This morning (Tuesday), Michael Kors Holdings Ltd (NYSE: KORS) announced a 59% increase in revenue for its fiscal 2014 Q3 report ending Dec. 28, 2013, compared to Q3 2013, marking the 31st consecutive quarter of growth for the global luxury brand.
Kors' quarterly earnings per share (EPS) climbed 73.4% to $1.11 per share, shattering the consensus estimates of $0.86. Wholesale net sales increased 68.2% to $461.4 million and licensing revenue increased 59.0% to $47.4 million.
Kors' success took a bite out of competitors - retail net sales increased 51.3% to $503.4 million, versus a 27.8% increase in comparable store sales.
MICHAEL KORS HOLDINGS LIMITED NYSE: KORS Feb 04 12:12 PM loading chart... Price: 90.57 | Ch: 13.90 (15.3%)KORS stock responded by soaring 20% in premarket trading. It's up 18% to $90.46 at 11:30 a.m. Today's Kors stock gain follows a 50% gain in 2013.
There are three factors setting Kors - and KORS stock - apart from its retail counterparts:
Why KORS Stock Is SoaringNo. 1: Effective tangible growth
As of Dec. 28, 2013, KORS operated 395 retail stores, including concessions, compared to 297 retail stores, including concessions, at the end of 2012. And that's not including an additional 138 retail stores operated through licensing partners.
That makes 533 Michael Kors stores across the globe at the end of Q3 2014 - at a time when other stores are shutting down their physical locations.
No. 2: Strong holiday season
An increased population of stores helped nab top holiday profits. Third-quarter profit soared 77%, which Chief Executive Officer and Chairman John D. Idol attributes to a profitable holiday season.
"Michael Kors enjoyed an outstanding holiday season, as global brand awareness continued to drive strong demand for our luxury product," Idol said at earnings release.
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No. 3: Founder Michael Kors' vision and branding
But Idol gives much credit to "the creative vision of Michael Kors," his team, and the "distinctive jet-set in-store experience" customers get when they shop at Kors stores.
The pretty numbers don't end with Kors alone - investors are active. After earnings released before opening bell, KORS stock surged 21.56% in pre-market to $93.20 per share.
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