Accessories are behind big third quarter profits at Michael Kors. The fashion house posted a $39 million profit for the quarter ending December 31, compared with $27.8 million at the same time last year.
Increased sales in watches and leather goods, including handbags and wallets, drove the surge, particularly around the holiday period. The jump was no doubt aided by the opening of 75 new Michael Kors stores in 2011.
This bumper results saw KORS.N shares jump by more than 22% in recent trading, which made it the biggest mover on Wall Street. It made its New York Stock Exchange debut last December with IPO shares priced at $20 a piece. They’ve grown ever since, and on Monday closed at an impressive $33.61.
Michael Kors chairman John Idol says his firm is “pleased” with the third quarter results, which he believes are indicative of further growth. Looking ahead the fashion house expects its revenue for the full fiscal year to reach between $1.27 billion and $1.28 billion, up from $757.8 million twelve months ago.
Forecasters suggest this is a conservative prediction considering strong growth in Europe and Japan, so perhaps we’ll see even better results for Michael Kors at the financial year’s close!
[Image Source: Ed Kavishe/Wikipedia Commons]
