Michael Kors Q3 Results Beat Estimates; Lifts FY14 Forecast - Quick Facts

(RTTNews) - Michael Kors Holdings Limited (KORS), a luxury lifestyle brand, reported Tuesday a surge in third-quarter profit boosted by significant growth in comparable store sales as well as wholesale sales. Earnings per share and revenues topped analysts' estimates. Further, the company provided forecast for the fourth quarter, and lifted its forecast for fiscal 2014.

In pre-market activity, Michael Kors shares gained $11.63 or 15.17 percent, and traded at $88.30.

For the third quarter, net income was $229.64 million or $1.11 per share, compared to last year's $130.03 million or $0.64 per share. On average, 22 analysts polled by Thomson Reuters expected earnings of $0.86 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue surged 59 percent to $1.01 billion from $636.78 million last year. Analysts expected revenues of $859.94 million. Net sales grew to $964.79 million from $606.94 million a year ago.

Retail net sales increased 51.3 percent driven by a 27.8 percent increase in comparable store sales and 98 net new store openings. Wholesale net sales increased 68.2 percent and licensing revenue increased 59 percent.

Chairman and Chief Executive Officer John Idol said the company enjoyed an outstanding holiday season, as global brand awareness continued to drive strong demand for its luxury product.

Looking ahead for the fourth quarter, Michael Kors expects total revenue to be in the range of $790 million to $800 million, assuming a comparable store sales increase in the range of 15 percent to 20 percent. Earnings per share are expected to be in the range of $0.63 to $0.65. Analysts expect earnings of $0.65 per share on revenues of $790.36 million.

For fiscal 2014, the company now expects total revenue to be in the range of $3.18 billion to $3.19 billion, assuming a comparable store sales increase of approximately 25 percent. Earnings per share are now expected to be in the range of $3.07 to $3.09 for fiscal 2014. Analysts expect earnings of $2.83 per share on revenues of $3.03 billion.

The company previously projected full-year earnings in the range of $2.77 to $2.81 per share on revenues of $2.9 billion to $3.0 billion.