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NEW YORK, United States — Michael Kors Holdings Ltd., the seller of luxury handbags and clothing, posted second-quarter profit that topped analysts' estimates as new stores boosted sales.
Earnings in the quarter through Sept. 26 were $1.01 a share, the London-based company said in a statement on Wednesday. Analysts estimated 89 cents, on average.
Kors has been opening new international locations more quickly than it has been adding them in its core North American market, helping its revenue climb even as the strong U.S. dollar weighs on sales. Sales in the quarter rose 6.9 percent to $1.13 billion, topping analysts’ $1.08 billion average projection. Excluding currency effects, sales would have increased 12 percent.
The shares surged 9.4 percent to $43 at 7:04 a.m. in early trading in New York. Kors had plunged 48 percent this year through the close of trading Tuesday.
By Lindsey Rupp; editors: Nick Turner, Kevin Orland, Paul Jarvis.
