Choo purchase buoys Michael Kors
10/08/2017
While revenue decreased 3.6% to $952.4 million, sales increased 10.1% to $619.9 million, driven in a large part by 67 net store openings.
CEO John Idol said the quarter performance exceeded expectations. “We are encouraged by our first quarter performance, although we continue to believe that fiscal 2018 will be a transition year for our company, as we focus on laying the foundation for the future by executing on our strategic plan, Runway 2020.”
The company paid £896 million for footwear brand Jimmy Choo in July.
“Our agreement to acquire Jimmy Choo will bring together two iconic brands that are industry leaders in style and trend,” added Mr Idol.
“We believe that the development of a global fashion luxury group will increase long-term shareholder value as we create a more diverse product portfolio, increase our exposure to international markets and unlock additional opportunities for future growth."
At July 1, 2017, the Company operated 838 retail stores, including concessions, compared to 771 retail stores, including concessions, at the end of the same prior-year period.
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