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Stock Market & Financial Investment News

News Breaks
August 4, 2014
13:25 EDTRL, KORS, KATE, COHMichael Kors retreats after reporting margin decline
Shares of luxury accessories maker Michael Kors (KORS) are falling after the company reported stronger than expected results for the first quarter of its fiscal 2015, but said that its gross margins had dropped during the quarter. The company also estimated that its gross margin would drop in fiscal 2015. Analysts were divided on the company's outlook following the results. WHAT'S NEW: Michael Kors reported first quarter earnings per share of 91c, compared with analysts' consensus estimate of 81c. The company's revenue came in nearly $70M above expectations at $919.2M. However, Michael Kors' retail operating margin fell to 29.7% last quarter from 31.7% during the same period a year earlier, partially due to increased discounts. The company warned that its retail gross margin would likely decline about half a percentage point this year. On a positive note, the accessories designer provided fiscal 2015 EPS guidance of $4.00-$4.05, versus analysts' consensus estimate of $3.96. ANALYST REACTION: In a note to investors earlier today, Sterne Agee analyst Ike Boruchow wrote that "red flags abound" for the company. Specifically, Michael Kors' gross margins look poised to come under pressure as its spending is accelerating, the analyst warned. Meanwhile, the company's inventories were "heavy," and its first Fall products were not well-received by customers, the analyst stated. Although it remains to be seen if the red flags will become a "tipping point" for Michael Kors' profitability, investors should stay on the sidelines on the name until the outcome becomes more certain, advised Boruchow, who lowered his price target on the shares to $85 from $92 and kept a Neutral rating on the stock. Conversely, Bank of America Merrill Lynch analyst Robert Ohmes wrote that the "impressive momentum" of Michael Kors should continue, partly due to its expected launch of new products for men this fall, its "impressive" growth in Europe, its launch of 100 new footwear shops, and strong licensing revenue. He expects the company's results to continue beating expectations and said that today's pullback in the stock has created a buying opportunity. OTHERS TO WATCH: Michael Kors' competitors include Coach (COH), Kate Spade (KATE) and Ralph Lauren (RL). PRICE ACTION: In mid-afternoon trading, Michael Kors slumped 6.6% to $76.42.
News For KORS;COH;KATE;RL From The Last 14 Days
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August 27, 2015
11:42 EDTRLPVH Corp. rises after Q2 results top estimates, FY15 outlook raised
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August 24, 2015
09:49 EDTKORSFitbit being sold at Macy's seen as near-term catalyst
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August 20, 2015
06:20 EDTRLRalph Lauren confirms launch of PoloTech smartshirt
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06:04 EDTRLRalph Lauren plans launch of wearable-tech shirt for men, WSJ reports
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August 18, 2015
10:00 EDTKORSOn The Fly: Analyst Initiation Summary
Today's noteworthy initiations include: Abercrombie & Fitch (ANF) initiated with an Underperform at Wolfe Research... Abiomed (ABMD) initiated with a Buy at CRT Capital... Aeropostale (ARO) initiated with a Peer Perform at Wolfe Research... American Eagle (AEO) initiated with an Outperform, Top Pick at Wolfe Research... American Electric (AEP) initiated with a Buy at Mizuho... Benefitfocus (BNFT) initiated with an Overweight at First Analysis... Blue Buffalo Pet Products (BUFF) initiated with an Equal Weight at Morgan Stanley... Capitala Finance (CPTA) initiated with an Equal Weight at Stephens... Chico's (CHS) initiated with a Peer Perform at Wolfe Research... Children's Place (PLCE) initiated with an Outperform at Wolfe Research... Chimerix (CMRX) initiated with an Outperform at FBR Capital... Ciena (CIEN) initiated with a Market Perform at Northland... Crane (CR) initiated with an Outperform at William Blair... Entergy (ETR) initiated with a Neutral at Mizuho... Express (EXPR) initiated with an Outperform, Top Pick at Wolfe Research... Finisar (FNSR) initiated with a Market Perform at Northland... Francesca's (FRAN) initiated with a Peer Perform at Wolfe Research... Gap (GPS) initiated with an Underperform at Wolfe Research... Infinera (INFN) initiated with an Outperform at Northland... International Game (IGT) initiated with a Buy at Union Gaming... Juno Therapeutics (JUNO) initiated with an Outperform at FBR Capital... L Brands (LB) initiated with a Peer Perform at Wolfe Research... Luca Technologies (LUCA) initiated with an Outperform at Northland... Lumentum (LITE) initiated with an Outperform at Northland... M/A-COM (MTSI) reinstated with a Buy at Jefferies... MRV Communications (MRVC) initiated with an Outperform at Northland... Michael Kors (KORS) initiated with a Peer Perform at Wolfe Research... NN, Inc. (NNBR) initiated with a Buy at Stifel... NeoPhotonics (NPTN) initiated with an Outperform at Northland... Oclaro (OCLR) initiated with an Outperform at Northland... Scientific Games (SGMS) initiated with a Buy at Sterne Agee CRT... SolarCity (SCTY) initiated with a Neutral at UBS... Summit Materials (SUM) initiated with a Neutral at Citi... Tech Data (TECD) initiated with an Underperform at BofA/Merrill... Urban Outfitters (URBN) initiated with a Peer Perform at Wolfe Research... Zumiez (ZUMZ) initiated with an Underperform at Wolfe Research... lululemon (LULU) initiated with a Peer Perform at Wolfe Research.
10:00 EDTCOHOn The Fly: Analyst Upgrade Summary
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09:45 EDTCOHCoach trades higher, levels to watch
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07:46 EDTCOH, KORSJefferies sees longer turnaround for Vera Bradley, cuts to Hold
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07:40 EDTCOHJefferies says Coach turnaround not being appreciated, ups to Buy
Jefferies analyst Randal Konik upgraded Coach (COH) to Buy from Neutral and raised his price target for shares to $50 from $35. The stock closed yesterday up 8c to $32.02. Survey results show the handbag maker is starting to attract new customers at a faster rate while its remodel initiative should help drive a return to positive comps, Konik tells investors in a research note. He believes the company's turnaround is not being fully appreciated by the market. The analyst also added Coach to the Jefferies Franchise Picks List. He coupled the upgrade with a downgrade Vera Bradley (VRA) to Hold.
06:42 EDTCOHCoach upgraded to Buy from Hold at Jefferies
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August 17, 2015
17:08 EDTKORSMichael Kors initiated with a Peer Perform at Wolfe Research
Target $46.
August 14, 2015
17:29 EDTKORSGreenlight Capital gives quarterly update on stakes
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17:17 EDTCOHPoint72 gives quarterly update on stakes
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