Michael Kors (KORS) Tops Q3 EPS by 15c, Comps Miss, Updates Guidance

(Updated - February 5, 2015 7:26 AM EST)

Michael Kors (NYSE: KORS) reported Q3 EPS of $1.48, $0.15 better than the analyst estimate of $1.33. Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $1.3 billion. Comps were up 8.6% vs 12.1% expected.

John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “Our third quarter marked the 13th consecutive period of growth in revenue, comparable store sales and earnings, since our initial public offering. We had a strong holiday season, with comparable stores sales performance led by double digit growth in our accessories category, both in our retail and wholesale channels. We also saw continued momentum across our operating segments and geographies driven by our compelling fashion product offering and jet-set luxury experience that resonated well with customers. In addition, we continued to advance on our multiple growth strategies and in particular, we saw exceptional performance from our recently launched Company-owned U.S. e-commerce site, which exceeded our expectations. E-commerce sales increased 73% in the quarter, as compared to sales at the previous outsourced site. Had we included e-commerce in our comparable store base, North America comparable store sales results would have been 380 basis points higher, which we believe is a more accurate reflection of our performance. It is clear that Michael Kors remains a leader within the global fashion luxury market and our brand continues to resonate with consumers around the world. Overall, we see continued momentum in our business, remain confident in our long-term potential and are committed to enhancing value for our shareholders.”

Michael Kors sees FY2015 EPS of $4.27-$4.30, versus prior guidance of $4.13-$4.18 and the consensus of $4.17. Michael Kors sees FY2015 revenue of $4.4 billion, versus prior guidance of $4.3-4.4 billion and the consensus of $4.42 billion. This assumes a comparable store sales increase of low double digits on a reported basis, and an increase of low to mid-teens on a constant currency basis.

Michael Kors sees Q4 2015 EPS of $0.89-$0.92, versus the consensus of $0.94. Michael Kors sees Q4 2015 revenue of $1.05-1.08 billion, versus the consensus of $1.15 billion. This assumes a comparable store sales increase of mid-single digits on a reported basis and an increase of high single digits on a constant currency basis.

For earnings history and earnings-related data on Michael Kors (KORS) click here.

You May Also Be Interested In

• Midday movers: Morgan Stanley, UnitedHealth rise; Tesla falls
• Boot Barn (BOOT) PT Raised to $110 at Piper Sandler
• CBOE Holdings (CBOE) PT Lowered to $163 at JPMorgan