Kors Becomes a Billionaire as Luxury-Goods Maker SurgesDavid de Jong and Lindsey Rupp
Michael Kors became a billionaire today as shares of the luxury-goods company that bears his name surged the most in almost two years after posting profit that topped analysts’ estimates.
Michael Kors Holdings Ltd. rose 17.3 percent to close at $89.91 in New York. It had earlier reached $93.18 for the biggest intraday gain since Feb. 14, 2012.
The 54-year-old billionaire owns about 2 percent of the company, a stake valued at about $390 million. Kors, the company’s chief creative officer, has collected more than $700 million selling stock since its initial public offering in 2011, according to data compiled by Bloomberg.
“Michael Kors does a remarkable job of developing compelling products at very attractive prices,” David Wu, a luxury goods analyst at New York-based Telsey Advisory Group who covers the company, said in a telephone interview. “What he does well is translating the top designer trends and offering it to the masses.”
The Hong Kong-based company boosted its full-year sales and profit forecasts after customers in Europe and in North America bought more of its products, which include accessories, footwear, watches and jewelry.
Profit for fiscal 2014 will be as much as $3.09 a share, up from a previous forecast of a maximum of $2.81 a share, the company said today in a statement. Analysts projected $2.82, the average of estimates compiled by Bloomberg.
Mary Fontamillas, a spokeswoman for the company, declined to comment on his net worth.
Kors studied fashion design at the Fashion Institute of Technology in Manhattan. He unveiled his own womenswear line in 1981, and held his first runway show three years later.
He has been a judge on the Bravo TV show “Project Runway.”