Michael Kors Q1 Results Top Estimates, Boosts 2015 Outlook

(RTTNews) - Luxury goods retailer Michael Kors Holdings Ltd. (KORS) reported Monday a profit for the first quarter o fiscal 2015 that increased from last year, reflecting strong double-digit sales growth across operating segments and regions. Both earnings per share and quarterly revenues topped analysts' expectations. The company also raised its earnings and revenue guidance for the full-year 2015.

"Our Fiscal 2015 first quarter earnings results demonstrate the strong momentum in our brand across North America, Europe and Asia. Our success in establishing Michael Kors as a global luxury lifestyle brand is grounded in Michael's vision for design and the aspirational jet-set luxury experience we offer our customers," Chairman and CEO John Idol said in a statement.

The Tsim Sha Tsui, Hong Kong-based fashion retailer reported net income of $187.72 million or $0.91 per share for the first quarter, higher than $125.0 million or $0.61 per share in the prior-year quarter.

On average, 27 analysts polled by Thomson Reuters expected the company to report earnings of $0.81 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter increased 43.4 percent to $919.15 million from $640.86 million in the same quarter last year, and topped twenty-four Wall Street analysts' consensus estimate of $851.66 million. Comparable store sales increased 24.2% for the quarter.

Net retail sales increased 47.5 percent to $480 million, driven by a 24.2 percent increase in comparable store sales and 115 net new store openings since the end of the year-ago quarter.

Net wholesale sales improved 40.0 percent to $407 million and licensing revenue grew 30.5 percent to $32 million from last year.

Sales in North America (U.S. and Canada) grew 30 percent to $718.89 million, with comparable store sales increase of 18.7 percent, and Europe sales soared 128 percent to $185.50 million, with comparable store sales growth of 54.2 percent.

Gross margins edged up 20 basis points to 62.2 percent from last year.

Looking ahead to the second quarter, the company expects earnings in a range of $0.85 to $0.87 per share, on projected total revenues between $950 million and $960 million as well as comparable store sales growth in the high teens. Analysts expect the company to report earnings of $0.89 per share on quarterly revenues of $959.47 million for the quarter.

For fiscal 2015, the company raised earnings guidance to a range of $4.00 to $4.05 per share from the prior forecast range of $3.85 to $3.91 per share. The now projects revenues between $4.25 billion and $4.35 billion, up from the previous outlook between $4.0 billion and $4.1 billion. However, the company continues to project comparable store sales growth in the high teens.

Street is currently looking for full-year 2015 earnings of $3.96 on annual revenues of $4.20 billion.

"Our unique position within the global luxury market combined with our compelling diversified product assortment provides tremendous growth opportunity across the North American and International markets. As we look ahead, we will continue to make strategic investments in our business that will support our long term growth objectives and drive value for our shareholders," Idol added.

KORS closed Friday's regular trading session at $81.83, up $0.33 on a volume of 3.76 million shares.