Wednesday, June 1, 2016
KORS Q4 2016 Earnings
Today, June 1st, before the markets opened, Micheal Kors Holdings Limited released their Q4 2016 earnings at $0.98 a share, topping analyst projections by $.02. The Revenue rose to $1.2 billion, compared to $1.08 billion year-over-year. KORS also beat revenue estimates that projected that the company would earn $1.15 billion. Retail net sales increased by 22% this past quarter, partly due to new store openings. KORS has also Michael Kors LTD., gaining the exclusive license of Chinese products, as well as other Asian jurisdictions for $500 million in cash. The company has also come out and issued a weak guidance for the current quarter (Q1 2017), projecting below analyst estimates for EPS and Revenue. KORS projects an EPS of $0.70-$0.74 with revenue between $940-$950 million range as analysts project an EPS of $0.94 and a revenue of $1.03 billion. The reason for this weak guidance spans from an expected increase in expenses on global investments as well as new stores, infrastructure and distribution and a few other variables. They have also announced a new $1 billion share buyback program to replace the previous buyback program from 2014. In light of the earnings report, KORS stock saw a 10% increase pre-market and is currently up around 7.5%.