Executive Summary

• Michael Kors reported fiscal 4Q17 adjusted EPS of $0.73, down28.8% from $1.02 in the year-ago quarter, but ahead of the $0.70 consensus estimate. Revenues were $1.06 billion, down 11.2% year over year, but slightly ahead of the $1.05 billion consensus estimate.
• Comps declined by 14.1%, and were down 13.6% on a constant currency basis. As part of a retail fleet optimization, the company plans to close 100–125 full-price retail stores over the next two years.
• For FY18, the company guided for EPS of $3.57–$3.67 versus consensus of $3.94 and for revenues of $4.25 billion versus consensus of $4.37 billion.