Michael Kors Beats on Both Profit and Revenue

NEW YORK ( TheStreet) -- Fashion accessory retailer Michael Kors ( KORS) surprised Wall Street on Wednesday by beating earnings estimates on both the top- and bottom-line.

The Hong Kong-based company posted net income of $101.1 million, or 50 cents a share in its fourth quarter, which ended on March 30. Earnings per share more than doubled from the prior year's quarter. Revenue jumped 57% to $597.2 million.

Analysts were calling for the retailer to post earnings of 39 cents a share in the quarter on revenue of $546 million.

Shares were rising 3.5% to $64.16 before the markets opened on Wednesday.

"Fiscal 2013 was another outstanding year for Michael Kors with continued momentum into the fourth quarter reflecting advances on our key growth strategies. Our jet-set luxury accessories and ready to wear are resonating with consumers worldwide and we are excited by our prospects for future growth," Chairman and CEO John D. Idol said in a statement.

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The company's retail net sales increased 59% to $272.7 million, fueled by a 36.7% increase in comparable-store sales. Michael Kors said it opened 67 new stores in its fiscal 2013 year.

The company ended its fiscal year operating 304 retail stores, including concessions, with an additional 96 stores operated through licensing partners.

Wholesale net sales jumped 59% to $304.7 million, while licensing revenue increased 16% to $19.8 million.

"Our robust fourth-quarter results were driven by continued strength across all of our business segments and geographies. North American comparable store sales increased 35%, reflecting the increasing demand for our luxury brand, our exciting product assortment and our exceptional jet-set in-store experience," Idol said.

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"Sales in our North America wholesale segment increased 57%, reflecting comparable store sales growth as well as the continued conversion to shop-in-shops in department stores. In Europe, sales nearly doubled during the quarter, with continued expansion of brand awareness leading to 63% comparable store sales growth," he continued.

"Finally, in our licensing segment, revenue increased 16%, driven primarily by the ongoing strength in watches and eyewear," Idol said. "Overall, we believe that the Michael Kors luxury brand is ideally positioned within the global luxury lifestyle market and we look forward to continuing to advance on our long-term objectives in fiscal 2014 and beyond."

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