Shares of Michael Kors Holdings Ltd. — the firm that acquired London-based luxury brand Jimmy Choo last year — were popping in early-morning trading after the company posted first-quarter results that blew past forecasts and lifted its outlook for the fiscal year.
At market open, the shares were up 4.4 percent to $68.42 as investors cheered the business’ apparent turnaround.
Overall, Michael Kors’ revenue increased 26 percent to $1.2 billion, including a $172.7 million contribution from Jimmy Choo. Those results topped analysts’ bets for revenues of $1.14 billion.
The company said Jimmy Choo’s better-than-expected revenues were the result of “strong” performance in footwear, as well as a shift in timing of certain wholesale shipments from the second quarter into the first.
Profits for Michael Kors Holdings also gained 48 percent during the period to $186 million, or $1.22 per diluted share. On an adjusted basis, profits were $200.7 million, or $1.32 per share, significantly besting forecasts for profits of 95 cents per share.
“We are encouraged by our first-quarter performance, with growth in revenues, gross margin, operating margin as well as earnings per share all exceeding our expectations,” said CEO and chairman John Idol. “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 Michael Kors brand’s total retail Q1 revenues rose 3.2 percent to $639.5 million, and wholesale revenue growth of 19.5 percent to $362.8 million beat expectations of $326.6 million.
The company raised its fiscal 2019 earnings-per-share guidance range to $4.90 to $5, from $4.65 to $4.75. It boosted its revenue outlook to $5.125 billion, from $5.1 billion — including between $580 million and $590 million of incremental Jimmy Choo revenue.
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