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Michael Kors Holdings Ltd. (NYSE: KORS) reported 2017 second fiscal quarter results after markets closed Thursday. The luxury lifestyle brand reported diluted earnings per share (EPS) for the quarter of $0.95 and $1.09 billion in revenues. In the same period a year ago, the company reported EPS of $1.01 on revenue of $1.3 billion. Second-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.88 and $1.09 billion in revenue.

Retail net sales rose 12.1% to $597.2 million primarily on 198 net new stores since the end of the second quarter of fiscal 2016. The total includes 137 stores in a recent acquisition in Greater China and South Korea.

Global same-store sales for the quarter dropped 5.4% year over year. Wholesale net sales fell 18.4% year over year, and gross profit slipped from 62.2% in the first quarter of fiscal 2017 to 59.2%. On a constant currency basis total sales rose 12.1% and same-store sales fell 5.6%.

Kors’s Chairman/CEO John Idol 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. … 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.

The company guided fiscal year 2017 revenue at approximately $4.55 billion, assuming a decrease in same-store sales in the mid-single digit range. Adjusted EPS is forecast at $0.70 to $0.74 for the quarter. The consensus estimates from Thomson Reuters call for first quarter EPS of $0.94 on revenues of $1.3 billion.

For the 2017 fiscal year, Kors expects revenues to be flat with the prior year and same store sales to decline in the low-single digit range. Adjusted EPS is forecast $4.37 to $4.43. The consensus estimates call for full-year EPS of $4.58 on revenues of $4.64 billion.

For the third fiscal quarter the company now sees revenues of $1.365 to $1.38 billion and EPS of $1.61 to $1.65. Consensus estimates call for $1.4 billion in revenues and EPS of $1.79.

The lowered forecast is hammering the stock after hours. Shares traded down about 5.3% at $50.00 after closing at $51.76. The stock’s 52-week range is $34.83 to $59.49 and the consensus price target is $55.00 per share.

Shares traded up more than 4% in pre-market trading, at $44.50 in a 52-week range of $34.83 to $59.49. Thomson Reuters had a consensus analyst price target of $56.43 before results were announced this morning.