Michael Kors (KORS) recorded a 185% leap in first-quarter profit as the retailer opened more stores and sales at its locations open longer than a year performed above expectations.
The New York-based men’s and women’s apparel and accessories designer reported net income of $68.6 million, or 34 cents a share, compared with a year-earlier profit of $24.1 million, or 13 cents, topping average analyst estimates of 20 cents in a Thomson Reuters poll.
Revenue for the three months ended June 30 climbed 71% to $414.9 million from $243.1 million a year ago, widely trumping the Street’s view of $368 million.
The company, which operated 76 more retail and concessions this quarter compared with last year, said retail net sales grew by 76% to $215 million, driven by a 37.3% increase in comparable store sales – a key growth metric for retailers.
Sales were led by the U.S., which booked comparable sales growth of 38.4% during the quarter, as well as wholesale net sales, which were up 66% to $182.4 million, and licensing revenue, mostly related to the Michael Kors watch line.
“Our results demonstrate the strong momentum of the Michael Kors brand and the continued execution of our key growth strategies,” the company’s chief executive, John Idol, said in a statement. “We are extremely excited about the long-term growth potential of our company.”
Shares of Michael Kors climbed 14.3% to more than $48.40 a share.
In the current quarter, the designer sees revenue in the range of $490 million to $500 million on non-GAAP earnings of 33 cents to 35 cents. Analysts are looking for earnings of just 28 cents on sales of $422 million.
Michael Kors raised its fiscal 2013 forecast. It now anticipates sales of $1.8 billion to $1.9 billion and earnings between $1.32 and $1.34, above its earlier view of $1.08 to $1.12. The Street is expecting earnings of just $1.12 on sales of $1.8 billion.