Shares of Michael Kors Holdings Ltd. (NYSE: KORS) have risen sharply in trading today after the Hong Kong-based retailer reported its financial results for the second quarter ended September 29, 2012.
KORS, which is a designer, marketer, distributor and retailer of branded womenâ€™s apparel and accessories and menâ€™s apparel, reported total revenue of $532.9 million for the second quarter, compared to $305.5 million reported for the same period in the previous year.
Retail net sales for the quarter rose an impressive 82% to $242.3 million. The increase was driven by a 45.1% increase in comparable store sales and 66 new store openings since the end of the second quarter last year. The companyâ€™s wholesale net sales for the quarter rose 75% to $270.8 million. Licensing revenue for the quarter rose 13% to $19.9 million.
KORS reported gross profit of $315.9 million for the quarter, up 80% over the same period in the previous year. Gross margin for the quarter was 59.3%, compared to 57.3% reported for the same period in the previous year.
Income from operations for the quarter came in at $157.9 million. Net income for the quarter was $97.8 million, or $0.49 per diluted share.
John D. Idol, Chairman and CEO of Michael Kors, said that the company is pleased to have delivered record results in the second quarter. Idol said that the performance in the second quarter is a reflection of Michael Korsâ€™ brand strength, innovative fashion design and the successful execution of its growth strategies. He added that the company is excited to see the growing global recognition and appeal for the Michael Kors luxury brand.
Looking ahead, KORS expects third-quarter total revenue to be between $525 million and $535 million. Diluted earning per share for the third quarter is expected to come in between $0.37 and $0.39.
KORS shares hit an intra-day high of $53.25 in trading today. At last check, the stock was trading 1.46% higher at $51.32 on above average volume of 11.92 million.