Michael Kors's Stock Tumbles After Disappointing Results, Outlook

Michael Kors Holdings Ltd.'s shares tumbled 8.7% in premarket trade Wednesday, after the luxury accessories and apparel seller reported a fiscal fourth-quarter profit that fell shy of expectations, and provided a current-quarter outlook that was below analyst projections. For the quarter ended March 28, net earnings rose to $182.6 million, or 90 cents a share, from $161 million, or 78 cents a share, in the year-earlier period. The FactSet consensus was for earnings per share of 91 cents. Revenue rose to $1.08 billion from $917.5 million, compared with the FactSet consensus of $1.09 billion, as lower-than-expected retail sales offset bigger-than-anticipated increases in wholesale sales and licensing revenue. For the fiscal first quarter, the company expects EPS of 74 cents to 78 cents and revenue of $930 million to $950 million, well below the FactSet consensus of $1.03 and $1.09 billion, respectively. Operating expenses as a percent of sales is expected to increase 5.5 to 6 percentage points. The stock has slumped 19% year to date through Tuesday, while the S&P 500 has gained 2.2%.