NEW YORK (TheStreet) -- Michael Kors Holdings Ltd. (KORS) is scheduled to release its fiscal 2015 second quarter earnings results before the market open on Tuesday. Analysts are expecting the designer clothing, shoes, handbag, and accessories retailer to post an increase in earnings and revenue for the most recent quarter.
Shares of Michael Kors are up by 0.20% to $78.75 in late morning trading on Monday.
Analysts polled by FactSet are anticipating a rise in earnings per share for the fiscal 2015 second quarter of 89 cents per share, compared to EPS of 71 cents for the fiscal 2014 second quarter.
Michael Kors is expected to post revenue of $978.3 million for the latest quarter, compared to $740.3 million for the same period last year.
Separately, TheStreet Ratings team rates MICHAEL KORS HOLDINGS LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICHAEL KORS HOLDINGS LTD (KORS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 14.7%. Since the same quarter one year prior, revenues rose by 43.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- KORS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.20, which clearly demonstrates the ability to cover short-term cash needs.
- MICHAEL KORS HOLDINGS LTD has improved earnings per share by 49.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MICHAEL KORS HOLDINGS LTD increased its bottom line by earning $3.21 versus $1.97 in the prior year. This year, the market expects an improvement in earnings ($4.06 versus $3.21).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 50.2% when compared to the same quarter one year prior, rising from $125.00 million to $187.72 million.
- The gross profit margin for MICHAEL KORS HOLDINGS LTD is rather high; currently it is at 62.19%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.42% is above that of the industry average.
- You can view the full analysis from the report here: KORS Ratings Report