Michael Kors (KORS) Fiscal 1Q18 Results: Beats Expectations, Boosted by Better-than-Expected Comps

Executive Summary

• Michael Kors reported fiscal 1Q18 revenues of $952.4 million, down 3.6% year over year and ahead of the $918.7 million consensus estimate. EPS was $0.80, beating the consensus estimate of $0.62.
• Reported comps were down 5.9% versus the consensus estimate of a 9.2% decline and prior guidance of a high-single-digit decline.
• The company provided 2Q18 EPS guidance of $0.80–$0.84, above the consensus estimate of $0.78. Revenues are expected to be $1.035–$1.055 billion for the second quarter, versus consensus of $1.01 billion.