As many know, Ebay resellers sell a multitude of Consumer Products from every manufacturer out there. FNP is sending letters to volume buyers/resellers banning them from future purchases from FNP's Factory Outlet Stores. Michael Kors has huge Ebay resellers and is seeing massive demand and sales. Kors is the predominant now in the handbag sales area with FNP close behind. Resellers/personal shoppers are paying the same price from these Factory Stores as all customers pay. "You are buying too much of our product so you may buy no more" letters ... imagine that??? Resellers provide buyers who may not have access to a Factory Store the opportunity to purchase the popular designer items. Deckers Ugg Brand and The North Face brand welcome volume purchases. Coach has sent ban letters for years now and are falling steadily in popularity...
Is there a secret inside group that has info. Answer yes. Volume too big nothing positive in coverage. They are aligning kate spade to be branded top shelf purse . Not quite gucci but higher tahn a vera bradley. Maybe they r looking to steal kors thunder or rip pages out of book. I think they know eps is going to be positive after all transitional expenses. It gets interesting next holiday season. Making and selling purses only works. Only thing holding my reccomendation is financials now. But there is not a reason i can see why pps is 30. That makes me say spec buy. I changed my mind after researching facts news something is up . Lulu in09 up.
they are shiesters. 30.00 with those kind of financials and a soft retail market. LOL the only thing they want is to be aquired. Thats why they sold the juicy brand. No cash left in the till. Only position i would take would be short on this boys i stay away from retail especially these guys.
People said it was way too expensive when it was single digits. The reason it trades at a high multiple now is because of the growth of Kate Spade. The expectation is another sale (IMHO). It cannot last forever - look at COach - but these stocks trade very well when brands are growing rapidly (Michael Kors). The upside comes from continued execution with the brand to attract a buyer.
Double top at $34 then declined steadily with predictable profit taking and tax deferring until 2015 after Jan 1. But now we're below the 50 day ema and the 10 day ema is crossing below the 50 day so that's not good for a while. I sold at $30.35 yesterday as a result and since their guidance was reduced, I'll wait until things stablize.