Michael Kors surges after crushing earnings forecasts
Michael Kors reported earnings of $0.80 per share, exceeding the consensus analyst forecast of $0.62. Meanwhile, the company's same-store sales fell just 5.9%, less than the 8.9% contraction expected by analysts.
"Our first quarter performance exceeded our expectations, driven largely by better than anticipated retail comparable sales results in both North America and Europe," chairman and CEO John D. Idol said in a statement. "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."
The company is fresh off a $1.2 billion acquisition for shoemaker Jimmy Choo, and Idol said he's hoping to do more acquisitions going forward.
The stock increase is welcome news for Michael Kors shareholders, who have seen the price fall 28% since reaching a three-month high on May 9.
Following the earnings news, shares of Michael Kors spiked 12% to $41.62 a share as of 7:57 am ET.
