Michael Kors Holdings
The 10-second takeaway
For the quarter ended Dec. 29 (Q3), Michael Kors Holdings beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Margins increased across the board.
Michael Kors Holdings chalked up revenue of $636.8 million. The 12 analysts polled by S&P Capital IQ anticipated sales of $544.8 million on the same basis. GAAP reported sales were 70% higher than the prior-year quarter's $373.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.64. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.41 per share. GAAP EPS of $0.64 for Q3 were 205% higher than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 60.2%, 80 basis points better than the prior-year quarter. Operating margin was 32.2%, 1,400 basis points better than the prior-year quarter. Net margin was 20.4%, 1,000 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $517.2 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $2.01 billion. The average EPS estimate is $1.55.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 188 members out of 227 rating the stock outperform, and 39 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Michael Kors Holdings a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Michael Kors Holdings is buy, with an average price target of $65.15.
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