China'S Market Growth Is Strong, So That Michael Kors Sales In Asia Reached 97% In The Second Quarter.

Michael Kors, the American light luxury brand, recently released the second quarter financial report of fiscal 2017, affected by the continued decrease of volume of department stores, the strength of the dollar and the downturn in the tourism industry. In the second quarter of October 1st, the total income of the group declined by 3.7% to 1 billion 90 million US dollars.

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The Asian market, including greater China, performed strongly, with an increase of 97%.

Gross profit of the group decreased by 3% to 644 million 700 thousand US dollars in the same period last year, accounting for 59.2% of the total revenue.

Operating profit recorded $237 million, or 18.7% of total revenue, slightly less than 24.2% of the same period last year.

Net profit decreased by 16.6% to 160 million 900 thousand US dollars, or 0.95 yuan per share.

By sales channel

Among them, group retail channel net

Thanks to the new 198 outlets, including the group's recent repurchase of 137 franchised stores in China and Korea, it recorded a growth of 12.1% to US $597 million 200 thousand, a 5.4% decline in sales compared with the same period last year.

Wholesale channel net sales fell 18.4% to 452 million US dollars compared with the same period last year, and the revenue of licensed stores decreased by 10.2% to 38 million 800 thousand dollars over the same period last year.

By Region

In the most important market of brand, the total revenue of the US region dropped 11.1% to 745 million 100 thousand US dollars.

Sales in Europe rose 1.9% to $248 million last year.

Sales in Asia, including the Chinese market, grew by the most, with an increase of 96.5% to $95 million 100 thousand.

For the next expansion of Michael Kors in China, Li Dakang, President of Michael Kors Asia Pacific region, told fashion headlines earlier that it expects to add 50 more stores in 3 years.

As of October 1, 2016, there were 905 global groups.

Shops, including shopping malls, including 787 Direct stores, 118 franchise stores, an increase of 198 Direct stores last year.

Group Chairman and chief executive officer John D. Idol expressed satisfaction with the expected second quarter earnings and profits of the group. He revealed that the group plans to continue developing new luxury fashion products, and further expand the brand's global store network, while entering the high technology field to launch SmartWatch and fitness tracker.

To stimulate sales growth, the group has launched a new perfume series wanderlust, adding new autumn series handbag styles, expanding men's wear product series, and establishing a digital flagship store in Europe.

Despite the fact that the quarterly performance of the group is still affected by challenges such as the drop in market traffic and tourists and the streamlining of the US wholesale channel, the company remains optimistic about the long-term growth of the group's performance.

In the first six months ended October 1, 2016, the total revenue of the group decreased by 1.9% to 2 billion 80 million US dollars compared with the same period last year. By fixed exchange rate, it dropped 2%, and total profit fell 2.5% to 1 billion 240 million US dollars, accounting for 59.5% of the total revenue, similar to that of last year.

380 million dollars was recorded.

Excluding the cost of royalty and other fees in China and Korea, the group's net profit in the first half of the fiscal year decreased by 13.8% to 316 million 900 thousand US dollars.

The Group expects total revenue in fiscal year 2017 to reach US $4 billion 550 million, comparable to the decline in sales or the number of units that will appear. The operating profit margin is about 20.7%, and the diluted earnings per share are expected to be between 4.37 and 4.43 US dollars.

As for the third quarter of fiscal year 2017, taking into account the group's reduction in the volume of wholesale shipments, the company expects total revenue to be between $1 billion 365 million and $1 billion 380 million, a decline in sales or in the number of units in operation, with a profit margin of about 25%.

Michael Kors shares rose 3.15% to $51.76, with a market capitalization of about $8 billion 750 million, as the group's overall performance was in line with expectations.