Michael Kors Slowdown Needs Transformation

Recently, the US luxury luxury brand Michael KorsHoldingsLtd. announced the three quarter of the 2014/2015 fiscal year (2014 10~12 months). The total sales volume of Michael Kors in the quarter reached 1 billion 310 million US dollars, up 29.9% from the same period last year, and the growth rate slowed down obviously, which is obviously lower than the 54.5% in the first quarter and 42.7% in the two quarter. According to the constant exchange rate, sales increased by 32.6% over the same period last year.

Notice shows that Michael Kors The trend of growth slowdown has spread to the second largest markets in Europe. Sale The growth rate before and after excluding exchange rate was 21.2% and 29.9% respectively, much lower than 41.1% in the two quarter. The same store sales in Japan increased by 35.4%, after excluding the exchange rate, an increase of 54.4%, slightly higher than the 52.9% in the two quarter.

Zhou Ting, President of luxury goods and Quality Research Institute, thinks that Michael Kors is "fast up and down". "Both Michael Kors and Kate Spade face the same 4 big problems. profit The continuous negative growth, single store sales performance is seriously declining, inventory pressure continues to rise, lack of sales growth momentum. "

Although the gross profit margin of Michael Kors rose 29.2% to 800 million 100 thousand US dollars in the three quarter, the gross margin was reduced by 0.3 percentage points, which dropped from 61.2% in the 2014 fiscal year to 60.9%. UBS Analysis Division analyst ChristianBuss analysis, Michael Kors12 month in its website discount rate of up to 65%, in contrast to its main competitors Coach and Kate Spade have reduced the intensity of discount sales. Operating profit was $418 million 500 thousand, an increase of 21.9% over the same period last year, and the operating profit margin shrank by 2.1 percentage points to 31.8%. Net profit increased 32.3% to 304 million US dollars over the same period, and the diluted earnings per share rose to 1.48 US dollars from 1.11 US dollars in the same period last year, and the market expected US $1.33. The growth rate of the three profit indicators narrowed compared with the two quarter.

Michael Kors said its sales revenue in the fourth quarter of this fiscal year is expected to be 1 billion 50 million ~10.8 billion, lower than previous analysts' forecasts. 2014/2015 annual sales revenue for the fiscal year is expected to reach US $4 billion 400 million.

By the end of the three quarter of 2014, the group had 509 direct retail outlets and 194 authorized partners.