Michael Kors Shares Slide 7% Premarket After Company Swings To Loss

Michael Kors Holdings Ltd. shares slid 7% premarket after the maker of high-end accessories and clothing posted a loss for its fiscal fourth quarter and said it is still being challenged by discounting and a weak market. The company said it had a loss of $26.8 million, or 17 cents a share, for its fiscal fourth quarter, after earnings of $177 million, or 98 cents a share, in the year-earlier period. Earnings were weighed down by $193.8 million of non-cash impairment charges related to underperforming retail stores. Excluding those charges, the company had EPS of 73 cents, ahead of the FactSet consensus of 70 cents. Revenue fell to $1.06 billion from $1.20 billion, but was ahead of the FactSet consensus of $1.05 billion. "Fiscal 2017 was a challenging year, as we continued to operate in a difficult retail environment with elevated promotional levels," Chief Executive John Idol said in a statement. "In addition, our product and store experience did not sufficiently engage and excite consumers." The company is now expecting first-quarter revenue of $910 million to $930 million, and a same-store sales decline in the high-single digit range. EPS is expected to range from 60 cents to 64 cents. The current FactSet consensus is for EPS of 79 cents and revenue of $923 million. The company's board has approved a fresh $1 billion share buyback program. Shares are down about 16% in 2017, while the S&P 500 has gained 8%.