Michael Kors Holdings Ltd. (NYSE: KORS), a global luxury lifestyle brand, Tuesday announced its third quarter financial results. Shares jumped up 17.48% to $47.51 on Tuesday morning trading.
Total revenue increased 6.3% to $1.40 billion compared with $1.31 billion in the same quarter last year. Net income was $294.6 million, or $1.59 diluted earnings per share, based on a 28.0% tax rate and 184.9 million weighted average diluted shares outstanding, which included an unfavorable impact related to foreign currency exchange rates of nearly $0.06 per share. Net income for the same quarter last year was $303.7 million, or $1.48 diluted earnings per share, based on a 27.2% tax rate and 205.6 million weighted average diluted shares outstanding.
“We are pleased with our third-quarter results, as we delivered revenue, comparable-store sales and earnings growth ahead of our expectations,” Chief Executive John Idol said.
However, the handbag designer and fashion company outlook for the fourth quarter of fiscal 2016 lower than expectations. According to Thomson Reuters, Michael Kors estimates revenue range between $1.13 billion and $1.15 billion which is lower than analyst expectation of $1.16 billion. Earnings are expected to be in the range of $0.93 to $0.97 per share which is lower than analyst expectation of $1 per share.