Shares of Michael Kors Move Higher After a Strong Start to Fiscal 2019
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.
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:
Our fashion leadership remains strong, which drove consumers to respond favorably to both new fashion introductions and core products. Our global fashion luxury group continues to see the benefits of our long-term growth strategy which is driven by both the Michael Kors and Jimmy Choo brands. Looking ahead we remain optimistic about our business for the remainder of fiscal 2019 and beyond.
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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