John D. Idol, the Company’s Chairman and Chief Executive Officer of Michael Kors Holdings Limited (MKHL), commented: “We are pleased to report results that have again exceeded our expectations, and are raising our fiscal 2019 EPS guidance to a range of 4.95 US dollars to 5.05 US dollars, reflecting double digit earnings growth for the year. As we enter the second half of fiscal 2019 we look forward to welcoming Versace into our group. With the acquisition of Versace we have built one of the world's leading fashion luxury groups in just one year, setting the stage for accelerated revenue and earnings growth. This is a truly remarkable and historic moment for our company and we look forward to completing this transformational acquisition in the coming months.”

Total revenue of MKHL increased by 9.3% totalling 1.25 billion US dollars, including a 116.7 million US dollars contribution from Jimmy Choo. Gross profit reached 763.1 million US dollars and gross margin was 60.9%, compared to 690.8 million US dollars and 60.2% in the prior year. Net income totalled 137.6 million US dollars, or 0.91 US dollars per diluted share compared to 202.9 million US dollars, or 1.32 US dollars per diluted share in the prior year. Adjusted net income was 192.5 million US dollars, or 1.27 US dollars per diluted share, compared to 204.5 million, or 1.33 US dollars per diluted share, in the prior year.

Michael Kors Retail revenue of 643.9 million US dollars was approximately flat compared to the prior year. Comparable store sales decreased by 2.1%, which was in line with expectations. On a constant currency basis, comparable store sales decreased 1.3%. Michael Kors Wholesale operating income was 130.1 million US dollars and operating margin was 28.4%, compared to 119.6 million US dollars and 25.8% in the prior year. On an adjusted basis operating income was 134.2 million US dollars while adjusted operating margin was 29.3% compared to 126.5 million US dollars and 27.3% in the prior year. Michael Kors Licensing revenue decreased 6.8% to 35.4 million US dollars compared to the prior year. Michael Kors Licensing operating income was 9.8 million US dollars and operating margin was 27.7%, compared to 10.5 million US dollars and 27.6% in the prior year. On an adjusted basis operating income was 10.5 million US dollars and operating margin was 29.7%, compared to 11.7 million US dollars and 30.8% in the prior year.

Jimmy Choo revenue was 116.7 million US dollars. MKHL acquired Jimmy Choo on the 1^st of November 2017 and compared to Jimmy Choo stand-alone results from the prior year, revenue increased by double digit rates. Jimmy Choo operating loss totalled 18.4 million US dollars and adjusted operating loss was 7.4 million US dollars.

For the full year, MKHL continues to expect total revenue to be approximately 5.125 billion US dollars, including between 580 million US dollars and 590 million US dollars of incremental Jimmy Choo revenue. For the third quarter of fiscal 2019, total revenue of approximately 1.46 billion US dollars is expected, including approximately 165 million US dollars of incremental revenue from Jimmy Choo.