Michael Kors released fiscal third-quarter earnings just above expectations, but a miss on sales and guidance has sent the stock lower.
The high-end apparel maker reported third-quarter earnings of $1.64 per share, just a hair above the $1.63 estimated by analysts.
Sales, however, came in weaker. Same-store sales for the quarter fell by 6.4% ex-currency changes, worse than the 5.4% fall that was expected by analysts.
Additionally, forward guidance from the company was worse than expected. Michael Kors projected full year fiscal 2017 earnings per share of $4.15 to $4.19, well short of the $4.38 expectation. Additionally, annual revenue guidance was pegged at $4.48 billion, below projections of $4.56 billion.
“Overall, we were disappointed with our North American and European comparable store sales performance during the quarter,” said Michael Kors CEO John Idol in a press release.
“We believe that headwinds in these markets will continue throughout the Spring season as we face reduced traffic trends in shopping malls, currency fluctuation, uncertainty surrounding certain political changes in European countries and the implementation of our reduced promotional cadence in North America.”
Following the news, shares of the company were sliding in pre-market trading by roughly 7.3% as of 7:38 a.m. ET.