Michael Kors reports slowest growth since public listing

Luxury clothes and accessories company Michael Kors saw its share price fall after it announced the slowest sales growth since the company went public.

Over the three months that ended on 28 March 2015, the company reported a revenue of $1.08bn (£703.1m, €996.1m), up 17.8%, while it had reported sales growth of more than 29% in the 13 quarters since it listed in December 2011.

Annual revenue growth over the fiscal year that ended on 28 March 2015 was 32.4%, with revenue standing at $4.2bn, compared to last year's 51.4% sales increase.

John Idol, Michael Kors's CEO, said the company would invest in ready-to-wear and footwear categories as well as the development of the global men's wear business.

"Longer term, as we execute on these growth strategies and begin to cycle our strategic investments, we expect to deliver accelerated and sustainable earnings growth and continue to return value to our shareholders," he said in a press release.

During a conference call, Idol said that the slower growth was due to the struggling North American watch market and shipping delays the company experienced over the year.

He said he had faith in the coming year, although Michael Kors announced "mid-single digit decrease on a constant currency basis" in comparable store sales.

"There continues to be an exceptional growth in our...international market, demonstrating overall strength of our brand," the chief executive said.

Michael Kors, whose most expensive bag advertised on its website is a Julie Large Nile Crocodile handbag on sale for $9,100, saw an annual profit growth of 24%. In the fourth quarter of 2015, profit was 5% higher than the fourth quarter of 2014.

"We see multiple top line growth opportunities through international expansion, digital e-commerce flagships, new store openings and additional shop-in-shop conversions in our wholesale channel," Idol said.