Actionable news
0
All posts from Actionable news
Actionable news in KORS: MICHAEL KORS HOLDINGS LIMITED,

Waning Sales, Dismal Comps Holding Back Michael Kors (KORS)

"Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks."- Warren Buffett.

At the moment, the quote fits perfectly for Michael Kors Holdings Limited KORS as the company’s near-term future looks bleak. Investors need to exercise extreme caution when it comes to the stock as it is unlikely to show any major improvement in the near term. Michael Kors has exhibited a bearish run year to date plunging 20.4% compared with the Zacks categorized Textile-Apparel Manufacturing industry’s decline of 2.8%. Let’s delve deeper and try to assess what’s taking this Zacks Rank #5 (Strong Sell) company downhill.

Stiff competition, falling comps, aggressive promotional environment and waning mall traffic are making things tough for Michael Kors. We noted that comparable sales had fallen 14.1% in the final quarter of fiscal 2017, following declines of 6.9%, 5.4% and 7.4% in the third, second and first quarters, respectively. The company is also struggling with its top-line performance. After registering a meager growth of 0.2% in the first quarter of fiscal 2017, it had declined 3.7%, 3.2% and 11.2% in the...


More