The luxury apparel and accessory designer earned 34 cents a share on net income of $68.6 million during the first quarter of 2013 -- a 162% year-over-year climb -- and revenue of $414.9 million -- a 71% year-over-year increase. The recent quarterly performance of rivals Ralph Lauren (RL) and Coach (COH) pale in comparison. Wall Street analysts were expecting Michael Kors to generate earnings of 20 cents a share and sales of $368.3 million for the three months ending in June.
Despite rivals citing economic weakness in Europe, Michael Kors is reaping the benefits of its strong brand recognition amongst affluent consumers. The company's revenue increased 110% to $33 million in the region, with same-store-sales rising 24%.
"Michael Kors is established as a desirable jet-set brand, and we believe that we are taking market share in the European accessories, footwear, watch and apparel markets as our brand awareness rises," explained Michael Kors CEO John Idol during a conference call with investors on Tuesday.Idol added that, while Michael Kors maintains a close watch on the European retail environment, it has not seen an impact on its operations. "We are uniquely positioned to build a Pan-European accessible luxury accessory business," he said. Japan saw an even greater increase, with revenue climbing 190% to $4 million, with comparable store sales of 21%. Michael Kors opened its first stores in the country earlier this year. Bucking the Trend Although competitor Ralph Lauren's domestic business remains strong, analysts noted that international performance was disappointing during its fiscal first quarter. Credit Suisse analyst Christian Buss maintained his "outperform" rating of the stock, but reduced his price target from $195 to $175. The iconic American designer, who created Team USA's uniforms for the 2012 Summer Olympics, reported a net income of $193 million, or $2.03 per diluted share, on $1.6 billion of revenue for the first quarter of 2013.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV