Investors Punishing Michael Kors Following Upbeat Q3 Earnings, Weak Forecast

Michael Kors Holdings Ltd (NYSE: KORS) on Thursday morning reported its third-quarter results. The company earned $1.48 per share, topping the $1.33 per share analysts were expecting. Revenue of $1.31 billion was slightly higher than the $1.3 billion analysts were projecting.

However, the company issued a weak fourth quarter, resulting in a more than 10 percent plunge in share prices.

Michael Kors said that it expects to report an earnings per share of $0.89 to $0.92 in the fourth quarter, falling short of the $0.94 per share analysts previously projected. The company guided its revenue to a range of $1.05 billion to $1.08 billion, also falling short of the $1.151 billion analysts had previously expected.

Michael Kors said that its guidance is based on an assumption that comparable store sales increase by a mid-single digit on a reported basis and an increase of high single digits on a constant currency basis.

Shares traded recently at $67.00, down 6.1 percent in the premarket.