Michael Kors Holdings Limited (KORS) has reported a 16.68 percent fall in profit for the quarter ended Oct. 01, 2016. The company has earned $160.90 million, or $0.95 a share in the quarter, compared with $193.10 million, or $1.01 a share for the same period last year.

Revenue during the quarter dropped 3.70 percent to $1,088.20 million from $1,130 million in the previous year period. Gross margin for the quarter expanded 44 basis points over the previous year period to 59.24 percent. Total expenses were 81.28 percent of quarterly revenues, up from 75.83 percent for the same period last year. That has resulted in a contraction of 545 basis points in operating margin to 18.72 percent.

Operating income for the quarter was $203.70 million, compared with $273.10 million in the previous year period.

John D. Idol, the Company's chairman and chief executive officer, said, "Our second quarter revenue and earnings results were above our expectations, as we continued to deliver innovative luxury fashion product and further expand our footprint worldwide. During the quarter, we continued to execute on our growth strategies with the successful launch of our Michael Kors ACCESS line of smartwatches and fitness trackers, the debut of our new Wonderlust fragrance, our new fall handbag collections, and the further expansion of our men's offering. We also expanded our online presence, with the launch of digital flagships in several countries in Europe. That said, our results continued to be impacted by the declines in mall traffic and tourism in certain major cities, as well as our strategic decision to reduce sell-in of inventory to the U.S. wholesale channel. Despite these near term challenges, we remain confident in our ability to drive long term growth and increase shareholder value."

For fiscal year 2017, Michael Kors Holdings Limited expects revenue to be $4,550 million. The company projects adjusted operating income to grow at 20.70 percent. It forecasts diluted earnings per share to be in the range of $4.32 to $4.38 and forecasts diluted earnings per share to be in the range of $4.37 to $4.43 on adjusted basis.

For the third-quarter 2017, Michael Kors Holdings Limited projects revenue to be in the range of $1,365 million to $1,380 million. The company projects operating income to grow at 25 percent. It forecasts diluted earnings per share to be in the range of $1.61 to $1.65.