Michael Kors Holdings Ltd. today posted its first earnings report as a public firm, and its income, sales and comparable-store sales growth all showed double-digit percent gains.
For the three months ended Dec. 31, income attributable to Kors shareholders rose 46.8 percent to $32 million, or 20 cents a diluted share, from $21.8 million, or 16 cents, a year ago. Excluding charges for equity compensation and initial public offering costs, income was $53.6 million, or 28 cents a diluted share, comapred with $27.8 million, or 16 cents, last year.
Total revenues for the quarter rose 67.9 percent to $373.6 million from $222.5 million. Revenues included a sales gain of 69.5 percent to $354 million from $208.8 million, with the balance of revenues from royalty income. The company said retail sales rose 82.8 percent to $199.4 million, driven by 75 new store openings since the same year-ago quarter, as well as a 38 percent gain in comparable store sales. Wholesale sales rose 55 percent to $154.6 million.
John Idol, chairman and chief executive officer, said, “These results reflect the strong demand for the Michael Kors luxury brand, our exciting assortment of fashion merchandise and our exceptional jet-set in-store experience. Along with sustaining strong comparable store sales results in North America, we also delivered significant growth in our wholesale segment. In Europe, revenues tripled in the third quarter as a result of a 34.4 percent comparable-store sales increase over last year, in addition to strong performance in the wholesale operations. In Japan, we are cautiously encouraged by our results for this business which is in the start-up phase.”
Idol added that the company is “uniquely positioned to continue to build our global, luxury lifestyle brand and we have tremendous opportunity for growth.”
For the fourth quarter, the firm said it expects diluted earnings per share in the range of 10 cents to 12 cents for the quarter, and total revenue between $350 million to $355 million. For the year, diluted EPS is projected to be between 74 cents to 76 cents, with total revenues between $1.27 billion to $1.28 billion.