ANALYSIS_Michael Kors Holdings Ltd has issued an update on its fiscal year 2014 earnings guidance that beats the consensus forecast and that show off the confidence the fashion mogul has in its performance. After its Asian IPO, the fashion maverick turns now to Europe and America for further growth."Given how strongly our brand has performed in the market, how well it resonates with European consumers ... we have concluded that the retail store growth potential is greater than the hundred locations we initially targeted (in Europe)," Chief Executive John Idol said on a call with analysts earlier this week. Sales in Europe, where it plans to double its retail presence by adding 44 new stores to the 40 currently open, rose about 97 percent to 73.1 million dollars in the fourth quarter. For five straight quarters, Michael Kors has beaten sales and earnings projections, and the shares have been a star, advancing 156 percent in those 17 months, reported 'MarketWatch'. Sales in North America, which includes the United States and Canada and makes up more than three-quarters of total sales, also rose, noting an impressive 52 percent to 516.9 million dollars and boosted by the better health of the luxury market in the region. Kors has plans to open 50 stores in the region in the coming months. CEO John Idol said in a prepared statement that Michael Kors' "jet-set luxury accessories" and "ready to wear" items are speaking to consumers worldwide. "Opportunities for geographic and product extensions remain, in our view. We're believers that Michael Kors will become a significant Pan-European brand," Citibank analyst Oliver Chen agreed with Idol in a note to investors issued Wednesday. North America is by far the company's largest market, but in Europe, revenue doubled for both the fourth quarter and full fiscal year, to 73.1 million dollars and 220.7 million dollars, respectively and according to data compiled by FactSet. International expansion boosts EPS guidanceThe Hong Kong-based apparel and accessories brand said fourth-quarter revenue increased 57.1 percent to 597.2 million dollars from 380 million dollars a year ago, with same-store sales climbing 36.7 percent. The company earned 101.1 million dollars, or 50 cents a share (EPS), compared with 43.6 million dollars, or 22 cents a share, a year earlier and ahead all analysts' consensus estimates. The company has a current market cap of 12.371 billion dollars and a price-to-earnings ratio of 36.33. Source: Fashion-news
