Homepage / Investment / Michael Kors' profit tumbles but tops Street estimates, sending shares soaring
Как Стать Стримером Казино%3F Что для Этого Нужно%3 Best Game Software How to Design Engaging and Effective Educational Events Winline Делает Разницу! Букмекерская Контора Winline Онлайн Ставки На Спорт Making Corporate Travel Arrangements Business Virtual Data Room Stock Market Tips For Beginners What to Look for in a VDR Provider Why You Need a Secure Data Room Learning in the Digital Age How to Apply For Business Loans VDR and Document Management Performance Management and HR Outsourcing Modern Business Integration How to Choose the Right Board Portal Software for Your Company How to Choose a Data Storage Room Why Startups Use a Data Room for Investors The Best Web Tools for Designers Use Cases For Using VDR Documents Subsidy Programs and Financing Innovative Technologies for Audit What Is Real Estate Management? Investment and Funds Inspiring Teaching Books What Are the Benefits of a Virtual Data Room? Startups and Business Ideas How to Improve Virtual Board Communication The Lego Company History Investing in the Biotech Industry Financial Startup Basics Jogue Por Dinheiro Actual Em Cassino Onlin Virtual Communication Methods for Remote Leaders How to Choose the Best VDR Providers How Successful Online Businesses Succeed How Business Experts Fuel Innovation and Create Competitive Edge The IT World and Business Deal Making Software and How it Can Help Your Business Virtual Data Room Software Types of Steel Materials and Their Uses Board of Directors Software Bonver Casino Cz Hrací Automaty S Bonusem Zdarm Magazyn Żużel Speedway W Polsce I Na Świeci What Is Logistics School? What Is the VDR for Acquisition? The Best Data Room Apps For Startups Best Practices for Creating an Effective Board Meeting Agenda How to Choose the Best Shareholders Online Platforms Ostdeutsche Biersorten Getting a Construction Management Degree How to Select an Online Data Room Provider Start Your Blog Without Investment What to Look for in a Board Room Provider Data Room Comparison – Which Data Room Is Right For Your Business? Zakłady Sportowe Online Autógrafo Bukmacherska 1xbe “Pin-up O Melhor Cassino Do Brasil Web Site Oficial ᐈ Jogar Caça-níquei Rotating Events in Our Time How to Choose the Best Business Software Choosing an Online Payment Processor Due Diligence Software Virtual Data Room Providers for M&A Due Diligence The Best Online Data Room Benefits of a Due Diligence Data Room Best Practices for Data Rooms Types of Corporate Governance What Is Virtual Data Storage? Benefits of Document Distribution Software The Benefits of a Data Room for Startups Effective Project Management Requires a Mix of Technical and People Skills Top 5 Free File Sharing Services Zakłady Sportowe Online Obstawiaj U Bukmachera Gg Be Speed Up Your Business Valuation With a Data Room How to Choose the Best Board Management Software for Business How to Write Effective Board Decision Papers Choosing Board Meeting Software The Benefits of Document Distribution Software Why Startups Need a VDR for Start-Up Virtual Data Room for Ipos and the IPO Process What is a Board Portal? What Industries Use Virtual Data Room? Advantages of a Data Room What Does a Board Room Provider Do? Data Room Analysis for Venture Capital Funding The Importance of Board Reporting Software Safe Uploading and Downloading Business Files How to Select the Best Board Management Software How to Organize the Work of a Company “gerçek Parayla En Iyi Slot Makineleri Ve Spor Bahisler Which is the Best Podcast For Stock Market Beginners? Virtual Data Room Facts How to Protect Confidential Documents for Boards Advantages of Online Meetings Business Issues to Consider When Choosing a Data Room Provider What Is a Data Room? Virtual Board Room Software Due Diligence Risk Factors How to Choose a Reliable Tool for Data Exchange test Users535352253 Board Software and VDR Programs Business Operations Management Software


Michael Kors' profit tumbles but tops Street estimates, sending shares soaring

In the wake of announcing a major acquisition, stronger comparable sales results in North America and Europe helped fuel Michael Kors‘ profit and revenue to top Street expectations in its fiscal first quarter.

