Michael Kors Holdings Limited (KORS) plans to report its second quarter fiscal 2014 financial results on Tuesday, November 5, 2013, before the market opens. The Company also plans to hold a conference call to discuss its financial results the same day at 8:00 a.m. ET.
Wall Street anticipates that the specialty retailer will make a profit of $0.68 per share for the quarter. iStock expects KORS to top Wall Street's consensus number. The iEstimate is $0.74.
Michael Kors Holdings Limited engages in the design, marketing, distribution, and retailing of branded women's apparel and accessories, and men's apparel. The company operates in three segments: Retail, Wholesale, and Licensing.
Analysts appear to be getting more bullish for the quarter as the consensus estimate started the quarter at $0.64 and was $0.67 late last week. In fact, two upped their outlook last week.
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It's no wonder EPS estimates are rising considering KORS history to smoking the street's consensus. Michael Kors has delivered seven straight bullish surprises, topping the street view by an average of 50.64% with a range of 22.5% to 111.11% better than expected.
As you might imagine, those sorts of surprises resulted in stellar stock performance for the three days bookending quarterly checkups. KORS gained an average of 12.23% six of the seven profit announcements. Once, shares dropped an almost unnoticeable -0.70%.
iStock has had a lot of success getting in front of retailers earnings by checking Google Trends. Search volume intensity for the keyword "Michael Kors" indicate another solid quarter could be in Tuesday's card.
Web queries increased 36.2% year-over-year (YoY). A year ago, the high-end retailer made a profit of $0.49 per share. If Google Trends translate, then KORS will hit Wall Street's estimate.
Last quarter, Michael Kors earned $0.6! 1 per shares, and quarter-over-quarter searches moved up by 8.22%, which works out to $0.66, uh-oh.
Continued improvement in margins could be what it takes to get EPS over the consensus bar. In Q1, management was able to get more out of every dollar by reducing costs of goods sold and total operating expenses as a percentage of revenue, which lead to increasing profit margins.
Inventory shows that demand for KORS merchandise is outstripping supply as the balance sheet line item increased at 19.7% versus 54% for revenue. The combination should give the retailer pricing power and reduce the need for sales to move outdated product out the door.
Overall: Michael Kors Holdings Limited (KORS) financial statements, the iEstimate, and Google Trends suggest another solid quarter when earnings are announced on Tuesday morning. If history holds, then shareholders could have a little more cash to put in their handbags.
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