Michael Kors Holdings limited (NYSE: KORS)
Shares of Michael Kors Holdings increased by 5% to trade at $69.39 after the company reported solid first quarter results that beat the consensus earnings and sales estimates.
Michael Kors positive report is as a result of its diversification efforts to offer a wide range of products.
The firm has added a collection of footwear to its portfolio of brands after acquiring Jimmy Choo Company which helped it register strong results during the quarters.
KORS Earnings & Outlook
Michael Kors Holdings reported adjusted earnings per share of $1.32 beating the consensus estimate of $0.94.
Adjusted earnings per share in the year-ago period was $0.80. The company has topped analyst EPS estimates four times over the last four quarters.
Revenue came in at $1.20 billion compared to $952.40 billion reported in the same period last year. Revenue surpassed analyst estimates of $1.14 billion. The company has surpassed Wall Street revenue estimates four times in the last four years.
Michael Kors raised its full-year earnings per share outlook from $4.65 to $4.75 to between $4.90 and $5.00.
It also lifted its revenue projection from 5.10 billion to $5.125 billion. The current analyst earnings per share estimate is $1.24 on revenues of $1.29 billion for the second quarter.
For the full year, Wall Street projects $4.77 earnings per share on revenue of $5.10 billion.
Michael Kors CEO Comments
“We are encouraged by our first quarter performance, with growth in revenues, gross margin, operating margin as well as earnings per share all exceeding our expectations. Our fashion leadership remains strong, which drove consumers to respond favorably to both new fashion introductions and core products,” said John D. Idol, Michael Kors Chief Executive.
“Our global fashion luxury group continues to see the benefits of our long term growth strategy which is driven by both the Michael Kors and Jimmy Choo brands. Looking ahead we remain optimistic about our business for the remainder of fiscal 2019 and beyond,” Idol concluded.
Michael Kors Holdings Limited Company Profile
Michael Kors Holdings Limited engages in the design, marketing and distribution of men’s and women’s apparel and accessories. The company operates through four segments; licensing, retail, wholesale and Jimmy Choo.
The licensing segment licenses the firm’s trademarks on an array of products such as jewelry, fragrances, leather goods, cosmetics, swim wear, coats, eyewear, watches, men’s suits, ties and furs.
The Retail segment operates collection stores, lifestyle stores, including concessions and outlet stores located primarily in Europe, Canada, Japan and the United States.
The Wholesale segment sells the firm’s products to department stores and specialty retail stores in America, Asia and Europe.
The Jimmy Choo segment sells handbags, luxury footwear and small leather goods through directly operated Jimmy Choo stores in Europe, North America, Asia, the Middle East, and Africa as well as through Jimmy Choo e-commerce sites.
Michael Kors Holdings Limited is headquartered in New York and was incorporated in 2002.
The company competes with Kering Company, Kate Spade Company, and Burberry Group PLC. –Reuters