Michael Kors' Stock Slumps After Downbeat Sales Outlook

Shares of Michael Kors Holdings Ltd. slumped 2.2% in premarket trade Wednesday, after the luxury accessories seller reported fiscal first-quarter results that beat expectations but provided a downbeat sales outlook. For the quarter ended July 2, earnings fell to $147.1 million, or 83 cents a share, from $174.4 million, or 87 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 88 cents. The FactSet EPS consensus was 74 cents. Revenue rose to $957.3 million from $947.3 million, beating the FactSet consensus of $952 million, as better-than-expected wholesale revenue offset a miss in retail and licensing revenue. The company expects fiscal second-quarter revenue of $1.07 billion to $1.085 billion, below the FactSet consensus of $1.11 billion. For fiscal 2017, the company expects revenue to be flat and same-store sales to decline in the mid-single digit percentage range, compared with the FactSet consensus for a revenue decline of 1% and a same-store sales decline of 2.1%. Chief Executive John Idol said strong first-quarter results were "muted by the continued decline in mall traffic trends as well as a decrease in tourism in certain major cities which negatively impacted our comparable sales performance during the quarter." The stock has run up 25% year to date through Tuesday, while the S&P 500 has gained 6.7%.