Global fashion group Michael Kors Holdings saw shares climb after it announced third-quarter results that exceeded guidance, with a better than expected performance from both the Michael Kors and Jimmy Choo brands.
Shares jumped by 9% in pre-market trading. Total revenue increased 6.5% to $1.44bn, including a $114.7m contribution from Jimmy Choo that the company owned for two months of the quarter. On a constant currency basis, total revenue increased 4.6%.
Earnings per diluted share were $1.42 on a reported basis. On an adjusted basis, earnings per diluted share were $1.77, an increase of 7.9% compared to the prior year.
In a statement, the company said that it was continuing to make progress on Michael Kors Runway 2020 strategic plan. Accessories sales were better than expected as new product introductions infused with glamour and unique fashion elements resonated with consumers.
Comparable store sales exceeded expectations and favourable response to new product innovation combined with reduced promotional activity drove higher average unit retails in North America digital flagships and lifestyle stores.
John D Idol, Chairman and Chief Executive Officer, said, “We are pleased with our third quarter performance, which delivered better than expected results and saw the successful integration of Jimmy Choo into our luxury group. The Michael Kors brand continued to make progress on Runway 2020 initiatives across product innovation, brand engagement and customer experience.
“Our innovative fashion luxury product offerings for the holiday season created excitement among consumers. At Jimmy Choo, we continued to deliver glamorous luxury product and engaging brand communications, which helped drive revenue during the quarter.”