Michael Kors Holdings Limited (KORS), a global luxury lifestyle company, came out with first-quarter fiscal 2016 results, wherein earnings of 87 cents per share beat the Zacks Consensus Estimate of 75 cents, and surged from 91 cents in the prior-year quarter.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 has been portraying a downtrend in the last 30 days. In the trailing four quarters (including the quarter under review), the company outperformed the Zacks Consensus Estimate by an average of 10%.
Revenues: Michael Kors generated net sales of $947.3 million that increased 6.8% year over year, and also came ahead of the Zacks Consensus Estimate of $943 million. Including licensing revenues, total revenue came in at $986 million, up 7.3% year over year.
Outlook: Management now projects second-quarter fiscal 2016 earnings in the range of 86 cents to 90 cents a share. The Zacks Consensus Estimate for the second-quarter is currently pegged at 95 cents and can witness downward revisions. Further, the company anticipates total revenue in the second quarter to be in the range of $1.06 billion to $1.08 billion.
For fiscal 2016, Michael Kors expects earnings in the range of $4.40 to $4.50 a share. The Zacks Consensus Estimate for fiscal 2016 currently stands at $4.23 per share and can witness an upward revision. Moreover, fiscal 2016 revenue is expected to be in the range of $4.7 billion to $4.8 billion.
Key Events: Michael Kors repurchased 6,960,352 shares for approximately $350 million.
Zacks Rank: Currently, Michael Kors carries a Zacks Rank #4 (Sell) which is subject to change following the earnings announcement.
Stock Movement: Michael Kors’ shares are up nearly 10.3% during pre-market trading hours following the earnings release. Clearly, a positive sentiment is palpable among investors following the company’s better-than-expected first-quarter fiscal 2016 results and an upbeat fiscal 2016 outlook.
Check back later for our full write up on Michael Kors’ earnings report!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment