Michael Kors (NYSE: KORS) is picking up the pace of new retail store openings. The company says it is on track to open 45 North American stores in fiscal 2015 on the heels of yet another strong quarter that saw double-digit gains.
Michael Kors currently operates 555 Michael Kors stores worldwide, including licensed locations. Looking ahead, the company will target more non-traditional locations, such as travel retail stores in airports, where the chain currently has 50 sites.
The brand is also revamping its department store strategy, aiming for more shops-in-shop for accessories, footwear, women's wear and men's wear combined. There were 1,560 in-store boutiques at the end of fiscal 2014 and the company plans to open 500 more of these locations in fiscal 2015.
While the retailer's brick-and-mortar plans are a key focus, Michael Kors will also invest in an overhaul of its e-commerce site this fall. The refreshed site will help the brand connect with shoppers online, with executives hoping to see Web sales eventually grow into a "multimillion-dollar" business over time, according to John Idol, Michael Kors' CEO on an earnings call.
Michael Kors reported another blowout quarter, with net income growing 59.2 percent to $161 million from $101.1 million for the year-ago period. Total revenues increased 53.6 percent to $917.5 million from $597.2 million. For the year, net income was up 66.4 percent to $661.5 million.
Michael Kors has experienced a meteoric rise in recent years and there's no sign growth will be slowing anytime soon. The popularity of the brand drove sales to all-time highs and led the company to exceed analyst expectations for all four quarters during the year. Michael Kors competes in a luxury goods category against Coach (NYSE: COH), which in contrast, just reported its lowest same-store increase in 13 years. Unlike Michael Kors, Coach doesn't have a celebrity designer to build the brand around, which has also been a key growth strategy for other thriving competitors Ralph Lauren, Tory Burch and Kate Spade.
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