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Michael Kors Forecasts Annual Profit Below Estimates

The projection overshadowed stronger-than-expected fourth-quarter results, driving the handbag maker's shares down 7 percent.
Michael Kors handbags | Source: Michael Kors
By
  • Reuters

NEW YORK, United StatesMichael Kors Holdings Ltd forecast yearly earnings largely below Wall Street estimates, taking the shine off stronger-than-expected quarterly results and driving the handbag maker's shares down 7 percent on Wednesday.

The company known for its Mercer and Hamilton handbags expects earnings of between $4.65 and $4.75 per share in fiscal year 2019, pointing to a lower figure than analysts' average expectation of $4.74, according to Thomson Reuters I/B/E/S.

Kors, which bought luxury shoe maker Jimmy Choo last July, also said on Wednesday it would explore more acquisitions to boost its luxury offerings.

Net income attributable to Kors was $44.1 million or 29 cents per share in the fourth quarter ended March 31, compared with a net loss of $26.8 million or 17 cents per share a year earlier.

Revenue rose to $1.18 billion from $1.06 billion, exceeding analysts' average estimate of $1.15 billion, according to Thomson Reuters I/B/E/S.

Excluding one-time items, the company earned 63 cents per share, topping analysts' estimates of 60 cents.

Shares of New York-based Michael Kors slid 6.8 percent to $63.60 in premarket trading.

By Uday Sampath; editor: Sai Sachin Ravikumar.

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