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Luxury retailer Michael Kors reported sharply better than expected earnings this morning as sales advanced more than 70 per cent from the year ago period.The company said it earned net income of $68.6 million, or $0.34 a share, on total revenues of $414 million.
Analysts surveyed by Bloomberg had forecast results of $0.20 a share on sales of $365 million.
“During the first quarter we saw continued strength in each of our retail, wholesale and licensing segments and across geographies,” Chief Executive John Idol said. “In North America, our comparable store sales rose 38.4% reflecting the strong appeal of the Michael Kors brand, our consistent delivery of a compelling assortment of luxury products, and our exciting jet-set in-store experience.”
Sales at stores open more than a year improved 37.3 per cent during the quarter and Michael Kors opened 76 new stores over the past twelve months. Wholesale revenues also advanced 66 per cent.
The company now operates 321 stores worldwide, including those with licensee partners.
Michael Kors boosted its guidance for its full fiscal year by $100 million, to a range of $1.8 to $1.9 billion. Earnings per share are also expected to be higher than first forecast, at $1.32 to $1.34 for the year.
Shares are up more than 14 per cent in pre-market trade.