Dive Brief:
-
New York-based Michael Kors Holdings Ltd. Monday announced a fiscal third-quarter profit increase of 77%, saying it had benefited from a strong holiday shopping season and sales growth in the U.S. and Europe.
-
For the quarter ending Dec. 28, the high-end clothing and accessories retailer reported earnings of $229.6 million, up from $130 million the year before. Revenue increased 59% to $1.01 billion.
-
Net retail sales rose 51% to $503.4 million, aided by a same-store sales increase of 28% over a year ago. Net wholesale sales rose 68% to $461.4 million.
Dive Insight:
Here’s a bright spot in the clothing retail market: Michael Kors is expanding its brand awareness in the U.S. and Europe and did not suffer the dismal holiday experience of many clothing retailers on the discount side. Wall Street responded with love for the company, and this could also help retailers that sell Michael Kors-branded luxury hand-bags, accessories, and clothes.