Michael Kors swings higher premarket after third quarter beats market expectations

Michael Kors Holdings Ltd.(NYSE:KORS) saw its shares rise in premarket trading after it unveiled market-beating third quarter results, which included the newly acquired Jimmy Choo brand.

In a statement, the clothing and accessories brand said in the quarter, net income came in at US$219.4mln or US$1.42 per share, down from the US$271.3mln, or US$1.64 per share, recorded in the year-ago period.

READ: Michael Kors up premarket after second quarter and company ups 2018 guidance

Adjusted EPS was US$1.77.

Revenue during the period shot up to US$1.44bn from US$1.35bn the year before, beating market’s consensus for EPS of US$1.29 and sales of US$1.38bn.

The results included two months of luxury brand Jimmy Choo which the company had bought.

Same-store sales for Michael Kors’ MK Retail however eased 3.2%.

John D. Idol, Chairman and Chief Executive Officer, said the results “delivered better than expected results and saw the successful integration of Jimmy Choo into our luxury group.”

READ: US handbag maker Michael Kors buys UK shoemaker Jimmy Choo for US$1.2bn

“At Jimmy Choo, we continued to deliver glamorous luxury product and engaging brand communications, which helped drive revenue during the quarter.”

Michael Kors is guiding fourth-quarter revenue at between US$1.11bn and US$1.13bn, which is below the market consensus for US$1.14bn.

Same-store sales is expected to fall to low-single digits.

The affordable luxury products maker, also expects EPS to be in the range of 50 US cents to 55 US cents, again below market consensus for 59 US cents.

Story by ProactiveInvestors