Michael Kors Profit Doubles on Strong Sales Growth

Michael Kors Holdings Ltd. (NYSE: KORS) has surged in premarket trading following this morning’s fiscal first quarter report.

Michael Kors said earnings more than doubled from a year ago to $68.6 million, or $0.34 per share. Revenue rose 71% year-over-year to $414.9 million, after the company opened 76 new stores and grew same-store sales by 37%. The Thomson Reuters consensus estimates had called for a profit of $0.20 per share on revenue of $367.9 million.

The Hong Kong based designer and retailer of branded women’’s and men’s apparel and accessories also said it expects second-quarter EPS of $0.33 cents to $0.35 cents a share, ahead of the consensus estimate of $0.28 per share. For fiscal 2013, the company projects earnings of $1.32 to $1.34 per share, compared to the analysts’ estimate of $1.12 a share.

Chairman and CEO John Idol said in the release:

During the first quarter we saw continued strength in each of our retail, wholesale and licensing segments and across geographies. In North America, our comparable store sales rose 38.4% reflecting the strong appeal of the Michael Kors brand, our consistent delivery of a compelling assortment of luxury products, and our exciting jet-set in-store experience. The 66% growth in our wholesale segment is the result of the continued conversions to shop-in-shops in department stores. Our strong revenue growth in Europe demonstrates the growing momentum of the Michael Kors brand which led to a 24.2% increase in comparable store sales and strong performance in our wholesale operations. The 61% growth in our licensing revenue was led by strong sales in the Michael Kors watch line.

Shares are more than 11.6% higher to $47.33 in premarket trading. The 52-week trading range is $23.51 to $50.69. Thomson Reuters had a consensus analyst price target of $54.33 before this morning’s announcement.