Michael Kors 4th-quarter profits more than double

Michael Kors' 4th-quarter profits more than double, capping a strong year

Associated Press

NEW YORK (AP) -- Michael Kors Holdings Ltd. reported that its profit more than doubled on surging sales in the fourth quarter, capping another strong year for the upscale handbag and clothing maker.

The Hong Kong-based company also offered a solid outlook.

Michael Kors reported Wednesday that net income was $101.1 million, or 50 cents per share, in the three-month period ended March 30. That compares with $43.6 million, or 22 cents per share, in the year-ago period.

Revenue surged 57 percent to $597.1 million from $380 million a year ago.

Revenue at stores open at least a year rose 40.1 percent. The metric is a key indicator of a retailer's health because it excludes results from stores recently opened and closed

Analysts had expected earnings of 39 cents per share on revenue of $556.0 million, according to FactSet.

For the year ended March 30, net income nearly tripled to $397.6 million, or $1.97 per share. That compares with $147.4 million, or 78 cents per share, a year ago. Revenue rose 67 percent to $2.18 billion for the year from $1.3 billion.

"Fiscal 2013 was another outstanding year for Michael Kors with continued momentum into the fourth quarter reflecting advances on our key growth strategies," said John D. Idol, company's chairman and CEO in a statement. "Our jet set luxury accessories and ready to wear are resonating with consumers worldwide and we are excited by our prospects for future growth."

Sales at stores opened at least a year surged 35 percent in North America. The measure is considered a key indicator of a retailer's health because it excludes results from stores recently opened or closed.

Sales in the company's North American's wholesale segment increased 57 percent, while in Europe, sales nearly doubled during the quarter.

In the company's licensing segment, revenue increased 16 percent, fueled primarily by the ongoing strength in watches and eyewear.

For the current quarter, Michael Kors expects total revenue to be in the range of $555 million to $565 million. That assumes an increase in revenue at stores opened at least a year to rise 20 percent. The company expects earnings per share to be in the range of 46 cents to 48 cents.

Analysts forecast 47 cents per share on revenue of $564.6 million, according to FactSet.

For the full year, Michael Kors expects total revenue to be anywhere from $2.65 billion to $2.75 billion. That assumes an increase in revenue at stores opened at least a year to rise 15 percent to 20 percent. Earnings per share is expected to be in the range of $2.43 per share to $2.47 per share.

Analysts expect $2.42 per share on revenue of $2.8 billion.

Shares rose 97 cents to $62.95 in midday trading. The stock has changed hands between $35.50 and $65.10 in the past 52 weeks, and is up about 24 percent since the start of the year.

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