On the surface Michael Kors Holdings posted a stunning quarter.
The luxury fashion brand reported $919.2 million in first quarter 2015 revenue Monday, up 43.4% from the same period a year ago. Net income was $187.7 million, up 50%, and earnings per share were 91 cents, 10 cents ahead of Wall Street analysts’ consensus estimate.
Need more? Same store sales grew 24.2% while the company opened 115 net new stores over the quarter and brought in a stylish $32.1 million in licensing revenue. The American brand also saw significant international growth with revenue from Europe alone gaining 128%.
Founder Michael Kors – who owns about 2.2% or 4.5 million shares of the company — became a billionaire in February when stock his namesake company soared thanks to killer third quarter 2014 result. His fortune grew as shares briefly crossed the $100 mark later that month, but since May the stock is down around 12%. On Monday morning Kors’ fortune stood around $940 million.
The company’s short term outlook seems to be the culprit of the latest decline. Kors Holdings expects revenue for the second quarter to be $950 million and $960 million with a same store sales increase in the high teens. The rub may be the company’s forecast for diluted earnings per share in the range of 85 cents to 87 cents versus the Street’s call for 89 cents.
For the full year the company anticipates revenue between $4.25 billion to $4.35 billion and earnings per share from $4 to $4.05. If realized this would be above the Streets’ current estimate of $3.96. Kors Holdings previously issued full-year earnings guidance of $3.85 to $3.91 per share on revenue of $4 billion to $4.1 billion.
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