Michael Kors hit new trading high

The Associated Press
May 30, 2013

Michael Kors hit a new trading high Thursday after it reported that its fourth-quarter profit more than doubled on surging sales and it offered a solid outlook.

THE SPARK: The clothing and accessories maker reported Wednesday that it earned $101.1 million, compared with $43.6 million during the same period last year. Revenue spiked by 57 percent.

THE BIG PICTURE: Michael Kors, named after the famed designer behind the brand, went public in 2011 in a much heralded IPO.

The company's stock price has soared since then thanks to a growing base of shoppers worldwide who are showing a willingness to splurge.

THE ANALYSIS: Cowen and Co. analysts Faye Landes and Tal Lev said that the Michael Kors displayed "unabated momentum."

Cowen is still recommending the stock, though it has already jumped nearly 30 percent since the beginning of the year.

SHARE ACTION: Michael Kors Holdings Ltd. jumped nearly 3 percent to $65.69 by midday Thursday. Its stock hit as high as $66.11 earlier in the day, an all-time trading high. The value of its shares has more than tripled since its initial public offering.