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Michael Kors Holdings Limited (KORS - Free Report) looks promising as the stock amassed a year-to-date return of roughly 59.7%, riding on an impressive record of beating the quarterly earnings expectations, robust sales growth and strong demand for its brands and assortments.

Shares of this apparel, accessories, cosmetics and footwear retailer touched a yearly high for the second time in a week’s duration. The shares hit a 52-week high of $84.58 on Dec 19, 2013, following a high of $83.91 reached on Dec 13. The stock eventually closed trade at $83.92 on Dec 19.

Moreover, the company currently trades at a forward P/E of 29.6x, a 59.1% premium to the peer group average of 18.6x. The company’s last traded price is 2.8% below the Zacks Consensus average analyst price target of $84.62.

This Zacks Rank #2 (Buy) company boasts a history of beating the Zacks Consensus Estimate. This global luxury lifestyle brand has delivered positive earnings surprises in the last 8 quarters with an average surprise of 44.9%.

In second-quarter fiscal 2014, the company posted strong financial results with adjusted earnings of 71 cents per share, up 44.9% year over year. The results also surpassed the Zacks Consensus Estimate of 68 cents. Michael Kors’ total revenue rose 38.9% to $740.3 million in the quarter.

The company provided a favorable outlook for the upcoming quarter owing to rising demand for its products, especially watches. The company expects third-quarter fiscal 2014 earnings in the range of $0.83–$0.85, with full-year earnings likely to be in the $2.77–$2.81 range. The long-term expected earnings growth rate for this stock is 25.4%.

The encouraging results and a favorable outlook triggered an upward thrust in the Zacks Consensus Estimate. For the third quarter of fiscal 2014, the Zacks Consensus Estimate of 87 cents increased by a penny in the last 60 days. For fiscal 2014 the Estimate escalated 1.8% to $2.83 a share over the same time frame.

Other Stocks to Consider

Some better-ranked retail stocks that look promising include Conns Inc. (CONN - Free Report) , G-III Apparel Group Ltd. (GIII - Free Report) and Hanesbrands Inc. (HBI - Free Report) . All these stocks carry a Zacks Rank #1 (Strong Buy).


In-Depth Zacks Research for the Tickers Above

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HANESBRANDS INC (HBI) - free report >>

G-III APPAREL (GIII) - free report >>

MICHAEL KORS (KORS) - free report >>

CONNS INC (CONN) - free report >>