Stronger sales results in North America and Europe helped fuel Michael Kors’ (NYSE: KORS) profit and revenue to top Street expectations in its fiscal first quarter.
Michael Kors said Tuesday that its net income attributable to the company dropped 15% to $125.5 million, or 80 cents per share, from $147.1 million, or 83 cents a share, a year ago. Last year's figure included one-time costs related to the acquisition of a Greater China licensee. Excluding that charge, Kors had earned 90 cents a share.
While its profits fell, Tuesday's results outpaced both the company's and analysts' expectations. Analysts on average were predicting Kors would earn 62 cents per share. That was also the midpoint of the company's own forecast range.
Total revenue for the first quarter came in at $952.4 million, again topping analysts' estimates for sales of $918.6 million. But this was another drop — one of 3.6% — from last year.
Michael Kors' same-store sales dropped 5.9% during the period, coming in better than expected. Analysts had predicted a decline of 9%.
Earlier this summer, Michael Kors revealed plans to buy London-based shoemaker Jimmy Choo in a deal valued at $1.2 billion U.S.
"This will not be [Michael Kors'] last acquisition," Kors CEO John Idol told the media shortly after the acquisition was announced.
Idol has reiterated time and again that Michael Kors is focused on forming a "luxury group." On Tuesday, he added that a more diverse portfolio will play well as the retailer looks to increase exposure in international markets.
Kors shares rocketed $5.89, or 15.8%, to $43.12