The American fashion designer puts out extravagant $2,295 python satchels (other bags come in ostrich and crocodile) and $1,295 calf-hair cowboy boots but also creates more affordable $59 thong sandals as well as stylish
The high-low strategy seems to be working. Michael Kors Holdings, which had its initial public offering last year, netted $43.6 million in net income, or 22 cents a share in its fiscal fourth quarter. During the same period last year, Kors made $13.6 million in profit, or 10 cents a share.
Kors, made especially popular by his stint as a judge on the reality show
Since the end of last year, 71 new stores have opened -- nearly a quarter of the chain's total.
Same-store sales at locations open more than a year were up 36.1% in the fourth quarter, with some weakness in Europe, which is struggling with a debt crisis. Overall revenue, including net sales and royalties, jumped 58.3% to $380 million from $240 million.
The company's stock soared as much as 11.9% to $42.72 in morning trading Tuesday. The December IPO was priced at $20 a share. Since going public, Kors stock has gained nearly 60%.
Could this signal the return of luxury? Kors predicts profit of $1.08 to $1.12 a share next year and sales between $1.7 and $1.8 billion – beating analysts' expectations.
Last month, however, luxury jewelry chain Tiffany & Co. slashed its forecast for the year as sales slumped and concerns about Greece and the Eurozone mounted.