Fewer mall trips hit Michael Kors sales figures

William Turvill
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Michael Kors sells handbags, clothing and jewellery (Source: Getty)

Michael Kors shares dropped on Wednesday as sales figures were hit by fewer mall trips.

The figures

The handbags, clothing and jewellery company’s net sales came in at $957.3m (£735.9m) in the three months to 2 July, up from $947.3m.

Wholesale net sales fell by seven per cent to $394.4m from $424m.

Total revenue was reported to be $987.9m, up 0.2 per cent from $986m.

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Basic income per share was $0.84 during the period, down from $0.89 a year ago.

The share price of Michael Kors fell two per cent in the US on Wednesday to $49.06 after the results were reported.

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Why it’s interesting

The company, which said it had outperformed its own expectations in the quarter, said that growth in digital offerings and global expansion was “muted by the continued decline in mall traffic trends”.

Chairman and chief executive John Idol also said sales had been hurt by a “decrease in tourism in certain major cities”.

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What the company said

Idol added:

Looking ahead, we remain focused on executing against our long-term growth strategies across both product categories and regions. For the Fall season, we are excited about the launch of several new digital flagships in Europe, the debut of our Michael Kors ACCESS line of smartwatches and trackers and our new Wonderlust fragrance, as well as the continued development of our men's business. Overall, we are on track to deliver on our revenue and earnings per share goals for the year.