Luxury lifestyle brand Michael Kors Holdings Ltd. (KORS) reported Tuesday a sharp increase in fourth-quarter profit, driven by strong performance across its retail, wholesale and licensing segments. The company also forecast first quarter and fiscal 2013 earnings and revenues above Wall Street expectations. The shares rose about 6 percent in the morning trade.
Retail net sales for the recent quarter increased 80.3 percent, driven by 71 new store openings since the end of last year and a 36.1 percent increase in comparable store sales. Wholesale net sales increased 45.5 percent and royalty revenues were up 26.9 percent from last year.
John Idol, chairman and chief executive officer of the company said, "This year we continued executing our key growth strategies, resulting in a 58.3% and 62.1% increase in total revenues for the quarter and year, respectively."
Net income available for ordinary shareholders for the fourth quarter climbed to $43.61 million or $0.22 per share from $13.63 million or $0.10 per share last year. Excluding a credit, net income in the just concluded quarter was $41.6 million or $0.21 per share.
On average, seven analysts polled by Thomson Reuters expected earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.
The designer of luxury accessories and ready-to-wear said total revenue increased 58.3 percent to $380 million, which also exceeded analysts' estimate of $360.62 million.
For the fiscal ended March 31, the company posted net income available for ordinary shareholders of $126.14 million or $0.78 per share, significantly higher than $56.88 million or $0.40 per share in the preceding year. Annual revenues grew to $1.3 billion from $803.34 million a year earlier.
Looking ahead to the first quarter, the company expects earnings per share in the range of $0.18 to $0.20. The firm sees total revenue in the range of $360 million to $370 million, assuming a comparable store sales increase of 35 percent. Analysts see first-quarter earnings of $0.17 per share on revenues of $323.98 million.
For fiscal 2013, earnings per share are expected to be in the range of $1.08 to $1.12. Total revenue is anticipated to be in the range of $1.7 billion to $1.8 billion and assumes a comparable store sales increase of 20 percent.
Wall Street expects $0.98 per share in full year earnings on revenues of $1.69 billion.
KORS is currently trading at $40.34, up $2.16 or 5.66 percent, on a volume of 6.47 million shares, against a three-month average volume of 2.81 million shares.
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