Executive Summary

• Michael Kors reported adjusted fiscal 3Q18 EPS of $1.77, up 7.6% from $1.64 in the year-ago quarter and handily beating the $1.29 consensus estimate. Revenues were $1.44 billion, up 6.5% year over year and ahead of the $1.38 billion consensus estimate.
• Comps declined by 3.2% and were down 5.2% on a constant-currency basis, beating the consensus estimate of a 5.9% decline and guidance of a high-single-digit decline.
• The company offered FY18 EPS guidance of $4.00–$4.45 versus previous guidance and consensus of $4.00. Management expects no incremental EPS impact from the Jimmy Choo acquisition.