Retail in Asia

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Michael Kors backs outlook, allays “handbag apocalypse” fears

Michael Kors Holdings Ltd reported better-than-expected first-quarter sales and profit and reaffirmed its forecast for the full year, surprising analysts who had expected the company to lower estimates to reflect a slowdown in the handbag market.

Kors’ results showed that "the handbag apocalypse isn’t taking over" and that the industry was stabilizing, Nomura analyst Simeon Siegel said.

Kors had forecast revenue of USD4.7 billion to USD4.8 billion for the year ending March 2016. Analysts’ average estimate was lowered to USD4.66 billion from USD5.05 billion after the company’s forecast in May, according to Thomson Reuters I/B/E/S.

(Source: CNBC)