Michael Kors- KORS reported third fiscal quarter revenues rose 6% (10% on a constant currency basis) to $1.3 billion with net income down 3% to $294.5 million and EPS up 7% to $1.59 on lower shares outstanding. Revenue, comparable store sales and earnings growth came in ahead of management’s expectations thanks to an excellent holiday season. Solid performance was driven by strong consumer response to the company’s luxury fashion products, especially in accessories and footwear, the continue momentum of the digital flagship business and strong growth in international markets. Retail net sales increased 11.1% to $766.2 million driven primarily by e-commerce sales from the company’s digital flagships and 114 net new store openings since the prior year. Comparable store sales decreased .9%. On a constant currency basis, retail net sales increased 15.7% and comparable store sales increased 2%. Wholesale net sales increased .3% to $575.5 million and 3.0% on a constant currency basis. Licensing revenue increased 8.4% to $55.8 million.

Total revenue in the Americas increased .4% to $1.06 billion and grew 1.4% on a constant currency basis. European revenue grew 14.3% to $276 million and increased 29.1% on a constant currency basis. Revenue in Japan increased 59.1% to $25.5 million and grew 68% on a constant currency basis. China enjoyed double-digit comparable store sales increases as the brand is resonating well there. At the end of the quarter, the company operated 623 retail stores and had 234 additional retail stores operated through licensing partners. During the third quarter, the company repurchased 4.6 million of its own shares for $200 million at an average price of $42.72 per share. Management expects to continue to be aggressive with its share repurchases with $558.1 million remaining authorized for future share repurchases. For fiscal 2016, management reaffirmed its outlook for total revenue to approximate $4.65 billion, which on a constant currency basis represents low double-digit growth. The company expects a low single-digit decrease in comparable store sales on a constant currency basis for the year. Operating expenses are expected to increase approximately 230 basis points as a percentage of revenues due to investments in digital flagships, corporate talent, new stores, shop-in-shops, infrastructure and distribution. This should result in EPS in the range of $4.38-$4.42 for fiscal 2016.

Alphabet- GOOGL reported fourth quarter revenues rose 18% (24% on a constant currency basis) to $21.3 billion with net income from continuing operations up 33% to $4.9 billion, as operating margin expanded 100 basis points to 25%, and EPS rose 31% to $7.06. For the full 2015 year, revenues rose 14% to $75 billion with net income up 20% to $16.3 billion and EPS up 15% to $22.84. The very strong revenue growth in the fourth quarter was driven primarily by mobile search as well as YouTube and programmatic advertising.