Form 8-K Michael Kors Holdings For: Oct 29
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 29, 2015
MICHAEL KORS HOLDINGS LIMITED
(Exact name of Registrant as Specified in its Charter)
001-35368
(Commission File Number)
British Virgin Islands | N/A | |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) | |
33 Kingsway
London, United Kingdom
WC2B 6UF
(Address of Principal Executive Offices)
44 207 632 8600
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 1.01 | ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT. |
On October 29, 2015, Michael Kors Holdings Limited (the “Company”) entered into an amended and restated senior unsecured revolving credit facility (the “2015 Credit Facility”) with, among others, JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), as administrative agent, which replaced its existing 2013 senior unsecured revolving credit facility. The Company and a U.S., Canadian, Dutch and Swiss subsidiary of the Company are the borrowers under the 2015 Credit Facility, and the borrowers and certain material subsidiaries of the Company provide unsecured guaranties of the 2015 Credit Facility. The 2015 Credit Facility provides for up to $1.0 billion in borrowings, which may be denominated in U.S. Dollars and other currencies, including Euros, Canadian Dollars, Pounds Sterling, Japanese Yen and Swiss Francs. The 2015 Credit Facility also provides for the issuance of letters of credit of up to $75 million and swing line loans of up to $50 million. The Company has the ability to expand its borrowing availability under the 2015 Credit Facility by up to an additional $500 million, subject to the agreement of the participating lenders and certain other customary conditions. The 2015 Credit Facility expires on October 29, 2020.
Borrowings under the 2015 Credit Facility bear interest, at the Company’s option, at (i) for loans denominated in U.S. Dollars, an alternate base rate, which is the greater of the prime rate publicly announced from time to time by JPMorgan Chase, the greater of the federal funds effective rate and the Federal Reserve Bank of New York overnight bank funding rate plus 50 basis points and the one-month London Interbank Offered Rate adjusted for statutory reserve requirements for Eurocurrency liabilities (“Adjusted LIBOR”) plus 100 basis points, in each case, plus an applicable margin based on the Company’s leverage ratio; (ii) Adjusted LIBOR for the applicable interest period, plus an applicable margin based on the Company’s leverage ratio; (iii) for Canadian borrowings, the Canadian prime rate, which is the greater of the PRIMCAN Index rate and the rate applicable to one-month Canadian Dollar banker’s acceptances quoted on Reuters (“CDOR”), plus 100 basis points, plus an applicable margin based on the Company’s leverage ratio; or (iv) for Canadian borrowings, the average CDOR rate for the applicable interest period, plus an applicable margin based on the Company’s leverage ratio.
The 2015 Credit Facility also provides for an annual administration fee and a commitment fee equal to 0.10% to 0.175% per annum, based on the Company’s leverage ratio, applied to the average daily unused amount of the facility.
Loans under the 2015 Credit Facility may be prepaid and commitments may be terminated or reduced by the borrowers without premium or penalty other than customary “breakage” costs with respect to loans bearing interest based upon Adjusted LIBOR or the CDOR rate.
The 2015 Credit Facility requires the Company to maintain a leverage ratio as at the end of each fiscal quarter of no greater than 3.5 to 1. Such leverage ratio is calculated as the ratio of the sum of total indebtedness as of the date of the measurement plus 6 times the consolidated rent expense for the last four consecutive fiscal quarters, to Consolidated EBITDAR (as defined below) for the last four consecutive fiscal quarters. Consolidated EBITDAR is defined as consolidated net income plus income tax expense, net interest expense, depreciation and amortization expense, consolidated rent expense and other non-cash charges, subject to certain deductions. The 2015 Credit Facility also includes covenants that limit additional indebtedness, guarantees, liens, acquisitions and other investments and cash dividends that are customary for financings of this type.
The 2015 Credit Facility contains events of default customary for financings of this type, including, but not limited to, payment defaults, material inaccuracy of representations and warranties, covenant defaults, cross-defaults to certain indebtedness, certain events of bankruptcy or insolvency, certain events under ERISA, material judgments, actual or asserted failure of any guaranty supporting the 2015 Credit Facility to be in full force and effect, and changes of control. If such an event of default occurs, the lenders under the 2015 Credit Facility would be entitled to take various actions, including, but not limited to, terminating the commitments and accelerating amounts outstanding under the 2015 Credit Facility.
