NEW YORK (TheStreet) -- Shares of Michael Kors (KORS) were sliding in pre-market trading on Wednesday after the company posted a larger-than-anticipated drop in comparable-store sales for the 2017 fiscal first quarter and gave a downbeat outlook.
Before today's opening bell, the luxury retailer said comparable-store sales fell 7.4% during the first quarter. Analysts had forecast a decrease of 4.7%, Reuters noted.
For the fiscal second quarter, the company sees earnings per share between 84 cents and 88 cents on revenue of $1.07 billion to $1.085 billion. Analysts are looking for earnings of $1.03 per share on revenue of $1.11 billion.
Full-year earnings are expected to be between $4.56 and $4.64, while Wall Street is modeling earnings of $4.60 per share.
Revenue for fiscal 2017 is expected to be flat compared to the prior year and comparable-sales are projected to decline in the mid-single digit range.
For the first quarter, Michael Kors posted adjusted earnings of 88 cents per diluted share, topping analysts' estimates of 74 cents per share. Revenue for the quarter was $987.9 million, above expectations of $953 million.
"Progress was muted by the continued decline in mall traffic trends as well as a decrease in tourism in certain major cities which negatively impacted our comparable sales performance during the quarter," CEO John Idol said in a statement.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
But the team also finds that net income has been generally deteriorating over time.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: KORS