REUTERS

(REUTERS)

Michael Kors Comparable Sales Decline Smaller Than Expected

Retail Reuters

Michael Kors Holdings Ltd reported a much smaller-than-expected decline in quarterly sales at established stores, helped by demand for high-end accessories and footwear.

Continue Reading Below

Shares of the handbag and accessories maker jumped nearly 9 percent in premarket trading on Tuesday.

Kors, once the hottest name in the so-called "affordable luxury" sector, is innovating aggressively and expanding its online presence to win back customers who are less inclined to buy from the "ubiquitous" brand.

Sales at established stores fell 0.9 percent in the third quarter ended Dec. 26, compared with the 4.5 percent drop analysts had expected on average, according to research firm Consensus Metrix.

Total revenue rose 6.3 percent to $1.40 billion.

Net income attributable to the company fell to $294.6 million, or $1.59 per share, from $303.7 million, or $1.48 per share, a year earlier.

Continue Reading Below

Analysts on average had expected earnings of $1.46 per share and revenue of $1.36 billion, according to Thomson Reuters I/B/E/S. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva and Saumyadeb Chakrabarty)