• Q2 earnings climb to US$207m
  • Gross margin widens to 61%
  • Sales increased 42.7% to $1.1bn
Michael Kors saw its earnings climb in Q2

Michael Kors saw its earnings climb in Q2

Luxury lifestyle business Michael Kors Holdings booked an increase in second-quarter earnings and sales, but its share price fell in early trading as its third-quarter forecast was below analyst estimates.

In the six months ended 27 September, earnings climbed to US$207m from $145.8m in the prior year period. Gross margin widened to 61% compared to 60.8% in the second quarter of fiscal 2014.

Total revenue increased 42.7% to $1.1bn from $740.3m a year earlier, while retail net sales were up 39.4% to $495.6m, driven by 121 store openings and a 16.4% increase in comparable store sales.

"Our strong second-quarter results reflect our fashion leadership, aspirational product offering and jet-set luxury image that continue to resonate with customers globally," said CEO John Idol. "Once again, we delivered exceptional performance with both revenue and earnings per share growth in excess of 40%. This ongoing momentum reflects strength across our operating segments and geographies as we continue to expand our presence globally."

Shares, however, were down 6.6% in pre-market trading after the retailer forecast earnings of $1.31 to $1.34 per share on revenue of $1.27bn to $1.30bn for the third quarter ending December. Reuters analysts on average were expecting earnings of $1.34 per share on revenue of $1.30bn.