NEW YORK (AP) — Shares of Michael Kors Holdings climbed more than 4 percent in premarket trading on Friday as the company increased its profit forecast for the current quarter and year.
On Thursday Michael Kors Holdings Ltd., the namesake company of the famed U.S. designer, said that it expects to earn 38 to 40 cents per share for its second quarter. Its prior guidance was for 33 to 35 cents per share. The company, which went public in December, anticipates revenue will be in the range of $510 million to $520 million.
That exceeds the 36 cents per share and the revenue of $492.4 million that analysts polled by FactSet anticipate.
Michael Kors also said that it expects to earn $1.39 to $1.41 per share for its full fiscal year, which ends in March, compared with its previous outlook of $1.32 to $1.34 per share. It forecast annual revenue in the range of $1.85 billion to $1.95 billion.
Wall Street expects earnings of $1.37 per share for the year on revenue of $1.95 billion.
Oliver Chen of Citi Investment Research lifted Michael Kors' price target to $68 from $65 and maintained a "Buy" rating.
The analyst says the company has yet to saturate the market with its retail stores and anticipates that the company may also be able to grow its European revenue to $500 million from $109 million.
The company's stock added $2.21, or 4.2 percent, to $54.70 before the market open. Its 52-week high in regular trading is $56.70 set in early September.
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