Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Michael Kors Holdings    KORS   VGG607541015

MICHAEL KORS HOLDINGS (KORS)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets
OFFRE ETE Zonebourse : Jusqu'à 6 mois offerts sur tous les portefeuilles

Michael Kors : says higher spending on Jimmy Choo will hit earnings

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/30/2018 | 06:49pm CEST
A Michael Kors Holdings Limited retail store is shown in La Jolla

(Reuters) - Michael Kors Holdings Ltd said higher spending to expand its upscale footwear brand Jimmy Choo will weigh on earnings this year, driving shares of the luxury handbag maker down 13 percent on Wednesday.

Kors' shares have soared some 90 percent over the past year as the company has steadily boosted profit margins by scrapping discounts on its pricey Mercer and Hamilton handbags. But Jimmy Choo, which New York-based Kors bought last year for $1.2 billion (903 million pounds), has seen its popularity wane among younger consumers.

The footwear brand, whose designer stilettos found fame in the 1990s thanks partly to "Sex and the City" character Carrie Bradshaw, is today associated more with rich older women than millennials.

Kors plans to open some 30 new Jimmy Choo stores in the year ending March 2019, it said on Wednesday, adding that it had already signed supermodels Lily Aldridge and Rosie Huntington-Whiteley for the brand's fall marketing campaigns.

"(Jimmy Choo) has some brand equity to it but there's some repair work that needs to be done," said BlueFin Research analyst Rebecca Duval.

Kors' yearly earnings forecast, which fell largely below Wall Street expectations, partly reflected efforts to turn around the brand, Duval added.

Footwear as a category also weighed on Kors rival Tapestry Inc latest quarterly results, as its upmarket Stuart Weitzmann brand reported disappointing sales after struggling to sell older products.

Kors expects fiscal 2019 earnings of $4.65 to $4.75 per share, reflecting what it said was a 5- to 10-cent hit from investments in Jimmy Choo. Analysts were expecting earnings of $4.74 per share, according to Thomson Reuters I/B/E/S.

The forecast took the shine off Kors' stronger-than-expected quarterly results which were boosted by selling more handbags and dresses at full price. The company also reported a surprise rise in same-store sales, marking the first increase in two years.

Still, Kors' forecast was "uninspiring," given the strengthening handbag market, stable prices at department stores and higher foreign tourism to the United States, RBC Capital Markets analyst Brian Tunick said.

Kors' shares plunged 12.5 percent to $59.67 on Wednesday afternoon and were on track for their worst one-day dip in three years.

Net income attributable to Kors was $44.1 million in the fourth quarter ended March 31, compared with a net loss of $26.8 million a year earlier.

Excluding one-time items, the company earned 63 cents per share, topping analysts' estimates of 60 cents.

Revenue rose to $1.18 billion, exceeding analysts' estimate of $1.15 billion.

(Reporting by Uday Sampath in Bengaluru; Editing by Sai Sachin Ravikumar)

By Uday Sampath Kumar

Stocks mentioned in the article
ChangeLast1st jan.
TAPESTRY INC 2.58% 48.25 Delayed Quote.6.35%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MICHAEL KORS HOLDINGS
06/05MICHAEL KORS HOLDINGS LIMITED : Announces Participation at the Deutsche Bank dbA..
BU
06/05MICHAEL KORS : Should You Buy the Dip at Michael Kors?
AQ
05/31MICHAEL KORS HOLDINGS LIMITED : Announces Fourth Quarter and Annual Fiscal 2018 ..
AQ
05/31MICHAEL KORS HOLDINGS : Today’s Research Reports on Stocks to Watch: Michael Kor..
AC
05/31MICHAEL KORS HOLDINGS : Annual results
CO
05/30MICHAEL KORS : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND R..
AQ
05/30MICHAEL KORS : says higher spending on Jimmy Choo will hit earnings
RE
05/30MICHAEL KORS : Is it buy or sell time for Apple, Salesforce, Dicks Sporting Good..
PR
05/30MICHAEL KORS : reports 4Q profit, but outlook disappoints
AQ
05/30MICHAEL KORS HOLDINGS LTD : Results of Operations and Financial Condition, Finan..
AQ
More news
News from SeekingAlpha
06/18Jump In On Ultra-Luxury? 
06/15BULLETPROOF INVESTING PERFORMANCE UP : Week 29 
06/13Michael Kors (KORS) Presents At Deutsche Bank dbAccess 2018 Annual Global Con.. 
06/13Michael Kors - Key Takeaways From The DbAccess Global Consumer Conference 
06/11MICHAEL KORS : Wait For The Next Acquisition Move 
Financials ($)
Sales 2019 5 082 M
EBIT 2019 902 M
Net income 2019 721 M
Debt 2019 187 M
Yield 2019 -
P/E ratio 2019 14,60
P/E ratio 2020 13,61
EV / Sales 2019 2,01x
EV / Sales 2020 1,80x
Capitalization 10 046 M
Chart MICHAEL KORS HOLDINGS
Duration : Period :
Michael Kors Holdings Technical Analysis Chart | KORS | VGG607541015 | 4-Traders
Technical analysis trends MICHAEL KORS HOLDINGS
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 72,1 $
Spread / Average Target 6,0%
EPS Revisions
Managers
NameTitle
John D. Idol Chairman & Chief Executive Officer
Cathy Marie Robinson Co-COO & Senior Vice President-Corporate Strategy
Thomas J. Edwards Co-COO, CFO, Treasurer & Executive VP
Michael David Kors Director & Chief Creative Officer
M. William Benedetto Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
MICHAEL KORS HOLDINGS8.01%10 046
INDITEX - INDUSTRIA DE DISEÑO TEXTIL1.36%106 143
KERING22.49%72 047
FAST RETAILING CO LTD13.62%49 629
ROSS STORES5.86%31 987
ZALANDO5.23%13 221