default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Michael Kors Misses Quarterly Revenue Estimates

The hand-bag maker recorded weaker sales at retail stores in Europe.
Michael Kors handbags | Source: Michael Kors
By
  • Reuters

NEW YORK, United StatesMichael Kors missed Wall Street's quarterly revenue estimates for the first time in almost two years, as the luxury hand-bag maker recorded lower sales at retail outlets in Europe, where it is trying to gain a stronger foothold.

Shares of the company fell 11.3 percent to $50.97 in premarket trading on Wednesday following the news.

Revenue from Kors' European retail stores fell nearly 10 percent during the quarter ended September, leading to total retail revenue of $643.9 million.

The result missed analysts' average estimate of $661.1 million, according to IBES data from Refinitiv.

Kors has been reducing inventory at its European stores to create exclusivity for its products in a region where wealthy fashion consumers have long preferred local luxury brands from LVMH and Gucci parent Kering.

In order to better compete with peers in Europe, Kors is spending over $2 billion to buy Italian luxury designer Versace.

Kors said quarterly net income attributable to the company fell to $137.6 million from $202.9 million a year earlier.

Total revenue rose 9.3 percent to $1.25 billion, falling short of analysts' expectations of $1.26 billion. The miss was the first since the quarter ended December 2016.

Excluding one-time items, the company earned $1.27 per share, above analysts' estimates of $1.10 per share.

By Uday Sampath; editor: Sai Sachin Ravikumar.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Financial Markets
A financial lens on the fast-changing fashion sector, including markets, investors and deals.

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.



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.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024