Michael Kors surged after posting strong earnings, thanks to rising demand. The high end retailer founded by the eponymous designer, had the biggest gain since its stock-market debut after accessories sales drove earnings to more than double analysts’ estimates.
Michael Kors surged after posting strong earnings, thanks to rising demand. The high end retailer founded by the eponymous designer, had the biggest gain since its stock-market debut after accessories sales drove earnings to more than double analysts’ estimates. Kors had earnings excluding some items of 28 cents a share for the third quarter ended Dec. 31, according to a statement today. That topped the 11-cent average estimate of analysts surveyed by Bloomberg. Sales at stores open a year or more climbed 38 percent from a year earlier.
Kors rose 27 percent to $42.76 at the close in New York, the biggest jump since the initial public offering in December at $20 a share. Fiscal third-quarter sales rose 70 percent to $354 million, according to the company’s statement, and total revenue, including royalties, advanced 68 percent. Net income climbed 40 percent to $39 million, or 20 cents a share.
U.S. stock index futures edged lower Tuesday after a weaker-than-expected retail sales report and following Moody's ratings downgrade of a handful of euro zone nations. Moody's put both UK and France were both put on negative watch by the ratings agency, threatening the UK's treasured AAA rating. Meanwhile, retail sales rose less than expected in January to 0.4 percent, according to the Commerce Department. Economists polled by Reuters had forecast retail sales climbing 0.7 percent last month.
In London, fashion retailers fared better than the average in other sectors, with Next ahead 16p at 2,757p and Burberry 30p better at 1,423p.
Still in Europe, big corporate news came from Italy, where Paolo Bulgari, part of the founding family of the Italian jeweller label acquired by French LVMH, has sold 236.55 million euros in LVMH shares, French regulatory watchdog AMF said on Tuesday. AMF also said that former Bulgari CEO Francesco Trapani -- Paolo Bulgari's nephew -- had sold 22.4 million euros in LVMH shares, reported Reuters.