Michael Kors drops after it cuts profit forecast on lower retail traffic

New York

MICHAEL Kors Holdings Ltd fell the most in more than a year-and-a-half after cutting its annual profit forecast, signalling that dwindling retail traffic and a plan to reduce its reliance on the troubled department-store industry will continue to weigh on results.

Profit will be as much as US$4.19 a share, excluding some items, in the fiscal year through March, the London-based company said on Tuesday. That was down from its November forecast and trailed analysts' average projection.