Michael Kors Holdings Limited | $KORS Stock | Shares Plunge On EPS Guidance

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Michael Kors Holdings Limited (NYSE: KORS)


Michael Kors Holdings Ltd. reported fourth quarter earnings for fiscal 2018 before the bell Wednesday. The results were ahead of analysts’ expectations, with revenue coming in at $1.18 billion.

However, KORS stock took a dip of more than 13% in the early trading session after the London-based luxury retailer issued a cautious forecast that disappointed investors.  

KORS Earnings & Outlook

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The company reported net income of $44.1 million, or 29 cents per share, compared to the year-ago loss of $26.8 million, or 17 cents a share. Adjusted earnings per share were 63 cents beating analysts’ estimate of 60 cents.

Revenue jumped 10.8% to $1.18 billion ahead of Wall Street estimate of $1.14 billion. While analysts expected a dip in same-store sales during the quarter, the retailer reported a growth of 2.3%.

For the full year, the company reported revenue of $4.72 billion and a profit of $591.9 million, or $3.82 per share.

For Q1 of 2019, it expects adjusted per share earnings of in the range of 90 cents to 95 cents on revenue of about $1.14 billion. Analysts surveyed by Zack is expect an EPS 89 cents on revenue of $1.1 billion.

For the full year, it expects an EPS of $4.65 to $4.75 on revenue of about $5.1 billion. Analysts expect an EPS of $4.74 on revenue of $5 billion.

Michael Kors Holdings CEO Comments

Fiscal 2018 was an exciting year for our Company as we established a foundation to support long term growth. We created a global fashion luxury group with the acquisition of Jimmy Choo and completed the first year of our Runway 2020 strategic plan for the Michael Kors brand, ending the year significantly ahead of our expectations,” said John D. Idol, Chairman and CEO.

Looking to fiscal 2019, we have a number of initiatives planned to drive growth in both of our luxury brands. For Michael Kors, we expect growth to be led by our retail business, as we remain focused on executing initiatives across fashion luxury product, brand engagement and customer experience. For Jimmy Choo, we will continue to make strategic investments to expand our retail fleet globally, capitalize on the significant opportunity to grow our accessories business and increase brand engagement through glamorous red-carpet marketing communications. Additionally, we will continue to explore acquisitions to complement our existing luxury portfolio. Overall, we are well-positioned to deliver long-term growth and enhance shareholder value by executing on the strategies in place for both Michael Kors and Jimmy Choo,” the CEO added.

Michael Kors Holdings Limited Company Profile

Michael Kors Holdings Ltd. is engaged in the design, marketing, distribution, and retail of branded men’s apparel, and women’s accessories and apparel. The company has three segments of operation namely; Licensing, Wholesale, and Retail.

The Licensing segment is involved in licensing the trademarks of the company’s products, such as leather goods, fragrances, watches, cosmetics, ties, men’s suits, furs, swimwear, eyewear, and jewelry.

The Wholesale segment distributes the products to travel shopping locations, department stores, and specialty retail stores.

The Retail segment engages in the management of lifestyle stores, collection stores, including outlet stores and concessions located mainly in Japan, Europe, Canada, and the U.S.

Products of the company are sold under the trademarks of MICHAEL KORS, and other related names. The company was founded in 1981 and its headquarters are located in London, UK. – Reuters