Michael Kors Soars, Abercrombie Ain't As Cool As You Think, and the Econ News You Should Know for Your Wall Street Week in Review

The four things you need to know on May 31.

May 31, 2014 at 7:00PM
There's no better way to kick off June than with some beach-side cervezas, a fresh new fluorescent bathing suit, and a two-minute rundown of what moved Wall Street to new records. The S&P 500 reached new all-time highs on a big, holiday-shortened four-day week.

1. Stock market winner of the week ...
We ourselves are not exactly trend-setters when it comes to fashion, but it doesn't take a Diane Von Furstenberg to figure out that Michael Kors (NYSE:KORS) is all over Madison Avenue and Wall Street. The designer of luxury handbags for women released its first quarter earnings last week, revealing a 54.6% rise in revenue from the same period last year, reaching a hot $917.5 million in quarterly revenue.

For those of you keeping score, the revenue figures over the first three months of 2014 are well over the $816 million analysts expected. And here's why: global demand. Mike has already cut the red tape to open over 100 stores worldwide in just the past few months. And that's to satisfy the 63% rise in European sales over the past year.

But what really got investors giddy were the company's good lookin' projections. Through the full year of fiscal 2015, Kors is projecting over 31% year-over-year revenue growth, which would take the company through its 33rd straight quarter of positive revenue gains. Now that's worth tossing a big gold label on.
2. ... And stock market loser
After reporting earnings last week, Abercrombie & Fitch (NYSE:ANF) stock popped 5.8%. Investors were pumped by the fact that $822 million in quarterly revenue from the teen-focused retailer beat the lowly $804.5 million the analysts had been projecting.

So why are we considering Abercrombie to be a loser? It's not just because we're tired of their aggressively striped polo shirts with jumbo collars or the fact that they snubbed us from modeling in their magazine. It's because those "analyst-beating" revenues were still 2% lower than during the same period over last year. Plus, Abercrombie also suffered a $13 million net loss over the last three months.

The bottom line for Abercrombie is that teens aren't into their look anymore. Abercrombie's own brand stores saw a 1% drop in sales on the quarter, while sales plummeted 7% at their Hollister brand stores. And no one even knows what they plan to do with their failing underwear brand, Gilly Hicks.
3. European stocks highest since '08
Treat yourself to a double-packed Nutella crepe: The Stoxx Europe 600, an index that measures the value of 600 major European stocks, reached its highest level in six years. Greece may have ratified its last bailout package in 2012 and Portugal made a "clean exit" from its bailout last month, but the debt crisis that crushed stocks across the pond in 2011 ain't over -- unemployment remains at depression levels in Spain and Greece. So what were European investors celebrating? The profits their companies are making in other markets, like the U.S. and China.

4. U.S. GDP surprisingly contracted 1%
We know you tossed on extra North Face layers this past winter, but Wall Street didn't think the weather was this bad: U.S. GDP actually contracted at a 1% annualized rate in the first three months of 2014, compared with the initially small 0.1% growth analysts estimated. Consumers stayed home and weren't consuming, so companies held back from producing and investing in machinery and equipment. Investors hope the second quarter will return to normal so GDP can reach the 3%-plus per year GDP growth that reduces unemployment and lifts wages.

As originally published on MarketSnacks.com

Your credit card may soon be completely worthless
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

MarketSnacks has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Michael Kors Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers