Michael Kors Reports Solid Earnings As Stores Continue To Pop Up

Michael Kors KORS on Tuesday reported its second quarter 2014 results. Revenue came in at $740.3 million, which beat The Street's consensus by $18.1 million. Earnings Per Share (EPS) of $0.71 also beat the Street's consensus by $0.02.

Michael Kors continues to offer its clients a product assortment that caters towards trend-sensitive shoppers. Revenues increased 38.9 percent year-over-year, leading investors to remain confident that the company's continued sales momentum shows it still offers the right product at the right time.

Sales in North America rose 31 percent year-over-year, with sales in Europe doubling over the same time period. During the quarter, the company opened 24 new stores worldwide. Michael Kors has proven itself to be a top retail growth story as it continues to expand its store count both domestically and internationally.

Looking forward, management noted during its conference call that it intends to open approximately 100 retail locations in fiscal 2014. The company's CEO was quoted as saying “We believe that 2014 will be another record year for the company as we continue to expand the Michael Kors luxury lifestyle brand globally.”

Gross margin expanded 150 basis points to a very impressive 61 percent, while income from operations grew 40 percent to $221 million, leading to an operating margin of 30 percent.

The company's strong performance has been well documented by many analysts. Prior to the earnings release, analysts at Canaccord Genuity issued a report that was upbeat about the company's ability to deliver strong earnings.

Shares are currently trading higher by around 6.5 percent as it hit a new 52-week high of $79.90 a share. Year-over-year shares are up over 30 percent, drastically outperforming rival Coach COH, whose shares are down around 10 percent over the same time period.

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