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Michael Kors: Underappreciated Despite Another Strong Quarter

Michael Kors (K>ORS) delivered a strong quarter again with its Q3 2015 earnings. It delivered earnings per share of $1.48 which was in line with my relatively high expectations and well ahead of analyst expectations for $1.34 per share. Revenues also beat analyst expectations, although it fell short of my expectations, partially due to currency effects which I hadn't considered enough before.

In the past, strong quarters haven't helped its share price much. Michael Kors previously would announce a strong quarter, then concerns about growth, margins and guidance would result in the stock moving lower. It looked like this would be the case again, but a strong recovery the day after earnings indicates that Michael Kors may have finally found a level where it can shrug off all of those recurring concerns.

Gross Margins Maintained

There has been a lot of worry about Michael Kors becoming too promotional and having… Read More …