Reuters logo
UPDATE 1-Michael Kors profit, outlook beat Street
June 12, 2012 / 11:59 AM / in 5 years

UPDATE 1-Michael Kors profit, outlook beat Street

* Q4 EPS 22 cents vs view 16 cents

* Sees full-year EPS $1.08-$1.12 vs view 98 cents

* Shares up 11.3 pct in premarket

June 12 (Reuters) - Michael Kors Holdings Ltd reported a stronger-than- expected fourth-quarter profit, fueled by growth in its own chain of stores, and the designer clothing and apparel company gave a full-year profit and sales forecast that handily beat Wall Street forecasts.

The company’s shares rose 11.3 percent to $42.50 in premarket trading.

Michael Kors, whose founder is one of the judges on the long-running TV fashion show “Project Runway,” expects sales at stores open at least a year to rise 35 percent this current fiscal year, leading to full-year sales of $1.7 billion to $1.8 billion, with a profit of $1.08 to $1.12 per share.

Wall Street analysts were projecting sales of $1.69 billion and a profit of 98 cents per share this fiscal year, according to Thomson Reuters I/B/E/S.

Michael Kors’ retail sales last quarter soared 80.3 percent to $172.2 million, helped by the addition of 71 new stores last year. Its fleet ended the year with 237 stores. Sales at its stores open at least year rose 36.1 percent.

In its wholesale business, which includes sales to luxury chains including Nordstrom Inc and Saks Inc, and is still its biggest segment, revenue rose 45.5 percent.

In Europe, where the company gets less than one-tenth of sales, business more than doubled, overcoming the austerity and anxiety about the euro crisis that has cast a pall over luxury sales there.

Michael Kors, which started listing its shares in December, reported net income of $43.6 million, or 22 cents per share for the quarter that ended March 31, compared with $17.4 million, or 10 cents per share a year earlier.

Excluding a one-time reimbursement of costs linked to its IPO, Kors earned 21 cents per share, beating analyst forecasts of 17 cents.

Michael Kors expects first-quarter same-store sales to be up 35 percent and profits of 18 cents to 20 cents per share, above Wall Street forecasts of 17 cents per share.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below