Michael Kors Holdings Ltd. has released its holiday quarter results. While many retail giants reported a tough holiday season this time, Michael Kors noted much ‘smaller-than-expected’ dip in sales at established stores during the period, backed by strong demand for high-end accessories and footwear.
The brand’s sales at established stores dived only 0.9 per cent in the third quarter ended on December 26, 2015. Industry experts on average had estimated a 4.5 per cent plunge, as per Consensus Metrix, a research firm. “Investors have been concerned that the company has been in a death spiral. These results are yet another instance of upside surprise and (are) better than feared,” Nomura Securities Analyst Simeon Siegel mentioned to a leading news site.
Furthermore, Kors said its ‘full-year’ 2016 revenue forecast would now be at the top end of its prior forecast of US $ 4.6 billion to US $ 4.65 billion. Total revenue increased 6.3 per cent to US $ 1.40 billion in the reporting period. Net income attributable to the company dropped to US $ 294.6 million from US $ 303.7 million a year earlier.
Michael Kors is a New York-based retailer which deals in women’s and men’s ready-to-wear, accessories, jewellery, footwear, etc.