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One of the most watched retail metrics is same store sales. So it's little surprise investors were cheering Michael Kors Holdings (NYSE:KORS) latest results in the pre-market. However, with shares up 20% from their low on June 8th to this morning's high, enthusiasm faded as sellers worried over Europe slowing.

However, the company's guidance seems to debunk a lot of that worry. On the heels of 80.3% retail net sales growth, the company expects EPS of $1.08-1.12 for the year on $1.7-$1.8 billion in sales. Heading into today, analysts were only targeting $0.69 in EPS and $1.28 billion in sales. That's a heckuva guide higher for any company, let alone one investors worry is seeing European slowing.

Those worrisome European comp sales may prove less worrisome than some think.

The company believes full year comp sales will be up 20% - impressive against any peer. For the quarter, comp sales were up 36.1%, led by a 37.2% rise in North America. As for Europe, sales across the pond rose 122.6% from last year, despite the still impressive 13.6% comp growth for the region.

Shareholders may also want to keep in mind, Kors generated only 8% of its sales in Europe versus over 90% from North America. Rather than a mature, over-penetrated market, Europe remains in its early stages of growth.

The company also saw more revenue drop to the bottom line. Gross profit came in at 57.7% of sales, up from 55.9% the prior quarter. And, income from operations clocked in at 20.2% of sales, up from 17.8% sequentially. This helped cash finish the quarter at $106.3 million, up from 21 million a year ago.

And the company has upside potential from its new Japanese locations, a traditionally strong market for luxury brands, which makes Kors an intriguing buy during summer's swoon.

Source: European Worries Weigh Down Michael Kors Holdings