Michael Kors Holdings
The 10-second takeaway
For the quarter ended March 30 (Q4), Michael Kors Holdings beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share grew significantly.
Margins increased across the board.
Michael Kors Holdings logged revenue of $597.2 million. The 14 analysts polled by S&P Capital IQ wanted to see revenue of $548.7 million on the same basis. GAAP reported sales were 57% higher than the prior-year quarter's $380.0 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 $0.50. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. GAAP EPS of $0.50 for Q4 were 127% higher than the prior-year quarter's $0.22 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 59.7%, 200 basis points better than the prior-year quarter. Operating margin was 26.0%, 530 basis points better than the prior-year quarter. Net margin was 16.9%, 540 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $556.1 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $2.81 billion. The average EPS estimate is $2.49.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 236 members out of 272 rating the stock outperform, and 36 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Michael Kors Holdings a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Michael Kors Holdings is outperform, with an average price target of $74.71.
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