How Analysts View Michael Kors Stock after Its Fiscal 4Q17 Results
Michael Kors’ (KORS) weak guidance for fiscal 1Q18 brought the company a host of target price revisions.
Michael Kors’ fiscal 4Q17 gross profits fell 11.1% to $619.7 million, in line with the decline in its sales. Its gross margin remained flat at 58.2% of sales.
For fiscal 1Q18, Michael Kors’ (KORS) management is looking for EPS of $0.60–$0.64 on total sales in the range of $910 million–$930 million.
Michael Kors (KORS) has a strong cash flow position. The company ended fiscal 4Q17 with cash and cash equivalents of $228 million and net debt of -$95 million.
Michael Kors (KORS) reported an 11.2% year-over-year decline in its fiscal 4Q17 sales to $1.2 billion, beating Wall Street by ~$10 million. For fiscal 2017, KORS’ total sales fell 4.6% to ~$4.5 billion.
Michael Kors (KORS) reported fiscal 4Q17 EPS of $0.73, $0.03 higher than analyst estimates. KORS’ revenues fell 11.7% year-over-year to ~$1.1 billion, beating the consensus by $10.0 million.
Coach (COH) agreed to buy Kate Spade (KATE) for a cash offer of $18.50 per share. If successful, the deal is expected to close in 3Q17.
Coach (COH), America’s leading luxury handbag and accessories maker, is buying Kate Spade (KATE) for a total transaction value of $2.4 billion.
Coach’s (COH) stock price rose 11.4% to $43.15 after it reported its results on May 2. The company is currently sitting on a YTD profit of 23%.
Coach (COH) reported a 5% YoY rise in its EPS for fiscal 3Q17, registering $0.46 per share.
For fiscal 3Q17, Coach (COH) reported total sales of $995 million, which is 3.7% lower YoY on a reported basis and 3% YoY lower on a constant currency basis.
Coach’s (COH) International business, which accounted for 43% of its top line in 3Q17, recorded a 4% YoY (year-over-year) fall in sales to $448 million.
For fiscal 3Q17, Coach reported earnings of $0.46 per share, beating the Wall Street analyst average estimates by $0.02.
Ralph Lauren reported a decline of 6% in global e-commerce revenues. This is unlike the general trend that has been noticed among the apparel and fashion companies.
On August 2, Fossil was trading at a PE multiple of 12.9x. Fossil’s valuation multiple has fallen by 9% since the announcement of its 1Q16 results.
Fossil’s (FOSL) margins have been in a declining trend during recent quarters.
Fossil’s adjusted earnings per share have beaten the consensus estimates six times in the last nine quarters.
Wall Street analysts expect affordable luxury brand Coach to grow its adjusted earnings per share by $0.05 year-over-year to $0.41 in fiscal 3Q16.
Coach expects its overall sales to rise at a high single-digit pace, spurred by the outperformance of footwear brand Stuart Weitzman.
Coach (COH) made $2.3 billion in sales in fiscal 1H16. Sales rose 2% year-over-year (or YoY) in reported terms and 5.1% in currency-neutral terms.