Michael Kors Holdings Ltd. (KORS.N) slipped the most intraday in more than three years as the fashion house missed Wall Street’s estimates for same-store sales and trimmed its full-year comparable-sales estimate because of currency headwinds.

Key Insights

• Kors is in recovery after years of heavy discounting eroded the flagship label’s cachet. It’s taking some time: Same-store sales for the Michael Kors retail division were down 2.1 per cent in its second fiscal quarter, more than double the drop analysts had been expecting.
• Michael Kors acquired Italian fashion label Gianni Versace SpA for 1.83 billion euros (US$2.2 billion) in September and said it would rename itself Capri Holdings Ltd. as the company morphs into a multibrand luxury house. Versace is not yet included in the retailer’s results, since the deal won’t close until its fourth fiscal quarter.
• Kors is the worst performer in the S&P 1500 Apparel & Accessories Index, which is down as much as 3.3 per cent. All index members are trading in negative territory, including Ralph Lauren Corp., Fossil Group Inc. and PVH Corp.

Market Reaction

• Shares fell as much as 17 per cent in New York to US$47.47. The stock was already down 8.7 per cent this year through Tuesday’s close.