Michael Kors became a billionaire yesterday 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 18 per cent to $90.39 around noon in New York and earlier reached $93.18 for the biggest intraday gain since February 14th, 2012.

The shares jumped 59 per cent in 2013.

The 54-year-old billionaire owns about 2 per cent of the company, a stake valued at about $390 million.

Mr 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.

'Attractive prices'
"Michael Kors does a remarkable job of developing compelling products at very attractive prices," said David Wu, a luxury goods analyst at New York-based Telsey Advisory Group who covers the company.

“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 jewellery.

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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 Michael Kors, declined to comment on his net worth.
– Bloomberg