Earnings Review and Free Research Report: Michael Kors Reported Better Than Expected Results

Research Desk Line-up: Perry Ellis Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 30, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Michael Kors Holdings Ltd (NYSE: KORS), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=KORS, following the Company’s disclosure of its financial results on August 08, 2017, for the second quarter fiscal 2017. The Company’s Retail segment’s revenue increased 10.1% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Textile – Apparel Clothing industry. Pro-TD has currently selected Perry Ellis International, Inc. (NASDAQ: PERY) for due-diligence and potential coverage as the Company reported on August 24, 2017, its financial results for Q2 FY18 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Perry Ellis when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on KORS; also brushing on PERY. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=KORS

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Earnings Reviewed

For three months ended July 01, 2017, Michael Kors’ total revenue decreased 3.6% to $952.4 million on a y-o-y basis, or 2.6% on a constant currency basis, from $987.9 million in Q1 FY17. Revenue surpassed analysts’ expectations of $918 million.

During Q1 FY18, Michael Kors’ gross profit decreased 2.8% to $574.7 million from $591.3 million in Q1 FY17. For the reported quarter, the Company’s gross margin increased 40 basis points to 60.3% of revenue from 59.9% of revenue in Q1 FY17.

During Q1 FY18, Michael Kors’ operating income decreased 20.1% to $149.4 million from $186.9 million in the same quarter last year. During Q1 FY18, the Company’s operating margin decreased 320 basis points to 15.7% of revenue from 18.9% of revenue in Q1 FY17.

During Q1 FY18, Michael Kors’ net income decreased 14.7% to $125.5 million on a y-o-y basis from $147.1 million in Q1 FY17. During Q1 FY18, the Company’s adjusted net income decreased 20.8% to $125.5 million on a y-o-y basis from $158.4 million in Q1 FY17. For the reported quarter, the Company’s diluted EPS decreased 3.6% to $0.80 on a y-o-y basis from $0.83 in Q1 FY17. During Q1 FY18, the Company’s adjusted diluted EPS decreased 11.1% to $0.80 on a y-o-y basis from $0.90 in Q1 FY17. Adjusted diluted EPS surpassed analysts’ expectations of $0.62.

As on July 01, 2017, the Company had 838 retail stores, including concessions, compared to 771 retail stores, including concessions in Q1 FY17.

Michael Kors’ Segment Details

Retail – During Q1 FY18, the Retail segment’s revenue increased 10.1% to $619.9 million on a y-o-y basis, or 11.6% on a constant currency basis, from $562.9 million in Q1 FY17. The increase was mainly attributable to the opening of 67 new stores since Q1 FY17 and the impact of the acquisition of the Greater China license. For the reported quarter, the segment’s operating profit increased 38.4% to $92.2 million from $66.6 million in Q1 FY17. During Q1 FY18, the segment’s operating margin increased 310 basis points to 14.9% of revenue from 11.8% in Q1 FY17.

Wholesale – During Q1 FY18, the Wholesale segment’s revenue decreased 23% to $303.6 million on a y-o-y basis, or 22.7% on a constant currency basis, from $394.4 million in Q1 FY17. For the reported quarter, the segment’s operating profit decreased 58.6% to $43.5 million from $105 million in Q1 FY17. During Q1 FY18, the segment’s operating margin decreased 1230 basis points to 14.3% of revenue from 26.6% in Q1 FY17.

Licensing – During Q1 FY18, the Licensing segment’s revenue decreased 5.6% to $28.9 million on a y-o-y basis, or 5.6% on a constant currency basis, from $30.6 million in Q1 FY17. For the reported quarter, the segment’s operating profit decreased 10.5% to $13.7 million from $15.3 million in Q1 FY17. During Q1 FY18, the segment’s operating margin decreased 260 basis points to 47.4% of revenue from 50% in Q1 FY17.

Balance Sheet

As on July 01, 2017, Michael Kors’ cash and cash equivalents decreased 18.8% to $273.7 million from $337.1 million in Q1 FY17. During Q1 FY18, the Company’s inventories increased 1.5% to $616.1 million from $606.9 million in Q1 FY17.

During Q1 FY18, Michael Kors’ accounts payable decreased 8.4% to $153.4 million from $167.4 million in Q1 FY17.

During Q1 FY18, the Company repurchased 4,543,500 ordinary shares for $157.8 million and has entered into an agreement to acquire Jimmy Choo.

Outlook

For Q2 FY18, Michael Kors expects total revenue to be in the range of $1.04 billion – $1.06 billion and anticipates operating margin to be 14.3% of revenue. The Company estimates diluted EPS to be in the range of $0.80-$0.84 for Q2 FY18.

For FY18, the Company expects total revenue to be $4.28 billion and projects operating margin to be 16.0% of revenue.

Michael Kors estimates diluted EPS to be in the range of $3.62-$3.72 for fiscal 2018.

Stock Performance

On Tuesday, August 29, 2017, the stock closed the trading session at $42.32, marginally falling 0.33% from its previous closing price of $42.46. A total volume of 1.15 million shares have exchanged hands. Michael Kors’ stock price advanced 16.14% in the last one month, 27.55% in the past three months, and 14.69% in the previous six months. The stock is trading at a PE ratio of 13.11 and currently, has a market cap of $6.34 billion.

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