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.
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.