(Reuters) - Fashion company Michael Kors Holdings Ltd’s (KORS.N) second- quarter income more than tripled and the company raised its full-year profit view as it benefited from strong demand at home as well as in European markets.
Michael Kors, whose founder is a judge on the long-running television fashion show “Project Runway,” said holiday-quarter sales at its own stores, open a year, could rise by a “mid-20 percent.”
Michael Kors’ shares rose more than 3 percent in early trading on Tuesday.
The company, known for its watches and handbags, also said the brand was gaining traction in Europe, and revenue in that region soared 97 percent to $57 million.
“While we recognize the European economy is weakening, we are benefiting from strong reception to our merchandise offering and increased brand awareness,” Chief Executive John Idol said on a conference call with analysts.
Michael Kors, which has challenged Coach Inc (COH.N) in the “affordable luxury” segment, raised its full-year profit forecast 16 cents to a range of $1.48 to $1.50 per share, above the $1.46 estimated by analysts.
For the holiday period, the company expects a profit of 37 to 39 cents for the quarter that will end in late December.
Wall Street was expecting 39 cents a share, according to Thomson Reuters I/B/E/S.
Kors reported a higher-than-expected second-quarter profit, helped by rising sales at its own stores and the roll-out of its boutiques at department stores, and raised its full-year profit forecast.
Total revenue in the second quarter soared 74.4 percent to $532.9 million, while sales at stores open at least a year rose 45.2 percent. In Europe, where Kors still has a small presence, sales surged 97 percent.
Net income more than tripled to $97.8 million, or 49 cents per share for the quarter that ended September 29, from $31.6 million, or 22 cents per share, a year earlier. That beat Wall Street estimates by 9 cents, according to Thomson Reuters I/B/E/S.
Kors’ shares rose 3.7 percent, or $1.92, to $52.50 in morning New York Stock Exchange trading. (Reporting by Phil Wahba in New York; Editing by Maureen Bavdek)