Michael Kors: West Coast Port Congestion Continues To Be a Risk
Michael Kors Holdings Ltd. said on Thursday that the West Coast port slowdown continues to pose a risk to incoming shipments. Chief Executive John Idol said while the company is not seeing a material financial impact so far, it has experienced an increase in delays. The company has had to pay additional air freight costs and other transportation fees. Even though Kors has factored these increased expenses into its fiscal fourth-quarter outlook, he said the risk of additional delays could result in lower sales and higher costs than it had expected. His remarks came as the West Coast operators reportedly threatened a "complete gridlock" in the next five to 10 days if the dockworkers don't accept its new contract terms. See related story on the West Coast issue has many on edge.
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