=Michael Kors (KORS) reported earnings on Wed 30 May 2018 (b/o)

Michael Kors beats by $0.03, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY19 EPS in-line (midpoint below), revs slightly above consensus; Q4 comps +2.3%  

• Reports Q4 (Mar) earnings of $0.63 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.60; revenues rose 10.8% year/year to $1.18 bln vs the $1.15 bln Capital IQ Consensus. Comparable sales increased 2.3%, driven by strong response to fashion luxury offering across accessories, footwear, ready-to-wear and men's categories (guidance called for comps to be down low single digits).  Adjusted operating margin of 13.1% versus guidance of 10%.
• Co issues upside guidance for Q1, sees EPS of $0.90-0.95, excluding non-recurring items, vs. $0.87 Capital IQ Consensus Estimate; sees Q1 revs of $1.135 bln vs. $1.1 bln Capital IQ Consensus Estimate. Q1 Comparable sales for Michael Kors are expected to be approximately flat.The Company expects Q1 operating margin to be approximately 15.2%. Q1 guidance includes anticipated benefit from Jimmy Choo of approximately $0.01 to $0.03. This assumes approximately 153 million weighted average diluted shares outstanding and a tax rate of approximately 14.0%.
• Co issues in-line guidance for FY19, sees EPS of $4.65-4.75 vs. $4.74 Capital IQ Consensus Estimate; sees FY19 revs of $5.10 bln vs. $5.01 bln Capital IQ Consensus Estimate. FY19 Comparable sales for Michael Kors are expected to be approximately flat. The Company expects FY19 operating margin to be approximately 17.7%. FY19 guidance includes dilution from Jimmy Choo of approximately $0.05 to $0.10. Revenue guidance is including between $570 million and $580 million of incremental Jimmy Choo revenue.