Michael Kors Holdings Ltd. further raised its forecast for fiscal 2018 following what the company on Feb. 7 called better-than-expected results for its fiscal third-quarter earnings.
The company now forecasts total revenue for fiscal year 2018 ending March 31 to be about $4.66 billion, higher than the $4.59 billion it had previously projected Nov. 6, 2017. The company also boosted its diluted EPS outlook range to $4.40 to $4.45, compared with the previous guidance range of $3.85 to $3.95 per share.
Comparable sales for the company's namesake brand is now expected to decline in the mid single digits in fiscal 2018, from the prior guidance of a high-single-digit decrease.
The fashion retailer also expects total revenue in its fourth quarter to range between $1.11 billion and $1.13 billion, while diluted EPS is expected to be in the range of 50 cents to 55 cents.
London-based Michael Kors, which said Nov. 1, 2017, that it completed the purchase of Jimmy Choo PLC for $1.35 billion, reported third-quarter adjusted net income of $273.4 million, compared with $271.6 million in the same quarter a year ago. Its adjusted net income beat the mean consensus estimate of $199.51 million, according to S&P Capital IQ. Net income attributable to the company was $219.4 million, compared with $271.3 million in the same quarter a year earlier.
The company's adjusted third-quarter EPS was $1.77, above the mean consensus estimate for normalized EPS of $1.29, according to S&P Capital IQ. Diluted EPS for the quarter was $1.42, below the EPS of $1.64 in the third quarter a year ago but higher than the mean consensus estimate of $1.22 per share.
The company reported a 6.5% year-over-year increase in total revenue of $1.44 billion for its fiscal third quarter ended Dec. 30, 2017, compared with $1.35 billion a year earlier. It said growth in the third quarter was better than expected in both its Michael Kors and Jimmy Choo brands.
