+ Watch KORS
on My Watchlist
Cant stop women from shopping
Offerings resonating with shoppers, consistently exceeding expectations
Expansion to Europe and Asia..All income levels wear MK.
This is a real-life holding of mine.Over the past 7 quarters, sales have grown at an annual compound growth rate of about 20%. EPS growth over those 7 quarters has averaged an annual compound growth rate of about 25%. The pre-tax profit margin has been growing over the past 4 years and the earned-on-equity has grown over the past 3 years. The company has no long-term debt. The P/E is below historic averages. The company does not pay a dividend. The PEG ratio is a little high, at 1.25, but not outrageous. I think that this stock could return over 13% annually on a compound basis, so not too bad. We shall see if this stock will return what I think it can.
After this quarter it seems that they have everything they need to keep rolling. Impressive that they have blow out numbers when the rest of the community is hurting. Isn't that the definition of "rule breakers"
My Recency + Exposure Theory
Kicking Coach butt...gaining market share
Sales growth averaged 63% per year for the last 3 years. Earning growth has also averaged 110% per year over the same time period. Company has exceeded earnings estimates over the last 4 quarters.
Ladies love their bags, and accessories. They are expanding fast in China and next, India. I have yet to find a lady who doesn't love their products. Great job, Kors!
My wife is italian , she didn't know the brand but when she discovered it she liked it a lot !
Michael Kors has posted 30 consecutive quarters of growth, and I doubt it'll stop anytime soon. The question remains whether it can stand the test of time and become a staple fashion company that won't go out in style. If KORS can continue to adapt to changing times and innovate new fashion trends, this should be held for a long time. HOLD FOR 5+ YEARS and reevaluate their standing in the fashion community.
First, I will never understand the world of high fashion, but I do understand that there is a brand being developed here that is having great success. Growth has been explosive, but the assumption seems to be that it cannot continue.I start with $2.82 in earnings per share, which is the projection for this year. Then I assume earnings per share grow at 25% for five years, followed by growth at 18% for an additional five years. I get to $19.69/share in earnings at the end of year 10. I assume a P/E of 36 to get a share price of $709. Discount that back at 15%, which is the return I'd like, and I get a value of $175 today. I can get it for $83, over a 50% discount to my value. Returns should be well more than 15% for the next few years and well more than the market.
Michael Kors currently has the cache in affordable luxury apparel, which it has stolen from previous category leader Coach. They are accelerating their growth by licensing opportunities in the Far East, and should have a good run for a few years, until the fickle finger of fashion points to a new contender.
The MK brand is affordable for luxury designer items. Customers like Michael Kors personality and image, which may give the brand
This company is on fire! Beating companies such as coach handily at this point.
Huge growth potential, monster opportunity.
Still early with a long way to grow.
To be clear, very expensive and very trendy right now. I did not buy a full position. However, balance sheet is amazing - hardly no debt, tons of cash, and great return on equity - amazing ability to reinvest capital. But most of all, my wife (who knows style) says that KORS has some brand staying power. They have survived beyond trendy and are very quickly entering the ranks of Coach and Tiffany as enduring brands. At this point, the only concern should be if they simply go too diverse with their lifestyle products and/or dilute the luxury of the brand.
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