Boom! 4th SPO and now Sportswear is out of the game. They sold EVERYTHING...
Perhaps, they know business is slowing and it is time to get out?
Consumer confidence at multi-year highs, and holiday shopping season is approaching. The retail industry should do well, and KORS will get more than their fair share. Will it even matter if KORS blows out earnings once again? It certainly has not the past two EPS reports.
I saw a Michael Kors TV advertisement with the tune "Girls on Film" by Duran Duran. It was an ad for their fragrance line. It was well done, and I am sure expensive too.
That is the first time I have seen Michael Kors advertise outside of social media...
Michael Kors has reached the 15 million Facebook friends level. Many consumers shop straight from the Facebook page. KORS has a high conversion rate from that application/site.
Believe it or not...Back to school sales are about over, and after Labor Day we are heading into the holiday shopping season, and investors are looking ahead at the winners this fall season...
Yes! I sold 1,200 shares at $79.50. I could not let a profit turn into a loss, and can always buy back if I want.
Technically, the stock is a mess as the 200DMA is above the 50DMA. That doesn't really bother me.
The firm delivered two stellar quarters and sold off heavily both times. The shorts seem to control the action, and that is not something I am interested in holding.
I do believe that business is still strong at KORS, and they will deliver another great quarter in November. The stock should be $110-$120 by years end. Stocks like CELG & GILD did the same thing during the first part of the year.
We are looking at a broken stock, and not a broken company. The bottom pickers have been scooping up some shares recently.
KORS is not Coach...
John Idol stated on the conference call that July sales were strong, and one item he cited for strong sales was the camo design. I do not like it much. But apparently, it is selling well....
This is all I need to know about KATE…
For the first half of 2014, the Company recorded a loss from continuing operations of ($52) million, or ($0.42) per share, compared to a loss from continuing operations for the first half of 2013 of ($47) million, or ($0.40) per share.
There will be no price appreciation until management puts a floor on margin contraction. They posted stellar earnings the past two quarters and sold off both times. The stock is under valued at this point. But, it will not reach full value until management provides more transparency in regards to discounting.
Every time the stock moves higher there is selling to knock it down. That is not a good sign for the longs...
KORS outsold COH in North America for the first time this quarter.
KORS No. America revenue was $719 million while Coach generated $691 million in North American sales.
KORS 24% same store sales.
Coach NEGATIVE 17% same store sales
Coach saw declining EPS and sales. Shrinking margins and heavy spending...
John Idol did a really nice job today of explaining his business plans since its inception, and it has not changed one bit. Analyst after analyst asked him about margins, and he was adamant that KORS will not participate in the promotional discounts to the level that other retailers are (wait until you see COH and KATE)! He practically scolded the analysts explaining the the blip on operational margins was promised years ago, and current margins are still healthy.
The fact that KORS reported 40% EPS growth and 43% revenue growth was ignored because of normalization of margins is incredulous. Their same store sales are something other retailers can only dream of. Mr. Idol tried to remain calm, but it was obvious that the stupidity of the analyst focus on margins was not setting well with him. He mentioned several times that KORS growth is the best in retail. He is not lying either.
The market is rigged, and Mr. Idol's company is not getting rewarded by Wall Street like some other companies. I see companies losing money and seeing their stock going ballistic because they have a cool camera or a stock split. You cannot fight the crooks on Wall Street.
Mr. Idol will continue to execute and build his business. I am interested in their men's collection, and their ecommerce rollout. But, I will not let Wall Street take my money.
Under Armour had ZERO EPS growth last quarter, and the stock went up 15%. KORS has growth on top & bottom lines and gets punished for a slight decrease in margins.
I learned a long time ago not to fight Mr. Market. KORS was down 6% with 22 million shares being traded. The price action and volume tell you everything. The stock has sold off on great fundamentals. I cannot let a profit turn into a loss. I held on to this stock a little too long, and wore out my welcome:)
The OP is correct that this is exactly why the retail investor is not participating in this market. I believe there are many young people who just feel it is a casino where the people running the game just take your money. There may be some truth to that? But, I believe if you buy growing companies at an early stage you can beat the indexes.
It was a good ride. But, I am out, and will not return to the scene of the crime. Good luck to all longs!
The COH report tomorrow will make the KORS quarter look even better...