Michael Kors Gives Downbeat Holiday Outlook as Profit Slides
November 10 2016 - 6:10PM
Dow Jones News
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 estimateof $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 17:55 ET (22:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Macys (NYSE:M)
Historical Stock Chart
From Aug 2024 to Sep 2024
Macys (NYSE:M)
Historical Stock Chart
From Sep 2023 to Sep 2024