Michael Kors reports 32% sales increase for the full year 2014
Shares of Michael Kors fell by up to 17% in early trading on Wednesday after the company reported fourth-quarter earnings. The fashion retailer posted diluted earnings per share of $0.90, just below analysts’ estimate for $0.91, according to Bloomberg.
The company posted sales of $1.1 billion, up 17.8% from the previous quarter and more than the estimate for $1.09 billion. The company also report a 32% increase in profits to 881 million.
The company’s guidance was weak. In its outlook, it said it expected “a low double-digit comparable-store-sales decrease on a reported basis and a mid-single-digit decrease on a constant currency basis” for the first fiscal quarter.
In the earnings release, Michael Kors CEO John Idol wrote: “While we were faced with a number of headwinds in the fourth quarter, we were pleased with the strong performance across our segments and geographies. “We believe that our results demonstrate the strength of the Michael Kors brand,” he added, “as our luxury products continue to resonate with consumers worldwide.”
For the fiscal year, sales increased 32% to $4.4 billion from $3.3 billion in fiscal 2014, the company said. For the full year, it expects revenues of between $4.7 billion and $4.8 billion and diluted earnings per share of between $4.40 and $4.50.
Michael Kors shares are down 19% year-to-date and 37% for the past 12 months.