Michael Kors Will Open Merger And Acquisition Mode.

According to the world clothing shoes and hats net, the American light luxury group.

Holdings Ltd 2016/2017 announced the core financial data for the third quarter of the financial year, due to the European and American financial data.

The continued weakness is not as good as analysts' expectations.

In the third quarter of the 2016/2017 fiscal year ending December 31st,

Net profit of $271 million, down 7.9% from a year ago, after a diluted share of $1.64 per share, higher than analysts estimate of $1.63 per share

Total revenue fell 3.2%, to $1 billion 350 million, down from analysts' expectations of $1 billion 360 million, of which net sales were $1 billion 310 million, down 2.4% from a year ago.

Retail sales amounted to $837 million, an increase of 9.2% over the same period last year.

Comparable store sales fell by 6.9% over the same period last year, of which the decline in North America was the median, while Europe's decline was around 15%.

Over the past seven quarters, six quarters have seen a drop in sales compared with stores.

North American sales were $984 million, down 7.4% from the same year.

European sales amounted to $257 million, down 7% from a year ago.

Sales of Asia Pacific market rose 89.1% to $112 million, up from $500 million in the acquisition of Michael Kors (HK) Ltd in China and parts of Asia.

The Michael Kors Group expects sales in the fourth quarter to be about 10.4 billion, with profits ranging from 68 to 72 cents per share, less than analysts estimate for $1 billion 110 million and 93 cents per share.

The group said on Tuesday that discount sales had a big impact on average retail prices in the previous quarter.

Therefore, from February, Michael Kors will reduce the frequency and intensity of discount sales in North America in order to raise the average retail price. However, due to the decline in shopping center traffic, it is expected that the weakness of the North American and European markets will continue.

Mizuho analyst Betty Chen's rating of Michael Kors is "neutral". She said: "because the fourth quarter's expectations are not good, Michael Kors's share price will be under great pressure.

Randal J. Konik, an analyst at Jefferies, has maintained a "buy" rating on Michael Kors shares.

Analysts said: "at present, the market expectations of Michael Kors shares have dropped to a low point, but they have long-term development plans, and there are not many competitors in key markets. In the long run, stock prices may recover, suggesting that companies buy more shares and distribute dividends.

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Michael Kors's share price fell to $34.92 per share on Tuesday, a drop of 15%, the biggest decline on the New York stock exchange.

Over the same period, one of Michael Kors's biggest competitors, Coach's comparable store sales in North America rose by 3% over the same period last year.

Before 2014, Michael Kors was always the hottest in the light luxury industry.

One, sales grew two digit year-on-year.

In order to maintain this growth rate, Michael Kors expanded rapidly in North America, but this strategy played a counterproductive role.

Because the brand of handbags and other commodities become too common, many fashion consumers have lost the desire to buy.

In order to reverse the situation, Michael Kors has expanded its business scope to other areas such as men's clothing, and invested heavily in online channels, reducing sales of less profitable channels such as department stores.

Future development strategy

The company's chairman and CEO, John D. Idol, in a conference call with analysts, said that the company has developed a number of strategies to promote future sales.

The company's founder, designer Michael Kors and its design team have added new design elements to accessories.

At the same time, in terms of high-end products, we will increase the production level of products by adding unique and innovative technologies, and add more details and diversified materials.

For low-end products, the company will focus on its five flagship handbag brands: Hamilton, Selma, Savannah, Cynthia and Mercer.

Footwear products have great potential and will also increase the proportion of footwear products in key stores in the future.

In addition, Michael Kors will also launch Jet Set Signature accessories in the store.

Idol said that the sales of this series of products are very strong in the spring and will be sold in all key stores in the future.

In 2017, the group will also launch a new website for online skirt sales.

Skirt is the focus of future development of Michael Kors, and it is estimated that sales will account for 50% of the total garment area.

The electricity supplier is also the focus of the development of Michael Kors. In the future, investment in digital channel marketing will be greatly increased to promote the development of global e-commerce business.

Idol also mentioned that the new wearable technology market has made a good response, and the perfume sales in the third quarter are excellent.

Through these measures, Michael Kors hopes to advance the flow of stores and e-commerce sites, deepen ties with customers, increase average retail sales and promote comparable stores in North America and Europe.

Idol said he is optimistic about the prospects for future sales. The scale of business in the Asian market has reached US $1 billion, and the group's performance in men's clothing is also very good. In the future, it may grow to a business scale of US $1 billion.

In addition, the current repurchase stock plan will continue to further reduce the stock in circulation and create more value for shareholders.

In addition to these strategies, Idol said that acquisitions or mergers are still one of the possible strategies for future growth of the company.

Idol said that at present, the company is "actively evaluating several potential targets, and if it is in the interests of shareholders, it may make acquisitions."

"Before, there was news that Michael Kors might buy Kate Spade.

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