Michael Kors HoldingsNYSE
Michael Kors: Growth Concerns Overblown - 40% Upside
Jeffrey To • 16 Comments
Jeffrey To • 16 Comments
Wed, Oct. 19, 11:54 AM
- Shares of Michael Kors (NYSE:KORS) are up 5.05% and were above $50 briefly after Intereconomia (Spanish language site) reports on a possible takeover offer at $55.50 per share.
- It's not the first time Michael Kors has been the subject of M&A rumors. Several times in the past, mid-day takeover pops have deflated before the final bell.
Fri, Oct. 14, 2:54 PM
- Piper Jaffray is out with the results of its annual Taking Stock With Teens Survey. The top brands listed by the 10K teens included in the survey are posted below.
- Top clothing brands: Nike (NYSE:NKE) 29%, American Eagle Outfitters (NYSE:AEO) 9%, Forever 21 5%, Ralph Lauren (NYSE:RL) 4%, Urban Outfitters (NASDAQ:URBN) 3%.
- Top handbag brands: Michael Kors (NYSE:KORS) 34%, Kate Spade (NYSE:KATE) 19%, Coach (NYSE:COH) 10%, Louis Vuitton (OTCPK:LVMHF) 5%, Longchamp Vera Bradley (NASDAQ:VRA) 3%.
- Top footwear brands: Nike 51%, Vans (NYSE:VFC) 9%, Converse 7%, Adidas (OTCQX:ADDYY) 6%, Steven Madden (NASDAQ:SHOO) 2%.
- Top restaurant chains: Starbucks (NASDAQ:SBUX) 14%, Chipotle (NYSE:CMG) 11%, Chick-fil-A 10%, Taco Bell (NYSE:YUM) 3%, Panera Bread (NASDAQ:PNRA) 3%, McDonald's (NYSE:MCD) 3%, Olive Garden (NYSE:DRI) 3%.
- Nothing earth-shattering in the tech results, dominating teen mindspace are Snapchat (Private:CHAT), YouTube, Instagram and Netflix (NASDAQ:NFLX).
Thu, Sep. 29, 10:17 AM
- CLSA issues new ratings updates up and down the retail sector.
- Coach (COH +2%) earns a Buy rating due to sales momentum.
- Tiffany (TIF +0.8%) looks appealing with expectations set low.
- Ralph Lauren (RL +1.7%) lands at Buy with it seen as being in the early stages of a turnaround.
- Catching Outperform ratings are Signet (SIG +0.1%), Oxford Industries (OXM +0.9%), Kate Spade (KATE +1.2%), and G-III Apparel Group (GIII +1.2%).
- A lack of drivers at Michael Kors (KORS -0.6%) brings a Sell rating down from CLSA.
- The investment firm starts off coverage on Carter's (CRI -1.7%) with an Underperform rating and sets a price target of $95 on the retailer.
Wed, Sep. 14, 1:43 PM| Wed, Sep. 14, 1:43 PM
Wed, Aug. 10, 7:14 AM
- Retail sales increased 8% for Michael Kors (NYSE:KORS) in FQ1, while wholesale sales fell 7%.
- Comparable sales fell 7% during the quarter.
- Gross profit as a percentage of sales was down 130 bps to 59.9%. The company's operating margin rate decreased 630 bps to 18.9%.
- Looking ahead, Michael Kors sees FQ2 revenue of $1.07B to $1.085B. EPS of $0.84 to $0.88 is seen.
- Previously: Michael Kors Holdings beats by $0.14, beats on revenue (Aug. 10)
- KORS -2.22% premarket to $49.00.
Wed, Aug. 10, 6:57 AM
Tue, Aug. 9, 5:30 PM
Wed, Aug. 3, 9:47 AM
- Kate Spade's (KATE -19.2%) weak results posted earlier this morning have created some broad anxiety across the spectrum of retailers that sell handbags luxury apparel, and accessories.
- The report from Kate Spade threw a bright spotlight on the uphill battle the sector faces in replacing sales from the reduced level of tourists pouring into the U.S.
- Coach (COH -1%), Vera Bradley (VRA -2.5%), Michael Kors (KORS -4%), Movado (MOV -0.3%), and Fossil (FOSL -2.9%) are all notably lower.
- Previously: Weak tourism cuts into results at Kate Spade (Aug. 3)
Wed, Aug. 3, 9:15 AM
- Gainers: SZMK +45%. KOOL +43%. INVT +26%. GNW +23%. ZAGG +14%. OCLR +12%. FIT +9%. BOFI +8%. ING +8%. TRXC +8%. ETP +7%. FCAU +6%. ETSY +6%. ZTS +6%.
