(Photo Credit: Essi Wellenius)

Michael Kors (KORS) will report it's FQ1 '16 results tomorrow morning and from examining the recent stocks price action, expectations are low for Michael Kors. Michael Kors has continued to disappoint investors this year, year-to-date (YTD) the stock has collapsed over -47% compared to the broader S&P 500 which has risen 2.49%.

The Estimize community is predicting better EPS and revenue figures than Wall Street for Michael Kors. According to Estimize, Michael Kors will produce $0.78 in EPS and $952.79M in revenues, whereas Wall Street analysts are predicting $0.75 in EPS and $942.99M in revenues.

Many consumer discretionary stocks including Macy's (M) and Hasbro (HAS) have been reaping the rewards recently as households in United States gain more discretionary income as a result of lower fuel prices and slowly rising wages. Michael Kors however, is certainly not benefiting. The once exclusive high-end fashion label famous for its prestigious handbags has lost its way over the past two years. The explosion of sales growth experienced by Michael Kors a number of years ago is beginning to have painful effects on company's brand name and sales. Michael Kors is now faced with a challenging environment in which their brand name has been tarnished and its exclusivity lost. This has led to Michael Kors having to slash prices in an attempt to sell slow moving lines of stock.  

Michael Kors' share price collapse is a result of numerous additional factors, all of which should be a serious concern for investors leading into the company's upcoming result. Michael Kors' watch business continues to experience weakness, foreign exchange headwinds and a slowdown in North American traffic have all been detrimental to Michael Kors' underlying business and are likely to continue to have negative effects on the companies finance in the coming quarters.