Michael Kors forecasts annual profit largely below estimates

Earnings


Michael Kors 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 shoemaker 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.



Source link

Products You May Like

Articles You May Like

COO Dennis Woodside stepping down
JPMorgan card users get upgraded as rewards portal switches to Expedia
Morgan Stanley raises Salesforce price forecast, seeing success from its MuleSoft deal
Working with Goldman Sachs, Silver Lake on taking Tesla private
‘Digital dirt’ may nix that job you were counting on getting

Leave a Reply

Your email address will not be published. Required fields are marked *