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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.
growing in the right places and consumers love it
Pretty much a mo- play, why try to fight it?
KORS is growing fast and taking business from Coach.
Michael Kors should outperform the market based on analysis presented in a recent blog post of mine...check it out here: http://beta.fool.com/evanbuck/2013/08/08/ralph-lauren-bargain-or-bust/42928/
Everything Mike Kors touches turns profitable. I can't see why he can't keep this up to $70 as well.
My thesis is straightforward.When COH had a 2B revenue in 2006, it's market cap was ~11B. Today, KORS has a revenue of 2B and a market cap of ~12B. COH has a market cap of ~16B Today and revenue of 5B. COH operates at a higher gross, operating and net margin, though I expect KORS will be able to match that metric one day.The difference between the two companies (and this is important because I know you gravitate towards growth stocks) is, KORS grew to 2B from 800MM in less than 2 years, whereas COH grew from 720MM in 2002 to 2B in 2006 over 4 year period. In other words, COH was running a lot slowly back when it was a 2B company with similar market cap as KORS. One risk for me with KORS is Mr. Michael David Kors himself the Chief Creative Officer and an employee of the company who could decide to leave the company and terminate his employment contract. I don't know how the customers would feel about that if that happened.
Making life difficult for COH, is there room for another player in luxury goods, seems like it
Paying for the impressive growth with PE <30...
Great Balance Sheet, Cash Flow and Margins for retail. Good alternative (or compliment) to COH.
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