Price movement of Michael Kors
Michael Kors Holdings (KORS) has a market cap of $8.2 billion. It rose by 6.6% to close at $45.55 per share on June 1, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 9.6%, -14.0%, and 13.7%, respectively, on the same day.
This means that KORS is trading 2.1% above its 20-day moving average, 9.3% below its 50-day moving average, and 0.15% below its 200-day moving average.
Related ETFs and peers
The Vanguard Mid-Cap Growth ETF (VOT) invests 0.25% of its holdings in Michael Kors. This ETF tracks a market-cap-weighted index of midcap growth companies selected by the Center for Research in Security Prices (or CRSP). The YTD price movement of VOT was 3.2% on June 1, 2016.
The iShares MSCI USA Quality Factor ETF (QUAL) invests 0.19% of its holdings in Michael Kors. The ETF tracks an index of US large- and mid-cap stocks, selected and weighted by high ROE, stable earnings growth and low debt-to-equity ratio, relative to the peers in each sector.
The market caps of Michael Kors’ competitors are as follows:
Performance of Michael Kors in 4Q16 and 2016
Michael Kors (KORS) reported fiscal 4Q16 total revenue of ~$1.2 billion, a rise of 10.9% compared to total revenue of ~$1.0 billion in fiscal 4Q15. Revenue from retail and wholesale segments rose by 22.0% and 3.5%, respectively, and revenue from licensing fell by 13.6% in fiscal 4Q16 compared to fiscal 4Q15.
In fiscal 4Q16, its net income fell to $177.0 million and its EPS (earnings per share) rose to $0.98 compared to net income and EPS of $182.6 million and $0.90, respectively, in fiscal 4Q15.
During fiscal 4Q16, the company repurchased 3,690,685 of its common shares worth ~$200.0 million in open market transactions.
Fiscal 2016 results
In fiscal 2016, KORS reported total revenue of ~$4.7 billion, a rise of 7.8% YoY (year-over-year). Its net income fell to $839.1 million, and its EPS rose to $4.44 in fiscal 2016 compared to net income and EPS of $881.0 million and $4.28, respectively, in fiscal 2015.
Michael Kors’s (KORS) cash and cash equivalents fell by 28.3%, and its inventories rose by 5.2% in fiscal 2016. Its current ratio fell to 3.8x, and its debt-to-equity ratio rose to 0.28x in fiscal 2016. This is compared to a current ratio and a debt-to-equity ratio of 6.1x and 0.20x, respectively, in fiscal 2015.
Michael Kors Holdings (KORS) has made the following projections for fiscal 1Q17 and fiscal 2017:
- total revenue in the range of $940 million–$950 million, which includes a reduction in wholesale shipments and comparable sales to fall in the mid-single-digit range
- non-GAAP operating expense as a percentage of total revenue to rise in the range of 6.9%–7.4%.
- non-GAAP EPS in the range of $0.70–$0.74
- GAAP EPS in the range of $0.62–$0.66
- tax rate of ~21%
- expected total revenue could be flat and comparable sales to fall in the low single-digit range.
- non-GAAP operating margin of ~21.5%
- non-GAAP EPS in the range of $4.56–$4.64
- GAAP EPS in the range of $4.47–$4.55
- tax rate of ~21%
For more analysis of this sector, you can visit Market Realist’s Consumer Discretionary page.