Amid a phenomenal fiscal fourth-quarter performance, John Idol, Chairman and CEO of luxury handbag and fashion retailer Michael Kors, told investors on Wednesday that he is excited to engage the company’s loyal customers in a bigger and better way.
Idol announced the launch of a new ecommerce site this fall.
“The thing that excites us is the ecommerce coming in house–there’s definitely a trend where consumers are shopping more online before making a purchase,” Idol said during the conference call. “We believe our ecommerce site is critical from, not only a growth and revenue standpoint, but ability to excite and engage shoppers.”
What’s more, Idol said there would be some “very exciting technology” rolling out in stores to complement the new ecommerce experience, which he believes could become a multi-million dollar part of the business.
For the fourth quarter ended March 29, 2014, Michael Kors saw its revenue jump a whopping 54%, to $917.5 million. Retail net sales rose 50%, to $408.4 million, along with an eye-opening 26% rise in same-store sales, and 101 new store openings since the same period a year ago.
“We believe that our expanding global brand awareness is driving continued strong demand for our luxury product and fueling our growth as a global luxury lifestyle brand,” Idol added. “In addition, Michael Kors and our talented design team continue to deliver exceptional products while the distinctive jet-set in-store experience that we offer in both our retail stores and our shop-in-shops continues to resonate well with our consumers. Overall, we have great momentum as we head into fiscal 2015 and remain very excited about our growth prospects for next year and beyond.”
As of March 29, 2014, the company operated 405 retail stores, including concessions, compared to 304 retail stores, including concessions, at the end of the same prior-year period.
Idol noted that in Europe revenue skyrocketed 125% in the fourth quarter coupled with a staggering 62.7% rise in same-store sales.
“We remain poised to capitalize on Michael Kors’ distinct position within the global luxury market as we continue to execute our long-term growth strategies,” Idol said.
A recent Michael Kors “Jet-Set Experience” at Shanghai’s Hongqiao International Airport included a runway show of one-off pieces designed to convey the designer’s glamorous style and a crowd that included house favorites like Freida Pinto, Hilary Swank, and Camilla Belle.
In addition, the experience included a private jet (belonging to Idol) parked in the middle of the festivities.