(Bloomberg) -- Michael Kors Holdings Ltd. slipped the most intraday in more than three years as the fashion house missed Wall Street's estimates for same-store sales and trimmed its full-year comparable-sales forecast because of currency headwinds.
Key Insights
- Kors is in recovery after years of heavy discounting eroded the flagship label's cachet. It's taking some time: Same-store sales for the Michael Kors retail division were down 2.1 percent in its second fiscal quarter, more than double the drop analysts had been expecting.
- Michael Kors acquired Italian fashion label Gianni Versace SpA for 1.83 billion euros ($2.2 billion) in September and said it would rename itself Capri Holdings Ltd. as the company morphs into a multibrand luxury house. Versace is not yet included in the retailer's results, since the deal won't close until its fourth fiscal quarter.
- Kors is the worst performer in the S&P 1500 Apparel & Accessories Index, which is down as much as 3.3 percent. All index members are trading in negative territory, including Ralph Lauren Corp., Fossil Group Inc. and PVH Corp.
Market Reaction
- Shares fell as much as 17 percent in New York to $47.47. The stock was already down 8.7 percent this year through Tuesday's close.
- For more on the results, click here.
To contact the reporters on this story: Kim Bhasin in New York at kbhasin4@bloomberg.net;Janet Freund in New York at jfreund11@bloomberg.net
To contact the editors responsible for this story: Anne Riley Moffat at ariley17@bloomberg.net, Timothy Annett
©2018 Bloomberg L.P.
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