Personal Finance

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.

Woman walking into high-end fashion retail store

Image source: Getty Images.

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.

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.

10 stocks we like better than Michael Kors Holdings

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Michael Kors Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of August 6, 2018

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.

Other Topics

Stocks

Latest Personal Finance Videos

    #TradeTalks: The Changing E-Commerce Landscape

    e-Commerce Consultant James Thomson joins Jill Malandrino on Nasdaq #TradeTalks to discuss the changing e-commerce landscape, what consumers should prepare for as we head into shopping season and why you shouldn’t do last minute shipping.

    Oct 23, 2020

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More