By Ezequiel Minaya

Michael Kors Holdings Ltd. lowered its revenue and earnings outlook for the fiscal year and released a downbeat forecast for the key holiday season, defying the hopeful signs reported among the retail sector Thursday.

The company said it now expects adjusted earnings on a per-share basis of $4.37 to $4.43, down from a previous range of $4.56 to $4.64. Kors also said it expects revenue for the 2017 fiscal year to be about $4.55 billion, below its previous estimate of $4.7 billion.

Two of the country's biggest department stores, Macy's Inc. and Kohl's Corp., posted another quarter of declining sales as the chains struggle with changing shopping habits and competition from discount rivals. Executives at both chains, however, said shopping trends were improving and gave upbeat outlooks for the key holiday season.

Shares of the companies rallied in Thursday morning trading, giving a lift to other retail stocks.

For the current quarter, Kors expects total sales between $1.37 billion and $1.38 billion, a shade below the expectations of analysts polled by Thomson Reuters, who expected $1.39 billion. Kors sees earnings on a per-share basis between $1.61 and $1.65, while analysts projected $1.79.

Shares of the company slipped 3.1% to $50.14 in after-hours trading.

For Kors, comparable-store sales dropped 5.4% during the recent quarter, better than the 5.8% fall predicted by analysts on FactSet. Wholesale sales fell 18.4%, while licensing revenue tumbled 10.2%%.

Americas revenue slipped 11.1%, offset partially by the 1.9% climb reported in Europe. Revenue in Asia almost doubled to $95.1 million.

In all, for the second quarter, the company reported a profit of $160.9 million, or 95 cents a share, down from a year-earlier profit of $193.1 million, or $1.01 a share.

Revenue climbed 3.7% to $1.09 billion. Retail net sales climbed 12.1% to $597.2 million

Analysts projected 88 cents in earnings per share and $1.09 billion in sales, according to Thomson Reuters. For the latest quarter, the retailer predicted 84 cents to 88 cents in per-share profit on sales of $1.07 billion to $1.085 billion.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

(END) Dow Jones Newswires

November 10, 2016 17:47 ET (22:47 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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