Michael Kors Holdings (KORS) tumbled to the bottom of the S&P 500 today after beating earnings forecasts but offering disappointing guidance.
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Michael Kors dropped 11% to $36.82, while the S&P 500 finished little changed at 2,293.08.
Cowen’s Oliver Chen and team write that they cut estimates before Michael Kors reported but not enough:
KORS stock likely to trade down -MSD as we proactively cut estimates ahead of 3Q print, but still not enough given 3Q comps missed at -6.4% C/C (vs Street’s -5.1%) w/ gross margins also lower by -90bps, while adj. EPS of $1.64 beat by a penny on better SG&A. FY17 guide lowered on comps, plus EPS cut by ~-6% on headwinds in N. America & Europe. We rate KORS Market Perform.
Michael Kors’ market capitalization fell to $6.1 billion today from $6.8 billion yesterday.
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