael Kors store | Source: Shutterstock
By
  • Reuters

NEW YORK, United States — Fashion accessories maker Michael Kors Holdings Ltd lifted its annual revenue forecast on Monday, predicting its recent acquisition of upscale shoemaker Jimmy Choo will begin to pay off before the end of the fiscal year.

Kors also reported profit and revenue for its second fiscal quarter ahead of analysts' estimates, as it opened 56 new stores since the same period a year ago.

Shares of New York-based Michael Kors rose 1.2 percent to $48.18 in premarket trading.

Sales in Kors' stores open for at least a year fell 1.8 percent in the second quarter ended September 30. Analysts on average had forecast a 4.6 percent decline, according to Consensus Metrix.

Kors, known for its "affordable luxury" line of handbags, said it now expects revenue of $4.59 billion for the year ending April 2018. The forecast includes $215 million to $225 million of additional revenue from Jimmy Choo.

Kors had earlier forecast full-year revenue of $4.28 billion.

Its revenue in the second quarter rose 5.4 percent to $1.15 billion, marking the first increase in more than a year and coming ahead of the $1.05 billion expected by analysts, according to Thomson Reuters I/B/E/S.

Net income attributable to the company rose to $202.9 million or $1.32 per share, from $160.9 million, or 95 cents per share, a year earlier.

Excluding one-time items, Kors earned $1.33 per share, compared with analysts' average forecast of 83 cents per share.

By Gayathree Ganesan in Bengaluru; editors: Sriraj Kalluvila and Sai Sachin Ravikumar.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Luxury
How rapid change is reshaping the tradition-soaked luxury sector in Europe and beyond.

Serre, who grew sales by 20 percent in 2023, has been named Pitti Uomo’s next guest designer. She’s using the opportunity to show her men’s collection for the first time.


Hermès’ elusive sales strategy is at the centre of a new legal challenge for the French luxury giant. BoF breaks down the practices under scrutiny and what the suit could mean for the fashion industry at large.



This week, Kering flagged sales were down 20 percent at its flagship brand, knocking confidence in the group’s turnaround strategy. ‘A more drastic solution is required,’ one analyst wrote.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections