Michael Kors sees Q4 gross margin rate slightly higher than last year

theflyonthewall.com

Says Q3 results "outstanding," says strong momentum continued across all segments and geographies. Believes the company can ultimately have 500 shop-in-shops worldwide. Says on pace to open 57 North America retail stores this FY and continues to believe that there is room in the market for 400 stores over the long term. Says on pace to open 36 new stores in Europe, believes the market can support 200 Michael Kors retail locations over the long-term. Over the next few years, believes that the European market will achieve revenue in excess of $1B. Says Japan a "key" market for company, says Japan a great long-term opportunity. Expects to open one additional location during FY14 and believes it can have over 100 retail locations in Japan over the long-term. Believes the Latin American market can support 40 retail locations over the next several years. Says on track to launch new North America eCommerce site during the fall; believes that eCommerce can be a multi million dollar business for the company long-term. Sees Q4 gross margin rate to be slightly higher than last year and operating expense rate to be moderately higher than last year. Sees FY tax rate approximately 34%. Sees FY CapEx approximately $200M. Comments made on the Q3 earnings conference call.

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