NEW YORK (TheStreet) -- Shares in Michael Kors (KORS) were down after the retailer delivered a weak sales outlook for the coming year. Despite new store openings and a lower tax rate, the company still fell short of estimates for the fourth quarter.
Kors reported earnings of 90 cents per share, up from last year's numbers, but missing analyst estimates of 91 cents per share. Revenue came in at $1.04 billion, also falling short of predictions. It was the slowest revenue growth reported since the company went public.
Despite a strong profit increase, Michael Kors stock has now lost over half its value in the last year. Sales were up almost 18% from the previous quarter. However, the designer brand has opened 121 stores over the last 12 months, causing investor concern that the Kors brand may be overexposed.
Michael Kors himself has so far been a big hit as a celebrity judge on the reality show Project Runway.
A weak outlook for the coming year is a setback for the popular handbag designer. The company announced that investors could expect to see "a low double-digit comparable-store sales decrease on a reported basis and a mid-single-digit decrease on a constant currency basis."
CEO John Idol explained that the company had faced headwinds in the fourth quarter, but he was pleased with the brand's performance. Idol told shareholders, "We believe that our results demonstrate the strength of the Michael Kors brand as our luxury products continue to resonate with consumers worldwide. Looking at fiscal 2016, this will be a year of strategic investments as we continue to develop our powerful platform to support the numerous growth initiatives that are now underway."