Michael Kors Holdings Limited KORS, a global luxury lifestyle company, came out with fourth-quarter fiscal 2016 results, wherein earnings of 98 cents a share beat the Zacks Consensus Estimate by a couple of cents, and surged from 90 cents in the prior-year quarter.
Management now projects adjusted earnings in the range of 70 cents to 74 cents a share for the first quarter and between $4.56 and $4.64 for fiscal 2017.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2017 has been portraying a downtrend over the past 7 days. In the trailing four quarters (excluding the quarter under review), the company outperformed the Zacks Consensus Estimate by an average of 9.6%.
Revenues: Michael Kors generated total revenue of $1,198.7 million that increased 10.9% year over year, and also came ahead of the Zacks Consensus Estimate of $1,150 million. On a constant currency basis, total revenue surged 11.7%.
Management now forecasts first-quarter fiscal 2017 total revenue in the range of $940 million to $950 million. For fiscal 2017, management anticipates total revenue to be flat compared with the prior year.
Key Events: During the quarter under review, Michael Kors repurchased 3,690,685 shares for approximately $200 million. The company's Board of Directors authorized a new $1 billion share buyback program. The company completed the buyout of Michael Kors (HK) Limited, the exclusive licensee in China and certain other jurisdictions in Asia, for $500 million in cash.
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 10% during pre-market trading hours following the earnings release.
Check back later for our full write up on Michael Kors’ earnings report!
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