Michael Kors (NASDAQ: KORS)
On Monday morning before the market opened, Michael Kors ($KORS) announced second quarter earnings that beat analyst estimates and gave shares a bounce.
The company announced earnings per share of $1.33 on $1.15 billion in revenue compared to analyst expectations of just 95 cents per share on $1.05 billion in revenues.
They also raised revenue guidance for 2018 to $4.59 billion compared to previous estimates of $4.28 billion.
John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “This is a transformative time for Michael Kors Holdings Limited as we established our global fashion luxury group with the recently completed acquisition of Jimmy Choo. We believe that bringing together these two iconic brands further strengthens our growth opportunities, increases our product and geographic diversification, and importantly, creates a platform for future acquisitions. We look forward to capitalizing on the great opportunities that lay ahead for our brands and believe that we are well positioned to drive long term growth as we expand our global fashion luxury group.”
Shares of KORS were up roughly 4.6% following their strong earnings release and raised guidance. Prices were trading at $49.83 in the premarket at the time of this writing.
Look for shares to be volatile with a higher range than normal on heavy volume. The $50 level will act as a major resistance level but if we can break through it then we could see a nice uptrend day.
Above $50 we are looking at $51.5 and $53 as a resistance levels. If shares decide to pullback we should find support at $47.50 followed up by $45.50 and $41.50 if traders decide to take prices lower.
Michael Kors Holdings Ltd. engages in the design and distribution of sportswear, accessories, footwear and apparel of branded women’s apparel and accessories and men’s apparel bearing the Michael Kors trade name. The company operates its business through three segments: Retail, Wholesale and Licensing.
The Retail segment operates collection stores, lifestyle stores, including concessions and outlet stores located primarily in the United States, Canada, Europe and Japan. The Wholesale segment sells the company’s products to department stores, as well as specialty retail stores and travel shopping locations.
The Licensing segment licenses its trademarks on products such as fragrances, cosmetics, eyewear, leather goods, jewelry, watches, coats, men’s suits, swimwear, furs and ties. Michael Kors was founded by Michael David Kors on December 13, 2002 and is headquartered in London, the United Kingdom. –MarketWatch