Michael Kors revises fiscal 2013 guidance

Michael Kors, designer of luxury accessories and

ready-to-wear, has updated its second quarter fiscal 2013 guidance. For the second quarter of fiscal 2013, the company now expects diluted earnings per share to be in the range of 0.38 dollars (Rs 20.5) to 0.40 dollars (Rs 21.6) as compared to its previous guidance of 0.33 dollars (Rs 17.8) to 0.35 dollars (Rs 18.9). The company now expects total revenue to be in the range of 510 million dollars (Rs 2, 764 crores) to 520 million dollars (Rs 2,818 crores). The expected diluted earnings per share assume 201.0 million (Rs 1,089 crores) diluted weighted-average shares outstanding and a 38 percent effective tax rate.

For fiscal 2013, the company, based in Hong Kong, now expects diluted earnings per share to be in the range of 1.39 dollars (Rs 75.3) to 1.41 dollars (Rs 76.4) as compared to its previous guidance of 1.32 dollars (Rs 71.5) to 1.34 dollars (Rs 72.6). The company now expects total revenue to be in the range of 1.85 billion dollars (Rs 10,027 crores) to 1.95 billion dollars (Rs 10,509 crores) with comparable store sales of approximately 30 percent. The expected diluted earnings per share assume 201.2 million (Rs 10,843 crores) diluted weighted-average shares outstanding and a 38 percent effective tax rate. The company’s updated projected results for the second quarter of fiscal 2013 and for fiscal 2013 are only estimates, and its actual results may differ.

John Idol, the company’s Chairman and Chief Executive Officer, said, “Our updated guidance reflects our confidence in the strong momentum of the Michael Kors brand and the continued execution of our key growth strategies. Michael Kors’ luxury fashion designs are resonating globally with our customers and we are excited about the long term growth potential of our company as we continue to build upon the success we achieved in establishing Michael Kors as a global luxury lifestyle brand.”

In its retail segment, the company announced that quarter-to-date comparable store sales for the 11 weeks ended September 15, 2012, increased 45.1 percent. Quarter-to-date comparable store sales were strong across all regions, with increases of 45.1 percent in North America, 49.7 percent in Europe and 16 percent in Japan.

Michael Kors, based in Hong Kong, is a designer of luxury accessories and ready-to-wear. His namesake company, established in 1981, currently produces a range of products through his Michael Kors, KORS Michael Kors and MICHAEL Michael Kors labels, including accessories, footwear, watches, jewelry, men’s and women’s ready-to-wear, and a full line of fragrance products. Michael Kors stores are operated, either directly or through licensing partners, in some of the most prestigious cities in the world, including New York, Beverly Hills, Chicago, London, Milan, Paris, Munich, Istanbul, Dubai, Seoul, Tokyo and Hong Kong.