Michael Kors Shares Slide On Weak Sales And Guidance

Michael Kors Holdings Ltd shares sank 8% in Tuesday premarket trading after the company announced third-quarter sales that missed consensus and guidance below estimates. Net income was $271.3 million, or $1.64 per share, compared with $294.6 million, or $1.59 per share, for the same period last year. The FactSet consensus was $1.63. Sales for the quarter were $1.35 billion, down from $1.40 billion last year and just below the $1.36 billion FactSet consensus. Same-store sales fell 6.9%, missing the FactSet consensus for a decline of 5.1%. The company was "disappointed" with North American and European same-store sales performance, said Chief Executive John Idol in a statement. Michael Kors now sees fourth-quarter revenue between $1.035 and $1.055 billion, and a same-store sales decrease in the low-teens range. EPS is expected to be in the range of 68 cents to 72 cents. FactSet sees fourth-quarter sales of $1.11 billion, same-store sales decrease of 4.1% and EPS of 92 cents. Michael Kors shares are down 20.4% for the year while the S&P 500 index is up 22% for the same period.