Michael Kors Holdings Limited (KORS) has reported a 7.91 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $271.30 million, or $1.64 a share in the quarter, compared with $294.60 million, or $1.59 a share for the same period last year.

Revenue during the quarter dropped 3.19 percent to $1,352.80 million from $1,397.40 million in the previous year period. Gross margin for the quarter expanded 3 basis points over the previous year period to 59.56 percent. Total expenses were 74.73 percent of quarterly revenues, up from 70.71 percent for the same period last year. That has resulted in a contraction of 402 basis points in operating margin to 25.27 percent.

Operating income for the quarter was $341.90 million, compared with $409.30 million in the previous year period.

John D. Idol, the Company,s chairman and chief executive officer, said, "During the quarter, we delivered earnings per share results that were in line with our expectations and we continued to focus on our growth pillars, which are centered on consistently delivering innovative fashion products for our customers and enhancing consumer engagement with the Michael Kors brand worldwide. In addition, we continued our expansion in Asia, which we believe represents a $1 billion opportunity over the long term. Overall, we were disappointed with our North American and European comparable store sales performance during the quarter. While we face certain challenges in the short term, we continue to believe that there is meaningful long-term growth ahead for the company as we focus on maintaining our luxury leadership position while expanding the Michael Kors brand internationally."

For financial year 2017, Michael Kors Holdings Limited projects revenue to be $4,480 million. The company forecasts operating income to grow at 19.70 percent and forecasts adjusted operating income to grow at 19.90 percent. It expects diluted earnings per share to be in the range of $4.09 to $4.13 and expects diluted earnings per share to be in the range of $4.15 to $4.19 on adjusted basis.

For the fourth-quarter 2017, Michael Kors Holdings Limited forecasts revenue to be in the range of $1,035 million to $1,055 million. The company forecasts operating income to grow at 14 percent . It expects diluted earnings per share to be in the range of $0.68 to $0.72.