What happened

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.

A chalkboard sketch of a chart showing a stock price falling

Image source: Getty Images.

So what

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.

Now what

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."

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of Michael Kors Holdings. The Motley Fool has a disclosure policy.