The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Michael 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.
ADVERTISEMENT
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.
In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.
For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.