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Michael Kors’ shares sink after shaky Jimmy Choo sales and weak guidance

Michael Kors Holdings Ltd. Chief Executive John Idol talked up the company’s better-than-expected fourth-quarter revenue, but investors are more concerned with weak sales growth going forward, sending shares down 11.5% in Wednesday trading.

Michael Kors KORS, +1.20%reported revenue of $1.18 billion, up from $1.06 billion last year and just ahead of the $1.15 billion FactSet consensus.

MK Retail revenue increased 4.4% to $600.6 million, however, MK Wholesale revenue fell 3.2% to $441.3 million, and MK Licensing revenue fell 11.1% to $29.7 million. Jimmy Choo contributed $107.9 million.

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“While the headline growth number from Michael Kors looks strong, it comes with three caveats,” wrote Neil Saunders, managing director of GlobalData Retail.

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