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Shares of the company, which also forecast full-year sales and
profit below analysts' expectations, fell about 12 percent in
premarket trading on Wednesday.
Michael Kors' revenue rose 17.8 percent in the fourth quarter,
slowing sharply from the growth of 29.9-74.4 percent it posted
for the past 13 quarters.
Same-store sales in North America fell 6.7 percent. Analysts on
average had expected a rise of 4.4 percent, according to
research firm Consensus Metrix.
Michael Kors' margins fell to 58.4 percent in the quarter from
59.9 percent, a year earlier, as the company aggressively
offered discounts to attract shoppers.
In contrast, rivals Coach Inc <COH.N> and Kate Spade & Co <KATE.N>
have been cutting back on promotions to boost their profits.
Michael Kors has been expanding heavily, opening stores and
distributing to retailers such as Macy's Inc <M.N>, which has
led to brand fatigue among shoppers, analysts say.
The handbag maker forecast revenue of $4.7 billion-$4.8 billion
and a profit of $4.40-$4.50 per share for the year ending March
2016.
Analysts were expecting revenue of $5.05 billion and earnings of
$4.70 per share, according to Thomson Reuters I/B/E/S.
The company's net income rose to $182.6 million, or 90 cents per
share, in the quarter ended March 28 from $161 million, or 78
cents per share, a year earlier.
Revenue rose to $1.08 billion from $917.5 million.
Michael Kors' shares were trading at $53.42 before the bell.
(Reporting by Yashaswini Swamynathan and Nayan Das in Bengaluru;
Editing by Kirti Pandey)
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