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.
For its next men’s wear collection, @roberto_cavalli will show as a special guest at #PittiUomo, running from June 12-15. The brand, which has Florence in its roots, will relaunch its men’s wear collection, which will be presented separately from women’s wear for the first time since Paul Surridge was appointed creative director in May. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech during @sxsw for @createcultivate in partnership with @fossil. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.