Shares of Michael Kors Holdings (NYSE:KORS), a global fashion luxury group, are down 12% as of 11:15 a.m. EDT, after posting strong fourth-quarter results. What’s going on?
Michael Kors reported a 10.8% jump in revenue to $1.18 billion, topping analysts’ estimates calling for $1.14 billion — a result aided by a 2.3% increase in comparable store sales. Adjusted earnings per share checked in at $0.63, also ahead of analysts’ estimates of $0.60 per share.
“Fiscal 2018 was an exciting year for our Company as we established a foundation to support long term growth,”saidChairman and Chief Executive Officer John D. Idol, in a press release. “We created a global fashion luxury group with the acquisition of Jimmy Choo and completed the first year of our Runway 2020 strategic plan for the Michael Kors brand, ending the year significantly ahead of our expectations.”
Image source: Getty Images.
One of the driving forces behind the stock price decline Wednesday morning is due to fiscal year 2019 guidance. Management is guiding for full-year earnings per share to check in between $4.65 and $4.75, which only meets analysts’ estimates of $4.74 at the top end of the range, and flat comparable sales growth. Today’s 12% decline after a strong fourth quarter emphasizes how short of a leash Wall Street has with high end brick-and-mortar retailers still trying to figure out their e-commerce businesses.