Greenberg: Kors Calls Speculation 'False and Unfounded'
SAN DIEGO (TheStreet) -- Michael Kors (KORS - Get Report), through a letter to TheStreet from its outside counsel, says that my piece from last week that wondered if the company had communicated with analysts regarding the coming quarter is incorrect. "The accusations are completely false and unfounded," the attorney said.
He added that had I called the company prior to publication I would have received "vehement denials and assurances" that Kors "takes Regulation FD compliance very seriously."
I didn't call because this is a blog steeped in observation, analysis and commentary. The Kors news was timely, and, in fact was discussed earlier in the day on social media (by me and others) as well as on CNBC. Concerns about multiple analyst actions on any company often lead to questions about why.
Of course, had a company spokesperson or executive called us immediately their comments would have been duly noted. And, of course, in retrospect I wish I had called them.
In the piece, I had questioned why, in a single day, on no news, four analysts took negative action on the stock. Within several days, at least three additional analysts took similar action, most citing concerns about the level of markdowns.
As I pointed out on Twitter, but not in a subsequent blog, several other analysts the following day disagreed and reiterated their buys, saying they believe markdown concerns are overblown.
One tweet said, "In other news, Cowen's Faye Landes says $KORS IR says it hasn't been talking to analysts; she sees no risk, weakness 'excellent entry pt.' "
Kors reports earnings Aug 5.
-- Written by Herb Greenberg in San Diego