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Jimmy Choo Shoes Are Making Michael Kors a Lot of Money

Michael Kors and Jimmy Choo could be a match made in fashion heaven.
Shares of Michael Kors Holdings Ltd. — the firm that acquired London-based luxury brand Jimmy Choo last year — were popping in early-morning trading after the company posted first-quarter results that blew past forecasts and lifted its outlook for the fiscal year.
At market open, the shares were up 4.4 percent to $68.42 as investors cheered the business’ apparent turnaround.
Overall, Michael Kors’ revenue increased 26 percent to $1.2 billion, including a $172.7 million contribution from Jimmy Choo. Those results topped analysts’ bets for revenues of $1.14 billion.
The company said Jimmy Choo’s better-than-expected revenues were the result of “strong” performance in footwear, as well as a shift in timing of certain wholesale shipments from the second quarter into the first.
Profits for Michael Kors Holdings also gained 48 percent during the period to $186 million, or $1.22 per diluted share. On an adjusted basis, profits were $200.7 million, or $1.32 per share, significantly besting forecasts for profits of 95 cents per share.
“We are encouraged by our first-quarter performance, with growth in revenues, gross margin, operating margin as well as earnings per share all exceeding our expectations,” said CEO and chairman John Idol.

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Via:: https://footwearnews.com/2018/business/earnings/michael-kors-earnings-q1-2018-jimmy-choo-1202653592/