Michael Kors’ revenue up 26.3% thanks to Jimmy Choo

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Luxury retail group Michael Kors reported a 26.3 per cent rise in revenue to $1.2 billion (£930 million) in the three months to the end of June.

British luxury shoe retailer Jimmy Choo contributed 17.2 per cent to the company’s results, which came in above expectations despite like-for-like sales at Michael Kors being flat for the quarter.

Michael Kors acquired Jimmy Choo for £896 million last year, a deal which provided a $172.2 million (£133.87 million) boost to profits in the 12 weeks to the end of June.

It will be welcome news for investors after Michael Kors revealed a turnaround plan for its business to pull back its earnings.

Michael Kors decided fewer designs and promotions, as well as store renovations and less emphasis on its handbag category would be its main strategies for bringing its business back in line.

Overall, the acquisition of Jimmy Choo is expected to add between $580 million (£451 million) and $590 million (£458.84 million) to the company’s overall revenue this year.

“Our global fashion luxury group continues to see the benefits of our long term growth strategy which is driven by both the Michael Kors and Jimmy Choo brands,” chairman and chief executive John Idol said.

He added: “Looking ahead we remain optimistic about our business for the remainder of fiscal 2019 and beyond.”

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