Yahoo lowered fiscal 2014 to $2.44 also. Of course, they will upgrade after KORS slaps them upside the head with their report. An EPS of $.44 will represent 100% YOY growth. I am thinking it will be much higher, and KORS will need to raise fiscal 2014 to $2.60-$2.70 during their next report. The question is not "if" but WHEN!
Get in I thought it was going to 40s?
Loreenw, I believe this post is directed at me who had hoped to buy KORS under $50! Those hopes were dashed with the COH report as retail has been pretty stromg since that news hit the wires. That COH report was not stellar, but better than expected on tamped down numbers.
The technical traders have been telling me KORS would retrace 61% of the move from $46 to $65 which would be right about $53! So, the $51 this week was a gift. I should have listened, and made another purchase...sigh...
My next purchase will be when it moves past $57 with strong volume. Sorry the $49 did not work out. KORS is just biding its time before the next leg up...
That will make it even easier for KORS to crush. The only numbers I am concerned with are Q4 which is expected to be $.39 and will be closer to $60 than $.39 and fiscal 2014 which is now $2.44 and will be over $3!
Let me see....a firm growing at 50% and earning $3... You can see where KORS is headed...
There were many takeaways from the GDP report yesterday. The housing market and the consumer are very strong right now. The housing market because of the low interest rates was expected to be strong. However, nobody expected 3.2% reading for the consumer spending after the tax hikes in January. The US consumer remains strong and that is 70% of the economy. The US continues to add jobs; more jobs=more spending!
KORS was up 6% ($3.04) this week, and rose on stronger volume then sold off on light volume, and that is constructive action for the stock which had been 20% ($51.63) off its high on Monday. The stock has been basing two months, and this is the first week where it appears institutions may be starting to nibble. The 10 week line ($57) now acts as resistance, and the stock has stalled there three time (April 10, 25, 26). If KORS can blow past resistance it will pick up momentum to the upside.
KORS has a lot of work to do in the coming weeks/months. However, last week's action was encouraging, even though it was down three days, and up only two. It will be interesting to see if KORS can hold the bottom at $51.63? If it can take out the resistance at $57, then it would be safe to say that a bottom is in at $51.63.
As we move closer to earnings it is apparent that KORS will post strong number based on what a number of competitors have posted in recent weeks. Most notably, COH posted better than expected numbers with their 1% YOY comp. sales in North America. Even though, Europe appears to be weakening (a region of strength for KORS) KORS is dominating in North America and that consumer appears strong. Also, KORS has opened quite a few stores this quarter, and I am curious to know if they are ahead of schedule in that department.
If KORS can just get a multiple equal to its growth rate, or in the case of COH and RL, one and a half times the growth rate this is a $150-$200 stock (no, I have not been drinking).
I worry about family, and not money. Have you read Peter Lynch book, "Beating the Street?" The idea is to embrace lower prices as it gives us a chance to buy the stock at a bargain. If KORS goes down, then buy more. Also, KORS is a stock where you can get a pretty good idea of business with foot traffic, and now social media. KORS is not a perfect Peter Lynch stock. But, it is pretty close. With great growth prospects, and no debt, in a retail space, I would bet his Fidelity Magellan Fund would be a big buyer of KORS.
Thanks for the compliment...
Oh yes, the resistance is real: until it isn't! KORS will make several attempts before punching through to the upside. The stock traded over $57 today, and is giving an indication of where it is headed going forward. I am not worried. KORS will trade over $150 next year as their earnings grow and the multiple expands.
Yahoo has June 10 as earnings date. The firm has not announced a date yet. The 10 week line now acts as resistance. KORS has a lot of work to do...
Burberry, Coach, Loreal, Hermes, Tiffany's all reported good earnings. KORS is best of breed, and will blow away estimates....
Is everyone a "day trader" these days? Or, do people just have a shorter attention span? The big money is in the holding/adding/waiting.
I see people on Stocktwits, Twitter, and message boards celebrating 3-4% gains!
How can you ever have a 10 bagger if you sell after 3-4%? I do not understand this concept...
The $55 number was resistance as that was old support. KORS took that out and there is still a ton of overhead supply. The "weak" longs you reference will sell out as soon as they are even or have a small gain. This is the difference between a trader and a "long." KORS still range bound....
and...Gwyneth Paltrow named "World's Most Beautiful Woman" is pimping a Michael Kors dress. The product not only resonates with celebrities, but with a wide swath of demographics, and is perceived as "cool." Coach; not so much!
KORS is opening new stores at Crossgates Mall in Albany New York and MacArthur Center in Norfolk, Virginia....KORS is on fire folks...
24 April 2013 | 11:08 AM
Michael Kors to open at MacArthur Center on Thursday
Women’s fashion designer Michael Kors plans to open its first Hampton Roads boutique at MacArthur Center on Thursday, Karen Winters, the mall’s marketing director, said in an email.
The location in the downtown Norfolk mall will be the state’s only Michael Kors store outside of Northern Virginia. The company has an outlet in Williamsburg.
The store will be on the second floor near Nordstrom. Designer Michael Kors founded the brand, known for handbags, shoes, sportswear and jewelry. The company has executive offices in Hong Kong and U.S. headquarters in New York.
--Dave Mayfield and Carolyn Shapiro
pigsuck, I agree with you about the tamping down of share price allows retail guys like us to add more shares. I would have never "chased" KORS had it traded up to $80-$100 (which is where it was headed after EPS reports). Also, the job of management is to manage the business. I do not expect share buybacks, and dividends from a growth stock. I do expect a higher multiple for the growth. Maybe not like LNKD and NFLX, but certainly near the growth trajectory (100% growth = 100 multiple).
The next data point will be the EPS report, and that is all we really need to know. Do your own DD!