The bond market has entered a financial twilight zone, and at this point, there doesn't seem to be a smooth way out.Market Insiderread more
Trump said he has "been thinking about payroll taxes for a long time" — and he cautioned that "whether or not we do something now, it's not being done because of recession."Politicsread more
Market bull Jeff Saut told CNBC on Tuesday that the lows are in and the market is headed "much higher."Marketsread more
Urban Outfitters reported earnings and same-store sales for the second quarter that beat analyst expectations, while revenue fell short.Retailread more
President Donald Trump believes he has quite the bargaining chip with the European Union.Marketsread more
Some Apple employees have become disillusioned with the group's culture, where some have thrived while others feel sidelined.Technologyread more
President Donald Trump renewed calls Tuesday of re-admitting Russia to the G7 ahead of the group's summit in Biarritz, France this weekend.Politicsread more
Biden has shown staying power at the top of a jammed Democratic field even as polling numbers for Sanders, Warren and Harris wax and wane.2020 Electionsread more
The FDIC on Tuesday votes to approve a five-agency revision of the post-crisis regulation known as the Volcker Rule.Financeread more
The yield curve is the only economic indicator pointing to a recession, according to Credit Suisse.Marketsread more
Amid fears of a recession, Domino's Pizza CEO Ritch Allison said Tuesday that the U.S. consumer is still strong.Restaurantsread more
Michael Kors shares plunged more than 14 percent after the handbag maker recorded weaker sales at its retail stores in Europe during the fiscal second quarter, making this the first time in almost two years that Kors missed analysts' quarterly revenue expectations.
Shares hit a new, one-year low of $47.47 Wednesday morning on the news.
Kors said net income fell during the quarter to $137.6 million, or 91 cents per share, from $202.9 million, or $1.32 per share, a year ago. Excluding one-time items, the retailer earned $1.27 a share, better than the $1.10 expected by analysts surveyed by Refinitiv.
Total revenue rose 9.3 percent to $1.25 billion, slightly missing analysts' average estimate for $1.26 billion.
The company has been trying to cut back excess inventory at its stores in Europe, where rival brands like LVMH and Kering have gained in popularity.
But that strategy came back to haunt Kors in the latest quarter. CEO John Idol said on an earnings call that sales were lower because the company didn't have enough inventory of its logo bags. He said the logo category, which accounts for about 25 percent of sales, has been gaining in popularity faster than anticipated, and Kors is still "sold out in certain styles."
Some analysts also say Kors' product offering isn't as "sophisticated" as other luxury retailers, including Coach-owner Tapestry in the U.S. Its handbags can be found scattered across off-price retailers like TJ Maxx and Marshalls, getting lost in a "sea of stuff," GlobalData Retail managing director Neil Saunders said.
Idol said Kors' recently announced plans to acquire Versace are "setting the stage for accelerated revenue and earnings growth" as the company still tries to gain a footing in Europe. The company announced the $2.1 billion deal in September. After the deal closes, Kors will also be changing its name to Capri Holdings.
Kors has said it plans to grow Versace to $2 billion in revenue globally and increase the brand's retail presence from roughly 200 to 300 stores. It also expects to expand accessories and footwear from 35 percent to 60 percent of revenue.
During the latest quarter, the Jimmy Choo brand — which Kors acquired last November — delivered stronger-than-anticipated sales thanks to strength in footwear, according to the company. Because of this, Kors raised its adjusted earnings per share outlook for the fiscal year by 5 cents to a range of $4.95 to $5.05. It still expects total revenue to be about $5.13 billion, with same-store sales being down in the low single digits.
As of Tuesday's close, Kors shares had fallen about 8 percent this year.