Michael Kors boosted its sales by over a quarter year-over-year. The increase is attributed to the better than expected contributions from the company’s namesake brand and the British luxury shoemaker, Jimmy Choo. Last year, Jimmy Choo was acquired by the US-based fashion house from JAB Holdings in an acquisition deal that amounted to £896m. It was consolidated into the group’s results starting November.
Michael Kors, the luxury fashion group, said that the shoe business of Jimmy Choo had performed better than what the group expected, helping the company to report a rise in sales.
The total revenue for the three months to the end of June rose by 26.3 percent to $1.2 billion (£930 million).
The increase in revenue included a contribution from Jimmy Choo, the iconic shoe brand, amounting to $172.7 million.
This surpassed the expectations if the group. It helped the company to post a strong quarter even as the comparable sales that were recorded at Michael Kors stores were flat.
The group also modified its full year expectations upwards. It said that it anticipates further growth in sales during the second quarter.
Yesterday, the shares in Michael Kors rose by as much as six percent after the announcement.
The profitability of the company was also higher, with the earnings per diluted share were at $1.22.
According to data from Thomson Reuters, some analysts had been looking for revenue amounting to $1.137 billion and a net income of around $140.62 million, or 92 cents per share. However, the 0.2 percent comparable sales growth of the company fell just short of estimates for 0.5 percent.
John D. Idol, chief executive and chairman of the company, stated: “Our fashion leadership remains strong, which drove consumers to respond favourably to both new fashion introductions and core products.”
He added: “Our global fashion luxury group continues to see the benefits of our long-term growth strategy which is driven by both the Michael Kors and Jimmy Choo brands.”