Michael Kors’ revenue increased 9.3 per cent in the second quarter. Retail revenue was approximately flat compared to the prior year. Comparable store sales decreased 2.1 per cent. On a constant currency basis, comparable store sales decreased 1.3 per cent. Wholesale revenue declined 1.3 per cent. Jimmy Choo delivered better than anticipated revenues driven by strength in footwear. The company acquired by Jimmy Choo in 2017 and, compared to Jimmy Choo standalone results from the prior year, revenue increased double digits. Michael Kors has also acquired Versace, setting the stage for accelerated revenue and earnings growth.
For the full year, reported comparable store sales for Michael Kors are expected to be down in the low single digits, primarily driven by an unfavorable currency impact. The company has raised guidance for operating margins to approximately 18.2 per cent. For the third quarter of fiscal 2019, the company expects retail revenue for Michael Kors to grow in the low single digits. Comparable store sales on a reported basis are expected to decline in the low single digits, primarily due to an unfavorable foreign currency impact. The company expects wholesale revenue to decrease in the high single digits, and licensing revenue to decline in the mid-teens. Operating margin is expected to be approximately 20.8 per cent.