Michael Kors reports retail sales in the latest quarter rose 7.5% from a year earlier to $532.8 million. Michael Kors opened 116 new stores in the past 12 months, bringing its total to 589 locations around the world. Excluding store openings and closings, retail sales fell 8.5%.
Michael Kors Chief Executive John Idol said sales were hurt by a trend toward purchasing smaller handbags, such as cross-body satchels that are less expensive. Mr. Idol also said the company’s watch business had suffered and fewer shoppers were going to stores, in part due to a falloff in tourists visiting the U.S. in the face of a strong greenback.
“We believe that the handbag market in North America is, again, growing at low single digit,” Mr. Idol said, “but very, very high numbers in terms of units.”