In the ordinary course of their business, the lenders and certain of their affiliates have in the past or may in the future engage in investment and commercial banking or other transactions of a financial nature with the Company or its affiliates, including the provision of certain advisory services and the making of loans to the Company and its affiliates.
This summary does not purport to be complete and is qualified in its entirety by reference to the Amended and Restated Credit Agreement which will be filed as an exhibit to the Company's Form 10-Q for the fiscal quarter ended December 26, 2015.
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
On November 4, 2015, the Company issued a press release containing its unaudited financial results for its second fiscal quarter ended September 26, 2015. A copy of the press release is attached hereto as Exhibit 99.1.
ITEM 2.03 | CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT. |
The information contained in Item 1.01 above regarding the 2015 Credit Facility is hereby incorporated by reference into this Item 2.03.
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS. |
(d) Exhibits.
Exhibit No. | ||
99.1 | Press release issued by Michael Kors Holdings Limited, dated November 4, 2015. | |
This Exhibit is furnished to comply with Item 2.02 and Item 9.01 of Form 8-K. The attached Exhibit is not to be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall the attached Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933 (except as shall be expressly set forth by specific reference in such filing).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
MICHAEL KORS HOLDINGS LIMITED | |||
Date: November 4, 2015 | |||
By: | /s/ Joseph B. Parsons | ||
Name: | Joseph B. Parsons | ||
Title: | Executive Vice President, Chief Financial Officer, Chief Operating Officer and Treasurer | ||
MICHAEL KORS
Exhibit 99.1
Michael Kors Holdings Limited Announces Second Quarter Fiscal 2016 Results
Second Quarter Total Revenue Increased 6.9% (Increased 12.3% on a Constant Currency Basis)
Second Quarter Reported Diluted EPS was $1.01 ($1.07 on a Constant Currency Basis)
London — November 4, 2015 — Michael Kors Holdings Limited (NYSE: KORS) (the “Company”), a global luxury lifestyle brand, today announced its financial results for the fiscal 2016 second quarter ended September 26, 2015.
For the second quarter ended September 26, 2015:
• | Total revenue increased 6.9% to $1.13 billion from $1.06 billion in the second quarter of fiscal 2015. On a constant currency basis, total revenue increased 12.3%. |
• | Retail net sales increased 7.5% to $532.8 million driven by 116 net new store openings since the end of the second quarter of fiscal 2015 and e-commerce sales from the Company's North America digital flagships, partially offset by an 8.5% decrease in comparable store sales. On a constant currency basis, retail net sales grew 14.7%, and comparable store sales decreased 3.4%. Wholesale net sales increased 7.8% to $554.0 million and on a constant currency basis, wholesale net sales grew 11.8%. Licensing revenue decreased 8.1% to $43.2 million. |
• | Total revenue in the Americas increased 4.5% to $838.2 million on a reported basis and increased 5.6% on a constant currency basis. European revenue grew 2.3% to $243.4 million on a reported basis, and grew 20.6% on a constant currency basis. Revenue in Japan increased 36.1% to $22.4 million on a reported basis, and increased 60.7% on a constant currency basis. |
• | Gross profit increased 3.0% to $664.4 million, and as a percentage of total revenue was 58.8%. Gross profit margin was reduced by approximately 89 basis points due to the change in foreign currency exchange rates. This compares to 61.0% in the second quarter of fiscal 2015. |
• | Income from operations was $273.1 million, or 24.2% as a percentage of total revenue. This compares to $305.6 million, or 28.9% as a percentage of total revenue, for the second quarter of fiscal 2015. |
• | Net income was $193.1 million, or $1.01 per diluted share, based on a 28.9% tax rate and 191.5 million weighted average diluted shares outstanding, which included an unfavorable impact related to foreign currency exchange rates of approximately $0.06 per share. Net income for the second quarter of fiscal 2015 was $207.0 million, or $1.00 per diluted share, based on a 31.9% tax rate and 207.4 million weighted average diluted shares outstanding. |
• | At September 26, 2015, the Company operated 589 retail stores, including concessions, compared to 473 retail stores, including concessions, at the end of the same prior-year period. The Company had 215 additional retail stores, including concessions, operated through licensing partners. Including licensed locations, there were 804 Michael Kors stores worldwide at the end of the second quarter of fiscal 2016. |
John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “We are pleased with our second quarter results, which were ahead of expectations and reflected the continued expansion of our luxury brand worldwide. We drove growth in our retail and wholesale segments as well as across our operating regions in the Americas, Europe and Japan, with our compelling fashion products and jet set shopping experience. Importantly, in our retail segment, our North American digital flagship sales continued to accelerate this quarter and we drove sequential improvement in our comp performance. Looking ahead, we believe we are well positioned for a positive holiday period with our exciting new product introductions and gifting assortments in addition to a captivating marketing campaign, all of which are designed to inspire our customer to celebrate the season with effortless glamour and style. The Michael Kors luxury brand remains incredibly strong, and we are focused on continuing to execute our strategic initiatives to drive long-term sustainable growth."
