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Michael Kors feels the holiday cheer, shares surge

February 7, 2018

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.

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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

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