Michael Kors (KORS) 4Q18 and FY18 Results: Double-Digit Growth in Revenues and Expense Cuts Yield Recovery in Profits

Executive Summary

• In 4Q18, Michael Kors reported a 10.8% jump in revenues, a 14.5% uplift in gross profit and a 6.0% decline in operating expenses.
• The company beat expectations on both the top and bottom lines, with adjusted diluted EPS of $0.63 versus the consensus estimate of $0.60.
• However, revenues declined in its core Americas region, due in part to a planned reduction in inventory in the wholesale channel.