Michael Kors Holdings (KORS) blew past Wall Street expectations on Tuesday with its third quarter financial results.
Total revenue increased a stunning 59 percent to $1.01 billion, exceeding consensus of $859 million, and breaking a four quarter string of decelerating sales growth.
Retail net sales jumped 51 percent to $503.4 million, with a same-store sales rise of 28 percent. The company opened almost 100 new stores in calendar 2013.
Wholesale net sales rose 68 percent to $461.4 million. Licensing revenue rose 59 percent to $47.3 million, driven primarily by strength in watches, which the company designs and markets through a licensing agreement with Fossil, Inc.
Net income skyrocketed 77 percent to $229.6 million, or $1.11 per share. Analysts had expected per-share income of $.86.
Europe showed particularly strong results driven by accelerating brand awareness and impressive store traffic from both residents and tourists. Total sales in the region soared 144 percent, with an impressive same-store sales growth rate of 73 percent. The European business remains much smaller than its North American business, however, at an estimated $85 million in the quarter.
North American same-store sales increased 24 percent, driven by strength in its accessories and watch businesses. The aspirational luxury brand expects the fourth quarter same-store sales to slow to 15 percent to 20 percent, however.
Michael Kors does an estimated 85 percent of its business in accessories, primarily handbags and small leather goods. Its “Selma” trapeze handbag was reportedly a strong seller during the holiday season. The company says it will make a major push into men’s apparel and accessories in the next year.
The company has consistently topped analysts’ sales and earnings forecasts since going public in late 2011.
The stock is trading at a record high of slightly above $90, up almost 10 percent year-to-date.