Shares of Michael Kors Move Higher After a Strong Start to Fiscal 2019

Woman walking into high-end fashion retail store

What happened

Shares of Michael Kors Holdings Ltd. (NYSE: KORS) , a designer and manufacturer of apparel, footwear, handbags, and other accessories, were up 5.8% as of 11:25 a.m. EDT on Wednesday after the company released strong fiscal first-quarter 2019 results.

So what

Total revenues checked in at $1.2 billion during the quarter, a 26.3% increase compared to the prior year, and higher than analysts' estimates calling for $1.1 billion. Adjusted earnings per share soared 65% compared to the prior year, to $1.32, which blew past analysts' estimates calling for $0.94. It was a strong start to fiscal 2019 as Michael Kors delivered better than anticipated revenue, gross margin, operating margin, EPS growth, and positive comparable-store sales growth in the Americas.

CEO John D. Idol said in a press release:

Now what

The company's efforts to rebrand its image and transition its store base to a new luxury concept had a positive impact, with renovated stores outperforming the balance of the chain, the company said. And there were strong first-quarter results from its Michael Kors and Jimmy Choo brands. Based on those two factors, management raised its guidance, and now expects full-year adjusted EPS to check in between $4.90 to $5, a $0.25 increase.

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Daniel Miller has no position in any of the stocks mentioned. The Motley Fool owns shares of Michael Kors Holdings. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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