Michael Kors Holdings (KORS) has a market cap of $7.7 billion. It fell 5.1% to close at $47.16 per share on November 14, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -6.2%, 1.1%, and 17.7%, respectively, on the same day.
KORS is trading 4.5% below its 20-day moving average, 2.8% below its 50-day moving average, and 6.4% below its 200-day moving average.
Related ETF and peers
The Vanguard Mid-Cap Growth ETF (VOT) invests 0.58% of its holdings in Michael Kors. The ETF tracks a market cap–weighted index of mid-cap growth companies selected by the Center for Research in Security Prices (or CRSP). The YTD price movement of VOT was 4.9% on November 14.
The market caps of Michael Kors’s competitors are as follows:
On November 14, 2016, Morgan Stanley downgraded Michael Kors Holdings’s rating to “equal-weight” from “overweight.”
Performance of Michael Kors in fiscal 2Q17
Michael Kors (KORS) reported fiscal 2Q17 total revenue of $1.09 billion, a fall of 3.5% compared to total revenue of ~$1.1 billion in fiscal 2Q16. Revenue from the Retail segment rose 12.1%, and revenue from its Wholesale and Licensing segments fell 18.4% and 10.2%, respectively, in fiscal 2Q17 compared to fiscal 2Q16.
The company’s gross profit margin expanded by 40 basis points, and its income from operations as a percentage of total revenue narrowed by 550 basis points in fiscal 2Q17 compared to fiscal 2Q16.
Its net income and EPS (earnings per share) fell to $160.9 million and $0.95, respectively, in fiscal 2Q17 compared to $193.1 million and $1.01, respectively, in fiscal 2Q16.
Michael Kors’s cash and cash equivalents fell 73.4%, and its inventories rose 27.2% in fiscal 2Q17 compared to fiscal 4Q16. Its current ratio fell to 1.6x, and its debt-to-equity ratio rose to 0.64x in fiscal 2Q17 compared to a current ratio and a debt-to-equity ratio of 3.8x and 0.28x, respectively, in fiscal 4Q16.
During fiscal 2Q17, KORS repurchased 5,019,083 of its common shares worth ~$250.0 million in open market transactions.
Michael Kors (KORS) has made the following projections for fiscal 3Q17:
- total revenue in the range of ~$1.37 billion–$1.38 billion
- operating margin of ~25.0%
- EPS in the range of $1.61–$1.65
- tax rate of ~21%
The company has made the following projections for fiscal 2017:
- expected total revenue of ~$4.6 billion
- non-GAAP[1. generally accepted accounting principles] operating margin of ~20.7%, which excludes the one-time acquisition-related costs
- non-GAAP EPS in the range of $4.37–$4.43
- GAAP EPS in the range of $4.32–$4.38
- tax rate of ~21%
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