Michael Kors Reports Solid Fiscal Q3 Results (KORS)

High-end apparel retailer, Michael Kors Holdings Ltd. (NYSE: KORS) reported on Tuesday fiscal third-quarter results that comfortably edged past its own forecast thanks to robust same-store-sales in the holiday-season quarter in the North America as well in Europe.

“[Strong growth in same store sales was] due to the growing demand for Michael Kors merchandise,” said John D. Idol, the Company’s Chairman and Chief Executive in a conference call.

The Company also boosted its guidance on the current fiscal. For the fiscal 2013, the Company expects earnings to be in the range of $1.80 to $1.82 a share on revenue of $2.1 billion, up from its November forecast for $1.48 to $1.50 a share on revenue range of $1.86 billion to $1.96 billion

Shares rallied in premarket trading.

The Hong Kong-based Company, which went public in December 2011, offers array of products ranging from clothing, footwear,  other apparel to accessories through luxury department stores and through its company-operated shops.

For the fiscal third quarter ended December 29, Michael Kors reported a profit of $130 million or 64 cents a share (including preferred share impacts) compared to a profit of $39 million or 20 cents a share, in the year earlier quarter. Revenue during the quarter jumped 70% to $636.8 million.

Earlier in November, the Company had forecasted earnings in the range of 37 cents to 39 cents a share on revenue of $525 to $535 million.

Gross margin widened to 60.2% from 59.4%, in the same period of last year.

Retail sales leaped 67% to $332.6 million, aided by 41% growth in comparable store sales,  revenue from wholesale operations soared 77% to $274.3 million while revenue from licensing royalties jumped 77% to $274.3 million, in the fiscal third quarter.

While comparable store sales in North America climbed 41%, in Europe it jumped 58%.

For the fourth quarter of fiscal 2013, the Company anticipates total revenue to be in the range of $515 million to $525 million, assuming lower mid-twenties percentage growth in comparable store sales.