Michael Kors Growth Slowed Significantly

U.S.A

Michael Kors recently released the 2014/2015 quarter (April 1, 2014 to March 31, 2015) third quarter (October 2104 December) performance bulletin, slightly exceeding Wall Street analysts' expectations.

The main points of performance are as follows:

Sales grew by 29.9% over the same period, to 1 billion 310 million US dollars, and the growth rate slowed down significantly, which was significantly lower than the 54.5% in the first quarter and 42.7% in the second quarter.

According to the constant exchange rate, this quarter

An increase of 32.6% over the same period.

An increase of 29.2% over the previous year, reaching US $800 million.

Gross profit margin was 60.9%, down 0.3 percentage points over the same period last year.

Operating profit was $419 million, an increase of 21.9% over the same period last year.

Operating profit margin was 31.8%, down 2.1 percentage points over the same period last year.

Net profit was $304 million, an increase of 32.3% over the same period last year.

Diluted earnings per share were $1.48, much higher than $1.11 in the same period in fiscal year 2014.

Michael Kors chairman and CEO John D. Idol said, "since the company has been listed, we have achieved sales, store sales and net profit growth for 13 consecutive quarters.

We did well in the past holidays, especially accessories.

From the point of view of sales channels, according to the constant exchange rate:

Retail sales amounted to US $689 million, an increase of 40.5% over the same period last year.

Same store sales grew 10.9% year-on-year, and 114 new outlets.

Wholesale channel sales amounted to US $574 million, up 26.4% over the same period last year.

The franchisee earned $51 million 500 thousand in sales, an increase of 6% over the same period last year.

Online sales increased by 73% over the real exchange rate, and the new shopping websites launched by the United States contributed significantly.

From a regional perspective, according to the constant exchange rate:

As of December 27, 2014, there were 509 self owned stores in Michael Kors (including department store counters) and 194 franchised outlets.

As the largest market in North America, sales increased by 1% to $1 billion 100 million compared to the same period last year, while same store sales increased by 6.8% over the same period last year.

Europe's performance was good, sales grew 3% to $241 million, and same store sales grew 29.9% year-on-year.

The same store sales in Japan increased by 54.4% over the same period last year, driving sales up 96.3% over the same period last year.

Michael Kors said sales in the fourth quarter of this fiscal year are expected to be between $10.5 and $1 billion 80 million, lower than previous analysts' forecasts.

2014/2015 annual sales revenue for fiscal year is expected to reach US $4 billion 400 million.

Michael Kors shares fell 2.26% to 69.77 dollars yesterday.