Michael Kors (KORS) Receives a Rating Update from a Top Analyst

By Austin Angelo

Guggenheim analyst Robert Drbul maintained a Hold rating on Michael Kors (NYSE: KORS) yesterday. The company’s shares closed yesterday at $70.01, close to its 52-week high of $70.99.

Drbul noted:

“We continue to expect flat comp sales for the MK brand in FY19, including a LSD decline in 2Q19. MK Wholesale revenue increased 19.5% to $362.8mn (vs. our $329mn est; +18% in CC). The company noted department store product is performing well in the Americas, and overall, the result was aided by shipment timing. Europe remains under pressure due to the company’s ongoing activity to preserve long-term brand health and support full-price selling through the reduction in inventory and promo activity. We expect these efforts to continue further in FY19, driving further wholesale declines, with Europe in the earlier innings of the process of resetting its wholesale base. MK Licensing revenue decreased 5% to $27.5mn.”

According to TipRanks.com, Drbul is a top 100 analyst with an average return of 17.8% and a 78.1% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Lululemon Athletica Inc, and Ascena Retail Group.

Michael Kors has an analyst consensus of Moderate Buy, with a price target consensus of $75.57, representing a 7.9% upside. In a report issued on July 25, Robert W. Baird also reiterated a Hold rating on the stock with a $72 price target.

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Based on Michael Kors’ latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $44.1 million. In comparison, last year the company had a net profit of $126 million.

Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock.

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Michael Kors Holdings Ltd. engages in the design and distribution of sportswear, accessories, footwear and apparel of branded women’s apparel and accessories and men’s apparel. The firm operates its business through three segments: Retail, Wholesale and Licensing.