LONDON – There was a lot of retail consternation over the holiday season, but Michael Kors wasn’t feeling it.
The luxury retailer post better-than-expected results during the fiscal third quarter, which included the critical holiday shopping season, and issued strong guidance for the year.
Shares of Michael Kors Holdings soared 17 percent in early trading, reaching levels not seen in eight months.
Almost all retailers that sell winter goods like boots have been hit hard by winter weather that is anything but frightening. Kors was not immune, but fortunately for the London accessory and clothing maker its fans just switched to its sneakers and other shoes.
Small bags and accessories were also hot sellers.
Profit was $294.6 million, or $1.59 per share, in the quarter ending Dec. 26, compared with $303.7 million, or $1.48 per share, from the same period the year ago.
And while overall profit declined, per-share earnings were 13 cents better than Wall Street had expected, according to a poll by Zacks Investment Research.
It beat on revenue, too, which rose 6 per cent to $1.4 billion.
For the current quarter ending in March, Michael Kors expects revenue of between $1.13 billion and $1.15 billion. Analysts surveyed by Zacks had expected revenue of $1.16 billion.
The company expects full-year earnings of $4.38 to $4.42 per share, with revenue expected to be $4.65 billion. Analysts expected earnings of $4.32 per share and revenue of $4.63 billion, according to FactSet.
Shares of Michael Kors Holdings Ltd. rose $7.10 to $47.54 Tuesday.