Greenberg: Why Michael Kors Should Stop Giving Guidance

SAN DIEGO (TheStreet) -- Regular readers know I'm not a big fan of quarterly guidance -- or any guidance. It merely gives management reason to pull all kinds of levers to avoid getting egg on their face.

Enter Michael Kors (KORS), whose earnings and post-earnings conference call didn't go over well with investors.

There was a lot about the quarter that should concern investors, and I laid it out, in detail, in Herb Greenberg's Reality Check.

But one comment on the call, above all, grabbed my attention. It was this comment from CEO John Idol, who was responding to a question about lower margin guidance as the company invests for the future:

"We never believed that a 30% operating margin was a sustainable margin for the Company. And by the way, we don't want that. So I want to be very clear, let no one be misunderstanding. We don't think that is the right way to run our business. We need more investment, we are building this Company for the long term. We are not here for a quarter-by-quarter situation."

Reality: If they "are not here for a quarter-by-quarter situation," they shouldn't give quarterly guidance. Period, end of sentence, end of story.

Subscribe to Reality CheckHerb On TheStreet blog

Herb Greenberg, editor of Herb Greenberg's Reality Check, is a contributor to CNBC. He does not own shares, short or trade shares in an individual corporate security. He can be reached at herbonthestreet@thestreet.com.

More from Jim Cramer

Jim Cramer: A Day When the Glass Is Not Half Full but Totally Full

Jim Cramer: A Day When the Glass Is Not Half Full but Totally Full

The Truth About Trade: Cramer's 'Mad Money' Recap (Monday 9/17/18)

The Truth About Trade: Cramer's 'Mad Money' Recap (Monday 9/17/18)

PayPal, Senseonomics, Idexx Laboratories: 'Mad Money' Lightning Round

PayPal, Senseonomics, Idexx Laboratories: 'Mad Money' Lightning Round

Rewind: Jim Cramer on Tariffs, Coca Cola, Aurora Cannabis and Tyson Foods

Rewind: Jim Cramer on Tariffs, Coca Cola, Aurora Cannabis and Tyson Foods

Jim Cramer Reacts to Reports of a Coca-Cola's Possible Move Into Cannabis Drinks

Jim Cramer Reacts to Reports of a Coca-Cola's Possible Move Into Cannabis Drinks