To say Michael Kors’ stellar performance in the stock market was the result of his recent New York Fashion Week show would be somewhat of a misnomer, however, if luxurious fashion rules the runway it may very well be a front seat view into how Michael Kors ‘killed it’ on the New York Stock Exchange with its increased third quarter revenue profits.
At Michael Kors New York Fashion Week show Wednesday (February 9), he had a poster strategically placed for models to see prior to stepping out onto the runway that read “Kill them with your chic.” And ‘killing it’ is exactly what Michael Kors has been doing since his brand went public on the New York Stock Exchange on December 15.
As for the New York Stock Exchange ‘runway’ Michael Kors Holdings Ltd (NYSE: KORS) commanded shareholders attention with its reported third quarter profits of $39 million (or 20 cent per share). Even more impressive on Tuesday (February 14) KORS’ shares leaped 26 percent rising to $42.19, its highest since going public in December.
CEO John Idol referenced Michael Kors impressive third quarter performance to “the strong demand for the Michael Kors luxury brand, our exciting assortment of fashion merchandise and our exceptional jet-set in-store experience.” Jet-set indeed.
Fueling Michael Kors jet-set third quarter revenue was its sales flux from:
- Luxury watches, handbags, leather accessories, and small leather goods
- New market growth in Japan and Europe
- 28 new retail stores (231 stores at end of December 31), and
- Concessions
These elemental factors have proven to be Michael Kors formula for revenue success, that and both men’s and women’s insatiable desire for his luxury watches, clothing, sun glasses and handbags.
Actress Debra Messing, whom was in attendance at Michael Kors New York Fashion Week, comment personifies consumers mindset with regards to Kors’ fashion brand when she said, “…and you know I still am shocked that every collection there’s always something that is fresh and new and forward-thinking, and yet still classic and strong and chic, and makes me feel like he designed it just for me.”
Michael Kors’ luxury brand plans to continue ‘killing it’ on NYSE ‘runway’. Kors is anticipating its fourth quarter revenue to be in the range of $350 million to $355 million with earnings between 10 cents to 11 cents per share; projecting at years’ end adjusted earnings between 74 cents to 76 cents per share and revenue of $1.27 billion to $1.28 billion.
Figures in keeping with Michael Kors jet-set fashion stamina.
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