Shares of Michael Kors Outlet are lower in pre-market trade despite the retailer reporting earnings and revenue that crushed expectations.
For its fiscal first quarter, the luxury accessories maker earned $0.91 per share on revenue of $919.2 million, topping expectations for $0.81 and $851.66 million, respectively. Comparable store sales in the first quarter also surged 24.2%.
In pre-market trade, shares of Michael Kors Outlet were up 5% but have reversed lower and are currently down about 3%.
In its first quarter earnings release, Michael Kors Outlet CEO John Idol said, “In North America, revenue increased 30%, with comparable store sales growth of 18.7%. In addition, the 30% growth in our North American wholesale segment reflects ongoing momentum in our brand as well as the continued benefit from our shop-in-shop conversions. In Europe, we were extremely pleased with our revenue growth of 128%, which was driven by a comparable store sales increase of 54.2%, as well as strength in our wholesale business. Lastly, revenue in Japan increased 89%, driven by comparable store sales growth of 48.8%.”
For its full fiscal-year, Michael Kors Outlet also gave earnings and revenue guidance that topped current analyst estimates.
Kors expects earnings per share of $4.00-$4.25, better than the $3.96 analysts expect, on revenue of $4.25-$4.35 billion which is more than the $4.2 billion currently expected by analysts.