What to Expect When Michael Kors (KORS) Reports Earnings Tomorrow

NEW YORK (TheStreet) -- Luxury goods retailer Michael Kors (KORS) is scheduled to report its fiscal 2015 fourth quarter earnings results before the market open on Wednesday morning. Analysts are expecting the company to post a year-over-year increase in earnings and revenue for the most recent quarter.

Michael Kors has been forecast to report earnings of 91 cents per share on revenue of $1.09 billion for the 2015 fourth quarter.

Last year, the company said it earned 78 cents per diluted share on revenue of $917.5 million for the fiscal 2014 fourth quarter. Both figures grew by more than 50% when compared to the 2013 fourth quarter.

Michael Kors is a retailer of high end products including handbags, accessories, shoes, apparel, and jewelry.

Shares of Michael Kors are lower by 0.41% to $61.38 at the start of trading on Tuesday. 

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 a few notable strengths, 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, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel its 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 11.0%. Since the same quarter one year prior, revenues rose by 29.9%. 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 3.64, which clearly demonstrates the ability to cover short-term cash needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, MICHAEL KORS HOLDINGS LTD's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • MICHAEL KORS HOLDINGS LTD has improved earnings per share by 33.3% 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 ($4.30 versus $3.21).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Textiles, Apparel & Luxury Goods industry average. The net income increased by 32.2% when compared to the same quarter one year prior, rising from $229.64 million to $303.68 million.
  • You can view the full analysis from the report here: KORS Ratings Report

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