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Michael Kors Enters The New Normal

Many investors may become interested in Michael Kors (K>ORS) shares following a dip in the stock after the company posted sales that missed expectations. Shares have shed almost 20 percent of their value in the last year, despite posting impressive top-line numbers. Shares surged post-IPO with mounting optimism as the company fired on all cylinders. But the reality of growth deceleration has fueled the decline in this stock, and will continue to do so until expectations and fundamentals converge.

The rally in Michael Kors, which started in December 2011, continued into early last year as the company successfully exploited the invigorated appetite for affordable luxury globally. It seems like a short time ago Michael Kors was the darling of Wall Street -- and probably keeping Coach's (COH) management up at night. KORS stock was trading at a 32x forward P/E multiple as everybody fell in love with this growth story.… Read More …