Michael Kors Q3 revenues up 70.4 percent

Michael Kors, a global luxury lifestyle brand, saw total

revenue increase 70.4 percent in the third quarter ended December 29, 2012. Total revenue increased to 636.8 million dollars(Rs 3,425 crores) from 373.6 million dollars (Rs 2,009 crores).

Gross profit increased 72.8 percent to 383.5 million dollars (Rs 2,063 crores), and as a percentage of total revenue increased to 60.2 percent compared to 59.4 percent in the third quarter of fiscal 2012.

Retail net sales increased 66.8 percent to 332.6 million dollars (Rs 1,789 crores) driven by a 41.4 percent increase in comparable store sales and 66 net new store openings since the end of the third quarter of fiscal 2012. Wholesale net sales increased 77.4 percent to 274.3 million dollars (Rs 1,475 crores) and licensing revenue increased 52.1 percent to 29.8 million dollars (Rs 160 crores).

John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “Our strong third quarter performance reflects sustained brand momentum as the global recognition and appeal for the Michael Kors luxury brand continued to expand. Moreover, we were extremely pleased with the holiday season as Michael Kors’ brand strength, innovative fashion design and jet-set in-store experience drove strong sales and earnings.”

For the first nine months ended December 29, 2012, total revenue increased 71.8 percent to 1,584.6 million dollars (Rs 8,524 crores) from 922.3 million dollars (Rs 4,961 crores) in the same period of fiscal 2012. Income from operations for the first nine months was 474.7 million dollars (Rs 2,553 crores) and as a percentage of total revenue was 30 percent. Net income for the first nine months was 296.5 million dollars (Rs 1,595 crores).

Gross profit for the first nine months increased 78 percent to 950.4 million dollars (Rs 5,112 crores), and as a percentage of total revenue increased to 60 percent as compared to 57.9 percent in the same period of fiscal 2012.

For the fourth quarter of fiscal 2013, the company expects total revenue to be in the range of 515 million dollars (Rs 2,770 crores) to 525 million dollars (Rs 2,824 crores). For fiscal 2013, the company now expects total revenue to be approximately 2.1 billion dollars (Rs 11,297 crores).