×

Michael Kors forecasts annual profit largely below estimates

  • Michael Kors forecast yearly earnings largely below Wall Street estimates.
  • The luxury goods maker also reported stronger-than-expected quarterly results.
  • Kors, which bought shoemaker Jimmy Choo last July, also said on Wednesday it would explore more acquisitions to boost its luxury offerings.
A shopper looking at Michael Kors handbags in Macy's flagship store in New York.
Scott Mlyn | CNBC
A shopper looking at Michael Kors handbags in Macy's flagship store in New York.

Michael Kors forecast yearly earnings largely below Wall Street estimates, taking the shine off stronger-than-expected quarterly results and driving the handbag maker's shares down 7 percent on Wednesday.

The company known for its Mercer and Hamilton handbags expects earnings of between $4.65 and $4.75 per share in fiscal year 2019, pointing to a lower figure than analysts' average expectation of $4.74, according to Thomson Reuters I/B/E/S.

Kors, which bought luxury shoemaker Jimmy Choo last July, also said on Wednesday it would explore more acquisitions to boost its luxury offerings.

Net income attributable to Kors was $44.1 million or 29 cents per share in the fourth quarter ended March 31, compared with a net loss of $26.8 million or 17 cents per share a year earlier.

Revenue rose to $1.18 billion from $1.06 billion, exceeding analysts' average estimate of $1.15 billion, according to Thomson Reuters I/B/E/S.

Excluding one-time items, the company earned 63 cents per share, topping analysts' estimates of 60 cents.

Shares of New York-based Michael Kors slid 6.8 percent to $63.60 in premarket trading.