Michael Kors Revenue Growth In Asia Last Year Was 212.1%.

In June 1st, the United States

The company announced the acquisition of Cao Qifeng Michael Kors (HK) Limited, the authorized agent of all greater China at a price of US $500 million.

The deal was the first time that Michaels Kors's performance in China was exposed: in the 2016 fiscal year ending March 31st, the Greater China region's revenue was $197 million.

So far, the number of Michael Kors stores in the mainland, Hongkong, Macao and Taiwan is 91, which excludes 6 tourist retail outlets.

According to the company's forecast, revenue in the 2017 fiscal year will be around us $200 million.

The fourth quarter results released on the same day showed that Michael Kors's revenue growth in Asia last year was 212.1%.

The primary market is 5.1% in the US and 18.1% in Europe.

Michael Kors chairman and chief executive officer, John D. Idol, said: "over the past few years, we have built up a framework with Chinese agents, established brand image and enhanced visibility.

In view of China

Strong growth momentum and huge potential is now the ideal time to recover the agency. "

The relationship between brand and China is not only that simple, but the key figure behind it is Silas Chou, who is known as the "gold finger" of the clothing industry.

In 1981, the 22 year old fashion designer Michael Kors set up the brand of the same name, specializing in the sale of high-end department stores in New York.

However, in 1990s, due to the bankruptcy of business problems, Hongkong business tycoon Cao Qi Feng was inject capital.

In the early years, the latter bought Tommy Hilfiger with Sportswear Holdings, a private equity fund company, and then sent it to the United States quickly.

In 2003, Sportswear Holdings purchased shares of Michael Kors 85% and set up its headquarters in Hongkong.

7 years later, Michael Kors Holdings Ltd. (NYSE: KORS) was listed on the New York stock exchange.

In the process of Michael Kors share price singing all along, Cao Qifeng continued to reduce holdings and gained great benefits.

In September 2014, he announced a complete exit from the 5.7% stake held by Sportswear Holdings.

For Michael Kors to withdraw its proxy, Corinna L. Freedman, a BB&T analyst at Bank of America, believes that this is part of the company's long-term plan.

Randal J. Konik, a Jefferies analyst at Wall Street investment bank, is optimistic about its proprietary strategy. It believes that Michael Kors should take advantage of the growth period of the Chinese market to increase profits.

He said: "the long-term value of the company in Asia is 1 billion dollars, of which China contributes half, or 500 million dollars."

Compared with the 2016 fiscal year's revenue figure - US $197 million, China still needs time to achieve its goal.

Michael Kors 2016

If the luxury market in the past few years is in full swing, the heat has dropped.

Sales of Michael Kors have been slowing down recently, and even more serious is that it is being abandoned by us department stores.

The latest research released by Wedbush Inc. of the investment bank said that as consumers lost interest in the brand, department stores began to reduce and stop the sale of the brand, including Messi and Nordstorm.

Wedbush Inc. analyst Lupine Skelly also quoted the news that Michael Kors is the highest rate of return brand, not one.

In addition to the retail environment and quality problems, Michael Kors must also face the downturn in the tourism market caused by the strong US dollar.

In the three months ending April 2nd, Michael Kors net profit fell to 3.1%, just 177 million dollars.

To this end, the company's revenue forecast for the first quarter of fiscal year 2017 is not optimistic, and it is expected to be between us $940 million and -9.5 billion.