Michael Kors feels the holiday cheer, shares surge
LONDON (AP) — Sales at Michael Kors surged ahead of the holiday, pushing third-quarter profits well past most expectations.
The quarterly report Wednesday sent company shares up 9 percent before the market opened.
For the three months ended Dec. 30, the seller of luxury handbags, clothing and accessories earned $219.4 million, or $1.42 per share. The Londo company earned $271.6 million, or $1.64 per share, a year earlier.
Adjusted for one-time costs and restructuring expenses, earnings came to $1.77 per share, far beyond projections of $1.29 from industry analysts, according to a poll done by Zacks Investment Research.
Revenue, which also handily topped Wall Street expectations, increased to $1.44 billion, from $1.35 billion, bolstered by surprisingly strong sales of Jimmy Choo and Kors goods.
For the current quarter ending in March, Michael Kors Holdings Ltd. foresees revenue in a range of $1.11 billion to $1.13 billion. Analysts polled by Zacks predict $1.13 billion.
The retailer anticipates fiscal 2018 earnings of $4.40 to $4.45 per share on revenue of about $4.66 billion. Analysts surveyed by FactSet expect earnings of $4 per share on revenue of $4.62 billion.
Shares of Michael Kors Holding Ltd. are up almost 78 percent over the past year, and they’ve surged 20 percent in just the past three months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on KORS at https://www.zacks.com/ap/KORS