MICHAEL KORS
For the first six months ended September 26, 2015:
• | Total revenue increased 7.1% to $2.12 billion from $1.98 billion in the same period of fiscal 2015. On a constant currency basis, total revenue increased 12.8%. |
• | Retail net sales increased 8.2% to $1.06 billion. Comparable store sales decreased 9.0%. On a constant currency basis, retail net sales grew 15.4% and comparable store sales declined 4.2%. Wholesale net sales increased 6.2% to $978.0 million and on a constant currency basis, wholesale net sales grew 10.9%. Licensing revenue increased 3.6% to $81.9 million. |
• | Gross profit for the first six months increased 4.2% to $1.27 billion, and as a percentage of total revenue, was 59.9%. This compares to 61.6% in the same period of fiscal 2015. |
• | Income from operations for the first six months was $521.7 million and as a percentage of total revenue was 24.7%. For the same period of fiscal 2015, income from operations was $582.3 million, or 29.5% as a percentage of total revenue. |
• | Net income for the first six months was $367.5 million, or $1.88 per diluted share, based on 195.8 million weighted average diluted shares outstanding, which included an unfavorable impact related to foreign currency exchange rates of approximately $0.12 per share. Net income for the same period of fiscal 2015 was $394.7 million, or $1.90 per diluted share, based on 207.3 million weighted average diluted shares outstanding. |
Share Repurchase Program
During the second quarter, the Company repurchased 9,424,385 of the Company's ordinary shares for approximately $400.0 million in open market transactions. As of September 26, 2015, the remaining availability under the Company’s share repurchase program was $258.1 million. The Company also announced today that the Board of Directors approved an amendment to its share repurchase program on November 3, 2015, authorizing the repurchase of up to an additional $500 million of the Company’s ordinary shares and extending the program through March 2018. This increases the initial repurchase authorization previously announced in November 2014 to $2.0 billion, of which approximately $758 million is available for future repurchases. Share repurchases may be made in open market or privately negotiated transactions, subject to market conditions, applicable legal requirements, trading restrictions under the Company’s insider trading policy, and other relevant factors. The program may be suspended or discontinued at any time.
Senior Unsecured Credit Facility
On October 29, 2015, the Company entered into an amended and restated senior unsecured revolving credit facility ("2015 Credit Facility"), which replaced its existing credit facility from 2013. The 2015 Credit Facility expires on October 29, 2020 and provides for up to $1.0 billion in borrowings, which may be denominated in U.S. Dollars or other currencies. The Company may use this facility for general corporate purposes, share repurchases and acquisitions.
Outlook
For the third quarter of fiscal 2016, the Company expects total revenue to be in the range of $1.33 billion to $1.35 billion. On a constant currency basis, total revenue is expected to increase in the mid-single digit range assuming a $42 million impact from the change in foreign currency rates. The Company expects a mid-single digit comparable store sales decrease on a reported basis and a low single digit decrease on a constant currency basis. Operating expense as a percentage of total revenue is expected to increase 200 to 240 basis points, primarily due to global investments in digital flagships, corporate talent, new stores, shop-in-shops, infrastructure and distribution. Diluted earnings per share are expected to be in the range of $1.44 to $1.48 for the third quarter of fiscal 2016. This assumes 187.0 million weighted average diluted shares outstanding and a tax rate of approximately 28.5%. The Company expects foreign currency to impact net income by approximately $11 million and EPS by approximately $0.06.
MICHAEL KORS
For fiscal 2016, the Company expects total revenue to be in the range of $4.60 billion to $4.65 billion. On a constant currency basis, total revenue is expected to increase in the low-double digit range assuming a $164 million impact from the change in foreign currency rates. The Company expects a mid-single digit comparable store sales decrease on a reported basis and a low-single digit decrease on a constant currency basis. Operating expense as a percentage of total revenue is expected to increase 200 to 220 basis points, due to the above mentioned investments. Diluted earnings per share are expected to be in the range of $4.38 to $4.42 for fiscal 2016. This assumes 191.5 million weighted average diluted shares outstanding and a tax rate of approximately 29.0%. The Company expects foreign currency to impact net income by approximately $36 million and EPS by approximately $0.19.
