Michael Kors Holdings Ltd (NYSE:KORS)’s roar heard in Europe
Michael Kors Holdings Ltd (NYSE:KORS) profit for the quarter nearly doubled as its sales were largely helped by unveiling of shops within various department stores, profits in Europe as well as roaring business at its very own stores. On Tuesday, KORS updated investors about how it is planning on maintaining its momentum. In the pipeline are new stores in Brazil and India. A worldwide boost for its jewelry and watch business on a global level is also on the cards.
In Tuesday’s trading session, KORS stock rose 3.70%. Its shares opened at $70.77/share, hit an intraday high of $71.50 and at the close of trading stood at $70.39. Around 14.98M shares exchanged hands in Tuesday’s trading and the average volume of shares that were traded over 30 days were 3.39M.
The intraday high that the shares experienced was more than 3 times its 2011 Dec IPO price of $20/share. The company has won a huge market-share from Coach Inc. The latter is known for its jet-setting and trendy lifestyle clothing
Healthy Q1 report
Michael Kors Holdings Ltd (NYSE:KORS) financial Q1 ended 29 June. There was a 54% rise in revenue to $640.9M which was way above the Wall Street projection of $570.5M. Comparable store sales at stores that have been operational for a minimum of 12 months increased by 27.3%. North America generates 86% of KORS business. Comparable-store sales in the region rose by 25% in comparison with the 1.7% dip that Coach experienced. The latter is a much more well-established brand.
Michael Kors Holdings Ltd (NYSE:KORS) operates 249 of its very own stores in the North American region. On Friday, John Idol, the company’s Chief Executive announced that those would grow to touch the 400 mark. KORS sales-growth was even more significant in its wholesale-business. It serves chains such as Nordstrom and Macy’s. Europe is still a relatively new market for KORS and its sales here more than doubled. The company has 49 stores in Europe and eventually plans on taking that number to 200.