Michael Kors ups EPS outlook as Jimmy Choo boosts first-quarter revenue

Michael Kors looked set to rack up solid gains at the open on Wednesday after the luxury fashion brand posted a jump in first-quarter revenue and upped its full-year earnings per share outlook.

In the quarter to 30 June, total revenue rose 26.3% to $1.20bn, with a $172.7m contribution from Jimmy Choo, which it bought last year. The company said revenue at Jimmy Choo surpassed expectations thanks to a strong performance in footwear and a shift in the timing of certain wholesale shipments from the second quarter into the first.

Net attributable income came in at $186.4m, or $1.22 per diluted share, up from $125.5m in the same period a year ago, or 80 cents.

To reflect a better-than-expected first-quarter performance for both Michael Kors and Jimmy Choo, the company lifted its full-year adjusted earnings per share guidance by $0.25 to between $4.90 and $5.00. For the full year, it now expects total revenue of around $5.13bn, including between $580m and $590m of incremental Jimmy Choo revenue.

Chairman and chief executive officer John D. Idol said: "We are encouraged by our first quarter performance, with growth in revenues, gross margin, operating margin as well as earnings per share all exceeding our expectations.

"Our fashion leadership remains strong, which drove consumers to respond favourably to both new fashion introductions and core products. Our global fashion luxury group continues to see the benefits of our long term growth strategy which is driven by both the Michael Kors and Jimmy Choo brands. Looking ahead we remain optimistic about our business for the remainder of fiscal 2019 and beyond."

At 1240 BST, the shares were up 2.5% to $67.26 in pre-market trade.