MICHAEL Kors Holdings a better-than-expected 40 per cent jump in quarterly revenue yesterday, driven by strong demand for its trendy handbags and watches.
Signs of economic recovery in the US and Europe have increased demand for affordable luxury items. Men are also spending more on luxury, encouraging companies to step up investments.
Michael Kors Holdings, controlled by fashion designer and former Project Runway TV show judge Michael Kors, has been growing at a blistering pace and is aggressively expanding its stores in the US and Europe.
The company’s net income jumped 49 per cent to $145.8m (£90.9m), or 71 cents per share, in its second quarter to 28 September from $97.8m, or 49 cents per share, a year earlier. Revenue rose to $740.3m, beating the average analyst estimate of $726m. Comparable store sales in North America, Kors’ largest market, rose 21 per cent, helped by its accessories and watch collection.
Michael Kors said sales in Europe more than doubled to $114m.
City A.M. Reporter