Michael Kors Struts Lavish Earnings
In perhaps the biggest accomplishment the luxury designer achieved, total revenue rose 58.3 percent from $240 million to $380 million, with retail net sales increasing 80.3 percent to $172.2 million. Boasting numbers so massive they could make even the most stable of models stumble on the runway, KORS has another fabulous year ahead, as CEO John Idol said the company is uniquely positioned to continue building the upscale lifestyle brand.
Such an impressive earnings call did not come effortlessly. The retailer opened 71 new store locations since the end of last year and kept up with strong demand for Kors' pieces throughout fiscal 2012. On top of meeting consumer requests, KORS also converted from a legacy warehouse system to a new system that caused a short lag in shipments.
As gracefully as KORS entered the stock market back in December 2011, the company has continued to beat the odds. At a time when Europe's economy is suffering with consumers wary of expenses, the retailer's total revenue for the fourth quarter alone increased 122.6 percent.
With such glamorous results reported overseas and in the US, it is clear that KORS has tapped into something special with a fan base that not every luxury retailer has been able to ignite.
"Our North American comparable store sales increase was 37.2%, reflecting the strong demand for the Michael Kors luxury brand, our exciting assortment of fashion merchandise and our exceptional jet-set in-store experience," Idol said on the call.
"We also delivered significant growth in our wholesale segment, reflecting the strength of our brand and the favorable results from our transition to shop-in-shops in department stores."
As momentum continues to build at a pulsing runway beat into 2013, management expects total revenue to reach between $360 and $370 million.
Shoppers may consider stocking up on Kors' accessories and clothing in the near future just as investors will likely scramble to snatch up shares in light of this morning's call. Talk about a hot commodity!
KORS closed yesterday at $38.18, up 40.11% year-to-date.
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