Michael Kors Holdings Ltd. swung to a fiscal fourth-quarter profit on a boost in sales, but a cautious outlook for the year disappointed Wall Street.
Like many high-end retailers, Kors has been trying to overhaul its business as shoppers shift many of their purchases online, where there's an abundance of luxury goods at lower prices. The company closed some locations during the quarter, cutting some costs.
The luxury retailer reported net income of $44.1 million, or 29 cents per share, after reporting a loss in the same period a year earlier. Earnings, adjusted for restructuring costs and asset impairment costs, came to 63 cents per share.
Revenue rose 10.8 percent to $1.18 billion.
The results topped Wall Street expectations of 60 cents per share in profit on revenue of $1.14 billion.
Same-store sales rose 2.3 percent, while Wall Street expected a dip in the key measure.
For the year, the company reported profit of $591.9 million, or $3.82 per share. Revenue was reported as $4.72 billion.
For the current quarter ending in July, Michael Kors Holdings said it expects revenue in the range of $1.14 billion. Analysts surveyed by Zacks had expected revenue of $1.1 billion.
The company expects full-year earnings to be $4.65 to $4.75 per share, with revenue expected to be $5.1 billion and flat same-store sales. Analysts expect profit of $4.74 per share on $5 billion in revenue.
Michael Kors Holdings shares have increased slightly more than 8 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed roughly 1 percent. The stock has risen 86 percent in the last 12 months.
Elements of this story were generated by Automated Insights using data from Zacks Investment Research. Access a Zacks stock report on KORS at https://www.zacks.com/ap/KORS