The top gainers in the S&P 500 on August 8, 2017, were:
Michael Kors Holdings
Michael Kors Holdings is an American luxury fashion company. It’s known for apparel, footwear, watches, handbags, and other accessories. Michael Kors was the S&P 500’s top gainer on Tuesday. Its better-than-expected quarterly earnings report and an upward revision to its fiscal guidance pushed the stock higher on Tuesday.
In 1Q18, the company’s EPS (earnings per share) fell from $0.90 to $0.80. However, the EPS is higher than the market’s forecast of $0.62. It’s also higher than the company’s guidance of $0.60–$0.64. According to John Idol, the CEO of Michael Kors, the upbeat earnings are due to higher comparable sales in Europe and North America. The revenue fell 3.9% to $952.4 million—higher than the market’s forecast of $918.6 million. The upbeat revenue was supported by increased sales in China and 67 new stores opening.
Michael Kors lifted its fiscal revenue and EPS estimates for 2018. The fiscal revenue was upgraded from $4.25 billion to $4.275 billion. The EPS guidance has been raised from $3.57–$3.67 to $3.62–$3.72. CEO John Idol commented that the recent acquisition of Jimmy Choo by Michael Kors will help form a global luxury fashion group. The Jimmy Choo acquisition wasn’t included in the fiscal guidance update. On the other hand, management expects the comparable sales to fall from high-single digits to mid-single digits.
On Tuesday, Michael Kors rose 21.5% to $45.25—the highest close since November 2016.
In the next part, we’ll discuss the S&P 500’s bottom performers on August 8.