Their spring collection was given high marks by the professionals in the industry. KORS did their own runway show for the fall line yesterday in New York.
John Idol said that sales in January were consistent with the holiday sales, and that was the best line of the conference call. Although, I do not think may picked-up on it as he said it at the very end of a long statement.
The brand is just smoking hot right now, and that is not going to change any time soon.
The stock is a different animal as it now has a significant short interest, and that was not the case in 2012-2013. Look for the squeeze to continue. $150 is not out of the question...
This is not the KORS of 2012 or 2013! The insiders have little to sell, and the shorts are trapped with a huge loss. There is underlying strength in KORS right now, and the squeeze is on.
It will only be ugly for the short sellers who tried to get cute shorting a growth stock prior to blowout earnings.
Can KORS bust through $98? If so, it should race past $100.
Longer term there is no doubt KORS is going to $120...
Shorts could only knock it down $.20? That is weak.
The increased short interest is providing strength for this equity.
That Michael Kors is so likable and approachable is unquestionably one of the cornerstones of his massive success.
So it’s hardly surprising that even the celebrities who attend his shows come because they genuinely love him. “I am both a fan and a friend,” Blake Lively said of Kors after his fall presentation. “I started as a fan, and I became a friend, but I will be a fan always.”
Indeed, the celebrity-packed front row at Kors was one of the friendliest we’ve seen: Lively, Freida Pinto, Rose Byrne and Michael Douglas all sat together, and rather than the stilted-looking small talk we’ve seen at other shows, they all seemed to actually know and like each other. Lively and Pinto giggled over stories while Byrne gamely discussed looks with Douglas.
Kors has a knack for making women look good, and this front row was no exception. “He has such iconic shapes, and when you look at a Michael Kors woman, she’s fully realized,” Lively explained. “There’s nothing trite or young about her, she’s got her fingers on the pulse of fashion, but it doesn’t seem trendy, it seems timeless.”
That was truer than ever for fall 2014. Aided by the presence of strong, sexy supermodels like Carolyn Murphy and Karen Elson on the catwalk, Kors’ autumn outing was nothing if not mature — in the best way possible. As a fitting instrumental version of The Mamas and the Papas’ “California Dreamin’” played (“All the leaves are brown/And the sky is gray,” the song begins), models walked the runway in shades of fawn browns and slate grays. It was the type of collection a wealthy, all-American woman — Kors’ core customer — would wear to vacation in Northern California during a rainy, cold winter.
It would be easy to imagine a socialite, her summer tan fading, taking to the fog-covered streets of San Francisco in the layers Kors presented: floating chiffons under whisper thin cashmeres, thick cable knits bundled under lush fur. Juxtaposed against the backdrop of a freezing New York City morning.
There is the pull back as it hit upper trend line resistance. This is healthy for the stock going forward. I am long and strong. But, expect KORS to cool off for a bit. I am wondering how patient the shorts will be before covering once again? Hey, if the shorts liked it at $75, they must love it at $95?
Finally, a nice reversal around $98. This is healthy longer term. The stock has had a blistering run, and now it may settle? Or, this could just be a rest before blasting through $100? Nobody knows as KORS has certainly changed its behavior since the gap up last week.
It does not matter where the stock has been. I am only concerned with where it is going. JAZZ is still cheap at these levels...
$2.68 EPS vs. $2.43 expected. FOSL is up big after hours.
The conference call should provide more color...
FOSL gets 17% of the revenue from KORS.
Watch sales were up 17% for FOSL in 2013,,,
Still waiting for the low $60's...sport?
You short trade is getting crushed...
It is not too late to join the winning team and go long...KORS actually has revenue and earnings growth
The all time high was made today at $96.60! There is no way you shorted at $96.70...
During the conference call John Idol mentioned the amount of fans following KORS on Instagram, Twitter, and Facebook. KORS believes they need to connect with their consumer via social media, and it piques more interest in their products, and eventually brings more potential shoppers into their stores. They know from social media there is big demand in Latin America, and they plan to tap into that revenue stream in a big way. This management team is pretty sharp.
I am glad to have someone on board more bullish than me😄
The stock is trading near its upper trend line, and due for a pullback. I do not really care about where it trades in the next few months (I said that when it was in the $50's too)!
I am looking for two things in the near term..
1. Short interest- if the shorts liked KORS at $75 they should love it at $95? I encourage all shorts to do their thing, and short as much as possible as they will provide fuel for this fire. I am hoping the short interest increase in the coming months
2. Chart Pattern-can KORS hold this huge gap up? Will it form a flat base or three weeks tight pattern? Will it sell off and form another cup base? KORS is up more than 20% in the past week, and triggers the "8 week hold" rule.
This will be a great year for KORS!
I believe you are correct and the $96-$98 area is a top for the current leg up?
Have you noticed the past few sessions an extraordinary amount of volume is coming in during the last five minutes of the session, and driving the stock higher. Could this be the last of the shorts who just want to get out and end their misery? When that subsides you gotta expect the longs to take profits and move their money elsewhere. I will be happy if the stock can just hold the first day surge price of $89. If the stock trades up to $98 expect a 10% retracement back to the $89 area. Good Luck!
In May KORS will close the books on 2014, and look ahead to 2015. The Q4 2014 guidance is ridiculously low and another earnings beat is a slam dunk. The current estimate for fiscal 2015 is $3.82, and I suspect that KORS management will raise those estimates to $4 in May? Realistically, they will earn near $5 and have a nice .425 per quarter cushion to lowball their numbers.
At the May conference call the management team will also give the brand awareness numbers for specific regions, and they are seeking 50% brand awareness for all of Europe. They are already above that in some countries (United Kingdom). I think the analysts community will be surprised by how fast the brand has grown over seas.
KORS has more than 100 new stores open for Q4 2014 than they did in Q4 2013, and with same store sales at 20% it is easy to figure they will smash their EPS and revenue guidance. They have also been executing the conversion to shop in shops at an incredible rate. This all points to strong momentum heading into fiscal 2015.
This will be the year where Europe becomes a far greater percentage of the revenues generated by KORS.
This is an important factoid as the European same store sales are triple that of North America, and the
margins are greater there than in North America. I believe KORS will generate nearly $1 billion in revenue from Europe alone in fiscal 2015.
There is no reason to sell this stock even if the market corrects, and the stock falls below its 10 week line (wich I am sure it will do at some point). I just try to remember to focus on the bigger picture when the stock sells off. 2015 will be a great year for KORS!
Q, are you officially bumping up your $120? :)
You asked this in another thread, and I wanted to answer you where it would not be lost off topic.
No! I am not raising my conservative price target for calendar year 2014 of $120. Yes, in fiscal 2015 I believe KORS will generate around $5 in EPS, and with the current multiple it should trade well above the $120 price target. But, you have been around long enough to know the history of how this stock trades.
After the euphoria of the massive earnings beat is gone, the shorts will be back to attacking this thing, and it will form another base prior to the next EPS beat. This is a good thing as it gives new buyers a chance to get in at a better price and/or if gives add on buy points. This will go on all year.
By the way, I believe that $120 in the absolute minimum KORS will trade at by year end...Good Luck!
Congrats on getting into the stock market at such a young age. It is the best money making vehicle available to the "Average Joe." This is a stock picker's market where the winners will be rewarded and the losers punished. KORS is definitely a winner in luxury retail.
Some of the winners that I like for now: NFLX, GOOG, CMG, FB, UA, REGN, BIIB, CELG, GILD, NVO, TSLA, WFM
You do not need to chase these stocks. Buy them on any weakness, and/or pullbacks, and you will make money. Good luck!