Michael Kors holiday quarter profit view misses and shares fall

NEW YORK - Fashion company Michael Kors Holdings Ltd gave a holiday quarter profit forecast that missed Wall Street's high expectations despite its projections for another quarter of strong revenue growth. Its shares fell 5.1 percent to $47.99 in premarket trading.

Michael Kors, whose founder is a judge on the long-running television fashion show "Project Runway," said sales at its own stores, open a year, could rise by a "mid-20 percent" in the holiday quarter.

But the company expects a profit of 37 to 39 cents for the quarter that will end in late December, below the 39 cents Wall Street is expecting, according to Thomson Reuters I/B/E/S.

Kors, known for its watches and handbags, reported a higher-than-expected second-quarter profit, helped by rising sales at its own stores and the roll-out of its boutiques at department and stores, and raised its full-year profit forecast.

Total revenue in the second quarter soared 74.4 percent to $532.9 million, while sales at stores open at least a year rose 45.2 percent. In Europe, where Kors still has a small presence, sales surged 97 percent.

Net income more than tripled to $97.8 million, or 49 cents per share for the quarter that ended September 29, from $31.6 million, or 22 cents per share, a year earlier. That beat Wall Street estimated by 9 cents, according to Thomson Reuters I/B/E/

Michael Kors, which has challenged Coach Inc, raised its full-year profit forecast 16 cents to a range of $1.48 to $1.50 per share, above the $1.46 estimated by analysts.

Reporting by Phil Wahba