American fashion retailer Michael Kors has unveiled its financial results for the fourth quarter and fiscal year ended April 2, 2016. In the fourth quarter, total revenue of the company surged 10.9 per cent to US $ 1.2 billion from US $ 1.1 billion last year; on a constant currency basis, total revenue rose 11.7 per cent.
As per the company release, retail net sales in the reporting quarter zoomed 22 per cent to US $ 572.6 million. Its comparable sales soared 0.3 per cent. Wholesale net sales increased by 3.5 per cent to US $ 590.5 million in the quarter under review. However, its licensing revenue plunged 13.6 per cent to US $ 35.6 million.
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Region wise, total revenue in the Americas surged 4.6 per cent to US $ 879.1 million on a reported basis. While European revenue zoomed 15.6 per cent to US $ 254.1 million, revenue from Asia rose 216.4 per cent to US $ 65.5 million on a reported basis. Gross profit in the quarter zoomed 10.5 per cent to US $ 697.2 million.
For the full fiscal, Michael Kors’ total revenue increased by 7.8 per cent to US $ 4.7 billion from US $ 4.4 billion in fiscal 2015. On a constant currency basis, total revenue increased by 11.7 per cent. Retail net sales increased 12.2 per cent to US $ 2.4 billion. Comparable sales decreased 4.2 per cent. Gross profit in the full year increased by 5.6 per cent to US $ 2.8 billion. Income from operations was US $ 1.2 billion.
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John D. Idol, Chairman & CEO of the company, said, “We are pleased with our financial and operational accomplishments during the fourth quarter and fiscal year 2016, as we delivered continued growth across regions despite the challenging retail environment. In addition, we elevated our product offerings and refreshed our marketing campaigns, both of which were met with positive response from our customers. Looking ahead, we see multiple growth opportunities, including the expansion of our international markets, the growth of our digital e-commerce flagships, the build-out of our men’s business, the launch of Michael Kors ACCESS wearable technology line, and the continued design innovation of our luxury fashion product.”
