On Monday's MarketFoolery, host Chris Hill, Motley Fool One analyst Jason Moser, and Stock Advisor Canada analyst Taylor Muckerman check out Michael Kors (NYSE:KORS) and Coach (NYSE:COH) at the outlet mall.
Tweeting to MarketFoolery, @ShooterF16 asked of Michael Kors:
Chris thinks the concern is legitimate for any retailer that's done well at the high end of the spectrum and moves to the low end. Jason agrees that margins run a risk of taking a hit and explains how that can happen when a company resorts to coupons, lower prices, and other deals. Jason encourages investors to move away from Coach but thinks that eventually Michael Kors will be hit too. He encourages investors to learn from Coach and find their risk tolerances. Taylor suggests investors look to investing in outlet markets.
Chris Hill and Taylor Muckerman have no position in any stocks mentioned. Jason Moser owns shares of Coach. The Motley Fool recommends and owns shares of Apple, Coach, and 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.