New York—True to its reputation as “one of the fastest growing fashion accessories brands in the U.S.,” Michael Kors Holdings Ltd. today reported a more than double profit and higher sales—even in economically depressed Europe—in its fourth quarter report.
For the quarter ended March 30, the apparel and accessories company posted a profit of $101.1 million, or 50 cents a share, compared with a profit of $43.6 million, or 22 cents, a year ago. That easily beat analysts’ average estimate for 39 cents a share.
Net revenue jumped 57.1% to $597.2 million, again beating analysts’ estimate for $548.2 million. The company’s retail sales were up 59% to $272.7 million, primarily due to a comparable store sales increase of 36.7% and 67 net new store opening since last year.
Wholesale net sales were up 59% to $304.7 million. Licensing revenue increased 16% to $19.8 million.
‘Impressed with Product and Marketing Execution’
“Fiscal 2013 was another outstanding year for Michael Kors with continued momentum into the fourth quarter reflecting advances on our key growth strategies,” said John D. Idol, chairman/ceo. “Our jet set luxury accessories and ready to wear are resonating with consumers worldwide and we are excited by our prospects for future growth.”
Idol said the results verified that demand for the Michael Kors brand was increasing across all of its business segments and geographies. In fact, even in Europe, the company’s sales nearly doubled during the quarter with European comp store sales up 63%. Comp sales in North American grew by 35%.
The company forecast more sales growth to come. For its current first quarter, sales are expected in the range of $555 million to $565 million with a comp store increase expected between 15% to 20%. Earnings per share are predicted to be between 46 cents to 48 cents a share. Analysts’ estimate is a bit higher: 48 cents a share on sales of $566.3 million.
For the full fiscal year, Michael Kors estimated sales in the range of $2.65 billion to $2.75 billion with comp store sales between 15% to 20%. Earnings per share are forecast between $2.43 to $2.47 a share.
Analysts’ consensus is for earnings of $2.45 on sales of $2.82 billion.
“We remain impressed with product and marketing execution, which is yielding very strong growth,” said Oliver Chen, a retail analyst at Citigroup, about the company.
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