REUTERS

(REUTERS)

Kors Shares Plunges as Holiday-Quarter Forecast Disappoints

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Michael Kors Holdings Ltd, known for its trendy handbags and watches, forecast third-quarter sales and profit largely below analysts' estimates, sending its shares down 6 percent in premarket trading.

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The company forecast earnings of $1.31 to $1.34 per share on revenue of $1.27 billion to $1.30 billion.

Analysts on average were expecting earnings of $1.34 per share on revenue of $1.30 billion, according to Thomson Reuters I/B/E/S.

The company reported a 43 percent rise in second-quarter net sales and announced a $1 billion share repurchase program.

The company's net income rose to $206.9 million, or $1.00 per share in the quarter ended Sept. 27, from $145.8 million, or 71 cents per share, a year earlier.

Net sales rose to $1.01 billion from $707.4 million. Same-store sales rose 16.4 percent. (Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Maju Samuel)