- Losers: RUBI -29%. DRWI -20%. CRAY -20%. VGZ -19%. KATE -18%. CYH -17%. CROX -17%. ELGX -11%. FTAI -9%. QRVO -8%. SHIP -6%. COH -6%. RGC -6%. HBI -6%. KORS -6%. INO -5%.
Thu, Jul. 28, 2:01 PM
Tue, Jul. 5, 2:43 PM
- Full-price sales of luxury items have dropped sharply since the Brexit vote came in. Data-tracking firm Edited reports global luxury sell outs decreased 60% in the two weeks after the Brexit referendum, compared to the two-week period prior to the vote.
- The sector was already having a challenging year due a drop in Chinese tourism before the shock U.K. result.
- Luxury retailers: Gucci (OTC:PPRUF, OTCPK:PPRUY), Louis Vuitton (OTCPK:LVMUY), Coach (NYSE:COH), Ralph Lauren (NYSE:RL), Michael Kors (NYSE:KORS), Burberry (OTCPK:BURBY), Tiffany (NYSE:TIF), LVMH (OTCPK:LVMHF, OTCPK:LVMUY), Richemont (OTCPK:CFRUY, OTCPK:CFRHF), Remy Cointreau (OTCPK:REMYF, OTCPK:REMYY).
Wed, Jun. 22, 12:10 PM
- Michael Kors (NYSE:KORS) announces a new partnership with McLaren-Honda in which it will become the official lifestyle partner of the Formula 1 team.
- The company says the partnership will help strengthen and amplify the "fast, jet-set lifestyle" of the MK brand.
- The Formula 1 audience is a new one for Michael Kors which it says will provide a prime opportunity to familiarize the European consumer with all facets of the Michael Kors world.
- “This partnership is about the convergence of style and speed, which is inherent to both the Michael Kors and McLaren-Honda DNA,” notes Michael Kors.
- Source: Press Release
Mon, Jun. 6, 2:26 PM
- Michael Kors (KORS +2.5%) is expected to launch same-day delivery options for online customers in some U.S. cities later this year.
- The same-day delivery initiative will begin in New York City before rolling out to other regions.
- CEO John Idol expects Michael Kors to eventually derive 30% of its revenue from the e-commerce channel.
Thu, Jun. 2, 2:55 PM
- Michael Kors (KORS +4.1%) weighed in on the department store channel during its earnings call yesterday. The negative stance on department stores could tip off more pressure within the sector (M, JWN, DDS, JCP, KSS) in holding onto some high-end brands.
- "We believe that the North America retail environment remains highly promotional, which is impacting the long-term brand equity of Michael Kors," said CEO John Idol.
- "We’ve seen that magnified over the last 12 months and it’s not healthy for the Michael Kors brand,” he added.
- “We’ll create a healthier demand for our wholesalers and ourselves by reducing the [number of] units we put out there,” summed up Idol on future strategy with department stores.
- Michael Kors earnings call transcript
Wed, Jun. 1, 12:00 PM
Wed, Jun. 1, 9:27 AM
- Michael Kors (NYSE:KORS) reports revenue rose 11.7% on a constant currency basis in FQ4.
- Retail net sales grew 22% to $572.6M (+23.4% on a constant currency basis).
- Wholesale net sales increased 3.5% to $590.5M (+4% on a constant currency basis).
- Licensing revenue declined 13.6% to $35.6M.
- Sales in America expanded 4.6% to $879.1M (+5.1% on a constant currency basis).
- Sales in Europe improved 15.6% to $254.1M (+18.1% on a constant currency basis).
- Gross margin rate squeezed 20 bps to 58.2%.
- Operating margin rate slipped 330 bps to 20.4%.
- Company-operated store count +142 Y/Y to 668 retail stores. 201 licensed stores are in operation.
- FQ1 Guidance: Total revenue:$940M to $950M; Comparable sales: to decrease in the mid-single digit range; Non-GAAP opex rate: +690 bps to +740 bps; GAAP EPS: $0.62 to $0.66; Non-GAAP EPS: $0.70 to $0.74; Diluted shares: 177M; Tax rate: ~21%.
- FY2017 Guidance: Total revenue: Flat Y/Y; Comparable sales: to decrease in the low single digit range; Non-GAAP operating margin: ~21.5%; GAAP EPS: $4.47 to $4.55; Non-GAAP EPS: $4.56 to $4.64; Diluted shares: 171M; Tax rate: ~21%.
- KORS +6.34% premarket.