Michael Kors Holdings Ltd (NYSE:KORS) stock was up 3% at the beginning of the noon hour on September 19. The stock has gained 6.5% in 2017 and has been the beneficiary of a big boost since releasing its fiscal first quarter 2018 results on August 8.
The results marked another quarter in which the company beat analyst expectations. Earnings per share were above projected at $0.80 per share and revenue came in at $952.6 million. Retail net sales climbed 10.1% year over year to $619.9 million. The company also completed a $1.2 billion takeover of shoe designer Jimmy Choo. Michael Kors has opened over 60 news stores since the first fiscal quarter of 2017.
Revenues were carried by the soaring sales seen in Asian markets. While revenue declined in the Americas and Europe 8.2% and 10.2% respectively, Asia saw revenues surge 60.2%.
Retail has been shaky ground for investors in recent years but luxury brands are showing renewed strength in 2017. Canada and the United States have reported strong GDP numbers and job growth in 2017, as well much better wage growth in the former. Consumer confidence in the United States is also showing the highest indicators since 2000.
These developments could lead to a very strong fall and winter season for Michael Kors. The stock still comes in cheap after 9 consecutive earnings that beat expectations.
