KORS is my largest holding, and I am comfortable owning it for another six months, at least. I also own 200 shares of NFLX with a purchase price of $161 (sold 200 shares at $330)! I have some cash and looking to buy a growth stock for 2014! I think 2014 will be a decent year. But, nothing like 2013. The biotechs interest me, and I am researching JAZZ, GILD, CELG, REGN. I know social media stocks are hot. But, I cannot justify the market cap of a TWTR or FB.
Does anyone have a growth stock for 2014?
IBD has Retail-Apparel rated as the #13 top performing sector. KORS is the leader and is 2% above the $78.72 buy point. KORS pulled back last week in light volume after a big move with massive volume. This is constructive action for KORS!
KORS slipped 2.5% this week on light volume after a huge run-up on massive volume the two weeks prior. This tells us that institutional investors are not selling right here. KORS gained $7.30 with nearly 100 million shares traded the prior two weeks. So, a pullback on light volume i(14 million shares) s actually bullish for KORS as we dive into the christmas season; which will be their strongest quarter.
Currently, the stock is 3% is all-time high which was made on Monday, November 18! KORS appears to be one of the big winners this holiday season, and if the market continues its bullish ways, then KORS will be making new highs soon.
I will be scouring the malls this weekend to get the pulse of the retailers this Christmas season....
Good luck to all....
The stock jumped from $73 to $83 in one week, and has retraced 50% to $78 and change. It is up today with light volume, and should climb to the $85-$88 area.
However, the bigger picture for the longer term holder is promising as KORS management raised fiscal 2014 guidance to $2.81. We know they have a history of providing low numbers they can easily beat. I believe we are looking at $3 or more in earnings, and we will know that in May. That means KORS is growing at a 53% clip in 2014. If the current multiple still applies (I think it may expand) we should trade over $100 by spring 2014. KORS will be earning $5 per share by the time the firms growth "slows" to 25%-30%.
The American designer is setting up shop in Paris' Marais with a new Michael Kors boutique entirely dedicated to lifestyle and perfume.
Combining luxe sportswear and casual American chic, Michael Kors' distinctive look is bringing the label success on both sides of the Atlantic, with an empire that spreads from Manhattan to Paris, Los Angeles to Hong Kong. Having first opened its doors in the City of Lights in 2010 with a 650m² flagship store at 279 Rue Saint Honoré, today sees the opening of a new Michael Kors boutique in the heart of Paris' Marais district. In the house's signature style, think an interior featuring animal prints and metallic and mirrored surfaces in the new 125m² store which specializes in the accessories collections from both of the Michael Kors and MICHAEL Michael Kors ranges, along with the brand's iconic watches and fragrances.
Michael Kors was the big winner on Facebook last month, according to Stylophane’s latest ranking of the fastest-growing brands on the social network.
Kors — currently at almost 10.1 million “likes” — gained 797,347 likes last month, followed by Vans, Levi’s, Nike Football, Ray-Ban, Lojas Renner, Louis Vuitton, Yepme, Tommy Hilfiger and Burberry. Vans saw 569,848 new likes, Levis saw 543,974, Nike Football saw 491,754 and Ray-Ban saw 434,983.
“More brands and their marketing dollars are being dedicated to fan-follower acquisition efforts,” said Alex Mendoza, partner of Stylophane. “Marketing dollar allocations are expanding to increase engagement rates as well as to efforts to convert fan-followers to e-mail subscribers. Pinterest is currently beta testing advertising options for their platform and should be a very exciting additional social media ad option for brands this time next year.”
Stylophane, which monitors activity on Facebook, Twitter and Instagram, ranks brands in several categories by the number of new likes garnered each month.
While Kors headed up the fashion list, Nivea U.K. was the fastest-growing beauty brand on Facebook with 4.5 million new likes, while Vans topped the footwear list with 569,848 new likes, Macy’s led the retailers with 552,564 new likes, Levi’s headed the denim category with 543,974 new likes and Longines was the quickest-growing jewelry brand with 114,061 new likes.
Any price under $80 is a gift. The $79.20 could be a bottom? Management guided to $2.81 and using the current multiple puts the stock over $100. Of course, we must wait until May until fiscal 2014 is complete. But, it is quite likely KORS will earn greater than $2.95 and that means it grew 50%, and with a multiple of 35 makes KORS a cheap stock.
So in retail. Our global comp store growth was 23% and was driven by a continued strength of the accessories line.
During the period, we opened 24 stores globally and we again ended with a store count of 352 stores.
On the wholesale, our net sales grew 30%. We continue to have very strong sell throughs. We continued the conversion of wholesale department store doors into shop-in-shops and that resulted in increased sales volume per door.
Then in licensing, licensing had a revenue growth of 65% driven by continued strength of the company's luxury watches.
In terms of our financial position, we have a strong cash position and very strong liquidity. So our balance sheet as of the end of the second quarter, we had over $600 million. Our strong cash flow is enough to generate all our cash -- or to pay for all our cash needs, including building out the stores, our CapEx, expenditures support a long-term growth, not only store openings, but we're investing in shop-in-shops, we're investing in warehouses, corporate investments and information systems.
