Michael Kors Reports Exceptionally Strong Quarterly earnings, Raises Full-Year Outlook (KORS)

Fashion products maker, Michael Kors Holding Ltd. (NYSE: KORS) posted a threefold increase in its fiscal first quarter earnings, boosted by rising licensing fees and strong growth in same-store-sales seen both in the North American region and Europe.

The company reported 71% jump in revenue to $414.9 million.

For the fiscal first quarter, company’s same-store sales rose 24% in the Europe, while North America same-store sales climbed 38%.

Profit for the quarter ending June 30 stood at $68.6 million, or 34 cents a share, up from $24.1 million, or 13 cents a share, in the year earlier quarter.

Earlier, the company had forecasted earnings between 18 cents and 20 cents a share on revenue of $360 million to $370 million.

Gross margin for the quarter rose to 60.5% from 56.3%.

The company said that its retail net sales rose by 76% to $215 million, mainly helped by a 37% increase in same-store sales and opening of 76 new stores since the end of the first quarter last year.

Wholesale net sales climbed by 66% to $182.4 million while licensing revenue leaped 61% to $17.5 million, with sales driven mainly by strong growth in the company’s watch line.

Meanwhile, the company has also upwardly revised its full-year earnings outlook. The Company now expects earnings per share between $1.32 and $1.34 on revenue of $1.8 billion to $1.9 billion, while same-store-sales are expected to rise between mid to high-20% range.

Earlier, the company has forecasted full-year earnings between $1.08 and $1.12 on revenue of $1.7 billion to $1.8 billion even as same-store-sales were expected to grow by 20%.

For the second quarter, Michael Kors is anticipating earnings per share of 33 cents to 35 cents on revenue of $490 million to $500 million. Same-store-sales are expected to grow by 30% for the quarter.

Analysts polled by Thomson Reuters are expecting earnings per share at 28 cents on revenue of $422 million.

Commenting over the results, company’s Chief Executive, John Idol said in a conference call, “We believe that we are uniquely positioned to continue to build our global luxury lifestyle brand and that we have a tremendous opportunity for growth world-wide.”