Michael Kors Q2 total revenue up 38.9 percent

REPORT_ Michael Kors Holdings Ltd reported a 49 percent increase

in the second quarter that ended September 28th, which was fueled by the growing demand for the brands handbags and accessories in North America and Europe.

Total revenue increased 38.9 percent to 740.3 million dollars, up from 532.9 million dollars in the second quarter of the fiscal 2013, surpassing analysts’ expectations of 726 million dollars. The company’s net income rose to 145.8 million dollars or 71 cents per share in the second quarter to the end of September 28, up from 97.8 million dollars, or 49 cents per share from the year before.

Retail net sales grew 46.8 percent to 355.6 million dollars, encouraged by a 22.9 percent increase in comparable stores sales, while wholesale net sale grew 29.9 percent to 351.9 million dollars. Gross profits increased to 42.2 percent to 449.9 million dollars and the percentage of total revenue grew to 60.8 percent compared to the 59.3 percent growth in the second quarter of fiscal year 2013. Income from Michael Kors operations was 221.5 million dollars, accounting for 29.9 percent of the company’s total revenue and net income was 145.8 million dollars, while net income for the second quarter of the fiscal year 2013 was 97.8 million dollars.

Michael Kors is produces footwear, watches, jewelry, men’s and women’s ready to wear and fragrance products. At September 28, 2013, the Company operated 352 retail stores, including concessions, compared to 269 retail stores, including concessions, at the end of the same prior-year period. Company CEO and chairman John D. Idol, said, “Our strong financial results in the second quarter underscore Michael Kors' expanding brand awareness and global presence. Comparable stores sales increased 23 percent, representing our 30th consecutive quarter of growth. The outstanding revenue performance was driven by strong acceptance of the fashion luxury products created by Michael Kors and our design teams... Overall, we continue to see great demand for Michael Kors as a global luxury lifestyle brand.”