Investment highlights. We're a global luxury lifestyle brand with compelling growth metrics. We're a design vision led by world-renowned award-winning designer. We're poised to take market share in a growing global accessories product category.
So in terms of the growing global luxury market.
This is just an indication of how big and how quickly it's growing. The global luxury goods market is estimated to grow from about $283 billion in 2012 to between $320 billion and $333 billion in 2015. A very big portion of that segment is accessories, which was 27% of the total sector sales in 2012. And the accessories segment grew 14% in 2012.
In terms of Michael Kors revenue by product. Accessories and related merchandise, that's accessories small leather goods, eyewear, fragrance et cetera they amounted to 83% of our total sales during the second quarter of 2014 and that compares to 79% during the same period last year. We expect these products to continue to grow and become increasingly important driver of global comp store sales growth.
Cold and snow during the week, followed by milder weather, likely got consumers thinking about coats, sweaters and other seasonal apparel and other cold-weather merchandise, the report said. Lower gas prices also likely gave retailers a lift.
An ICSC-GS survey found that as consumers get ready for "Thanksgiving Day week" shopping, the mean percentage of holiday gift purchases completed (including the 48% of consumers who have not started to shop yet) was 17.8% in the latest week, which was below last year's 21.3%.
October same-store sales rose by 4.1% vs. a year earlier for the 12 retailers tracked by Michael Niemira, chief economist for the ICSC.
Apparel store sales rose by 5.1% in October, the strongest showing since May 2013. Niemira forecasts that November monthly comps will increase 3.5%-4.5% vs. a year earlier with a "bias" on the stronger side due to the easy comparison with November 2012 and the added shopper hours on Thanksgiving Day.
Consumers gave retailers a bit of pre-Black Friday cheer last week as they stepped up the pace of spending to buy clothing and other seasonal goods, according to the International Council of Shopping Centers-Goldman Sachs chain-store sales index released Tuesday morning.
The index for the week ended Nov. 16 rose by 0.1% from the prior week, while the year-over-year pace strengthened to 2.8% from 2.3% the week earlier. Consumer demand was healthy across the industry and on a sequential weekly basis as well, the report said.
The ICSC-GS channel-checking survey found that business was "very strong" at department stores, apparel stores, discounters and wholesale clubs, in particular.
That likely benefited department store operators such as Macy's (M), Nordstrom (JWN), Kohl's (KSS) and Dillard's (DDS). Giant discounters like Wal-Mart Stores (WMT) and Target (TGT) as well as dollar/variety stores like Dollar General (DG) and Dollar Tree (DLTR) were also likely beneficiaries.
Warehouse club Costco (COST) and apparel retailers like Gap (GPS), L Brands (LTD), Ann (ANN) and Chico's FAS (CHS) probably cashed in too.
Joe Parsons said that KORS "hired a consulting firm" to resolve the warehouse and shipping issues. He confirmed that shipping is 100% fixed for the holiday shopping season That is 10% of sales.
That is 700 stores globally without including China, India, and all of South America. One must think at some point the firm will make expansion plans for these regions. San Jose, Costa Rica, Buenos Aires, Argentina, Santiago, Chile, and a few of the larger cities in Brazil are fashion forward and affluent paces for shopping. South America is fertile ground for expansion.
I would like to see them be more aggressive in China as well. Coach has a ton of stores in that region...
Taking market share
352 global stores
Goal=700 total stores
Watches are "must have" fashion item and sales are strong...
It will happen today, and brand awareness is soaring on Google Trends. Retail sales will be strong this holiday season, and KORS is a great place to park some money...
Their top new buy was 115,000 shares of KORS. The fund is up more than 30% this year, and outperforming the S&P 500! KORS institutional ownership should be way up this quarter due to their entry into the S&P 500!
The bets are in that a wide swath of retailers will share the winner's circle in the race to lure consumers this holiday season.
If analysts' forecasts are on the money, retailers that cater to the upper-income crowd — such as fashion house and IBD 50 stock Michael Kors Holdings (KORS) and upscale jeweler Tiffany & Co. (TIF) — should keep up the fast pace for the holiday period. So should department stores such as strong third-quarter performerMacy's (M), home furnishings retailers such as Haverty Furniture Cos. (HVT) and sporting goods stores like Cabela's (CAB)and Big 5 Sporting Goods (BGFV).
"The luxury markets remain strong," said Lawrence Creatura, portfolio manager for Federated Investors. "The more-affluent consumers are feeling a wealth effect from the stock market and other increases in asset value."
Among beneficiaries of the more flush high-end consumer's position are retailers such as department store Nordstrom (JWN), Michael Kors, Tiffany and Restoration Hardware, Perkins says.
"Kors has a brand that's on fire and its fashion has been received extremely well among high-end consumers," Perkins said.
He notes that it's expected to see a 34% increase in fiscal third-quarter earnings, its holiday quarter. Kors holds the No. 32 spot on the current IBD 50 list, a roster of top-rated growth stocks.