News Column

Michael Kors 1Q profit climbs on strength abroad

August 4, 2014



NEW YORK (AP) Michael Kors' first-quarter net income jumped 50 percent, led by surprisingly strong sales overseas.

The luxury retailer easily beat Wall Street expectations and raised its outlook for the year.

Share surged more than 8 percent before the opening bell Monday.

The Hong Kong company earned $187.7 million, or 91 cents per share, for the three months ended June 28. That compares with $125 million, or 61 cents per share, a year ago.

The per-share earnings were 10 cents better than Wall Street had projected, according to a FactSet survey, and revenue also blew past estimates as well.

Revenue climbed 43 percent to $919.2 million, easily outpacing analyst projections of $851.8 million.

Comparable-store sales in all regions were impressive as well, namely in Europe, where sales at stores open at least a year jumped more than 54 percent. Japan was not far behind Europe.

European revenue more than doubled, it spiked 89 percent in Japan, and rose 30 percent in North America.

Michael Kors now expects fiscal 2015 earnings between $4 and $4.05 per share on revenue in a range of $4.25 billion to $4.35 billion. Its prior guidance was for earnings of $3.85 to $3.91 per share on revenue of $4 billion to $4.1 billion.

Analysts had been expecting full-year earnings of $3.96 per share on revenue of $4.2 billion.

The retailer predicts second-quarter earnings of 85 cents to 87 cents per share on revenue between $950 million and $960 million. Wall Street is calling for earnings of 89 cents per share on revenue of $960 million.

Shares of Michael Kors Holdings Ltd. rose $6.77 to $88.60 before the market opened.


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Source: Associated Press


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