Michael Kors Holdings Limited (NASDAQ : KORS)
Michael Kors Holdings Limited (KORS), a women’s apparel, accessories and men’s apparel company yesterday announced positive third quarter fiscal 2016 results. KORS reported third quarter earnings per share of $1.59 which was better than the same quarter of the previous year of $1.48 and beat analyst expectations of $1.46 per share. KORS reported revenues increased 6.3% to 1.4 billion up from $1.31 billion of the same quarter of the previous year and beat analyst expectations of $1.35 billion.
Michael Kors Holdings Limited CEO’s Comments
John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “We are pleased with our third quarter results, as we delivered revenue, comparable store sales and earnings growth ahead of our expectations. Our performance was driven primarily by strong consumer response to our luxury fashion product offering, particularly in our accessories and footwear categories, the continued momentum in our digital flagship business and outstanding growth in our international markets. As we look ahead, we are excited about our upcoming Spring collections that embody design innovation and underscore Michael Kors fashion leadership. In addition, we remain focused on further developing our digital flagship strategy as we offer our customers a seamless omni-channel experience, the build-out of our men’s business, and leveraging our strong brand awareness to expand our business globally. We believe that the continued execution of these strategic initiatives positions us well to deliver long term growth.” Business Wire
KORS Technical Analysis
KORS gapped up in price yesterday to $47.11, up from the prior day’s close of $40.44, which is a 16% increase in price. Taking a look at the daily chart we can see that the last time KORS traded above this price level was on January 20th when it traded at $28.46. Taking a closer look at the daily chart we can see that KORS has been in a trading range in between $35 and $45 dating back to June 26th. As we can see KORS has gapped through the top of that range. I would look for KORS to use the $45 price level as a new support level for a sustained move up. KORS has a float of $176.91 million shares and is trading over 8.5 times the normal daily trading volume. KORS did reach pre market highs of $48.39, but gave back $1.28 at the open, or equivalent to 3%. For trading purposes, my entry point would have been $47.20 looking for a run to $49. My stop loss would have been $47, fearing anything below that and the stock would start to fill in the gap up.
Michael Kors Holdings Limited engages in the design, marketing, distribution, and retailing of branded womens apparel and accessories, and mens apparel. The company operates in three segments: Retail, Wholesale, and Licensing. The Retail segment is involved in the sale of womens apparel; accessories, which include handbags and small leather goods, such as wallets; footwear; and licensed products comprising watches, jewelry, fragrances and beauty, and eyewear. As of March 28, 2015, this segment operated 343 North American retail stores, including concessions and its U.S. e-commerce site; and 183 international retail stores, including concessions in Europe and Japan. The Wholesale segment sells accessories, such as handbags and small leather goods, footwear, and womens and mens apparel to department stores and specialty shops in North America, Europe, and Asia. The Licensing segment licenses its trademarks on products, such as fragrances, beauty, eyewear, leather goods, jewelry, watches, coats, mens suits, swimwear, furs, and ties, as well as licenses rights to third parties to sell the companys products in geographical regions, such as the Middle East, Eastern Europe, Latin America, the Caribbean, Asia (excluding Japan), and Australia. The company sells its products under the names of MICHAEL KORS, MICHAEL MICHAEL KORS, and various other related trademarks and logos. Michael Kors Holdings Limited was founded in 1981 and is based in London, the United Kingdom. Yahoo Finance