This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Michael Kors Bucks Retail Trend

Stocks in this article: KORS RL COH

NEW YORK ( TheStreet) -- Earnings results from Michael Kors (KORS) 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) 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.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs