Michael Kors 1Q results top Street even as sales weaken

While sales at Michael Kors softened during the first quarter, the luxury handbag and clothing company handily topped Wall Street expectations and a strong outlook for the quarter and fiscal year 2018 sent shares soaring 13 percent before the opening bell.

For the three months ended July 1, Kors earned $125.5 million, or 80 cents per share, which was 18 cents better than industry analysts had projected, according to a poll by by Zacks Investment Research.

A year earlier, the company earned $147.1 million, or 83 cents per share.

Revenue fell to $952.4 million from $987.9 million, hampered by weaker sales in the U.S. and Europe. Sales in Asia soared 60 percent. It was also way better than the $917.9 million that Wall Street had expected.

Sales at stores open at least a year, a key gauge of a retailer's health, declined 5.9 percent.

Michael Kors Holdings Ltd. anticipates fiscal 2018 earnings between $3.62 and $3.72 per share. Revenue is expected to be about $4.28 billion. For the second quarter, the company predicts earnings in a range of 80 cents to 84 cents per share on revenue between approximately $1.04 billion and $1.06 billion.

Analysts polled by FactSet predict fiscal 2018 earnings of $3.54 per share on revenue of $4.19 billion and second-quarter earnings of 78 cents per share on revenue of $1.01 billion.

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Elements of this story were generated by Automated Insights using data from Zacks Investment Research. Access a Zacks stock report on KORS at https://www.zacks.com/ap/KORS

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Keywords: Michael Kors Holdings, Earnings Report