Conference Call Information
A conference call to discuss second quarter results is scheduled for today, November 4, 2015 at 8:00 a.m. ET. A replay of the call will be available today at 11:00 a.m. ET; to access the replay, dial 1-877-870-5176 for domestic callers or dial 1-858-384-5517 for international callers and enter access code 1734859. The conference call will also be webcast live in the investor relations section of www.michaelkors.com. The webcast will be accessible on the website for approximately 90 days after the call.
About Michael Kors
Michael Kors is a world-renowned, award-winning designer of luxury accessories and ready to wear. His namesake company, established in 1981, currently produces a range of products through his Michael Kors Collection and MICHAEL Michael Kors labels, including accessories, footwear, watches, jewelry, men’s and women’s ready to wear, and a full line of fragrance products. Michael Kors stores are operated, either directly or through licensing partners, in some of the most prestigious cities in the world, including New York, Beverly Hills, Chicago, London, Milan, Paris, Munich, Istanbul, Dubai, Seoul, Tokyo and Hong Kong.
Forward Looking Statements
This press release contains forward-looking statements. You should not place undue reliance on such statements because they are subject to numerous uncertainties and factors relating to the Company’s operations and business environment, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements include information concerning the Company’s possible or assumed future results of operations, including descriptions of its business strategy. These statements often include words such as “may,” “will,” “should,” “believe,” “expect,” “seek,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. The forward-looking statements contained in this press release are based on assumptions that the Company has made in light of management’s experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors that it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual financial results or results of operations and could cause actual results to differ materially from those in these forward-looking statements. These factors are more fully discussed in the “Risk Factors” section and elsewhere in the Company’s Annual Report on Form 10-K for the fiscal year ended March 28, 2015 (File No. 001-35368), filed on May 27, 2015 with the U.S. Securities and Exchange Commission.
Use of Non-GAAP Constant Currency Financial Measures
Constant currency effects are non-GAAP financial measures, which are provided to supplement our reported operating results to facilitate comparisons of our operating results and trends in our business, excluding the effects of foreign currency rate fluctuations. Because we are a global Company, foreign currency exchange rates may have a significant effect on our reported results. We calculate constant currency measures and the related foreign currency impacts by translating the current-year’s reported amounts into comparable amounts using prior year’s foreign exchange rates for each currency. All constant currency performance measures discussed below should be considered a supplement to and not in lieu of our operating performance measures calculated in accordance with accounting principles generally accepted in the United States (“U.S. GAAP.”)
MICHAEL KORS
CONTACTS:
Investor Relations:
Michael Kors Holdings Limited
Krystyna Lack - VP, Treasurer
201-691-6133 [email protected]
Or
ICR, Inc.
Jean Fontana
203-682-1214 [email protected]
Media:
ICR, Inc.
Alecia Pulman
646-277-1231 [email protected]
MICHAEL KORS
SCHEDULE 1
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
September 26, 2015 | September 27, 2014 | September 26, 2015 | September 27, 2014 | |||||||||||||
