Michael Kors is an American fashion designer who is head of his company Michael Kors Holdings Limited based in New York City. The company makes and produces a wide range of high-end fashion products and clothing for women. The company was founded by Michael Kors, born Karl Anderson, who always had an affinity for fashion and design. He attend the Fashion Institute of Technology in New York and opened up his company in 1981. After some success that lead to the company going bankrupt in the past, Michael Kors operates as a very successful fashion company today and sells luxury goods to both men and women. Since 2012 the company more than quadrupled is revenues and increased them from $803 million in 2012 to around $3.3 billion today. The company has seen a lot of financial success so we are going to look at the most surprising numbers of 2014 so far.
5. Their stock has fallen over the course of this past year
During the early days of the first quarter in 2014 a share of Michael Kors stock was trading around $80 dollars a share, this would then spike up to $99.84 dollars a share in late Febuary. Despite seeing strong initial growth early on in 2014, Michael Kors’ stock has fallen slowly over the past year on a steady decline. Over the past 5 or so months their stock has just gone down and now is trading at around $75 dollars per share.
4. They have seen a steady increase of cash
Since 2013 and continuing on into 2014, Michael Kors has consistently increased its total cash and cash equivalents. In the second quarter of 2013, Michael Kors had $639.16 million dollars in cash and cash equivalents. As of June 28th of this year, they are sitting at more that $1.1 billion dollars in cash and cash equivalent.
3. Even though they see nearly a billion in revenue, their actual net income is small.
After all the accounting is said and done, Michael Kors only really sees a little more that 10% of their revenue that is realized as net income. In the first quarter of 2014 Michael Kors saw $917.45 million dollars of revenue and only $161.04 million dollars in net income. During the second quarter of 2014 Michael Kors drew in $919.15 million dollars in revenue but only $187.72 million in net income.
2. They have no long term debt
When determining whether a company is financially healthy or not it is good to consider their current liabilities and long term debt. Michael Kors had $322 million dollars in current diabetes in the second quarter of 2014. Additionally they have not reported or incurred any type of long term debt since 2011.
1. Nearly 70% of their revenue make up their operating expenses
As previously mentioned even though Michael Kors sees billions of dollars in revenue, most of that goes to pay for their costs of business. So far in 2014 the company has seen $3.31 billion dollars of revenue however their operating expenses total over $2.3 billion dollars, which is nearly 70% of their revenue.
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