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Why Michael Kors Holdings Ltd (KORS) Stock Won’t Catch a Break

In some cases, investing in a troubled sector can be mitigated by picking the best example. However, for Michael Kors Holdings Ltd (NYSE:KORS), that investing logic hasn’t panned out. Despite its hot-brand presence, KORS stock is down 13% year-to-date. In contrast, the otherwise vanilla benchmark SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up double digits. Can Michael Kors turn the tables on its bad luck?

The troubles for KORS stock certainly aren’t caused by lack of trying. The fashion designer recently announced plans to “acquire luxury shoe maker Jimmy Choo,” according to InvestorPlace’s William White.

The news was a boon for Jimmy Choo, whose London-traded shares jumped to a 63% YTD performance. Even shares of Michael Kors saw a boost, which has gained more than 5% since the announcement.

However, the financial markets are extremely ugly for KORS stock overall. Although early investors are still doing well, anyone that bought KORS over the last five years has likely lost money. Since hitting its peak in February 2014, shares have lost around 62%. Under the best of circumstances, it’s extremely difficult to come back from such steep losses. Multiply...