Michael Kors lifts profit guidance as demand grows
Michael Kors Holdings Ltd. raised its profit forecast for the current quarter and the year Thursday because of strong global demand for its high-end clothing and accessories.
The guidance exceeded market expectations and its shares jumped in after-hours trading.
Michael Kors, the namesake company of the famed U.S. designer, went public in December. Its business has boomed recently on its popular designs and an uptick in luxury spending.
The company said Thursday that it expects to earn 38 to 40 cents per share for its second quarter, which ends this month, up from its prior guidance of 33 to 35 cents per share. It anticipates revenue will be in the range of $510 million to $520 million.
That exceeds the 36 cents per share on revenue of $492.4 million that analysts polled by FactSet had anticipated.
Michael Kors also said that it expects to earn $1.39 to $1.41 per share for its full fiscal year, which ends in March, compared with its prior guidance of $1.32 to $1.34 per share. It forecast annual revenue in the range of $1.85 billion to $1.95 billion. It also said revenue at its stores open at least a year, a key industry indicator as it strips away recently opened or closed stores, will likely increase 30 percent.
Analysts were expecting earnings of $1.37 per share for the year on revenue of $1.95 billion.
Revenue at stores open at least a year is up about 45 percent so far in the quarter, which ends in 2 weeks, with gains across all regions.
Michael Kors will report its full second-quarter results on Nov. 13.
Shares rose $1.91, or 3.6 percent, to $54.40 in after-hours trading. The company's stock fell 3 cents to close the day at $52.49. Its share price has more than doubled from its $20 debut.