Buoyed by double-digit growth online in North America, CEO John Idol said Michael Kors intends to launch flagship websites in 22 European countries.

Buoyed by strong domestic digital growth, luxury fashion brand Michael Kors has its eye on international expansion online.

Michael Kors in its fiscal third quarter 2016 earnings filing, reported retail net sales, which include e-commerce, of $766.2 million, up 11.1% from $689.4 million during the same time last year. The company largely attributes that growth to online sales, though it does not break them out. For the first nine months of fiscal 2016, Michael Kors reported retail net sales of $1.822 billion, up 9.4% from $1.665 billion this time last year.

CEO John Idol told analysts on the brand’s third quarter earnings call that e-commerce grew by double digits year over year during the quarter, though he declined to specify a percentage or a dollar figure. Conversion rates also improved compared with the year-ago quarter.

Michael Kors has an e-commerce presence only in the U.S. and Canada, but that’s about to change.

“We are on track to launch in six European countries this fall and an additional 16 countries in Europe thereafter,” Idol said, according to a transcript of the call from Seeking Alpha. “Our digital flagship strategy is enabling us to engage consumers with our luxury lifestyle brand and provide a best-in-class shopping experience.”

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While e-commerce is growing, he expects that growth to eventually plateau, telling analysts he sees bricks-and-mortar stores continuing to drive the lion’s share of the company’s sales.

“We believe that while e-commerce one day will end up being 20% or 30% of our business, it’s not going to be 100%,” he said. “Our return rates on e-commerce are running very low, but a number of those returns are coming back to stores. It actually gives us an opportunity to interact with the customer. And we have seen evidence where we’re actually not only taking the return, but trading the customer up and creating even a better experience with the customer.”

If the company is to continue to grow online and at stores, Idol said the key is to use mobile as a bridge because a growing portion  of the company’s e-commerce traffic comes from mobile devices.

“We are taking steps to enhance our mobile shopping experience and expect to see the benefits of these measures over the coming months. The mobile traffic that we’re getting to the site just keeps accelerating every single month, and we think we’ve got some real opportunities to even take that to another level,” he said.

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For the third quarter ended Dec. 26, Michael Kors reported:

  • Retail net sales in the Americas of $589.6 million, up 6.9% from $551.8 million during the same time last year.
  • Total revenue of $1.397 billion, up 6.2% from $1.315 billion last year.
  • Gross profit of $832.0 million, up 4.0% from $800.1 million last year.

For the first nine months of fiscal 2016, Michael Kors reported:

  • Retail net sales in the Americas of $1.371 billion, up 5.8% from $1.296 billion last year.
  • Total revenue of $3.513 billion, up 6.8% from $3.290 billion last year.
  • Gross profit of $2.10 billion, up 4.0% from $2.02 billion last year.
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