The luxury fashion designer Michael Kors posted its first quarter result of the current fiscal year and beat the market expectations by a big margin. This led to a surge in the share price and it was nearly 20% up.
The company was working from past some time to make a turnaround and the quarterly results show that all efforts done in that direction have started paying off.
John Idol, the CEO of the company said, “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 has stated an EPS of 80 cents against the market expectations of 62 cents per share. The total revenue of the company stood at $952.4 million, which was way more than the street expectation of $918.6 million. The net income came out to be $125.5 million.
When compared year-on-year, the revenue was down by 3.6 percent and the profits fell by 15%, but the results beat the market expectations by a big margin. The company has also revised its sales outlook for the full year, which reflects that they are confident of their turnaround efforts.
Michael Kors is expanding its business from handbag and apparel base to footwear as it has agreed to buy the high-end women’s shoemaker Jimmy Choo.