Michael Kors Holdings Ltd Settles US Lawsuit Alleging Deceptive Price Tags
Jun 12 15
Michael Kors Holdings Ltd. agreed to pay USD 4.88 million and change its sales practices to settle a class action lawsuit claiming it used deceptive price tags at its outlet stores to fool shoppers into believing they were getting big bargains. The preliminary settlement was filed in Manhattan federal court and requires court approval. The company was accused of creating an "illusion" of deep discounts by using tags containing made-up "manufacturer's suggested retail prices," or MSRP, and offers to sell the products at lower prices. As part of the settlement, Michael Kors will replace "MSRP" with "Value" on its price tags and display signage explaining that term, or stop using reference prices for products made exclusively for its outlets. In a court filing, the plaintiffs' lawyers said the lawsuit is among several accusing well-known retailers of deceptive marketing in outlet and factory stores that violates state consumer protection laws. Michael Kors denied wrongdoing in agreeing to settle.
Michael Kors Holdings Limited Presents at Deutsche Bank db Access Global Consumer Conference 2015, Jun-11-2015 08:30 AM
Jun 4 15
Michael Kors Holdings Limited Presents at Deutsche Bank db Access Global Consumer Conference 2015, Jun-11-2015 08:30 AM. Venue: Paris, France. Speakers: John D. Idol, Chairman and Chief Executive Officer, Joseph B. Parsons, Chief Financial Officer, Chief Operating Officer, Principal Accounting Officer and Executive Vice President.
Michael Kors Holdings Limited Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended March 28, 2015; Provides Earnings Guidance for the First Quarter and Full Fiscal Year 2016
May 27 15
Michael Kors Holdings Limited announced unaudited consolidated earnings results for the fourth quarter and year ended March 28, 2015. For the quarter, net sales were $1,039,734,000 against $882,043,000 a year ago. Total revenue was $1,080,984,000 against $917,452,000 a year ago. Income from operations was $256,167,000 against $245,909,000 a year ago. Income before provision for income taxes was $258,714,000 against $246,073,000 a year ago. Net income was $182,642,000 against $161,038,000 a year ago. Diluted Net income per ordinary share was $0.90 against $0.78 a year ago.
For the year, net sales were $4,199,666,000 against $3,170,522,000 a year ago. Total revenue was $4,371,469,000 against $3,310,843,000 a year ago. Income from operations was $1,256,973,000 against $1,008,171,000 a year ago. Income before provision for income taxes was $1,255,823,000 against $1,007,647,000 a year ago. Net income was $881,023,000 against $661,485,000 a year ago. Diluted Net income per ordinary share was $4.28 against $3.22 a year ago.
For the first quarter of fiscal 2016, the company expects total revenue to be in the range of $930 million to $950 million. On a constant currency basis, total revenue is expected to increase in the high single digit range assuming a $60 million impact from the change in foreign currency rates. The company expects a low double digit comparable store sales decrease on a reported basis and a mid-single digit decrease on a constant currency basis. Diluted earnings per share are expected to be in the range of $0.74 to $0.78 for the first quarter of fiscal 2016. This assumes 202.5 million weighted average diluted shares outstanding and a tax rate of approximately 29%. The company expects foreign currency to impact net income by approximately $14.0 million and EPS by approximately $0.07.
For fiscal 2016, the company expects total revenue of approximately $4.7 billion to $4.8 billion. On a constant currency basis total revenue is expected to increase in the low to mid-teens range assuming a $200 million impact from the change in foreign currency rates. The company expects flat comparable store sales on a reported basis, and a low single digit comparable store sales increase on a constant currency basis. Diluted earnings per share are expected to be in the range of $4.40 to $4.50 for fiscal 2016. This assumes 200.0 million weighted average diluted shares outstanding and a tax rate of approximately 29%. The company expects foreign currency to impact net income by approximately $39.0 million and EPS by approximately $0.20.
Michael Kors Holdings Limited Names Marcel Ostwald as Senior Vice President, Men’s Design
May 26 15
Michael Kors Holdings Limited announced that Marcel Ostwald has been named to the newly created role of Senior Vice President, Menswear. Ostwald’s appointment, effective August 1, 2015, fills a key role in the global brand’s growing menswear business. Mr. Ostwald will work closely with Michael Kors and Mark Brashear, President of Menswear, in developing the creative brand strategy and product vision for the men’s division. Ostwald spent the last 11 years at Hugo Boss, where his most recent title was Senior Head of Creative Management and Concept Design for BOSS Sportswear. His time at Hugo Boss included a wide range of roles in creative management, including for tailored clothing, shoes, leather and accessories, as well as sportswear.