Michael Kors Holdings Ltd (KORS.N) reported its slowest quarterly revenue growth since it went public in December 2011 as demand for its handbags and accessories weakened in North America, its biggest market.
Shares of the company, which also forecast full-year sales and profit below analysts' expectations, fell as much as 19 percent to a two-and-a-half-year low of $49.03 on Wednesday.
Michael Kors' revenue rose 17.8 percent in the fourth quarter,michael kors handbags slowing sharply from the growth of 29.9-74.4 percent it posted for the past 13 quarters.
Same-store sales in North America fell 6.7 percent. Analysts on average had expected a 4.4 percent rise, according to research firm Consensus Metrix.
Lower tourist traffic in U.S. Northeast and Southeast,michael kors watches weak sales in its watches business and shipping delays due to disruptions at West Coast ports hurt sales in North America, Chief Financial Officer Joe Parsons said.
Chief Executive John Idol said watch sales were expected to fall further this year.
Michael Kors said it did not expect its handbag sales to "wildly accelerate" in North America and the category was growing slower than it had in the past five-six years.
The company's shares will remain under pressure as the North American market for handbags and accessories slows and competition intensifies,michael kors outlet Baird Equity Research analyst Mark Altschwager wrote in a note.
Michael Kors' margins fell to 58.4 percent from 59.9 percent as the company aggressively offered discounts to attract shoppers at a time rivals Coach Inc (COH.N) and Kate Spade & Co (KATE.N) are cutting back on promotions.
Shop the latest styles in handbags from professional Michael Kors retailer with free shipping and returns The company said it expected a strong dollar to hurt profit by about 20 cents per share.