Shares of Michael Kors tanked by more than 9% in pre-market trading on Wednesday after the company reported fourth-quarter earnings.
The fashion retailer posted diluted earnings per share of $US0.90, just below analysts’ estimate for $US0.91, according to Bloomberg.
The company posted sales of $US1.1 billion, up 17.8% from the previous quarter, and more than the estimate for $US1.09 billion.
In the earnings release, CEO John Idol wrote: “While we were faced with a number of headwinds in the fourth quarter, we were pleased with the strong performance across our segments and geographies.”
“We believe that our results demonstrate the strength of the Michael Kors brand as our luxury products continue to resonate with consumers worldwide.”
For the fiscal year, sales increased 32% to $US4.4 billion from $US3.3 billion in fiscal 2014, the company said.
In its outlook, it said it expects “a low double digit comparable store sales decrease on a reported basis and a mid-single digit decrease on a constant currency basis.”
More to come …