Michael Kors Shares Sink 24 Percent After Same Store Sales Drop

Shares of Michael Kors (KORS) ended Wednesday's trading day down 24 percent, making it TheStreet's Move of the Day.
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Shares of Michael Kors (KORS) ended Wednesday's trading day down 24 percent, making it TheStreet's Move of the Day. The retailer reported fiscal fourth-quarter earnings of $0.90 per share, missing analysts' estimates by a penny. As for the top line, revenue rose almost 18 percent to $1.04 billion, slightly below estimates of $1.08 billion. Perhaps the biggest disappointment during the quarter was the 6.7 percent decline in comparable store sales, a key industry metric. Analysts were looking for a 4.4 percent rise. 'Fiscal 2015 marked another year of sales and earnings growth in excess of 30%,' said John Idol, Chairman & CEO of Michael Kors. 'While we were faced with a number of headwinds in the fourth quarter, we were pleased with the strong performance across our segments and geographies.' As for its outlook, the company expects fiscal 2016 earnings to range from $4.40 to $4.50 per diluted share, less than the $4.70 analysts were looking for. Its revenue expectations of between $4.7 billion and $4.8 billion were less than analysts' forecasts of $5.05 billion. TheStreet’s Scott Gamm reports from New York.