Business Corpus: Michael Kors Lifts Guidance After Beating Fiscal Q1 ForecastsMichael Kors fiscal Q1 earnings topped estimates, helped by Jimmy Choo and store renovations, and the fashion house raised its 2018 outlook above consensus views. The post Michael Kors Lifts Guidance After Beating Fiscal Q1 Forecasts appeared first on Investor's Business Daily.

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Michael Kors' (KORS) fiscal first-quarter earnings topped estimates, helped by Jimmy Choo and store renovations, and the fashion house raised its 2018 outlook above consensus views.

Estimates: Wall Street was expecting EPS to soar 17.5% to 94 cents, according to Zacks Investment Research. Revenue was seen climbing 19% to $1.14 billion. Consensus Metrix forecast same-store sales to rise 0.9% overall.

Results: EPS of $1.32 on revenue of $1.20 billion, while same-store sales were flat. Retail revenue rose 3.2% to $639.5 million, and wholesale revenue grew 19.5% to $362.8 million. Recently acquired Jimmy Choo contributed $172.7 million to revenue.

Management also noted same-store sales growth in accessories, footwear and women's ready to wear. And stores renovated to the new luxury concept outperformed the rest of the chain.

Outlook: The company lifted its full-year EPS guidance by 25 cents to $4.90-$5.00, above consensus for $4.77, on revenue of $5.125 billion, above consensus for $5.1 billion and up from a prior view of $5.1 billion. For fiscal Q2, Kors sees EPS of $1.03-$1.08, below views for $1.24, on revenue of $1.26 billion, below consensus for $1.29 billion, with same-store sales to decline in the low-single-digits.

Stock: Shares were up 1.8% at 66.80 in premarket trading on the stock market today. Among peers Ralph Lauren (RL), Canada Goose (GOOS), which reports early Thursday, and Apparel-Clothing Manufacturing Industry Group leader VF (VFC) weren't active yet.

While Michael Kors stock has been trading below its 50-day line, a key technical support, its relative strength line is showing signs of an upward shift. But its IBD Composite Rating is a mediocre 77, and its EPS Rating is a poor 55.

Michael Kors Stock Hard To Ignore

Last month, HSBC analysts said the stock was "too low to ignore," as they initiated coverage of the apparel and purse maker with a buy rating and an 88 price target.

"While we acknowledge the group has some structural weaknesses that will take them some time to address — notably a very large and profitable exposure to wholesale — it is in the midst of a recovery phase," wrote HSBC Securities analyst Erwan Rambourg in a research note to clients.

"The stock's (price-to-earnings ratio) suggests the market does not believe in a recovery, and while a blue sky scenario is unlikely to unfold in the long term, the short term presents a buying opportunity in our view."

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The post Michael Kors Lifts Guidance After Beating Fiscal Q1 Forecasts appeared first on Investor's Business Daily.