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NEW YORK, United States — Michael Kors Holdings Ltd., the seller of luxury handbags and clothing, posted third-quarter profit that topped analysts' estimates after e-commerce sales and a new lineup of accessories fueled growth.
Earnings were $1.59 a share in the quarter, which ended Dec. 26, the London-based company said in a statement on Tuesday. Analysts estimated $1.46 on average, according to data compiled by Bloomberg.
Kors’s accessories and footwear helped drive its performance during the quarter, the company said. Online sales also bolstered growth during a holiday period that was mediocre for many retailers. Currency fluctuations, however, weighed on its sales in Europe and other international markets.
The shares jumped as much as 10 percent to $44.50 in early trading after the results were posted. Kors had plunged 47 percent in 2015, reflecting slowing growth and broader concerns about the handbag market.
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To adjust to shifting consumer preferences, the company is now selling smaller, crossbody bags that are often less expensive. Kors also improved its digital operations, helping it cope with sluggish mall traffic and stagnant tourist spending.
By Lindsey Rupp; editors: Nick Turner, Molly Schuetz.
