Michael Kors Shares Spike After Earnings Beat

Michael Kors Holdings Ltd. shares spiked more than 12.5% after the clothing and accessories company reported fiscal first quarter earnings and revenue that beat expectations. Net income totaled $125.5 million, or 80 cents per share, down from $147.1 million, or 83 cents per share. Adjusted EPS was 90 cents per share, beating the 62-cent FactSet consensus. Revenue was $952.4 million, down from $987.9 million and ahead of the $919.0 million FactSet consensus. Same-store sales fell 5.9%. The FactSet consensus was a decline of 9.2%. Michael Kors expects second-quarter revenue between $1.04 billion and $1.06 billion. Same-store sales are expected to fall in the mid-single digit range. EPS is expected to be in the range of 80 to 84 cents. The FactSet consensus is for sales of $1.01 billion and EPS of 78 cents. The company expects full-year revenue of about $4.28 billion and a same-store sales decline in the mid-single digit range. EPS is expected to be in the range of $3.62 to $3.72. The FactSet consensus is for sales of $4.19 billion and EPS of $3.54. The outlook doesn't include the Jimmy Choo acquisition. Michael Kors believes the deal will be EPS dilutive in the low-single digit percentage range in both fiscal 2018 and 2019 and accretive in the low-single digits in fiscal 2020. Michael Kors shares are down 13.4% for the year so far while the S&P 500 index is up 10.8% for the period.