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Shares of the company, which also swung to a fourth-quarter
loss, fell more than 6 percent to $34 in premarket trading on
Wednesday.
Michael Kors, like other brick-and-mortar retailers, has been
facing slowing sales as more customers shop online and spend
less on apparel.
The upmarket retailer of clothes, handbags, shoes and fashion
accessories said it expected revenue of $4.25 billion for fiscal
year 2018. Analysts on average had estimated revenue of $4.37
billion, according to Thomson Reuters I/B/E/S.
The company also forecast a high single-digit drop in same-store
sales for the fiscal year.
Total sales fell 11.2 percent to $1.06 billion in the fourth
quarter ended April 1, while analysts had expected $1.05
billion.
Michael Kors' comparable-store sales fell 14.1 percent in the
quarter, below analysts' estimate of 13.4 percent, according to
research firm Consensus Metrix.
Net loss attributable to Michael Kors was $26.8 million, or 17
cents per share, in the latest quarter, compared with net income
of $177 million, or 98 cents per share, a year earlier.
The company also booked non-cash impairment charges of $193.8
million related to its underperforming full-price retail stores.
Excluding certain items, the company earned 73 cents per share,
while analysts had expected 70 cents per share.
Michael Kors also said it would buy back $1 billion of shares.
(Reporting by Gayathree Ganesan in Bengaluru; Editing by Anil
D'Silva)
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