Executive Summary

• Michael Kors reported 3Q17 total revenue of $1.35 billion, down 3.2% from $1.40 billion in the year-ago quarter. EPS was $1.64, beating the consensus estimate of $1.63.
• The weak results were due to the underperformance of the North America and Europe businesses; the Asia region outperformed. The company expects weak traffic and sales trends to continue throughout the spring season in North America and Europe.
• The company now expects total revenue to be about $4.48 billion for the fiscal year, down from previous expectations of $4.55 billion. Total comp sales are expected to decrease in the high-single-digit range. EPS is expected to be $4.15–$4.19, versus consensus of $4.37.