Pursuits
Michael Kors Expansion Fuels Sales While Margins Tighten
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Michael Kors Holdings Ltd.’s global expansion is fueling sales for the luxury-goods company, even as the push threatens to squeeze profit margins.
The company today reported a 54 percent jump in revenue for the current ended March 29, helped by store openings and strong demand for its self-described “jet-set” affordable luxury goods. Gross margin -- earnings left after subtracting the cost of goods -- will be “slightly lower” in the current fiscal quarter and year, and operating costs will rise a bit, executives said on a conference call.