Michael Kors has strong holiday season; outlook disappoints
LONDON (AP) — Michael Kors Holdings Ltd. (KORS) had a sparkling holiday season, but the luxury retailer posted an earnings and revenue outlook for the current quarter that missed Wall Street’s expectations.
The company’s shares fell sharply in premarket trading Thursday.
The London-based company reported net income of $303.7 million, or $1.48 per share, in the three months ending Dec. 27. That compares with net income of $229.6 million, or $1.11 per share, in the same quarter a year ago.
The results topped Wall Street expectations, with the average estimate of analysts surveyed by Zacks Investment Research of $1.34 per share.
Revenue rose 30 percent to $1.31 billion in the period, which topped Street forecasts of $1.3 billion, according to Zacks.
For the current quarter ending in March, Michael Kors Holdings said it expects earnings between 89 cents per share and 92 cents per share for the fourth quarter and revenue between $1.05 billion to $1.08 billion. Analysts expected earnings of 94 cents per share and revenue of $1.15 billion.
For the full-year, Michael Kors expects earnings between $4.27 per share and $4.30 per share and revenue of $4.4 billion. Analysts expected earnings of $4.17 per share and revenue of $4.42 billion, according to FactSet.
Shares of Michael Kors fell $5.12, or 7.2 percent, to $66.26 in premarket trading Thursday. Its shares are down about 22 percent in the past year.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on KORS at http://www.zacks.com/ap/KORS
Keywords: Michael Kors Holdings, Earnings Report