KORS: Michael Kors Limited Stock Analysis

Michael Kors Holding Limited is a global accessory, shoes and apparel firm. Three segments
characterise its business namely retail, wholesale and licensing. Two primary collections are the
Michael Kors luxury collection and Michael Kors accessible luxury collection. The collection
offers accessories and footwear as well as ready to wear women's clothing. Through the licensing
segment, it has an agreement to license to third parties use of the brand name as well as
trademarks, specific production as well as sales and distribution rights.
Analysis of KOR Share Results
Shares of Michael Kors Holding Limited fell by more than 19 percent in May. But June was an
entirely different direction, because the company retained its positive earnings surprise streak for
the fourth consecutive quarter with impressive Q4 2016 results. Since Michael Kors reported the
fourth quarter numbers on June 1, 2016, company's shares have grown by 16.3 percent. The
retail company's EPS of 98 cents rose by 8.9 percent Y-O-Y and surpassed estimates by Zacks
analysts. The company also earned a revenue of IS 1198.7 million and climbed 10.9 percent YO-Y, primarily boosted by increase in retail net sales in EU, Asia and the United States as well as
South America.
After Kors sturdy performance, upward estimate revisions were noted. Stocks are set to deliver
superlative performance in the coming months. To drive top line growth, Kors has been linking
store expansion to the same. In 2016, close to 142 new stores were opened by the company
including 47 in the Americas and 95 worldwide. Towards the close of the quarter, it had 869
stores across the world, including licensed locations. In 2017, the company opened 15 stores in
the Americas and 20 in the EU. Close to 40 stores were opened in Asia. Company has also
announced the buyout/purchase of Michael Kors HK Limited. Michael Kors Private Limited also
generated revenues of US $197 million from Greater China. The acquisition generated sales of
around US $200 million in 2017.
Based on a mix of past earnings trends and future earnings predictions, company issued and
projected guidance whereby analysts will distribute future price target projections for stocks
covered. These reports are provided in institutions making investment decisions. Analysts with
the share outlook which is favourable see it hitting US $75 while the most conservative has a
target of US $42 for the coming year.
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Published at: http://daddyinsider.com/index.php/2016/06/21/kors-michael-kors-limited-stockanalysis/