Michael Kors Holdings Ltd (KORS): Today's Featured Specialty Retail Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Michael Kors Holdings ( KORS) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day down 2.6%. By the end of trading, Michael Kors Holdings fell $3.26 (-4.1%) to $76.67 on heavy volume. Throughout the day, 8,589,636 shares of Michael Kors Holdings exchanged hands as compared to its average daily volume of 4,417,400 shares. The stock ranged in price between $76.15-$80.55 after having opened the day at $80.40 as compared to the previous trading day's close of $79.93. Other companies within the Specialty Retail industry that declined today were: Mecox Lane ( MCOX), down 12.6%, United Online ( UNTD), down 12.3%, Pantry ( PTRY), down 9.3% and CSS Industries ( CSS), down 8.2%.

Michael Kors Holdings Limited engages in the design, marketing, distribution, and retailing of branded women's apparel and accessories, and men's apparel. The company operates in three segments: Retail, Wholesale, and Licensing. Michael Kors Holdings has a market cap of $16.4 billion and is part of the services sector. The company has a P/E ratio of 32.7, above the S&P 500 P/E ratio of 17.7. Shares are down 1.6% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Michael Kors Holdings a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Michael Kors Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Sport Chalet ( SPCHA), up 8.4%, Sport Chalet ( SPCHB), up 3.0%, Perfumania Holdings ( PERF), up 2.5% and Trans World Entertainment ( TWMC), up 2.5% , were all gainers within the specialty retail industry with CarMax ( KMX) being today's featured specialty retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the specialty retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the specialty retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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