Michael Kors - KORS - Delivered record results in the second quarter
11/13/2012 9:31:22 AM
Michael Kors Holdings Limited (NYSE:KORS), a global luxury lifestyle brand with a multi-channel strategy, unique design and strong infrastructure, announced its financial results for the second quarter ended September 29, 2012.
John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “We were pleased to have delivered record results in the second quarter. Our performance is a reflection of Michael Kors’ brand strength, innovative fashion design and the successful execution of our growth strategies. We are excited to see the growing global recognition and appeal for the Michael Kors luxury brand.”
KORS - For the second quarter ended September 29, 2012:
- Total revenue increased 74% to $532.9 million from $305.5 million in the second quarter of fiscal 2012.
- Retail net sales increased 82% to $242.3 million driven by a 45.1% increase in comparable store sales and 66 new store openings since the end of the second quarter last year. Wholesale net sales increased 75% to $270.8 million and licensing revenue increased 13% to $19.9 million.
- Gross profit increased 80% to $315.9 million, and as a percentage of total revenue increased to 59.3% compared to 57.3% in the second quarter of fiscal 2012.
- Income from operations was $157.9 million and as a percentage of total revenue was 29.6%. For the second quarter of fiscal 2012, income from operations was $59.3 million and included a $10.7 million charge related to the employee share option redemption associated with our private placement. Excluding this amount, income from operations was $70.0 million, or 22.9% as a percentage of total revenue.
- Net income was $97.8 million, or $0.49 per diluted share, based on 200.2 million weighted average diluted shares outstanding. Net income for the second quarter of fiscal 2012 was $40.6 million, or $0.22 per diluted share, based on 187.6 million weighted average diluted shares outstanding. Excluding the aforementioned charge, net income for the second quarter of fiscal 2012 was $47.5 million, or $0.25 per diluted share.
- At September 29, 2012, the Company operated 269 retail stores, including concessions, compared to 203 retail stores, including concessions, at the end of the same prior-year period. The Company had 80 additional retail stores, including concessions, operated through licensing partners. Including licensed locations, there were 349 Michael Kors stores worldwide at the end of the second quarter.
KORS - Outlook
For the third quarter of fiscal 2013, the Company expects total revenue to be in the range of $525 million to $535 million. This assumes a mid-twenty percent comparable store sales increase. Diluted earnings per share are expected to be in the range of $0.37 to $0.39 for the third quarter of fiscal 2013. This assumes 202 million diluted weighted average shares outstanding and a 38% tax rate.
For fiscal 2013, the Company now expects total revenue to be in the range of $1.86 billion to $1.96 billion. This assumes a comparable store sales increase of approximately 30%. Diluted earnings per share are now expected to be in the range of $1.48 to $1.50 for fiscal 2013. This assumes 201.2 million diluted weighted average shares outstanding and a 38% tax rate.
About Michael Kors - KORS
Michael Kors (KORS) is a world-renowned, award-winning designer of luxury accessories and ready to wear. His namesake company, established in 1981, currently produces a range of products through his Michael Kors, KORS Michael Kors and MICHAEL Michael Kors labels, including accessories, footwear, watches, jewelry, men’s and women’s ready to wear, and a full line of fragrance products. Michael Kors stores are operated, either directly or through licensing partners, in some of the most prestigious cities in the world, including New York, Beverly Hills, Chicago, London, Milan, Paris, Munich, Istanbul, Dubai, Seoul, Tokyo and Hong Kong.
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