News Column

Michael Kors Income Hops on Strong Demand

November 5, 2013

Associated Press

NEW YORK (AP) NEWS: Strong demand for Michael Kors' luxury clothing and accessories helped push fiscal second-quarter net income up 49 percent, ahead of analyst expectations, and the company boosted its guidance for the year.

DETAILS: Michael Kors Holdings Ltd., which went public in December 2011, said results were helped by higher sales both in the U.S. and globally. Revenue in stores open at least one year, a key retail metric, rose 23 percent.

NUMBERS: Net income for the three months ended Sept. 28 rose to $145.8 million, or 71 cents per share. That compares with net income of $97.8 million, or 49 cents per share, in the same months last year. Analysts expected net income of 68 cents per share, according to FactSet.

Revenue rose 39 percent to $740.3 million from $532.9 million. Analysts expected $726.9 million.

FUTURE: The company expects net income of 83 cents to 85 cents per share on revenue of $845 million to $855 million for the quarter that runs through December. Analysts expect third-quarter net income of 85 cents per share on revenue of $841.2 million.

For the year, Michael Kors expects net income of $2.77 to $2.81, up from a range of to $2.67 to $2.69 per share, on revenue of $2.9 billion to $3 billion, up from a range of $2.8 billion to $2.9 billion.

STOCK: Shares of the Hong Kong-based company rose $3.46, or 4.6 percent, to $78.24 in morning trading. That's on top of a 47 percent increase this year and close to the stock's all-time high of $78.83.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Original headline: Michael Kors 2Q net income jumps on strong demand


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Source: Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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