Michael Kors reports suprising 70 percent jump in earnings
American premium fashion house Michael Kors reports strong fiscal 2013 first quarter results, including a whopping 70 percent earnings surprise. As of June 30, 2012, Michael Kors operated a total of 321 stores worldwide, comprising 253 company-operated retail stores and 68 retail stores operated by licensing partners.
Total revenue for Michael Kors jumped 71% year over year to US$ 414.9 million, with solid sales growth in each of the company’s business segments and across all geographies drove the upside. Sales at the retail segment grew 76% on the back of a 37.3% rise in comparable store sales and the opening of 76 new stores during the quarter. Net sales at the wholesale and licensing segments advanced 66% and 61%, respectively.
Gross profit was up 83% to $251.0 million and operating income in the quarter totaled $111.9 million, up 149% year over year. For fiscal 2013, the company expects earnings between $1.32 and $1.34 per share, on net sales of about $1.8 million to $1.9 million.