Michael Kors Holdings Limited (KORS) swung to a net loss for the quarter ended Apr. 01, 2017. The company has made a net loss of $26.80 million, or $ 0.17 a share in the quarter, against a net profit of $177 million, or $0.98 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $118 million, or $0.73 a share compared with $184.80 million or $1.02 a share, a year ago.

Revenue during the quarter dropped 11.17 percent to $1,064.80 million from $1,198.70 million in the previous year period. Gross margin for the quarter expanded 4 basis points over the previous year period to 58.20 percent. Operating margin for the quarter stood at negative 4 percent as compared to a positive 20.36 percent for the previous year period.

Operating loss for the quarter was $42.60 million, compared with an operating income of $244.10 million in the previous year period.

However, the adjusted operating income for the quarter stood at $151.20 million compared to $255 million in the prior year period. At the same time, adjusted operating margin contracted 707 basis points in the quarter to 14.20 percent from 21.27 percent in the last year period.

John D. Idol, the Company's chairman and chief executive officer, said, "Fiscal 2017 was a challenging year, as we continued to operate in a difficult retail environment with elevated promotional levels. In addition, our product and store experience did not sufficiently engage and excite consumers. We acknowledge that we need to take further steps to elevate the level of fashion innovation in our accessories assortments and enhance our store experience in order to deepen consumer desire and demand for our products. Looking ahead, as we expand the fashion innovation in our accessories assortments, right-size our store fleet and elevate our store experience, fiscal 2018 will be a transition year in which we establish a new baseline before returning to long-term growth."

For fiscal year 2018, Michael Kors Holdings Limited forecasts revenue to be $4,250 million. The company expects operating income to grow at 16 percent. It projects diluted earnings per share to be in the range of $3.57 to $3.67.

For the first-quarter 2018, Michael Kors Holdings Limited expects revenue to be in the range of $910 million to $930 million. The company expects operating income to grow at 13 percent. It company projects diluted earnings per share to be in the range of $0.60 to $0.64.