NEW YORK (TheStreet) -- Shares of luxury handbag, clothing, shoes and accessories retailer Michael Kors (KORS) and jewelry and accessories retailer Tiffany & Co (TIF) are moving in opposite directions this morning after reporting quarterly earnings. Michael Kors provided a weaker than expected outlook for the first quarter and fiscal year 2016, while Tiffany's earnings beat expectations and it backed its forecast for fiscal year 2015.
MICHAEL KORS: Michael Kors reported fourth quarter earnings per share of 90c, missing analysts' consensus estimates by 1c, on revenue of $1.08B, in line with estimates. The company said retail net sales increased 14.9% and comparable store sales decreased 5.8%. Kors' board authorized the repurchase of up to an additional $500M of its shares and extended the program through May 2017, which increases the initial repurchase authorization to $1.5B. Looking to its first quarter, Michael Kors forecast EPS of 74c-78c on revenue of $930M-$950M, significantly below analysts' consensus estimates of $1.03 and $1.09B, respectively. The company sees a low double digit SSS decease on a reported basis and a mid-single digit decrease on a constant currency basis. For FY16, the retailer forecast EPS of $4.40-$4.50 and revenue of $4.7B-$4.8B, also well below analysts' expectations of $4.70 and $5.05B, respectively. The company sees flat comparable store sales on a reported basis and a low single digit comparable store sales increase on a constant currency basis. On its conference call discussing the results, Michael Kors noted weak traffic trends in North America in the quarter, which reflected a reduction in tourist traffic, a decline in the North American watch business, as well as a 90 basis point negative impact from shipping delays associated with West Coast port issues. The retailer said it sees foreign exchange rates as a headwind this year, but believes these headwinds will "diminish" throughout the year. The company sees revenue growth accelerating in the second half of the year and believes it can deliver double digit top-line and bottom-line growth in fiscal year 2017.