Michael Kors Holdings Ltd. posted strong first-quarter results, good enough to warrant raising its full-year fiscal 2019 outlook.
For the three months ended June 30, net income jumped 48.5 percent to $186.4 million, or $1.22 a diluted share, from $125.5 million, or 80 cents, in the year-ago quarter. On an adjusted basis, earnings per share were $1.32. Total revenues rose 26.3 percent to $1.20 billion, which included a $172.7 million contribution from the Jimmy Choo brand, from $952.4 million.
Wall Street was expecting 95 cents in EPS on revenues of $1.14 billion.
Shares of Michael Kors on Wednesday closed up 6.7 percent to $70.01 in Big Board trading.
The company said Michael Kors brand revenues grew 8 percent, while comparable-store sales were flat. The company said it did see positive comps growth in the Americas, as well as in the Michael Kors brand for accessories, footwear and women’s ready-to-wear. Renovated stores — those converted to the brand’s new luxury concept format — outperformed the balance of the chain, the company said.
For Jimmy Choo, the company said the brand “delivered better than anticipated revenues and operating income.” Further, comps “exceeded expectations.”
John Idol, chairman and chief executive officer, said, “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.”
The ceo said consumers responded favorably to “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.”
The company raised it full year adjusted EPS guidance for fiscal 2019 by 25 cents to between $4.90 to $5 from its prior estimate of between $4.65 to $4.75. The increase reflects the better-than-expected first-quarter performance by the Michael Kors and Jimmy Choo brands.
For the full year, the company expects revenues to be in the range of $5.123 billion, included incremental contribution from Jimmy Choo of between $580 million and $590 million.
For the second quarter, diluted EPS was guided to between $1.03 and $1.08 on a revenue forecast of about $1.26 billion, with Jimmy Choo contributing incremental revenues of between $110 million and $115 million.
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