Michael Kors reported fiscal 3Q18 total revenues of $1.44 billion, up 6.5% year over year and ahead of the $1.38 billion consensus estimate.
Comps declined by 3.2% as reported and by 5.2% on a constant-currency basis, beating the consensus estimate of a 5.9% decline and guidance of a high-single-digit decline.
Adjusted EPS was $1.77, versus $1.64 in the year-ago quarter and beating the $1.29 consensus estimate. GAAP EPS was $1.42, compared with $1.64 in the year-ago quarter.
Management offered the following comments on the quarter:
For FY18, the company expects revenues of approximately $4.66 billion, which includes $225–$230 million from the Jimmy Choo acquisition and is slightly above the $4.62 billion consensus estimate. The company expects Michael Kors comps to decline by mid-single digits. EPS is expected to be $4.40–$4.45, versus the $4.00 consensus estimate, and the company expects no incremental EPS impact from Jimmy Choo.
Fiscal 4Q18 Guidance
For fiscal 4Q18, the company expects revenues of $1.11–$1.13 billion, including $110–$115 million of incremental revenue from Jimmy Choo. The company expects Michael Kors comps to decline by low single digits. EPS is expected to be $0.50–$0.55, below the $0.59 consensus estimate, including $0.07 per share of dilution from Jimmy Choo.