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Michael Kors and Uniqlo give market a boost

By FashionUnited

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The week started in good shape, with Uniqlo and Michael Kors posting positive results that cheered up markets around

the globe. Michael Kors Holdings Ltd. saw its fiscal third-quarter profit rose 77 percent as the retailer benefited from a strong holiday shopping season.

In New York, markets were coming off a drop of more than 320 points for the Dow Jones Index and the blue chip index's worst January performance in five years. However, market insiders warned that the next few sessions could be volatile as the impact of a rough winter might show up in data.

In sight of the strong third-quarter performance, Michael Kors KORS raised its outlook for the year. It now expects 3.07 to 3.09 dollars earnings per share (EPS) on revenue of 3.18 billion to 3.19 billion dollars. This improved outlook comes barely two months after the company raised its guidance in November.

For the handbag maker and retailer expects per-share earnings of 63 cents to 65 cents on revenue of 790 to 800 million dollars, compared to the earnings of 65 cents and 790 million in revenue estimated by analysts polled by Thomson.

Michael Kors shares surged nearly 15 percent premarket on the better-than-expected results and outlook. It´s noteworthy that, through Monday's close, the stock was up 2.5 percent in the last three months.

Elsewhere, JC Penney released preliminary figures for its holiday and fiscal fourth quarter sales. Comparable store sales for the combined period, the department store operator reported growth of 3.1 percent year-on-year. For the full quarter, comparable store sales - which exclude the 53rd week of fiscal 2012 - rose almost 2 percent.

Finally, in Japan, Fast Retailing announced same-stores sales for Uniqlo, which increased in January by 15 percent on a yearly basis.

FashionUnited