Michael Kors Holdings to close stores as sales lag

A man passes the Michael Kors store on Madison Avenue, in New York, Wednesday, May 31, 2017. Michael Kors Holdings plans to close up to 125 stores over the next two years with continued weak sales at its luxury stores. (AP Photo/Richard Drew)
The Michael Kors name adorns his store on Madison Avenue, in New York, Wednesday, May 31, 2017. Michael Kors Holdings plans to close up to 125 stores over the next two years with continued weak sales at its luxury stores. (AP Photo/Richard Drew)
People pass the Michael Kors store on Madison Avenue, in New York, Wednesday, May 31, 2017. Michael Kors Holdings plans to close up to 125 stores over the next two years with continued weak sales at its luxury stores. (AP Photo/Richard Drew)

NEW YORK — Michael Kors Holdings plans to close up to 125 stores over the next two years with continued weak sales at its luxury stores.

The London company also issued a weak outlook and comparable-store sales were disappointing, sending shares down more than 8 percent Wednesday.

The retailer lost $26.8 million, or 17 cents per share, after reporting a profit in the same period a year earlier. Earnings, adjusted for asset impairment costs, were 73 cents per share. The results topped Wall Street expectations by 3 cents, according to a survey by Zacks Investment Research.

Revenue fell 11.2 percent to $1.06 billion, but that, too, edged out expectations.

Sales in the Americas region, which makes up the bulk of revenue, fell 18 percent to $721 million.

Same-store sales, a key measure of a retailer's health, fell 14.1 percent, which was worse than Wall Street had expected.

"Fiscal 2017 was a challenging year, as we continued to operate in a difficult retail environment with elevated promotional levels," said Chairman and CEO John D. Idol.

He said the company needs to take further steps to elevate "the level of fashion innovation" and enhance the store experience.

For the year, the company reported a profit of $552.5 million, or $3.29 per share. Revenue was reported as $4.49 billion.

For the current quarter ending in July, Michael Kors Holdings said it expects revenue in the range of $910 million to $930 million. Analysts surveyed by Zacks had expected revenue of $932.2 million.

The company expects full-year earnings to be $3.57 to $3.67 per share, with revenue expected to be $4.25 billion.

Michael Kors Holdings shares fell $3.09 to close at $33.18 on Wednesday.

_____

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on KORS at https://www.zacks.com/ap/KORS

_____

Keywords: Michael Kors Holdings, Earnings Report

Must Read

Colbert to air live after Trump-Clinton...

Aug 10, 2016

Stephen Colbert, who capitalized on the political conventions with live broadcasts, will do the...

Giant T (for Trump) replaces one that was torched...

Aug 11, 2016

A huge red-white-and-blue letter T in tribute to Republican presidential nominee Donald Trump has...

Prince Fielder emotional as he ends career after...

Aug 11, 2016

Prince Fielder says it will be tough not be able to play again after having to walk away from the...

Teenager who scaled Trump Tower had past problems...

Aug 11, 2016

A Virginia teenager who climbed partway up Trump Tower in New York City had a history of problems...

Ecuador to set date for Assange to be questioned...

Aug 12, 2016

Ecuador said Thursday it's ready to set a date for Swedish prosecutors to question Julian Assange...

People also read these

Giant T (for Trump) replaces one that was torched...

Aug 11, 2016

A huge red-white-and-blue letter T in tribute to Republican presidential nominee Donald Trump has...

Clinton: Trump's words could have "tremendous...

Aug 10, 2016

Hillary Clinton says Trump's words could have "tremendous consequences," calls on Republicans to...

Judge dismisses suit accusing Twitter of...

Aug 10, 2016

A federal judge in San Francisco has dismissed a lawsuit accusing Twitter of supporting the Islamic...

'MacGyver' update won't be gun-free zone; more...

Aug 11, 2016

A CBS remake of the 1980s series "MacGyver" will still have the hero relying on his wit, not...

David Ortiz limps off after fouling ball off...

Aug 11, 2016

Red Sox star David Ortiz left a game against the New York Yankees in pain after fouling a pitch off...

Weather, 20 December
Houston Weather
+7

High: +11° Low: -2°

Humidity: 83%

Wind: NNE - 7 KPH

Canberra Weather
+27

High: +27° Low: +17°

Humidity: 87%

Wind: W - 20 KPH

Roissy-en-France Weather
+6

High: +6° Low: -5°

Humidity: 87%

Wind: ENE - 7 KPH

Florence Weather
+9

High: +9° Low: +6°

Humidity: 97%

Wind: ENE - 17 KPH

Parga Weather
+7

High: +16° Low: +4°

Humidity: 100%

Wind: SE - 25 KPH

About Us

In The Headline sought to bring professionalism back into journalism, bringing you only the most exclusive and the most impactive news from all over the globe.

Contact us: sales@intheheadline.com