Michael Kors Holdings lifted its annual revenue forecast on Monday, predicting its recent acquisition of upscale shoemaker Jimmy Choo will begin to pay off before the end of the fiscal year.
Kors also reported profit and revenue for its second fiscal quarter ahead of analysts’ estimates, as it opened 56 new stores since the same period a year ago. Shares of New York-based Michael Kors rose 1.2 percent to $48.18 in premarket trading.
Sales in Michael Kors’ stores open for at least a year fell 1.8 percent in the second quarter ended Sept. 30. Analysts on average had forecast a 4.6 percent decline, according to Consensus Metrix.
Kors, known for its “affordable luxury” line of handbags, said it now expects revenue of $4.59 billion for the year ending April 2018. The forecast includes $215 million to $225 million of additional revenue from Jimmy Choo. Kors had earlier forecast full-year revenue of $4.28 billion.
Its revenue in the second quarter rose 5.4 percent to $1.15 billion, marking the first increase in more than a year and coming ahead of the $1.05 billion expected by analysts, according to Thomson Reuters I/B/E/S.
Net income attributable to the company rose to $202.9 million or $1.32 per share, from $160.9 million, or 95 cents per share, a year earlier.
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