Net income attributable to the company fell to $271.3 million (£218.88 million) in the same quarter, down from $294.6 million (£237.68 million) in the similar period a year earlier. Analysts, on average estimate earnings of $0.93 per share on revenues of $1.11 billion.
For the current quarter ending in March, Michael Kors Holdings said it expects revenue in the range of $1.03 billion to $1.06 billion.
On the sales side, KORS's revenues are expected to retreat to $1.4B versus prior year's Q3 result of $1.4B.
For the third quarter of fiscal 2017, ended December 31, Michael Kors' total revenue was $1.35 billion, down from $1.4 billion the previous year.
While the top and bottom line results weren't very bad, Michael Kors' comparable sales results are what is really killing its stock today.
In the a year ago Michael Kors Holdings Ltd's stock price has increased by 0% from 0.00 to 36.65. Aside from that, Michael Kors Holdings EBIT margins compressed four percentage points. Corporate insiders own 5.00% of the company's stock. The stock has tumbled to a new low for the year. Weakness in the two regions, which together account for almost all of Michael Kors' sales, will continue through spring, partly due to lower traffic in shopping malls and a cutback in promotions in North America.
Total revenue fell 3.2 percent to $1.35 billion. The stock price have dropped -17.47% in the past 12 Weeks but analyzing the 6 month chart of the stock, the price of the stock has managed to drop negative and it has dropped down to -18.09%.
Michael Kors' total revenue in the Americas decreased 7.4 percent, or 7.5 percent on a constant currency basis, to $983.8 million in the third quarter. The lifestyle brand reported $0.95 EPS for the quarter, beating the Zacks' consensus estimate of $0.88 by $0.07. Comparable sales dropped 6.9 percent during the quarter, more than the 5.4 percent decline predicted by analysts, according to Consensus Metrix.
Michael Kors chairman and CEO John Idol said there were several bright spots during the quarter - among them, momentum in the brand's athletic footwear business- however, he was "disappointed" company's North American and European comparable sales, which were impacted by ongoing declines in store traffic and currency fluctuations. As of Dec 31, 2016, the company still had $250 million remaining under its share buyback program.
Lululemon Athletica delivered an average positive earnings surprise of 3.9% in the trailing four quarters and has a long-term earnings growth rate of 15.9%. The company's last traded volume of 2.87 million shares as compared to it's an average volume of 2.6 million shares. It offers two primary collections: the Michael Kors luxury collection and the MICHAEL Michael Kors accessible luxury collection.