Why Michael Kors Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of fashion company Michael Kors  (NYSE: KORS  ) climbed 10% today after its quarterly results and guidance topped Wall Street expectations.

So what: Kors' third-quarter results -- EPS jumped to $0.64 from $0.20 in the year-ago period on a 70% spike in revenue -- and full-year guidance were so strong that analysts have no choice but to raise their valuation estimates yet again. In fact, same-store sales for the quarter jumped an impressive 44%, giving investors plenty of confidence in its ability to expand profitably going forward.

Now what: Management now expects full-year EPS of $1.80 to $1.82 on revenue of $2.1 billion, up nicely from its prior view of $1.48 to $1.50 and $1.86 billion to $1.96 billion. "Overall, we believe that the Michael Kors brand is ideally positioned within the global luxury lifestyle market and we look forward to delivering on our long-term objectives," said Chairman and CEO John Idol. Of course, with the stock hitting a new 52-week high today and trading at a forward P/E of 30, much of that bullishness might already be baked into the price.

Interested in more info on Michael Kors? Add it to your watchlist.

Michael Kors is one of today's hottest high-end fashion brands, and that's translated into one of the best-performing stocks in retail -- since its debut on the market in late 2011, the share price has more than doubled. But with all that growth, has the stock finally become too expensive, or is there still room left to run? The Motley Fool's new premium report on Michael Kors gives investors all the information they need to make the right decision. We cover the key must-watch areas, opportunities, and threats to the company that investors need to know. To claim your copy, simply click here now for instant access.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2481204, ~/Articles/ArticleHandler.aspx, 12/19/2014 8:09:27 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement