Michael Kors beats by $0.11, beats on revs; guides Q3 EPS/rev in-line, comps below; guides FY15 EPS above consensus, revs in-line, lowers comp guidance; announces $1 bln share repurchase (77.99)
Reports Q2 (Sep) earnings of $1.00 per share, $0.11 better than the Capital IQ Consensus Estimate of $0.89; revenues rose 42.6% year/year to $1.06 bln vs the $0.98 bln consensus.
- Retail net sales increased 39.4% to $495.6 million driven by 121 net new store openings since the end of the second quarter of fiscal 2014 and a 16.4% increase in comparable store sales. Wholesale net sales increased 46.1% to $514.1 million and licensing revenue increased 42.8% to $46.9 million.
- Gross profit increased 43.4% to $645.0 million, and as a percentage of total revenue increased to 61.0% compared to 60.8% in the second quarter of fiscal 2014.
- The Company's Board of Directors has authorized a $1 billion share repurchase program.
- Co issues in-line guidance for Q3, sees EPS of $1.31-1.34, excluding non-recurring items, vs. $1.32 Capital IQ Consensus Estimate; sees Q3 revs of $1.27-1.30 bln vs. $1.29 bln Capital IQ Consensus, with low double digit comp increase vs. +16.7% ests.
- Co issues guidance for FY15, sees EPS of $4.13-4.18, excluding non-recurring items, vs. $4.05 Capital IQ Consensus Estimate; sees FY15 revs of $4.3-4.4 bln vs. $4.37 bln Capital IQ Consensus; lowers FY15 comp guidance to mid teens from high teens.