Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, branded apparel and accessories company Michael Kors Holdings
With that in mind, let's take a closer look at Michael Kors' business and see what CAPS investors are saying about the stock right now.
Michael Kors facts
|Headquarters (founded)||Tsim Sha Tsui, Hong Kong (1981)|
|Market Cap||$10.4 billion|
|Industry||Apparel, accessories and luxury goods|
|Trailing-12-Month Revenue||$1.5 billion|
|Management||Chairman/CEO John Idol Honorary
Chairman/Chief Creative Officer Michael Kors
|Trailing-12-Month Return on Equity||58.1%|
|Cash/Debt||$162.1 million / $27.7 million|
Donna Karan International
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 21% of the 158 members who have rated Michael Kors believe the stock will underperform the S&P 500 going forward.
Michael Kors is a good brand and selling at prices that the average Joe can afford. That and the continued acquisition of floor space across retail stores indicates that it's gaining momentum. Further, 30% growth in Europe while Euro zone GDP fell 0.2% in Q2-2012 is testament to the brand's strength.
That said, I have seen this story before in the case of [Aeropostale]. That did not end well. Given [August 14th's] jump in the stock price, I am taking a short term bearish outlook to the stock until it reverts to mean market performance.
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