Michael Kors holiday quarter results beat Street
NEW YORK (AP) — Michael Kors Holdings said Tuesday that its fiscal third-quarter net income surged 77 percent as brand awareness drove strong demand worldwide for its goods during the critical holiday selling period.
The handbag, clothing and accessories company's performance easily beat analysts' estimates. It also boosted its fiscal 2014 forecast again.
The stock surged more than 19 percent in premarket trading.
For the three months ended Dec. 28, Michael Kors Holdings earned $229.6 million, or $1.11 per share. That's up from $130 million, or 64 cents per share, a year earlier.
Analysts polled by FactSet expected earnings of 86 cents per share.
Revenue jumped to $1.01 billion from $636.8 million as European revenue more than doubled and North American revenue increased 51 percent. Wall Street expected $859.5 million.
Sales at stores open at least a year, a key gauge of a retailer's health, rose 27.8 percent. This figure excludes results from stores recently opened or closed. In Europe, the metric soared 73 percent, while in North America it climbed 24 percent.
Licensing segment revenue rose 59 percent, helped by ongoing demand for watches and eyewear.
In the fourth quarter, Michael Kors Holdings anticipates earnings between 63 cents and 65 cents per share. Revenue is expected in a range of $790 million to $800 million.
The company also expects fiscal 2014 earnings between $3.07 and $3.09 per share, with revenue in a range of $3.18 billion to $3.19 billion. Its prior guidance was for earnings between $2.77 and $2.81 per share on revenue in a range of $2.9 billion to $3 billion, which had been raised in October from a range of $2.67 to $2.69 per share on revenue of $2.8 billion to $2.9 billion.
Analysts had expected fourth-quarter earnings of 65 cents per share on revenue of $790.7 million and 2014 earnings of $2.83 per share on revenue of $3.03 billion.
Shares of Michael Kors Holdings Inc. gained $14.82, or 19.3 percent, to $91.49 in premarket trading about 75 minutes before the market open.