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.
IBD has retail apparel climbing to #12 this week with KORS being the standout leader. Also, IBD has a huge article on holiday shopping featuring KORS, TIF, M as the leading stocks this holiday season. The article states, "KORS sales are on fire!" But, we already know this! The article is on page A6! IBD has KORS within 5% of a $78.82 buy point.
KORS was up more than 4% this week with massive volume. I believe the stock is just starting to make its move. The personality of KORS changed back in August. It could be a big winner in 2014?
KORS management guided to $2.81 for fiscal 2014 last week. Currently, the stock trades with a multiple of 36. The firm has a history of sandbagging their numbers.
When the stock trades on those actual numbers KORS will trade over par. I expect some multiple expansion, and raised numbers for 2014. I expect KORS to earn more than $3 in 2014. Therefore with the raised EPS and multiple expansion I expect KORS to trade near $120 by spring 2014.
Nordstrom same-store sales, which consist of the full-line and Direct businesses, decreased 0.7 percent compared with last year's same-store sales increase of 11.2 percent. Top-performing merchandise categories included Cosmetics, Women's Apparel, and Women's Shoes. Momentum continued in Women's Apparel, outperforming the Nordstrom average on a year-to-date basis.
Dillard's (DDS) delivered upbeat third-quarter results and said it will stay closed on Thanksgiving despite the trend to move holiday sales events earlier.
The Little Rock, Ark.-based department store operator earned $1.13 a share ex items, up 18% from last year and 8 cents above forecasts, extending its multiyear streak of double- to triple-digit quarterly profit growth.
Revenue climbed 1% to $1.51 billion, also topping. Same-store sales increased 1%.
Strong sellers included women's accessories, apparel and shoes, the company noted, while home and furniture were the weakest.
Macy's has bought back over 27 million shares this year. They expect "special" Christmas items from Ralph Lauren and Michael Kors to sell well this Christmas season.
Women's apparel and handbags were a strength this past quarter. Although, the watch trend slowed last quarter. Macy;s is encouraged for this quarter in handbags, women's apparel and footwear.
JWN will report on Thursday after the bell. Typically, they are transparent in what has been the top revenue producers from their many stores for the quarter. It would not surprise me if women's accessories are one of their top revenue producers this quarter. I am also curious to know if they experience a strong October as Macy's reported.