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Michael Kors

Michael Kors CEO announces new e-commerce site and ‘very exciting’ in-store technology as global sales soar by 50%

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By Natalie Mortimer, N/A

May 28, 2014 | 3 min read

Luxury handbag and fashion retailer Michael Kors is set to launch a new e-commerce site this autumn following the announcement that its sales soared by 50 per cent in the first quarter.

Speaking on a conference call to investors this afternoon, chairman and chief executive officer John Idol said that the company is “on track” to launch the new website as consumers increasingly turn to social media to shop and connect with the brand.

“The thing that excites us is the e-commerce coming in house – there’s definitely a trend where consumers are shopping more online before making a purchase… We believe our e-commerce site is critical from not only a growth and revenue standpoint but ability to excite and engage shoppers.”

Idol added that there would be some “very exciting technology” rolling out in stores to complement the new e-commerce experience which he said he believed could become a multi-million dollar part of the business.

For the quarter ended March 29 2014, Michael Kors saw its revenue soar by 54 per cent to $917.5m.

Retail net sales climbed 50 per cent to $408.4m, which was pushed higher by a 26 per cent increase in comparable same-store sales, and 101 new store openings since the same period a year ago.

Idol warned, however, that e-commerce will not have a positive impact on its earnings per share (EPS) in the first year due to investment costs.

The luxury retailer also reported strong growth in its jewellery and watch business, which it believes could grow to be one of the top three globally within the next five years, and that it would be opening free standing men’s stores to drive additional growth.

Idol also announced that Michael Kors' “largest store to date” will open in New York’s Soho, which will for the first time will showcase its men's ready-to-wear collection.

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