Michael Kors (KORS) Beats on Q2 Earnings, Stock Up

Zacks

Michael Kors Holdings Limited KORS, a global luxury lifestyle company, came out with second-quarter fiscal 2016 results, wherein earnings of $1.01 per share beat the Zacks Consensus Estimate of 89 cents, and also increased marginally from $1.00 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 (excluding the quarter under review), the company outperformed the Zacks Consensus Estimate by an average of 10%.

Revenues: Michael Kors generated total revenue of $1,130 million that increased 7.6% year over year, and also came ahead of the Zacks Consensus Estimate of $1,073 million.

Outlook: Management now projects third-quarter fiscal 2016 earnings in the range of $1.44 to $1.48 a share. The Zacks Consensus Estimate for the third-quarter is currently pegged at $1.54 and can witness downward revisions. Further, the company anticipates total revenue in the third quarter to be in the range of $1.33 billion to $1.35 billion.

For fiscal 2016, Michael Kors expects earnings in the range of $4.38 to $4.42 a share. The Zacks Consensus Estimate for fiscal 2016 currently stands at $4.32 per share and can witness an upward revision. Moreover, fiscal 2016 revenue is expected to be in the range of $4.60 billion to $4.65 billion.

Key Events: Michael Kors repurchased 9,424,385 shares for approximately $400 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 up nearly 6.2% during pre-market trading hours following the earnings release. Clearly, a positive sentiment is palpable among investors following the company’s better-than-expected second-quarter fiscal 2016 results.

Check back later for our full write up on Michael Kors’ earnings report!

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