Michael Kors Holdings Ltd. (NYSE:KORS) designs and manufactures luxury apparel, footwear, and accessories. The stock was up 3.12% in early afternoon trading on June 5. Shares are still down 3.8% in 2018 after the stock took a dive following its earnings released.
Michael Kors released its fiscal 2018 fourth-quarter and full year results on May 30. In the fourth quarter the company began to make investment in the recently-acquired Jimmy Choo brand and made progress on its Michael Kors Runway 2020 plan. Michael Kors expects revenue between $140 million and $145 million from the Jimmy Choo brand in fiscal 2019 Q1. Comparable sales in Q4 rose 2.3% which illustrated the positive response to some of its revamped luxury offerings. It also launched the KORSVIP loyalty program.
For the full-year Michael Kors saw total revenue increase 5% to $4.72 billion. Retail revenue climbed 5.4% to $2.71 billion and comparable sales fell 2.2% year over year. Its Wholesale revenue fell 7.7% to $1.64 billion and was down 9.1% on a constant currency basis. The company made a strategic reduction in its inventory levels and like other brands has done well to push its e-commerce business.
Adjusted net income attributable to MKHL was $701 million compared to $712.1 million in the prior year. In fiscal 2019 Jimmy Choo is expected to boost diluted earnings per share by between $0.01 and $0.03. Michael Kors has been oversold in late May and early June, as the luxury brand has made significant strides towards its 2020 plan in fiscal 2018.
