Michael Kors financials continue to exceed expectations
For the quarter ended March 29, Michael Kors reported earnings of $161 million, or 78 cents a share, up from $101.1 million, or 50 cents a share, in the prior year.
Revenue jumped 54% to $917.5 million and retail net sales climbed 50% to $408.4 million, pushed higher by a 26% increase in same-store sales and 101 net new store openings since the same period a year ago. Wholesale net sales, meanwhile, jumped 55% to $473.7 million. Michael Kors also confirmed fiscal fourth-quarter profit surged 59% as the retailer posted a robust rise in sales across regions.
The company said in February it planned to expand men’s clothing and accessories into a $1 billion business. Growth in accessories and watch sales helped drive North American revenue up 43% to $739.4 million, as same-store sales increased 21%. Revenue in Europe more than doubled to $164.7 million as same-store sales surged 63%.
For the year, the company expects earnings of $3.85 to $3.91 on revenue of $4 billion to $4.1 billion, versus analysts’ forecast of a profit of $3.85 a share on $4.06 billion in revenue.