Published
Jun 1, 2016
Download
Download the article
Print
Text size

​Michael Kors buys Greater China business

Published
Jun 1, 2016

Michael Kors on Wednesday revealed it has acquired Michael Kors (HK) Limited, the exclusive licensee of the company in China and other regions of Asia, in a deal with worth $500 million.


Michael Kors - Michael Kors


The Chinese arm of the luxury label operates 91 retail stores and 6 travel retail locations across China, Hong Kong, Macau and Taiwan. In the year to March 31, 2016, the licensing partner generated total revenue of $197 million.

"We are very excited about the acquisition of our Greater China licensee,” says John D. Idol, Chairman and Chief Executive Officer. “As you know, we have worked diligently over the past several years, with our licensed partner in this region, to build the infrastructure, establish the brand, and grow acceptance of Michael Kors in the Chinese market. We believe that our brand is gaining strong momentum in Greater China, making it the ideal time for us to integrate this territory into our business and capitalize on the enormous growth potential in this region."

For fiscal year 2017, the Greater China business is expected to contribute approximately $200 million to retail net sales, reflecting sales for the ten month period following the closing of the acquisition.

The American company expects the acquisition to be neutral to earnings per share on a GAAP basis, but accretive on a non-GAAP basis. The acquisition is expected to be accretive to earnings per share in fiscal 2018 and thereafter. 

Copyright © 2024 FashionNetwork.com All rights reserved.