Michael Kors Holdings Ltd reported a better-than-expected 40% jump in quarterly revenue Tuesday, driven by strong demand for its trendy handbags and watches.
The company”s net income jumped 49% to $145.8 million, or 71 cents per share, in the second quarter ended September 28 from $97.8 million, or 49 cents per share, a year earlier.
Analysts on average had expected 68 cents per share, according to Thomson Reuters I/B/E/S. Revenue rose to $740.3 million, beating the average analyst estimate of $726 million.
Comparable store sales in North America, Kors” largest market, rose 21 percent, helped by its accessories and watch collection.
Michael Kors, whose handbags, watches and apparel have been spotted on first lady Michelle Obama and celebrities such as Jennifer Lopez, said sales in Europe more than doubled to $114 million.
Signs of economic recovery in the United States and Europe have increased demand for affordable luxury items. Men are also spending more on luxury, encouraging companies to step up investments.
Michael Kors Holdings, controlled by fashion designer and former “Project Runway” TV show judge Michael Kors, has been growing at a blistering pace and is aggressively expanding its stores in the United States and Europe.
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