Luxury clothing and accessories seller Michael Kors' profit rose fourfold during its holiday quarter.
Results for the fiscal third quarter beat Wall Street analysts' predictions, and Michael Kors Holdings Ltd. raised its forecast for the year ending in March. Shares rose 10 percent in premarket trading.
Michael Kors earned $130 million, or 64 cents per share, for the three months ended Dec. 29, which contains the holiday shopping season, a critical time for retailers. That's up sharply from profit after preferred dividends of $32 million, or 20 cents per share, in the same period a year ago. It was still a privately held company for most of that quarter.
Analysts expected earnings of 41 cents per share, according to a FactSet poll.
Revenue surged 71 percent to $606.9 million from $354 million, as the company had 66 new stores open and shoppers spent more in established stores. Revenue at stores open at least a year, excluding new or closing stores, jumped 41 percent.
Wall Street's estimate was for $546.1 million in revenue.
Michael Kors is named for its famous U.S. designer but is based in Hong Kong. The company went public in December 2011 at $20 per share. The stock has risen 70 percent over the past 12 months. Shares gained another $5.61 to $62.61 before the market open Tuesday.
For the year ending in March, the retailer now foresees earnings between $1.80 and $1.82 per share. Revenue is expected at about $2.1 billion. The company's prior guidance was for earnings between $1.48 and $1.50 per share on revenue in a range of $1.86 billion to $1.96 billion. Analysts predict full-year earnings of $1.58 per share on revenue of $2.01 billion.
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