Northern, WI 2/14/12 (StreetBeat) – Michael Kors (NYSE: KORS) is living the good life. And that’s not expected to change.Shares spiked nearly 25% in early morning trading Wednesday to record highs after the luxury retailer said rampant growth would continue.
Michael Kors expects fiscal year revenue to reach between $1.27 billion to $1.28 billion—a year ago, it posted $757.8 in net sales. The company anticipates 83 cents to 85 cents earnings per share, excluding a charge.
In this quarter, revenue should range between $350 to $355 million, with 10 to 12 cents EPS.
“These results reflect the strong demand for the Michael Kors luxury brand, our exciting assortment of fashion merchandise and our exceptional jet-set in-store experience,” CEO and Chairman John Idol said in a statement. “We are uniquely positioned to continue to build our global, luxury lifestyle brand and we have tremendous opportunity for growth.”
This forecast comes off a strong fiscal third quarter. Revenue jumped 67.9% to 373.6 million from a year ago. Michael Kors has opened 75 stores since last year, driving a 82.9% jump in retail net sales to $199.4 million. Whole net sales rose too, some 55% at $154.6 million.
When Michael Kors went public in December—a debut where it priced above its initial range and saw stock rise 25% in first-day trading—it took a $15.9 million equity compensation charge. This sagged fiscal third-quarter profit a bit, by 8 cents a share.
Excluding the charge, net income was $53.6 million or 28 cents EPS, towering above last year’s $27.8 million or 16 cents EPS.
Another luxury retailer, watch-maker Fossil, announced strong results Wednesday. Fossil’s revenue rose across all markets, gaining 18.5% to $830.8 million. Sales in America, Europe, and China all expanded by double-digits. Fossil earned $117.9 million or $1.87 EPS, a 27% increase from the previous year.
Fossil also expects to flourish in 2012. Sales should grow by 15% in both this quarter and for the year. First quarter EPS should range between 90 to 92 cents; for year, EPS should range from $5.40 to $5.50.
The luxury market has been strong in recent months—beating back fears that a depressed macroeconomic situation would force shoppers to scrap upmarket purchases.
Ralph Lauren turned in stronger than expected quarterly results, as did Coach. One notable expection was True Religion, which saw its stock plummeting nearly 30% last week. Analysts though suggest that the market overracted to True Religion’s results. Liz Claiborne reports later this month.
Michael Kors was at $42.04 in early morning trading.
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