This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Michael Kors Bucks Retail Trend

NEW YORK ( TheStreet) -- Earnings results from Michael Kors (KORS - Get Report) showed the European luxury consumer still has plenty of money to spend.

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 - Get Report) and Coach (COH - Get Report) 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.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
COH $40.42 -0.71%
KORS $51.31 -2.14%
RL $93.05 -1.57%
AAPL $94.19 -1.04%
FB $118.06 0.54%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs