Michael Kors total revenue rose 5.4 per cent in the second quarter. It faced a 1.8 per cent drop in same store sales in the second quarter. The company has forecast revenue of $4.59 billion for the year ending April 2018. The company expects Jimmy Choo to contribute up to $225 million to sales for the rest of the year.
Once a top name in affordable luxury, Kors is grappling falling same store sales, as people shop online. Over-distribution and a reliance on promotions to boost sales also eroded its brand value and appeal. To reverse a more-than two-year slump in same-store sales, Kors is pursuing a multi-brand strategy for growth. In July, the maker of the popular Mercer and Hamilton handbags announced a deal to buy Jimmy Choo. The company has also pulled back heavily-discounted inventory from department stores and off-price channels, refreshed its line of bags and shut underperforming stores.
Sales also got a fillip as the company boosted new products and high-end accessories by 40 per cent for the fall season and sold more bags at full-price, helping it overturn a one-year slide in total revenue for the first time.
