--> KORS -9.8% Pre-Market
Michael Kors misses by $0.01, reports revs in-line; guides Q1, FY16 EPS and rev below consensus
Reports Q4 (Mar) earnings of $0.90 per share, $0.01 worse than the Capital IQ Consensus of $0.91; revenues rose 17.8% year/year to $1.08 bln vs the $1.08 bln consensus.
- Retail net sales increased 14.9% to $469.4 million driven by 121 net new store openings since the end of the fourth quarter of fiscal 2014 and e-commerce sales from the recently launched U.S. e-commerce site, partially offset by a 5.8% decrease in comparable store sales. On a constant currency basis, retail net sales grew 21.1%, and comparable store sales decreased 1.7%.
- On a constant currency basis, total revenue is expected to increase in the high single digit range assuming a $60 million impact from the change in foreign currency rates. The Company expects a low double digit comparable store sales decrease on a reported basis and a mid-single digit decrease on a constant currency basis. Operating expense as a percentage of total revenue is expected to increase 550 to 600 basis points primarily due to global investments in our digital flagship, corporate talent, new stores, shop-in-shops, infrastructure and distribution.
- On a constant currency basis total revenue is expected to increase in the low to mid-teens range assuming a $200 million impact from the change in foreign currency rates. The Company expects flat comparable store sales on a reported basis, and a low single digit comparable store sales increase on a constant currency basis. Operating expense as a percentage of total revenue is expected to increase 110 to 140 basis points due to the above mentioned investments with less deleverage assumed in the second half than in the first half of fiscal 2016.