Downgrades KORS based on valuation and lowers price target to $93. He cites "weaker margins at FOSL" and "COH discounts up to 70% off." But, he does not say anything about KORS business. Why do you think COH is discounting so much? Because the consumer is not buying their stuff. The consumer is buying Michael KORS. It irritates me that these jokers do not do any homework. They don't have to leave their office.
This is a "garden variety" downgrade with the intention of knocking the price down so cheaper prices are available. The shares will appreciate, and we do the whole thing all over again. Rinse and repeat. Wall Street never changes. This stuff is too easy. Congrats to all those who bought under $80! It will be over $90 next month...I feel sorry for those who were shaken out...
Downgrade may be based on weak retail traffic, negative-to-flat comps in both brick-and-mortar and online stores. Coach, Fossil or Kors - shoppers - rich and poor alike are on a tighter budget. Long-term is a different story.
Isn't it a strange game that wall street plays? KORS may be crushing competition but since Coach had to discount that reflects on KORS. Everyone knows the percentage beats can not continue since the numbers are bigger every quarter. Last quarter was a bit of a disappointment but they were going into their strongest quarter. Lets see what happens here.