Michael Kors Shares Sink On Weak Outlook

Michael Kors Holdings Ltd. shares fell 2.4% in Thursday after-hours trading after the luxury apparel and handbag company forecast fiscal full-year results that were below consensus. Net income was $160.9 million, or 95 cents per share, down from $193.1 million, or $1.01 per share, for the same period last year. The FactSet consensus was 88 cents per share. Revenue totaled $1.09 billion, down from $1.13 billion last year, but in line with the FactSet consensus. Same-store sales fell 5.4%, beating the FactSet estimate for a 5.8% decline. Results were impacted by declines in mall traffic and tourism in major cities, along with pullbacks in the wholesale channel, said Chief Executive John Idol in a statement. Micheal Kors now expects fiscal 2017 revenue of about $4.55 billion and earnings per share in the range of $4.32 to $4.38. Adjusted EPS is forecast in the range of $4.37 to $4.43. The FactSet consensus is for sales of $4.64 billion and EPS of $4.58. Michael Kors shares are up 29.2% for the year so far while the S&P 500 Index is up 6% for the same period.