Visitors Now:
Total Visits:
Total Stories:
Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Michael Kors Q2 Results Beat, But Forecast Falls Well Short

Thursday, November 10, 2016 15:33
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Luxury apparel and handbag maker Michael Kors Holdings Ltd (NYSE:KORS) late Thursday posted better than expected fiscal Q2 earnings results, but its forecast was much lower than estimates, sending its shares falling in late trading.

The London-based company reported Q2 EPS of $0.95, which was 7 cents better than Wall Street’s $0.88 estimate. Revenue fell 3.7% from last year to $1.09 billion, matching analysts’ expectations.

Retail net sales rose 12.1% to $597.2 million in the period, rising mostly due to 198 net new store openings since the same time last year. Comparable sales, which are considered a key indicator for retailers, fell 5.4%.

Wholesale net sales plunged 18.4% to $452.2 million, while licensing revenue decreased 10.2% to $38.8 million.

Looking ahead, KORS forecast Q3 EPS of $1.61-1.65, which is well short of Wall Street’s $1.79 estimate. Q3 revenues are projected at $1.365 to $1.380 billion, also below expectations for $1.4 billion.

Full-year guidance wasn’t much better. Michael Kors expects 2017 EPS of $4.37-4.43, below the $4.58 analysts were looking for, and revenues of $4.55 billion, lower than Wall Street’s $4.64 billion estimate.

The company commented via press release:

“Our second quarter revenue and earnings results were above our expectations, as we continued to deliver innovative luxury fashion product and further expand our footprint worldwide. During the quarter, we continued to execute on our growth strategies with the successful launch of our Michael Kors ACCESS line of smartwatches and fitness trackers, the debut of our new Wonderlust fragrance, our new fall handbag collections, and the further expansion of our men’s offering. We also expanded our online presence, with the launch of digital flagships in several countries in Europe. That said, our results continued to be impacted by the declines in mall traffic and tourism in certain major cities, as well as our strategic decision to reduce sell-in of inventory to the U.S. wholesale channel. Despite these near term challenges, we remain confident in our ability to drive long term growth and increase shareholder value.”

Michael Kors shares fell $1.91 (-3.69%) to $49.85 in after-hours trading Thursday. Prior to today’s report, KORS had gained 29.16% year-to-date.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.