The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Michael Kors Holdings Ltd. said first-quarter sales rose 43 percent, topping analysts' estimates, as it took market share from established rivals.
Revenue advanced to $919.2 million in the quarter ended June 28, the Hong Kong-based company said today in a statement. The average of 23 analysts’ estimates compiled by Bloomberg was $851.6 million.
Michael Kors has been taking market share from Coach Inc., the No. 1 American handbag maker, which analysts estimate will report a 10 percent revenue drop when it releases its own earnings tomorrow. Michael Kors sales also may have been helped by promotions it offered on its self-described "jet-set" affordable luxury goods like handbags and watches.
Michael Kors said earnings rose to 91 cents a share last quarter. Analysts estimated profit of 81 cents, on average.
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Profit per share this year will be $4 to $4.05, up from a previous forecast of $3.85 to $3.91, the company said today. Analysts estimate $3.95.
The shares rose 5.7 percent to $86.50 at 7:02 a.m. in New York. The stock was little changed this year through Aug. 1, with early gains evaporating as at least four analysts downgraded their ratings on the shares in recent weeks.
By Cotten Timberlak; editors: Kevin Orland, Cecile Daurat.
The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.