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Michael Kors stock up as Q2 profit more than doubles, sales surge

Michael Kors stock up as Q2 profit more than doubles, sales surge

Michael Kors Holdings (NYSE:KORS) shares rose after the accessories and apparel retailer said second quarter earnings more than doubled as same store sales grew. 

The company, which held an IPO in December, also raised its full year earnings estimate by nine cents, to between $1.48 and $1.50 a share. It lifted its sales guidance by $10 million to a range of $1.86 to $1.96 billion. 

The seller of clothing, footwear, and other accessories had already raised its full year outloook in September. 

For the quarter that ended September 29, Michael Kors reported a profit of $97.8 million, or 49 cents a share, up from $40.6 million, or 22 cents, a year earlier. 

Excluding a charge related to the employee-share-option redemption associated with its private placement, earnings were 25 cents in the latest period. 

Revenue jumped a whopping 74 per cent to $532.9 million, beating its own projections from September by a wide margin. 

Retail sales jumped 82 per cent, as same store sales grew 45 per cent. Wholesale revenue rose 75 per cent thanks to the expansion of its brand in department stores, while licensing royalties increased 13 per cent. 

Gross margin improved to 59.8 per cent from 56.9 per cent in the year earlier period. 

For the current quarter, it forecast earnings of 37 to 39 cents per share, on revenue of $525 to $535 million. Analysts surveyed by Thomson Reuters expect 39 cents on $524 million for the fiscal third quarter.

Shares in the company were up 1.5 per cent at $51.34 on Tuesday afternoon.

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October 29 2013
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