Capri (CPRI) - former Michael Kors

Capri (CPRI) - former Michael Kors

Postby iam802 » Tue Feb 14, 2012 11:39 pm

This is a very popular apparel brand. I noticed long queues outside its stores when I was travelling during the holidays.

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http://online.wsj.com/article/SB1000142 ... 93660.html

Michael Kors Holdings Ltd.'s fiscal third-quarter earnings rose 47% as the high-end apparel designer's revenue grew more than expected.

Shares of the apparel company leaped more than 20% in Tuesday morning trading, to $40.80. The company went public in December at $20 a share.

Michael Kors forecast current-quarter earnings of 10 cents to 12 cents a share on revenue between $350 million and $355 million . The company expects full-year earnings of 74 cents to 76 cents a share on revenue of $1.27 billion to $1.28 billion.

A 30-year-old brand, Michael Kors sells clothing, footwear and other apparel and accessories through luxury department stores, such as Saks Fifth Avenue and Harrods, and through its own company-operated outlets. The company is looking to expand its shop-in-shop branded areas in department stores and to increase global same-store sales.

Michael Kors's same-store sales didn't suffer through the economic downturn, but the company has warned that a prolonged period of depressed consumer spending could affect its financial condition.

For the quarter ended Dec. 31, Michael Kors reported a profit of $32 million, or 20 cents a share, up from $21.8 million, or 16 cents, a year earlier. Excluding items such as stock-based compensation, initial public offering fees and a tax benefit, earnings were 28 cents in the most-recent quarter. Revenue jumped 68% to $373.6 million.

Analysts polled by Thomson Reuters had most recently forecast earnings of 8 cents on revenue of $349 million.

Gross margin rose to 59.4% from 57%.

Same-store sales rose 38% in North America and were up 34.4% in Europe.
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2. The trend will END but I don't know WHEN.

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Re: Michael Kors (KORS)

Postby winston » Wed Feb 03, 2016 9:04 pm

Designer handbag company Michael Kors soars more than 20% on strong earnings.
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Re: Michael Kors (KORS)

Postby winston » Tue Feb 09, 2016 7:09 pm

not vested

Michael Kors: How High Can KORS Stock Go?

Analysts suggest you still have time to capitalize on large gains

By Brian Nichols

Source: Investor Place

http://investorplace.com/2016/02/michae ... rnIP1h96M8
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Re: Michael Kors (KORS)

Postby winston » Tue Feb 23, 2016 9:07 pm

Fashion brand Michael Kors continues its climb… up 37% this month.
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Re: Michael Kors (KORS)

Postby winston » Mon Mar 14, 2016 8:03 pm

Fashion brand Michael Kors continues its climb… rises 55%-plus since late January.
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Re: Michael Kors (KORS)

Postby winston » Sun Sep 09, 2018 9:01 am

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Stocks to Buy: Michaels Companies (MIK)
Five-Day Loss: 22%

Anytime a stock loses 22% in a week — on top of a 35% decline between the end of January and its latest drop — suggests only the heartiest of investors need to apply.

Michaels Companies (NYSE:MIK) went public in June 2014 at $17 a share. The crafts retailer was your typical private-equity turnaround.

Blackstone Group (NYSE:BX) and Bain Capital acquired Michaels in July 2006 for $6 billion. It immediately tacked on $3.7 billion in debt to help pay for the retailer.

So, the two firms probably invested $2.3 billion of their equity. At the $17 IPO price, their holdings were worth $2.8 billion. On top of that they paid themselves $714 million in dividends — paid for with Michaels’ debt — so, they went out of the gate in 2014 with a $1.2 billion profit.

Over the next three years, Bain and Blackstone sold off a good chunk of their shares over $20, adding to their overall return on investment.

Today, Bain and Blackstone own 29% and 11% of the company respectively. Those shares are worth $1.2 billion.

In other words, they’ve made out just fine.

Meanwhile, Michaels is saddled with $2.7 billion in debt, not much less than when it was acquired in 2006.

Why do I say buy?

MIK stock is currently trading at 6.6 times its forward adjusted earnings estimate of $2.42 a share. Its same-store sales should be positive for fiscal 2018, and it’s in the middle of reorganizing the stores to be more attractive to customers.

Michaels is the value play of the seven stocks to buy.

Source: Investor Place
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Re: Michael Kors (KORS)

Postby winston » Wed Dec 26, 2018 8:57 pm

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SHARES OF THIS LUXURY BRAND JUST TOOK A SHARP DIVE

Today, we're looking at another victim of the "retail death spiral"...

Largely thanks to e-commerce giant Amazon (AMZN), today's consumers prefer to shop online instead of flocking to the mall. And while some traditional, brick-and-mortar retailers are adapting to their customers' changing behavior, some companies are getting left behind...

Michael Kors (KORS) is an unfortunate example of the latter. The $5 billion global luxury brand makes and sells handbags, sunglasses, and more under its widely-known Michael Kors brand.

But the company is struggling to grow its sales. In the most recent quarter, Michael Kors reported sales of $1.25 billion, missing analysts' estimates. The company also saw comparable store sales – a critical number for retailers – fall by 2%.

As you can see in today's chart, KORS is trending lower. Shares are down more than 40% over the past year, and they recently hit a new 16-month low.

If this company doesn't adapt soon to an increasingly digital market, we could see more pain ahead...

Source: Daily Wealth
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Capri (CPRI)

Postby winston » Fri Mar 22, 2019 2:13 pm

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% Off All-Time Highs: 54%

Shares of global fashion conglomerate Capri (NYSE:CPRI) have been hammered over the past several quarters for various reasons.

One, the core Michael Kors brand has lost steam.

Two, margins have been under pressure.

Three, investors have questioned the Versace acquisition.

All together, investor sentiment has been weak, and CPRI stock has dropped more than 50% off all-time highs.

I think these concerns are overblown. In the big picture, the morphing together of three luxury fashion brands (Michael Kors, Jimmy Choo and Versace) under one fashion conglomerate umbrella mitigates the financial risks and noise associated with fashion-trend cycles, while boosting brand awareness and equity.

Consequently, while the Michael Kors brand will continue to cycle between hot and cold for the foreseeable future, Capri’s revenues in 2019 and after will show significantly greater stability.

Margins will likewise improve with this enhanced stability. And, because of revenue and margin stability, the Versace acquisition will prove to be more than worth it — it will ultimately be seen as necessary.

It’s only a matter of time before the market realizes this. When it does, investors will flock to this really cheap stock (9-times forward earnings) and that flocking could spark a big recovery rally.

Source: Investor Place
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