Shares of luxury apparel retailer Michael Kors (NYSE:CPRI) tumbled on Wednesday, falling as much as 17.4% following the company's earnings report for its second quarter of fiscal 2019. The stock was down 14.6% as of 1:30 p.m. EDT.
The market's pessimism toward Michael Kors on Wednesday is likely because of the company's weaker-than-expected retail revenue for its Michael Kors brand.
Michael Kors reported adjusted non-GAAP earnings per share of $1.27 on revenue of $1.25 billion. Non-GAAP EPS beat a consensus analyst estimate for $1.10, but revenue fell short of an average forecast for $1.26 billion.
The company's retail revenue for its Michael Kors brand was $643.9 million -- flat compared to the year-ago period, and about $17 million below what analysts were expecting. The brand was particularly weak in Europe, where revenue fell from $154.2 million in the year-ago quarter to $139.2 million.
Michael Kors CEO John Idol said in the company's second-quarter earnings release that he was "pleased" with the company's overall results.
Despite Michael Kors weaker-than-expected revenue for the period, management maintained its guidance for full-year fiscal 2019 revenue of about $5.125 billion.
For profitability, management revised its expectations higher. The company now expects full-year fiscal 2018 adjusted earnings per share between $4.95 and $5.05 -- up from a previous forecast for $4.90 to $5.00. This improved outlook reflects "better than expected second quarter performance for both the Michael Kors and Jimmy Choo brands."