michael kors holdings ltd (KORS) Key Developments
Michael Kors to Break Ground on European Distribution Center
May 22 15
Michael Kors announced that it will soon break ground on a distribution center in Trade Port North in Venlo, Netherlands. The new European Distribution Center (EDC) will service all of the luxury fashion brand’s European and Middle Eastern retail, wholesale and, eventually, e-commerce needs. Construction on the 1,000,000-square-foot distribution center, designed by prominent Dutch firm DENC, is anticipated to begin next month. The center is such facility in Venlo, planned to accommodate Michael Kors’ projected growth for the next 10 years. Michael Kors’ EDC will be a green building with a host of environmentally friendly features, including LED interior lighting and a solar-panel roof. The new facility is expected to create approximately 400 jobs in the region going forward.
Michael Kors Names Hanjoon (Michael) Kim as President of Korea
Apr 15 15
Michael Kors announced that Hanjoon (Michael) Kim has been named President of Korea, a newly created position. He will report to Stephane Lafay, the company’s President of Asia. Mr. Kim’s appointment, effective April 13, 2015, follows the company’s recent assumption of direct control of the Michael Kors business in South Korea. In his new role, Mr. Kim will focus on building the infrastructure for this region and developing an expansion strategy for South Korea to position the business for long-term growth. Mr. Kim was most recently at Ferragamo Korea, where he held the position of Representative Director.
Michael Kors Opens the Brand’s Global Store in SoHo
Feb 10 15
Michael Kors announced the opening of its store. Located at 520 Broadway in New York’s SoHo, the store features multiple milestones for the luxury lifestyle brand. Distinctive design elements can be found throughout the three-story, 22,000-square-foot store, starting with a new men’s design concept that occupies the 4,000-square-foot lower level. The men’s shop features chevron flooring in gray oak bordered by white marble, black embossed leather wall coverings, custom-built, polished and blackened stainless steel fixtures with gray smoked mirrors and gray-marble display cases.
Michael Kors Holdings Limited Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months December 27, 2014; Provides Earnings Guidance for the Fourth Quarter of Fiscal 2015 and Full Fiscal Year 2015
Feb 5 15
Michael Kors Holdings Limited reported unaudited consolidated earnings results for the third quarter and nine months December 27, 2014. For the quarter, the company's net income was $303.7 million, or $1.48 per diluted share, net income for the third quarter of fiscal 2014 was $229.6 million, or $1.11 per diluted share. Total revenue increased 29.9% to $1.3 billion from $1.0 billion in the third quarter of fiscal 2014. On a constant currency basis, total revenue increased 32.6%. Income from operations was $418.5 million, or 31.8% as a percentage of total revenue, as compared to $343.2 million, or 33.9% as a percentage of total revenue, for the third quarter of fiscal 2014. Income before provision for income taxes was $417,010,000 compared to $343,128,000 a year ago. Capital expenditures for the quarter totaled $125.3 million. These expenditures were related to global retail store expansions and renovation, construction and renovation of shop-in-shops, investment on distribution facility and enhancement of information system infrastructure.
For the nine months, the company’s total revenue increased 37.5% to $3.3 billion from $2.4 billion in the same period of fiscal 2014. On a constant currency basis, total revenue increased 38.6%. Income from operations for the first nine months was $1.0 billion and as a percentage of total revenue was 30.4%. For the same period of fiscal 2014, income from operations was $762.3 million, or 31.8% as a percentage of total revenue. Income before provision for income taxes was $997,109,000 compared to $761,574,000 a year ago. Net income was $698.4 million, or $3.38 per diluted share, net income for the same period of fiscal 2014 was $500.4 million, or $2.44 per diluted share.
For the fourth quarter of fiscal 2015, the company expects total revenue to be in the range of $1.05 billion to $1.08 billion. This assumes a comparable store sales increase of mid-single digits on a reported basis and an increase of high single digits on a constant currency basis. Diluted earnings per share are expected to be in the range of $0.89 to $0.92 for the fourth quarter of fiscal 2015. This assumes 203.0 million weighted average diluted shares outstanding and a tax rate of approximately 30.0%.
For fiscal 2015, the company now expects total revenue to be approximately $4.4 billion. This assumes a comparable store sales increase of low double digits on a reported basis, and an increase of low to mid-teens on a constant currency basis. Diluted earnings per share are expected to be in the range of $4.27 to $4.30 for fiscal 2015. This assumes 205.8 million weighted average diluted shares outstanding and a tax rate of approximately 30.0%. Capital expenditures are expected to total approximately $400 million for fiscal year 2015.
Michael Kors Holdings Limited Appoints Jane Thompson to the Board of Directors
Jan 27 15
Michael Kors Holdings Limited announced that Jane Thompson has been appointed to the company’s Board of Directors effective immediately. Ms. Thompson is currently Co-Founder and Director of The Fusion Labs. The appointment of Ms. Thompson brings the company’s Board membership to eight, and the company now has six independent directors within the meaning of the NYSE listing standards and the company’s Corporate Governance Guidelines on director independence.