Michael Kors Holdings Ltd (NYSE:KORS) shares were on the rise in premarket deals, after its second quarter profit and revenue beat Wall Street’s expectations.
That is not all, the fashion accessories company, also upped its guidance for 2018, boosted by revenues from luxury shoemaker Jimmy Choo.
READ: Jimmy Choo's shares soar as Michael Kors snaps ups the luxury shoemaker for US$1.2bn
In the quarter, earnings rose to US$202.9mln, or US$1.32 per share, from US$160.9mln, or 95 US cents per share a year ago.
Adjusted earnings-per-share came in at US$1.33, well above the market’s expectations for 83 US cents.
Similarly, revenue at US$1.15bn, also beat analysts’ expectations for US$1.05bn.
Transformational time for Michael Kors
Michael Kors also raised its 2018 profit and revenue outlook, boosted by its acquisition of shoemaker Jimmy Choo.
It now is guiding 2018 revenue at about US$4.59bn, which includes US$215mln from Jimmy Choo, against its previous guidance of US$4.28bn.
The company also hiked its 2018 earnings to US$3.85 to $3.95, compared with previous guidance of US$3.62 to $3.72.
Third quarter 2018 revenue is also expected to come in between US$1.36bn to US$1.39bn, which includes Jimmy Choo’s contribution of US$105mln to US$110ml.
Third quarter EPS is seen at US$1.22 to US$1.27, including 4 US cents of expected dilution from Jimmy Choo.
John D. Idol, the company's chairman and chief executive said in a statement:“This is a transformative time for Michael Kors Holdings Limited as we established our global fashion luxury group with the recently completed acquisition of Jimmy Choo.
"We believe that bringing together these two iconic brands further strengthens our growth opportunities, increases our product and geographic diversification, and importantly, creates a platform for future acquisitions."
In premarket trade, its shares were up 5.50% at US$50.24.