Nothing seems to help this stock short term. The Coach bombshell yesterday hurt KORS.
Why is that? Did women stop shopping for hamdbags?
We both believe the street has undervalued KORS which grew over 60% last year with a multiple now of 28! UA grew at 27% and has a multiple over 70! KORS is currently given the multiple of a firm growing at 20%, and that will not happen for a few years. KORS will be earning north of $6 by the time its growth "slows" to 20%.
The fact that management does not like to promote the stock or do much PR for their shareholders hurts their stock price. They do not really ever defend their stock, and have cashed out so they do not care about their stock price. John Idol has said he did not want to go public, as he must deal with shareholders and analysts. Some CEOs love the limelight. He shies away from it... He does 4 conference calls a year and one or two retail events like the DB in Paris, France yesterday.
Their execution and fundamentals ate undeniable. Unless you ask Herb Greenberg....
Zero sum game here...
Coach's losses are KORS gains. The sell off is nonsensical.
But, the further it goes down, the higher it will rise...
Michael Kors looks to bigger second year tuxedo success
Posted on JUNE 19, 2014
By Paul Pannone
Michael Kors tuxedos approach the first anniversary in the men’s formal wear category with plans to accelerate growth, building on a successful first season of design and distribution. Led by the use of softer fabrics and updated silhouettes to attract today’s new formal wear customer, retailers who bought into the program say they’re seeing success and excitement that’s been missing in the men’s tuxedo business for years.
Reported rental prices topped new highs by consumers driven into stores led by digital, Social Media and traditional magazine support.
eWednewZ has learned that FLOW, the licensing company for Michael Kors formal wear, has committed resources to build on the success of their first-year launch, making good on their promise to deliver a better fitting product on time for early season events. Goods began being delivered in February and completed through March and April for stores who placed first orders last season.
Traffic created by the strong marketing efforts found value in the top-selling products, DESIRE, OBSESSION and PASSION out renting other products, especially in metropolitan areas. Recognition of the Michael Kors name in women’s handbags gave an immediate boost to the men’s formal wear launch but further planned advances in product styling and appeal is expected to build on the success of the 2014 launch in 2015.
Sell the stock if it causes anxiety. If you want to make money long, then you must hold through some turbulence. Did you think that you were going to buy at the low and sell at the high every time?
Coach came out with some really bad news today, and all the luxury retailers sold off to a certain degree. KORS sold off in sympathy with Coach revising guidance LOWER, and they announced that 70 stores will be closing. Do you think that Coach's suffering is a testimony to all luxury retail? Or, do you think Coach is suffering because Michael Kors is taking market share from them?
I signed up as "phildamz" one of my fake names from when I was an athlete & did not want to be recognized. I know it is crude, but it always worked for me….
I hope the shorts pile in on KORS due to "margins" "slow mall traffic" "the weather" "high gas prices" Herb Greenberg" and many other lame excuses. The lower the stock goes the more emboldened shorts will be to pile in, and the greater the rise when they need to cover.
It promises to be an exciting second half of 2014….
I have checked out stock twits….did not sign up…yet!
John Idol referenced this on the DB call this morning. Michael Kors shoppers use Facebook, and they have a great conversion rate.... They are killing it on social media....connecting with their clients....
The most important part of the DB conference call this morning is when John Idol referred to the May conference call and he said he did not do a good job of explaining SG &A (margins) and he vowed to do a much better job on the next conference call in August.
KORS completely low-balled their numbers for fiscal 2015, and have plenty of room for beating and raising for the entire year.
I am bot concerned if the stock meanders for the short term. The weekly chart shows lower left to upper right, and there is no reason to think that trend will change anytime soon.
He said, "We did not do a great job of explaining our expenses for ecommerce on last conference call. I promise we will do a much better job explaining SG&A on our next conference call!"
Actually, the event is held at 3:15a.m. EDT
That is just after midnight on the west coast.
I doubt they say much?
They are likely to be asked about discounting and margins though...
John Idol will use his typical "jet-set" jargon while explaining they are taking market share in North America and Europe. Hopefully, he can provide some color on ecommerce, men's wear, and global expansion (specifically Europe, Japan, and China)!