Michael Kors (KORS) Tops Q4 EPS by 3c, Beats on Revenues and Offers FY18 Guidance; Announces New $1 Billion Stock Repurchase Program, Store Closures
(Updated - May 31, 2017 6:58 AM EDT)
Michael Kors (NYSE: KORS) reported Q4 EPS of $0.73, $0.03 better than the analyst estimate of $0.70. Revenue for the quarter came in at $1.06 billion versus the consensus estimate of $1.05 billion.
Comparable sales decreased 14.1%. On a constant currency basis, retail net sales grew 1.1%, and comparable sales decreased 13.6%.
GUIDANCE:
Michael Kors sees FY2018 EPS of $3.57-$3.67, versus the consensus of $3.94. Michael Kors sees FY2018 revenue of $4.25 billion, versus the consensus of $4.37 billion.
In addition, the Company announced today that it intends to improve the profitability of its store fleet by closing between 100 and 125 of its full-price retail stores over the next 2 years. Over this time period, the Company expects to incur approximately $100 - $125 million of one-time costs associated with store closures. Collectively, the Company ultimately anticipates ongoing annual savings of $60 million as a result of store closures and the lower depreciation and amortization associated with these impairment charges.
On May 25, 2017, the Company's Board of Directors authorized a new $1 billion share repurchase program.
For earnings history and earnings-related data on Michael Kors (KORS) click here.