Reuters
May 29, 2013
Michael Kors quarterly sales rise 57 percent
Reuters
May 29, 2013
High-end clothing and accessories maker Michael Kors reported a better-than-expected fourth-quarter profit as indulgent shoppers across North America and Europe continued to spend on luxury.
Sales at the company, formed and owned by fashion designer Michael Kors, have risen at a blistering pace since it went public in 2011, underlining shoppers' appetite for luxury items even in a tough economy.
Kors, which has been taking market share from larger rival Coach, reported a 70 percent jump in third-quarter sales.
The company said it gained from increased footfalls as it converted existing department store premises into branded "shop-in-shops".
The Michael Kors brand, which was launched 30 years ago as a luxury sportswear house, is known for its leather handbags, watches and apparel that have been worn by Michelle Obama and celebrities such as Jennifer Lopez.
The company said its fourth-quarter net income more than doubled to $101.1 million, or 50 cents per share, from $43.6 million, or 22 cents per share, a year earlier.
Revenue at the company rose 57 percent to $597.2 million.
Sales in North America, which includes the United States and Canada and makes up more than three-quarters of total sales, rose 52 percent to $516.9 million. Sales in Europe rose about 97 percent to $73.1 million.
Net sales rose 59 percent to $577.4 million, compared with analysts' average expectation of $548.2 million, according to Thomson Reuters I/B/E/S.
Analysts had expected the company to earn 39 cents per share.
Shares of the company, which have risen about 18 percent this year, were up 2 percent at $63.50 in pre-market trading.
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