Michael Kors said Tuesday that its net income attributable to the company dropped 15 percent to $125.5 million, or 80 cents per share, from $147.1 million, or 83 cents a share, a year ago. Last year’s figure included one-time costs related to the acquisition of a Greater China licensee. Excluding that charge, Kors had earned 90 cents a share.

While its profits fell, Tuesday’s results outpaced both the company’s and analysts’ expectations. According to Thomson Reuters, analysts on average were predicting Kors would earn 62 cents per share. That was also the midpoint of the company’s own forecast range.

“The numbers are something of a step forward,” GlobalData Retail Managing Director Neil Saunders wrote in an email to clients.

“While the numbers may strengthen [from here], the rest of this fiscal year will essentially be one of rebuilding and refining the brand, as well as closing further excess capacity and investing in channels and stores that have the best forward potential.”

Total revenue for the first quarter came in at $952.4 million, again topping analysts’ estimates for sales of $918.6 million, according to Thomson Reuters. But this was another drop — by 3.6 percent — from last year.

The drop in revenue wasn’t a surprise, Saunders added, but it’s more of a “necessary evil” as Kors gets out of retailers that no longer fit the brand’s fresh strategy. “Reducing ubiquity comes with a price attached.”

Michael Kors’ same-store sales dropped 5.9 percent during the period, coming in better than expected. Analysts surveyed by FactSet had predicted a decline of 9 percent.

Shares of Michael Kors climbed more than 14 percent higher on the news in premarket hours.

“This trend of beating expectations is likely to continue as the top line appears on a path of improvement from here,” Jefferies analyst Randal Konik wrote in a note to clients, saying the “turn [is] taking place.”

Investors appear to be rallying behind the fashion company as it shows early signs that its turnaround efforts are paying off sooner rather than later. Michael Kors raised its sales outlook for the full year.

“We are encouraged by our first quarter performance, although we continue to believe that fiscal 2018 will be a transition year for our company, as we focus on laying the foundation for the future by executing on our strategic plan,” CEO John Idol said in a statement, reiterating his goals of returning to profit growth.

“In addition, we are pleased to have recently announced plans to form a global fashion luxury group,” Idol added.

Earlier this summer, Michael Kors revealed plans to buy London-based shoemaker Jimmy Choo in a deal valued at $1.2 billion.

“This will not be [Michael Kors’] last acquisition,” CEO Idol told CNBC in a phone interview shortly after the acquisition was announced.

Idol has reiterated time and again that Michael Kors is focused on forming a “luxury group.” On Tuesday, he added that a more diverse portfolio will play well as the retailer looks to increase exposure in international markets.

Meantime, Michael Kors has seen its same-store sales drop in recent quarters, with fewer shoppers flocking to brick-and-mortar department stores to ring up big purchases. Additionally, the retailer’s core handbag business has slowed, with competitors rolling out heavier discounts and promotions, enticing women to shop for bargains.

Pressure really hit the retailer in May, when rival Coach agreed to buy Kate Spade in a deal valued at $2.4 billion.

On Tuesday, Michael Kors said that its outlook for the full year doesn’t include any expectations related to acquiring Jimmy Choo, as the deal between the two has yet to be completed. Once finalized, incremental revenue is expected to be about $275 million for the second half of fiscal 2018. And in fiscal 2019, Michael Kors said it expects incremental revenues of $570 million to $580 million.

Not including results from Jimmy Choo, the handbag maker has raised its annual revenue forecast, putting total sales estimates at about $4.28 billion and calling for comparable sales to only decrease in the mid-single digits range. It previously expected sales of $4.25 billion.

“Management guided to both better top and bottom-line metrics for next quarter and the fiscal year, which is key as the market has been afraid of more guidance cuts,” Konik said. “That’s simply not happening.”

Konik added that the “strategic direction is positive” for Kors from here on out.

As of Monday’s close, Michael Kors’ stock has dropped about 26 percent over the past 12 months, and shares are down near 13 percent in 2017. In recent weeks, the stock has made somewhat of a comeback, inching up 3.3 percent over the past month.

Source: FactSet

Source: Investment Cnbc
Michael Kors' profit tumbles but tops Street estimates, sending shares soaring

Comments are closed.