Michael Kors Holdings, a global fashion luxury group, has announced its financial results for the fiscal 2019 Q2 that ended September 29, 2018. The total revenue of the company increased 9.3 per cent to $1.25 billion, including a $116.7 million contribution from Jimmy Choo. Net income was $137.6 million, compared to $202.9 million in the prior year.
Overall the company delivered better than anticipated gross margin, operating margin and earnings per share. Jimmy Choo delivered better than anticipated revenues driven by strength in footwear.
Jimmy Choo revenue was $116.7 million. Michael Kors acquired Jimmy Choo on November 1, 2017, and compared to Jimmy Choo stand-alone results from the prior year, revenue increased double digits.
The retail revenue of $643.9 million was approximately flat compared to the prior year. Comparable store sales decreased 2.1 per cent, which was in line with expectations.
For the third quarter of fiscal 2019, the company expects total revenue of approximately $1.46 billion, including approximately $165 million of incremental revenue from Jimmy Choo. The company expects third quarter retail revenue for Michael Kors to grow in the low single digits. Comparable store sales on a reported basis are expected to decline in the low single digits, primarily due to an unfavourable foreign currency impact.
“We are pleased to report results that have again exceeded our expectations, and are raising our fiscal 2019 EPS guidance to a range of $4.95 to $5.05, reflecting double digit earnings growth for the year. As we enter the second half of fiscal 2019 we look forward to welcoming Versace into our group. With the acquisition of Versace we have built one of the world’s leading fashion luxury groups in just one year, setting the stage for accelerated revenue and earnings growth. This is a truly remarkable and historic moment for our company and we look forward to completing this transformational acquisition in the coming months,” said John D Idol, the company’s chairman and chief executive officer.