Luxury fashion brand Michael Kors has reported strong first quarter results, outpacing all previous estimations.
Michael Kors total revenue increased by 0.2 per cent in the last quarter compared to the prior year, going from $986 million (£761 million) to $987.9 million (£762 million), way above analysts’ estimates for total revenue of $953 million (£735 million).
Its net income also topped forecasts, despite slipping 16 per cent to $147.1 million (£113 million) or 83 cents per diluted share from $174 million (£135 million) and or 87 cents per share. The company’s adjusted diluted earnings were 88 cents per share, outpacing forecasts for the quarter of 74 cents.
Despite the positive results for this quarter, stocks for the company have dipped due to more uncertain forecasts. Its continued investment in new store openings and expanding existing outlets, mixed with a focus on building ecommerce infrastructure and has resulted in a rise in operating costs. This has slowed the growth of profit margins.
“We delivered another quarter of strong growth in our North American digital flagships, further expanded our presence globally, particularly in Asia, and expanded our fashion-product offerings,” chief executive John Idol said.
“However, this progress was muted by the continued decline in mall-traffic trends, as well as a decrease in tourism in certain major cities, which negatively impacted our comparable-sales performance during the quarter.”
The luxury fashion retailer has many stores situated throughout the UK including and is predicted to expand its presence in the country.