Michael Kors (KORS) 4Q16 Results: Despite Positive Quarter, Flat 2017 Outlook

Executive Summary

• Michael Kors reported fiscal 4Q16 revenues of $1.20 billion, beating the consensus estimate of $1.15 billion and representing a 10.9% increase year over year. EPS was $0.98, beating the consensus estimate by a penny and representing an increase of 8.8% from EPS of $0.90 in the year-ago quarter.
• Retail net sales increased by 22.0% in the quarter, driven primarily by e-commerce sales from the company’s digital flagships. Same-store sales grew by 0.3% in the quarter.
• The company guided for flat revenues for FY17 and for EPS of $4.56–$4.64 for the fiscal year. The company announced that it had completed the acquisition of its Greater China licensee for $500 million in cash.