Michael Kors profits beat estimates

Profit for fiscal 2014 will be as much as $3.09 a share, up from the $2.81 forecast

Michael Kors became a billionaire yesterday as shares of the luxury-goods company that bears his name surged the most in almost two years after posting profit that topped analysts’ estimates.

Michael Kors Holdings Ltd rose 18 per cent to $90.39 around noon in New York and earlier reached $93.18 for the biggest intraday gain since February 14th, 2012.

The shares jumped 59 per cent in 2013.

The 54-year-old billionaire owns about 2 per cent of the company, a stake valued at about $390 million.

READ MORE

Mr Kors, the company's chief creative officer, has collected more than $700 million selling stock since its initial public offering in 2011, according to data compiled by Bloomberg.

'Attractive prices'
"Michael Kors does a remarkable job of developing compelling products at very attractive prices," said David Wu, a luxury goods analyst at New York-based Telsey Advisory Group who covers the company.

“What he does well is translating the top designer trends and offering it to the masses.”

The Hong Kong-based company boosted its full-year sales and profit forecasts after customers in Europe and in North America bought more of its products, which include accessories, footwear, watches and jewellery.

Previous
Profit for fiscal 2014 will be as much as $3.09 a share, up from a previous forecast of a maximum of $2.81 a share, the company said today in a statement.

Analysts projected $2.82, the average of estimates compiled by Bloomberg.

Mary Fontamillas, a spokeswoman for Michael Kors, declined to comment on his net worth.
– Bloomberg