Michael Kors Holdings Ltd. (NYSE: KORS) reported quarterly comparable sales that missed estimates and lowered its 2017 outlook, sending its shares down more than 13 percent.
The apparel and accessories maker said comparable sales fell 6.9 percent in the quarter ended Dec.31. Analysts had projected a 4.9 percent decline. Total revenue decreased 3.2 percent to $1.35 billion in the fiscal third quarter, compared with $1.4 billion a year earlier.
Third-quarter net income fell to $271.3 million, or $1.64 per diluted share, compared with $294.6 million, or $1.59 per share, a year earlier. Analyst polled by Thomson Reuters had called for earnings of $1.63 per share on revenue of $1.36 billion.
The company said lower traffic in North American and European shopping malls and currency headwind continued to weigh on company’s revenue. Sales in North America fell 7.4 percent while sales in Europe were down 7 percent.
“Overall, we were disappointed with our North American and European comparable store sales performance during the quarter,” said Michael Kors CEO John Idol in a press release. “We believe that headwinds in these markets will continue throughout the Spring season as we face reduced traffic trends in shopping malls, currency fluctuation, uncertainty surrounding certain political changes in European countries and the implementation of our reduced promotional cadence in North America.”
The company now lowered full year fiscal 2017 guidance to adjusted earnings of $4.15 to $4.19, down from its previous forecast of $4.37 to $4.43.