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Last Update: 12-Feb-13 07:50 ET
Michael Kors shares soar 11% following beat on EPS and revenues
Michael Kors (KORS $63.52 +6.52) reported third quarter earnings of $0.64 per share, $0.23 better than the Capital IQ consensus of $0.41, while revenues rose 70.4% year/year to $607 million versus $542 mln consensus. The company issues guidance for the fourth quarter with EPS of $0.32-0.34 versus the $0.31 consensus, sees Q4 revs of $515-525 million versus the $517.21 million consensus. This assumes a low to mid-twenty percent comparable store sales increase. Retail net sales increased 66.8% to $332.6 million driven by a 41.4% increase in comparable store sales and 66 net new store openings since the end of Q3. Wholesale net sales increased 77.4% to $274.3 million and licensing revenue increased 52.1% to $29.8 million. Gross profit increased 72.8% to $383.5 million, and as a percentage of total revenue increased to 60.2% compared to 59.4% in 3Q12. "Our exceptional third quarter results were driven by continued strength across our business segments and geographies. In North America, comparable store sales increased 41% due to the growing demand for Michael Kors merchandise, which we attribute to our compelling luxury product assortment and exceptional jet-set in-store experience. The 75% sales increase in the North America wholesale segment reflects comparable stores sales growth as well as the continued conversion to shop-in-shops in department stores. In Europe, the 58% comparable store sales growth, which reflected continued brand acceptance, combined with the expansion of our retail and wholesale doors, led to 112% sales growth in the quarter. Finally, in our licensing segment, revenue increased 52%, driven primarily by the ongoing strength in watches."
