The firm said it lowered its price target on the designer handbag, clothing, shoes, and accessories retailer based on the company's near-term fundamental peak in the margin, and a slowdown in topline momentum.
Jefferies also reduced its full year 2015 earnings per share estimates to $3.60 from $3.90, and its full year 2016 EPS to $4 from $4.60.
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- KORS's very impressive revenue growth greatly exceeded the industry average of 8.4%. Since the same quarter one year prior, revenues leaped by 53.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- KORS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.12, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 56.00% and other important driving factors, this stock has surged by 38.95% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- MICHAEL KORS HOLDINGS LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MICHAEL KORS HOLDINGS LTD increased its bottom line by earning $3.21 versus $1.97 in the prior year. This year, the market expects an improvement in earnings ($3.97 versus $3.21).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 59.3% when compared to the same quarter one year prior, rising from $101.10 million to $161.04 million.
- You can view the full analysis from the report here: KORS Ratings Report