Michael Kors (KORS) Stock Plunges on Weak Third Quarter Sales Forecast

NEW YORK (TheStreet) -- Shares of Michael Kors Holdings Ltd (KORS) are plunging, down 10.24% to $70 in pre-market trading Tuesday, after the luxury fashion brand forecast sales and profit for the holiday season below analysts' estimates this morning in its fiscal second quarter earnings report.

Michael Kors forecast third quarter earnings of $1.31 to $1.34 per share, compared to the $1.34 per share analysts' are expecting.

The Hong Kong-based company said it expects revenue of $1.27 billion to $1.3 billion for the third quarter, versus the $1.3 billion analysts forecast.

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Also, Michael Kors now expects comparable store sales to grow in the mid-teens for the year ending March 2015, down from its previous guidance of high-teens growth.

For its fiscal second quarter, the company reported a 43% jump in net sales to $1.01 billion from $707.4 million a year ago, the smallest sales growth in four quarters, but beating the consensus estimate of $978.6 million.

Net income for the quarter rose to $206.9 million, or $1 per share, from $145.8 million, or 71 cents per share, a year earlier, topping analysts' estimates of 89 cents per share.

Michael Kors also announced a $1 billion share repurchase program.

Separately, TheStreet Ratings team rates MICHAEL KORS HOLDINGS LTD as a Buy with a ratings score of B.

KORS Chart KORS data by YCharts

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