Hong Kong-based luxury lifestyle retailer Michael Kors Holdings reported more than doubled profits in its fourth quarter, signaling to many analysts the resurgence of North American and European luxury markets.
In the fiscal year ending March 31, Michael Kors reported a net income of $101.1 million, from $43.6 million one year earlier; for the full fiscal year, net income rose to from $147.4 million to $397.6 million. Total revenues reached $2.18 billion, reflecting growth of 67.5%. Same-store sales, considered by many the truth indicator of a company’s health, rose an impressive 36.7%, and nearly doubled in Europe.
“Our jet-set luxury accessories and ready to wear are resonating with consumers worldwide,” said CEO John D. Idol, in a statement accompanying the report. The company added 304 North American locations this year, and next year’s growth will take the form of micro-shops in luxury department stores, especially in men’s sportswear and men’s leather goods, which the company considers “long-term growth opportunities.”
The company anticipates revenue between $555 million and $565 million in the next fiscal quarter, and between $2.65 billion and $2.75 billion for the full fiscal 2014 year. Analysts have estimated slightly higher numbers for the quarter–revenues of $570.3 million–and slightly lower numbers for the year–$2.44 billion.
Idol also revealed that in fiscal 2014, Kors plans to open 40 more stores to its 44 in Europe, and 7 new stores to its 29 in Japan. While the firm remains in the “early stages” of development in other Asian countries, this year it will pursue luxury shoppers in China, Korea, Singapore, Malaysia, Indonesia, and the Philippines.
Shares in the company were up 2.7% at the market’s close on Thursday, to $65.68 per share.