Net sales | $ | 1,086,829 | $ | 1,009,669 | $ | 2,034,088 | $ | 1,896,706 | ||||||||
Licensing revenue | 43,152 | 46,936 | 81,868 | 79,053 | ||||||||||||
Total revenue | 1,129,981 | 1,056,605 | 2,115,956 | 1,975,759 | ||||||||||||
Cost of goods sold | 465,552 | 411,578 | 847,892 | 759,099 | ||||||||||||
Gross profit | 664,429 | 645,027 | 1,268,064 | 1,216,660 | ||||||||||||
Total operating expenses | 391,343 | 339,469 | 746,355 | 634,331 | ||||||||||||
Income from operations | 273,086 | 305,558 | 521,709 | 582,329 | ||||||||||||
Other expense (income), net | 69 | (1,006 | ) | 894 | (1,349 | ) | ||||||||||
Interest expense, net | 375 | 72 | 484 | 31 | ||||||||||||
Foreign currency losses | 1,442 | 2,395 | 2,119 | 3,548 | ||||||||||||
Income before provision for income taxes | 271,200 | 304,097 | 518,212 | 580,099 | ||||||||||||
Provision for income taxes | 78,382 | 97,107 | 151,039 | 185,393 | ||||||||||||
Net income | $ | 192,818 | $ | 206,990 | $ | 367,173 | $ | 394,706 | ||||||||
Less: Net loss attributable to noncontrolling interest | (318 | ) | — | (318 | ) | — | ||||||||||
Net income attributable to MKHL | $ | 193,136 | $ | 206,990 | $ | 367,491 | $ | 394,706 | ||||||||
Weighted average ordinary shares outstanding: | ||||||||||||||||
Basic | 188,857,398 | 204,464,952 | 192,917,209 | 204,107,262 | ||||||||||||
Diluted | 191,524,156 | 207,432,250 | 195,789,325 | 207,304,247 | ||||||||||||
Net income per ordinary share: | ||||||||||||||||
Basic | $ | 1.02 | $ | 1.01 | $ | 1.90 | $ | 1.93 | ||||||||
Diluted | $ | 1.01 | $ | 1.00 | $ | 1.88 | $ | 1.90 | ||||||||
MICHAEL KORS
SCHEDULE 2
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
September 26, 2015 | March 28, 2015 | September 27, 2014 | ||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 431,541 | $ | 978,922 | $ | 1,028,981 | ||||||
Receivables, net | 344,135 | 363,419 | 330,234 | |||||||||
Inventories | 713,731 | 519,908 | 619,296 | |||||||||
Deferred tax assets | 28,212 | 27,739 | 29,204 | |||||||||
Prepaid expenses and other current assets | 106,616 | 127,443 | 125,658 | |||||||||
Total current assets | 1,624,235 | 2,017,431 | 2,133,373 | |||||||||
Property and equipment, net | 672,409 | 562,934 | 453,826 | |||||||||
Intangible assets, net | 69,245 | 61,541 | 53,278 | |||||||||
Goodwill | 26,215 | 14,005 | 14,005 | |||||||||
Deferred tax assets | 10,779 | 2,484 | 6,423 | |||||||||
Other assets | 17,077 | 33,498 | 28,515 | |||||||||
Total assets | $ | 2,419,960 | $ | 2,691,893 | $ | 2,689,430 | ||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | $ | 199,152 | $ | 142,818 | $ | 184,555 | ||||||
Accrued payroll and payroll related expenses | 44,647 | 62,869 | 46,733 | |||||||||
Accrued income taxes | 26,550 | 25,507 | 19,361 | |||||||||
Short-term debt | 5,416 | — | — | |||||||||
Deferred tax liabilities | 3,594 | 3,741 | — | |||||||||
Accrued expenses and other current liabilities | 107,782 | 95,146 | 75,216 | |||||||||
Total current liabilities | 387,141 | 330,081 | 325,865 | |||||||||
Deferred rent | 102,635 | 88,320 | 93,434 | |||||||||
Deferred tax liabilities | 16,277 | 10,490 | 3,905 | |||||||||
Long-term debt | 4,123 | — | — | |||||||||
Other long-term liabilities | 21,048 | 22,037 | 21,097 | |||||||||
Total liabilities | 531,224 | 450,928 | 444,301 | |||||||||
Commitments and contingencies | ||||||||||||
Shareholders’ equity | ||||||||||||
Ordinary shares, no par value; 650,000,000 shares authorized; 207,286,133 shares issued and 184,048,990 outstanding at September 26, 2015; 206,486,699 shares issued and 199,656,833 outstanding at March 28, 2015, and 205,797,551 shares issued and 205,756,764 outstanding at September 27, 2014 | — | — | — | |||||||||
