US: Michael Kors lifts outlook on Q1 profit growth
- Profit soars 82% to US$125m versus $68.6m
- Revenue jumped 54.5% to $640.9m from $414.9m
- Gross margin improved to 62% versus 60.5%
Luxury clothing business Michael Kors Holdings raised its full-year outlook after nearly doubling its profit during the first quarter, boosted by strong demand for its namesake brand.
The Hong Kong-based company said retail sales jumped 51.5% to $325.7m, while comparable store sales increased 27.3%. Wholesale sales were up 59.3% to $290.6m and licensing revenue increased 40.7% to $24.6m.
Commenting on the results, chairman and CEO John Idol said: "Our exceptional first quarter financial results demonstrate the sustained strong demand for the Michael Kors luxury brand.
"We attribute the ongoing momentum to our fashion design leadership combined with an aspirational jet-set luxury in-store experience. As we continue to successfully execute on our strategic initiatives, we remain excited about our future growth potential."
The company now expects full-year revenue to be $2.8bn-2.9bn assuming a comparable store sales increase of 20%, compared to its previous guidance of $2.65-2.75bn. Earnings per share are expected to range from $2.67 to $2.69, compared to earlier forecasts of $2.43-2.47.
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