Earnings Rewind: Here’s How Coach, Michael Kors & Skechers Performed This Week
Sheena Butler-Young
Deputy Editor
Here, your earnings recap for the week.
Tapestry Inc.
The owner of Coach, Stuart Weitzman and Kate Spade announced second-quarter sales and profit that handily topped Wall Street’s forecasts, thanks to its combination of powerful labels and a strategy that seeks to give each of them an increasingly premium image. The firm said its sales during the period gained 35 percent to $1.79 billion, besting estimates for sales of $1.77 billion.
On an adjusted basis, Q2 profits advanced 45 percent to $306 million, or $1.07 per diluted share, topping analysts’ bets for profits of 89 cents per diluted share. Reported profits were $63 million, or 22 cents per diluted share.
Hermès International
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The luxury label posted a 0.4 percent decline in fourth-quarter sales as a strong euro weighed on its year-end performance. Known for its Birkin and Constance handbags, Hermès said its sales for the last three months of the year totaled 1.5 billion euros ($1.8 billion), up 4.6 percent at constant exchange rates, lifted by growth from its leather goods and fashion divisions. Sales of silk and textiles were down 0.9 percent, weighing on the group’s overall performance.
Michael Kors Holdings Ltd.
The firm reported a 6.5 percent rise in third-quarter revenues to $1.44 billion, including a $115 million contribution from Jimmy Choo, which was in Kors’ stable for just two months during the period. Those results topped forecasts for revenues of $1.38 billion.
Overall, adjusted profits edged up 0.7 percent over the prior year to $273.4 million, or $1.77 per diluted share, blowing past analysts’ bets for earnings per diluted share of $1.29. On a reported basis, net income fell 19 percent year over year to $219.4 million, or $1.42 per share.
Skechers USA Inc.
The Manhattan Beach, Calif.-based casual sneaker maker this week reported fourth-quarter results that significantly surpassed market watchers’ forecasts, sending its shares climbing. The firm said its Q4 sales advanced 27 percent year over year to $970.6 million — that’s $90 million higher than the $881.4 million analysts were expecting. Adjusted profits, at 21 cents per share, also exceeded estimates calling for diluted earning per share of 13 cents. On a reported basis, Skechers posted a net loss of $66.7 million, or 43 cents per diluted share.