Treasury shares, at cost (23,237,143 shares at September 26, 2015; 6,829,866 shares at March 28, 2015; and 40,787 shares at September 27, 2014) | (1,248,818 | ) | (497,724 | ) | (3,484 | ) | ||||||
Additional paid-in capital | 677,705 | 636,732 | 586,588 | |||||||||
Accumulated other comprehensive loss | (81,148 | ) | (66,804 | ) | (20,419 | ) | ||||||
Retained earnings | 2,536,252 | 2,168,761 | 1,682,444 | |||||||||
Total shareholders’ equity of MKHL | 1,883,991 | 2,240,965 | 2,245,129 | |||||||||
Noncontrolling interest | 4,745 | — | — | |||||||||
Total shareholders’ equity | 1,888,736 | 2,240,965 | 2,245,129 | |||||||||
Total liabilities and shareholders’ equity | $ | 2,419,960 | $ | 2,691,893 | $ | 2,689,430 | ||||||
MICHAEL KORS
SCHEDULE 3
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED SEGMENT DATA
($ in thousands)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||||
September 26, 2015 | September 27, 2014 | September 26, 2015 | September 27, 2014 | |||||||||||||||
Revenue by Segment and Region: | ||||||||||||||||||
Retail net sales: | The Americas | $ | 384,859 | $ | 370,999 | $ | 781,563 | $ | 744,558 | |||||||||
Europe | 125,564 | 108,125 | 232,568 | 200,040 | ||||||||||||||
Japan | 22,392 | 16,455 | 41,984 | 31,223 | ||||||||||||||
Total Retail Net Sales | 532,815 | 495,579 | 1,056,115 | 975,821 | ||||||||||||||
Wholesale net sales: | The Americas | 426,203 | 400,678 | 735,265 | 727,721 | |||||||||||||
Europe | 101,808 | 113,412 | 194,430 | 193,164 | ||||||||||||||
Asia | 26,003 | — | 48,278 | — | ||||||||||||||
Total Wholesale Net Sales | 554,014 | 514,090 | 977,973 | 920,885 | ||||||||||||||
Licensing revenue: | The Americas | 27,153 | 30,549 | 48,682 | 48,836 | |||||||||||||
Europe | 15,999 | 16,387 | 33,186 | 30,217 | ||||||||||||||
Total Licensing Revenue | 43,152 | 46,936 | 81,868 | 79,053 | ||||||||||||||
Total Revenue | $ | 1,129,981 | $ | 1,056,605 | $ | 2,115,956 | $ | 1,975,759 | ||||||||||
Income from Operations: | ||||||||||||||||||
Retail | $ | 99,959 | $ | 127,334 | $ | 220,833 | $ | 270,023 | ||||||||||
Wholesale | 156,880 | 156,672 | 263,190 | 274,324 | ||||||||||||||
Licensing | 16,247 | 21,552 | 37,686 | 37,982 | ||||||||||||||
Total Income from Operations | $ | 273,086 | $ | 305,558 | $ | 521,709 | $ | 582,329 | ||||||||||
Operating Margin: | ||||||||||||||||||
Retail | 18.8 | % | 25.7 | % | 20.9 | % | 27.7 | % | ||||||||||
Wholesale | 28.3 | % | 30.5 | % | 26.9 | % | 29.8 | % | ||||||||||
Licensing | 37.7 | % | 45.9 | % | 46.0 | % | 48.0 | % | ||||||||||
Total Operating Margin | 24.2 | % | 28.9 | % | 24.7 | % | 29.5 | % | ||||||||||
September 26, 2015 | ||||||||||||||||||
Store Count and Square Footage by Region: | Store Count | Square Footage | ||||||||||||||||
The Americas | 377 | 1,103,578 | ||||||||||||||||
Europe | 155 | 406,416 | ||||||||||||||||
Japan | 57 | 76,718 | ||||||||||||||||
Total | 589 | 1,586,712 | ||||||||||||||||
MICHAEL KORS
SCHEDULE 4
MICHAEL KORS HOLDINGS LIMITED AND SUBSIDIARIES
CONSTANT CURRENCY DATA
(In thousands)
(Unaudited)
Three Months Ended | % Change | |||||||||||||
September 26, 2015 | September 27, 2014 | As Reported | Constant Currency | |||||||||||
Retail net sales | $ | 532,815 | $ | 495,579 | 7.5 | % | 14.7 | % | ||||||
Wholesale net sales | 554,014 | 514,090 | 7.8 | % | 11.8 | % | ||||||||
Licensing revenue | 43,152 | 46,936 | (8.1 | )% | (8.1 | )% | ||||||||
Total revenue | $ | 1,129,981 | $ | 1,056,605 | 6.9 | % | 12.3 | % | ||||||
Six Months Ended | % Change | |||||||||||||
September 26, 2015 | September 27, 2014 | As Reported | Constant Currency | |||||||||||
Retail net sales | $ | 1,056,115 | $ | 975,821 | 8.2 | % | 15.4 | % | ||||||
Wholesale net sales | 977,973 | 920,885 | 6.2 | % | 10.9 | % | ||||||||
Licensing revenue | 81,868 | 79,053 | 3.6 | % | 3.6 | % | ||||||||
Total revenue | $ | 2,115,956 | $ | 1,975,759 | 7.1 | % | 12.8 | % | ||||||