Michael Kors Holdings Ltd. posted a loss and saw sales decline by 11.3 percent in the fourth quarter, but managed to beat Wall Street's estimates.For the three months ended April 1, the net loss was $26.8 million, or 17 cents a diluted share, against net income of $177 million, or 98 cents, a year ago. Excluding certain charges, adjusted diluted EPS for both quarters were 73 cents versus $1.02 a year ago.Net revenues for the quarter were down 11.2 percent to $1.06 billion from $1.20 billion, which includes an 11.3 percent slide in net sales to $1.03 billion from $1.16 billion. The balance of revenue was from licensing income. The company said retail net sales increased 0.5 percent to $575.3 million, which was attributed to 159 net new store openings since the fourth quarter of fiscal 2016. Comparable store sales fell 14.1 percent. By region, sales fell 18 percent to $721 million in the Americas; and 15.3 percent to $215.2 million in Europe. In Asia, sales jumped 96.3 percent to $128.6 million.Wall Street was expecting diluted EPS of 70 cents on a revenue estimate of $1.05 billion.Shares of Michael Kors fell 10.1 percent to $32.62 in late morning trading at 11:18 a.m.John D. Idol, chairman and chief executive officer, said, "Fiscal 2017 was a challenging year, as we continued to operate in a difficult retail environment with elevated promotional levels. In addition, our product and store experience did not sufficiently engage and excite consumers."Idol said the company knows it needs to take further steps to "elevate the level of fashion innovation" in its accessories assortments and enhance its store experience to "deepen consumer desire and demand for our products."He also said that company is looking at right-sizing its store fleet, and plans to close between 100 to 125 stores over the next two years. The ceo called fiscal 2018 a "transition year in which we establish a new baseline before returning to long-term growth."For the first quarter of fiscal 2018, the company guided total revenue to between $910 million and $930 million, on diluted EPS in the range of 60 cents to 64 cents.For fiscal 2018, the company forecasts total revenue at $4.25 billion, on diluted EPS of between $3.57 to $3.67.Separately, the company repurchased 6.6 million shares during the fourth quarter. As of April 1, 2017, the company had fully utilized the previously authorized amount under the share repurchase program. On May 25, 2017, the company's board authorized a new $1 billion share repurchase program.
@serenawilliams, in @versace and a @bulgariofficial necklace, with @alexisohanian attending the #royalwedding at St. George’s Chapel. See all of the celebrities in attendance on WWD.com. #wwdeye #wwdfashion
The wait is over: Meghan Markle picks @givenchyofficial’s Clare Waight Keller for her wedding dress. Markle entered St. George’s Chapel in a Givenchy Haute Couture gown paired with Queen Mary’s Diamond Bandeau Tiara, loaned to her by The Queen. Read more on WWD.com - Link in bio. #wwdnews #wwdfashion #royalwedding