Michael Kors Holdings Ltd (KORS) continued its rebound Wednesday, Feb. 7, beating Wall Street forecasts for its third-quarter earnings, reporting an adjusted earnings per share of $1.77, an increase of nearly 8% from the previous year. The projection for EPS was $1.29, according to Factset.
The pursemaker also exceeded the anticipated revenue of $1.38 billion, according to Factset, instead, posting $1.44 billion in total revenue for the quarter ending on Dec. 31, 2017. Its net income came in at $219.4 million, compared with $271.3 million in the same period last year.
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Same-store sales, however, fell 3.2% for Michael Kors' MK Retail. The quarter marked progress on the Michael Kors Runway 2020 strategic plan by raising the brand's profile through luxury offerings, the company said Wednesday. Its wholesale revenue decreased 8.9% year over year, driven by "a strategic reduction in inventory levels."
The designer announced in 2016 that it would begin to pull back on wholesale inventory to avoid the deep discounts on its goods at department stores such as Macy's Inc. (M) - Get Free Report and Nordstrom Inc. (JWN) - Get Free Report , which had hurt the brand.
"The Michael Kors brand continued to make progress on Runway 2020 initiatives across product innovation, brand engagement and customer experience," CEO John Idol said in a statement. "Our innovative fashion luxury product offerings for the holiday season created excitement among consumers."
The company completed its acquisition of high-end shoemaker Jimmy Choo in November, which means that it owned the stiletto brand for two months of the quarter. Of the $1.44 billion in total revenue, Jimmy Choo contributed $114.7 million.
Combined, there are more than 1,200 Michael Kors and Jimmy Choo stores worldwide. Michael Kors shares were up 1% at close, trading at $66.11.