Michael Kors shares surge on earnings beat
Investing.com - Michael Kors Holdings Limited's (NYSE:KORS) shares soared on Tuesday, boosted by the company’s latest quarterly results which beat analysts expectations on both the top and bottom line.
Michael Kors earned 80 cents per share on revenue of $952.4 million in its fiscal first quarter. While the results were below the year-earlier result, they topped analyst expectations. Analysts were looking for earnings of 62 cents er share on revenue of $918.6 million.
The company also raised its full-year outlook, saying that its turnaround efforts were working."We are encouraged by our first quarter performance, although we continue to believe that fiscal 2018 will be a transition year for our company, as we focus on laying the foundation for the future by executing on our strategic plan," CEO John Idol said in a statement.
Not including results from Jimmy Choo, Kors raised its annual revenue forecast to $4.28 billion, up from its previous forecast for $4.25 billion.
Earlier this summer, Kors announced that it would acquire shoemaker Jimmy Choo in a deal valued at $1.2 billion. Once the Jimmy Choo deal is finalized, revenue will be about $275 million for the second half of fiscal 2018.
Michael Kors shares were recently up 22% at $45.42. Today's rally has put Kors stock in the black for the year, up over 5%.
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