Michael Kors New Public Company Soars Past The Competition

Forbes
Kors Breezes Past Wall Street Estimates In Style, Lifts Full-Year Forecast
Abram Brown, Forbes Staff
8/14/2012

Michael Kors posted far greater quarterly figures than forecast, as the newly public company once again drew attention to its white-hot growth.

Looking ahead, sales at established locations might rise as much as 25% this year, the company says. Kors now expects to earn $1.32 to $1.34 a share this year, greater than the earlier forecast range of $1.08 to $1.12 a share. Revenue should be $1.8 billion to $1.9 billion. Analysts foresee earnings of $1.12 on revenue of $1.78 billion.

Net income in the second quarter was $68.7 million, 34 cents a share, from $24.1 million, 13 cents a share. That considerably exceeds Wall Street”˜s prediction of $40.3 million, 20 cents a share.

Shares of Kors rose 10.9% to $46.98 in pre-market trading. Since going public last December, the stock gained more than 75%. Kors has outperformed nearly all other luxury companies in that time, businesses like Ralph Lauren, Coach, Tiffany and PVH Corp. It now trades at a significant growth multiple: It fetches 41.9 times expected 2013 earnings and 33.6 times 2014 earnings.

Total revenue was $414.9 million, a 71% gain from last year. Sales at established U.S. locations 38.4%. In Europe, sales rose 24.2%.

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