Michael Kors HoldingsNYSE
Michael Kors: Growth Concerns Overblown - 40% Upside
Jeffrey To • 16 Comments
Jeffrey To • 16 Comments
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.
Wed, Jun. 1, 9:14 AM
Wed, Jun. 1, 7:20 AM
- Michael Kors (NYSE:KORS) announces that it completed the $500M acquisition of Michael Kors Limited, the exclusive licensee for the company in China and some other jurisdictions in Asia.
- The Greater China business generated total revenue of $197M for the year ended March 31, 2016, and had a network of 91 company-operated retail stores and six retail locations, across China, Hong Kong, Macau and Taiwan. For FY17, the Greater China business is expected to contribute approximately $200M to sales.
- The acquisition is expected to be neutral to earnings per share on a GAAP basis, and accretive to earnings per share on a non-GAAP basis, excluding $15M of one-time acquisition costs.
- The acquisition is expected to be accretive to earnings per share in fiscal 2018 and thereafter.
Wed, Jun. 1, 6:57 AM
- Michael Kors Holdings (NYSE:KORS): FQ4 EPS of $0.98 beats by $0.01.
- Revenue of $1.2B (+11.1% Y/Y) beats by $50M.
Tue, May 31, 5:30 PM
Tue, May 31, 8:03 AM
- Piper Jaffray expresses confidence on Michael Kors (NYSE:KORS) ahead of the company's earnings report due to be released tomorrow morning (consensus $1.15B revenue and $0.96 EPS).
- Analyst Erinn Murphy notes that sentiment is tilting to the negative side after a series of weak sales reports from the department store sector. KORS shares trade at 9X next year's EPS estimates and look attractive on a balance sheet view.
- PJ sticks with an Overweight rating and $67 price target on KORS.
Wed, May 25, 7:42 AM
- Nordstrom (NYSE:JWN) is removing Michael Kors (NYSE:KORS) handbags from its stores at a rapid pace, according to a report from Wedbush.
- Nordstrom managers were quoted as saying declining interest from shoppers for MK products led to the decision.
- Macy's is offering discounts on Kors handbags due to a oversupply.
- Both Nordstrom and Macy's reported weak Q1 earnings due in part to a drop in foot traffic at stores.
Fri, May 13, 10:47 AM
- Michael Kors (KORS -3.8%) opened its biggest flagship store in Europe today with a massive space in London's fashion center.
- The new store features the full complement of Michael Kors products, including a level devoted to menswear and men's accessories.
- Shares of MK aren't in a celebratory mood, down 4.5% today and 18% for the week.