Michael Kors Holdings
was incompetent to accommodate a renewed direct for handbags lonesome in a namesake logo, ensuing in a sales shortfall for a recently finished quarter.
Chief Executive John Idol pronounced Wednesday that a plan to revoke register with a vigilant of offered some-more equipment during full cost backfired when a association found itself “light” on goods.
The trademark difficulty in sole had taken off some-more than a association expected, he said. “We are sole out in certain styles.”
Shares of Michael Kors Holdings tumbled scarcely 14% to $49.64 in afternoon trade and were during their lowest levels of a year.
Handbags, T-shirts and other equipment brandishing a brand’s trademark had been hugely renouned for most of a final dual decades. But direct cooled in new years as consumers, quite younger shoppers, sought a some-more individualistic look.
Now, they are apparently behind in vogue. Brands from Coach to Tommy Hilfiger are saying a renewed direct from consumers for wardrobe and accessories lonesome in hulk logos.
The shortfall during Kors helped pull a brand’s same-store sales down 2.1% in a 3 months to Sept. 29.
Mr. Idol pronounced a association will be “chasing” product via most of a stream quarter, and register might not lapse to adequate levels until after a holidays.
Total sales of Michael Kors Holdings rose 9.3% to $1.25 billion in a just-ended mercantile second quarter, helped by final year’s merger of shoe builder Jimmy Choo. Profit in a duration fell 32% to $137.6 million, from $202.9 million a year earlier, on aloft expenses.
The association skeleton to change a name to Capri Holdings after it closes a merger of a Italian conform residence Versace, that was announced in September.
On Wednesday, a association pronounced since of banking effects it expects comparable-store sales for a Michael Kors code to record a commission decrease in a low-single digits for a stream mercantile year. In August, it had pronounced it was awaiting a brand’s comparable-store sales to be about flat.
Write to Suzanne Kapner during Suzanne.Kapner@wsj.com