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BRIEF-Michael Kors CEO - Will reduce promotional activity across retail and wholesale channels in Americas
February 7, 2017 / 5:32 PM / 10 months ago

BRIEF-Michael Kors CEO - Will reduce promotional activity across retail and wholesale channels in Americas

Feb 7 (Reuters) - Michael Kors

* CEO - saw Q3 average unit retails hurt by highly promotional environment and continued fashion trends towards cross body and small leather goods

* CEO - fashion watch category remained challenged which continued to negatively impact Q3 comparable sales

* CEO on conf call- in stores, traffic declined in high single-digits to negatively impact Q3 comparable sales

* CEO -believe Q3 European comp sales fell due to continuation of weak tourism trends and reduced consumer confidence related to Brexit and terrorist attacks in certain markets

* CEO -beginning this month, reducing promotional activity across retail and wholesale channels in americas

* Reducing promotional activity in retail and wholesale channels expected to hurt net sales in FY 2018, declines expected to moderate in FY 2019

* Anticipate market volatility in Europe throughout the calendar year

* CEO- increasing penetration of footwear in our largest volume doors

* CEO- new online dress shop scheduled to launch this fall

* CEO- will significantly increase digital marketing spend to fuel fast growing ecommerce business globally

* CFO- in fiscal 2018 anticipate modest top line growth driven by higher retail net sales, operating margin in the high teens and modest eps growth

* CEO- “don’t believe any of our competitors are taking this level of stance as it relates to walking away from the promotional activity” Further company coverage:

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