Michael Kors tumbles after its sales forecast disappoints
The company said first-quarter revenue will be $910 million to $930 million, trailing the consensus analyst forecast of $944 million. The luxury fashion retailer also reported that fourth-quarter comparable sales slipped 13.6%, a bigger loss than the 12.3% contraction foreseen by analysts.
Michael Kors will also be closing between 100 and 125 of its full-price retail stores over the next two years, the company said in its earnings release. It estimates that the closures will save them about $60 million annually.
"Fiscal 2017 was a challenging year, as we continued to operate in a difficult retail environment with elevated promotional levels," chairman and CEO John D. Idol said in a statement. "In addition, our product and store experience did not sufficiently engage and excite consumers."
The stock's weakness is more bad news for the company, which saw shares fall to a more than five-year low earlier this month. Michael Kors has slipped 31% since hitting a three-month high on August 1.
