Michael Kors Holdings Limited (KORS), a global luxury lifestyle company, came out with third-quarter fiscal 2015 results, wherein earnings of $1.48 per share beat the Zacks Consensus Estimate of $1.34, and surged 33.3% from the prior-year quarter driven by compelling fashion assortments and strong holiday season performance.
Management now projects fourth quarter earnings in the range of 89 cents to 92 cents a share, which falls short of the current Zacks Consensus Estimate of 93 cents.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2015 has been portraying a downtrend in the last 30 days. However, if we look at Michael Kors performance in the trailing four quarters, it gives a decent picture. In the trailing four quarters (including the quarter under review), the company outperformed the Zacks Consensus Estimate by an average of 12.8%.
The company had posted positive earnings surprises of 12.4% and 13.6% in the first and second quarters of fiscal 2015, respectively.
Revenues: Michael Kors generated total revenue of $1,314.7 million that increased 29.9% year over year, and also came ahead of the Zacks Consensus Estimate of $1,302 million. The company also highlighted that E-commerce sales surged 73% in the quarter.
Management now forecasts fourth quarter total revenue in the range of $1.05 billion to $1.08 billion.
Key Events: Michael Kors repurchased 5,068,813 shares for approximately $399.9 million.
Zacks Rank: Currently, Michael Kors carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
Stock Movement: Michael Kors’ shares are down nearly 10.3% during pre-market trading hours following the earnings release. Clearly, a negative sentiment is palpable among investors following the company’s weaker-than-expected fourth quarter outlook.
Check back later for our full write up on Michael Kors’ earnings report!
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