Aug 4, 2014
Michael Kors posts another quarter of sizzling growth
Aug 4, 2014
Michael Kors Holdings Ltd reported another quarter of blistering sales growth as demand for its handbags and watches surged in North America. Shares of the company, founded by fashion designer Michael Kors, were up 3.4 percent premarket on Monday after the company also raised its full-year revenue and profit outlook.
The company has overtaken closest rival Coach Inc in market share as its core customers - women between the age of 20 and 35 - snap up its trendy clutches, watches and snakeskin handbags.
The company's handbags sell for $200 to $3,000, while watches are priced between $150 and $550. Michael Kors has posted sales growth of 40 percent or more in almost every quarter since going public in December 2011.
The company said it expects full-year earnings of $4.00-$4.05 per share on revenue of $4.25 billion to $4.35 billion.
It had previously forecast full-year earnings of $3.85 to $3.91 per share on revenue of $4 billion to $4.1 billion.
Revenue from North America, its biggest market, rose 30 percent to $718.9 million in the first quarter ended June 28.
Total revenue rose 43 percent to $919.2 million.
Same store sales increased 24.2 percent, with a growth of 18.7 percent in North America.
Net income rose to $187.7 million, or 91 cents per share, from $124.9 million, or 61 cents per share, a year earlier.
Analysts on average had expected earnings of 81 cents per share on revenue of $851.7 million, according to Thomson Reuters I/B/E/S.
Michael Kors' shares were trading at $91.68. They closed at $81.83 on Friday.
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