Capri Holdings Ltd. stock CPRI, +0.38% slid 19% in premarket trade Wednesday, after the parent of Michael Kors, Jimmy Choo and Versace missed profit and revenue consensus estimates for its fiscal third quarter and offered soft guidance for the year . The company had net income of $225 million, or $1.72 a share, for the quarter, down from $322 million, or $2.11 a share, in the year-earlier period. Adjusted per-share earnings came to $1.84, well below the $2.22 FactSet consensus.
While the company saw growth in its own retail channel for its three luxury houses, the global wholesale business was disappointing and resulted in expense deleverage and a lower operating margin, he said. “We have begun taking measures to better align operating expenses with the change in revenue by channel,” he said. “At the same time we will continue to make strategic investments to drive long term growth.