Michael Kors will soon break ground on a state-of-the-art distribution center in Trade Port North in Venlo, Netherlands. The new European distribution center will service all of the luxury fashion brand’s European and Middle Eastern retail, wholesale and, eventually, e-commerce needs.
Construction on the 1,000,000-square-foot distribution center, designed by prominent Dutch firm DENC, is anticipated to begin next month. The center is the largest such facility in Venlo, planned to accommodate Michael Kors’ projected growth for the next 10 years.
Michael Kors’ European distribution center will be a green building with a host of environmentally friendly features, including LED interior lighting and a solar-panel roof. The new facility is expected to create approximately 400 jobs in the region going forward.
“The construction of a new, innovative distribution center is an important and exciting step in the evolution of Michael Kors,” says John D. Idol, Chairman and CEO of the company. “The scale and sophistication of the facility reflect our commitment to substantial growth across all channels of distribution in both Europe and the Middle East.”
During its fourth-quarter earnings call on May 27, Idol said Michale Kors expects to open 45 new retail stores in Europe, where revenues grew 70% during its fiscal year, and continue to prepare its digital flagship launch next year.
On the wholesale side, Idol said the company plans to expand distributions through shop-in-shops and specialty stores in existing countries as well as new markets. He added that Michael Kors is well positioned to increase its market share in the handbag category, where today it only holds a single-digit market share position.
Idol added that footwear is quickly becoming an emerging growth story across Europe, as Michael Kors is seeing strong response to our collection across the region. In addition he expects continued strength in its license categories as Michael Kors see solid gains in watches, eyewear and jewelry.
“Although foreign currency rates will continue to be a headwind this year we believe our strategic initiatives in Europe will contribute to double-digit revenue growth on a constant currency basis in fiscal 2016,” Idol said.
Michael Kors is a world-renowned, award-winning designer of luxury accessories and ready-to-wear. His namesake company, established in 1981, currently produces a range of products through his Michael Kors and MICHAEL Michael Kors labels, including accessories, footwear, watches, jewelry, men’s and women’s ready-to-wear, and a full line of fragrance products.