The roll out of a strategic plan as well as the acquisition of iconic British brand Jimmy Choo has led Michael Kors to record falls in profit and sales during its first fiscal quarter.
For the three months ending July 1, revenues at the US luxury accessories retailer and wholesaler fell by 3.6 per cent to $952.4 million (£734.5 million). On a constant currency basis, total revenue decreased 2.6 per cent.
Gross profit for the quarter also decreased, 2.8 per cent dip to $574.7 million (£443.2 million).
However, retail net sales increased 10.1 per cent to $619.9 million (£478.1 million), boosted by 67 net new store openings since the end of the first quarter in the prior year.
READ MORE: Michael Kors buys Jimmy Choo for $1.35bn
Michael Kors chairman and chief executive John D. Idol said he was “encouraged” by the first quarter performance, given it was the start of what was set to be a transformational year for the company.
“Fiscal 2018 will be a transition year for our company, as we focus on laying the foundation for the future by executing on our strategic plan, Runway 2020,” he said in a press statement.
“In addition, we are pleased to have recently announced plans to form a global fashion luxury group.
“Our agreement to acquire Jimmy Choo will bring together two iconic brands that are industry leaders in style and trend.”
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