Michael Kors beats by $0.10, beats on revs; guides Q2 EPS below consensus, revs below consensus; raises FY15 EPS above consensus, revs above consensus; Q1 comps +24.2% (81.83)
Reports Q1 (Jun) earnings of $0.91 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.81; revenues rose 43.9% year/year to $887 mln vs the $851.31 mln consensus.
- Co issues downside guidance for Q2, sees EPS of $0.85-0.87 vs. $0.89 Capital IQ Consensus Estimate; sees Q2 revs of $950-960 mln vs. $960.58 mln Capital IQ Consensus Estimate.
- Co issues raised guidance for FY15, sees EPS of $4.00-4.05 from $3.85-3.91 vs. $3.96 Capital IQ Consensus Estimate; raises FY15 revs to $4.25-4.35 bln from $4.04-4.1 bln vs. $4.2 bln Capital IQ Consensus Estimate.
- KORS reported Q1 comps of +24.2% versus Street expectations of just over 20%.
- Gross profit increased 43.9% to $571.6 million, and as a percentage of total revenue increased to 62.2% compared to 62.0% in the first quarter of fiscal 2014.
- "We saw continued strength across our retail, wholesale, and licensing segments, as well as in both the North American and International markets during the first quarter. In North America, revenue increased 30%, with comparable store sales growth of 18.7%. In addition, the 30% growth in our North American wholesale segment reflects ongoing momentum in our brand as well as the continued benefit from our shop-in-shop conversions. In Europe, we were extremely pleased with our revenue growth of 128%, which was driven by a comparable store sales increase of 54.2%, as well as strength in our wholesale business. Lastly, revenue in Japan increased 89%, driven by comparable store sales growth of 48.8%. We remain extremely excited about our future growth potential as we continue to solidify Michael Kors' position as a leading global luxury lifestyle brand."