Michael Kors beats by $0.25, beats on revs; guides Q4 EPS in-line, revs above consensus; guides FY14 EPS above consensus, revs above consensus
Reports Q3 (Dec) earnings of $1.11 per share, $0.25 better than the Capital IQ Consensus Estimate of $0.86; revenues rose 57.0% year/year to $1 bln vs the $0.86 bln consensus. Comparable stores sales increased 28%.
Retail net sales increased 50.0% to $1.2 billion.
Wholesale net sales increased 51.7% to $1.1 billion and licensing revenue increased 56.1% to $104.9 million.
Licensing segment, revenue increased 59%, with continued demand in watches and eyewear.
Gross profit for the first nine months increased 54.3% to $1.5 billion, and as a percentage of total revenue increased to 61.3% as compared to 60.0% in the same period of fiscal 2013.
Region
Revenue in North America grew 51% and comparable store sales increased 24%, with performance driven primarily by accessories and watch offerings.
In Europe, revenue grew 144% in the third quarter, with exceptional comparable store sales growth of 73%, driven by growing brand awareness and demand across regions.
Guidance
Co issues mixed guidance for Q4, sees EPS of 0.63-0.65 vs. $0.65 Capital IQ Consensus Estimate; sees Q4 revs of $790-800 mln vs. $786.49 mln Capital IQ Consensus Estimate. Co issues upside guidance for FY14, sees EPS of $3.07-3.09 vs. $2.83 Capital IQ Consensus Estimate; sees FY14 revs of $3.18-3.19 bln vs. $3.03 bln Capital IQ Consensus Estimate.