Michael Kors Holdings Ltd. (NYSE: KORS) reported its fiscal first-quarter financial results before the markets opened on Tuesday. The company said that it had $0.80 in earnings per share (EPS) and $952.4 million in revenue, which compares with consensus estimates from Thomson Reuters of $0.62 in EPS and revenue of $918.57 million. The same period of last year reportedly had EPS of $0.88 and $987.9 million in revenue.
Retail net sales increased 10.1% to $619.9 million, driven in large part by 67 net new store openings since the end of the first quarter of fiscal 2017 and the impact of the acquisition of the Greater China license. At the same time, comparable sales decreased 5.9%.
On a constant currency basis, retail net sales increased 11.6% and comparable sales decreased 4.9%. Wholesale net sales decreased 23.0% to $303.6 million. and on a constant currency basis wholesale net sales decreased 22.7%. Licensing revenue fell 5.6% to $28.9 million.
In terms of the outlook for the fiscal second quarter, the company expects to see EPS in the range of $0.80 to $0.84 and revenues between $1.035 billion and $1.055 billion, with comparable sales falling in the mid-single digits range.
The consensus estimates call for $0.78 in EPS and $1.01 billion in revenue for the coming quarter.
John D. Idol, board chair and chief executive, commented:
Our first quarter performance exceeded our expectations, driven largely by better than anticipated retail comparable sales results in both North America and Europe. We are encouraged by our first quarter performance, although we continue to believe that fiscal 2018 will be a transition year for our company, as we focus on laying the foundation for the future by executing on our strategic plan, Runway 2020. While it is still early in the process, we are making meaningful progress enhancing our assortments, deepening our connection with consumers, and elevating our jet set luxury experience in our stores and digital flagships.
Shares of Michael Kors closed Monday at $37.23, with a consensus analyst price target of $37.40 and a 52-week range of $32.38 to $52.67. Following the release of the earnings report, the stock was up over 14% at $42.70 in early trading indications Tuesday.