Michael Kors Shares Surge 10% Premarket As Earnings Beat Outweighs Soft Outlook

By Ciara LinnaneMarketsMarketWatch Pulse

Michael Kors Holdings Ltd. shares surged 10% in premarket trade, after the company reported better-than-expected profit and revenue for its fiscal fourth quarter. The company said Wednesday it had net income of $177 million, or 98 cents a share, in the quarter, compared with $182.6 million, or 90 cents a share, in the year-earlier period. Revenue rose to $1.2 billion from $1.1 billion. The FactSet consensus was for EPS of 97 cents and revenue of $1.1 billion. Same-store sales rose 0.3%, also ahead of the FactSet consensus of 0.2%. "Looking ahead, we see multiple growth opportunities, including the expansion of our international markets, the growth of our digital e-commerce flagships, the build-out of our men's business, the launch of Michael Kors ACCESS wearable technology line, and the continued design innovation of our luxury fashion product," Chief Executive John Idol said in a statement. The company is now expecting first-quarter EPS of 62 cents to 66 cents, and adjusted EPS of 70 cents to 74 cents. The current FactSet consensus is for first-quarter EPS of 93 cents. Shares have gained 6.6% in the year to date, while the S&P 500 has gained 2.6%.

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