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Stock Market & Financial Investment News

News Breaks
February 4, 2014
11:48 EDTKORS, FOSL, RL, COHMichael Kors hits 52-week high after raising 2014 outlook
Shares of handbag and other luxury goods maker Michael Kors (KORS) are soaring after the company's third quarter results surpassed analysts' expectations and it raised its fiscal 2014 guidance. WHAT'S NEW: This morning, Michael Kors reported third quarter earnings per share of $1.11 and revenue of $1.0B, easily surpassing analysts' consensus estimates of 86c and $859.94M, respectively. The company also reported Q3 same store sales increased 27.8%. Michael Kors raised its FY14 EPS view to $3.07-$3.09 from $2.77-$2.81, compared to consensus of $2.83. It also raised its FY14 revenue view to $3.18B-$3.19B from $2.9B-$3.0B, versus consensus of $3.03B. The outlook assumed a SSS increase of approximately 25%, higher than its previous forecast for a 20% gain. ANALYST REACTION: In a note to investors, research firm Jefferies said the holiday quarter results clearly show the brand's dominance, but was likely the peak for the company. Jefferies cautioned investors against assuming the company's market share gains would continue at their current pace, believing that its market cap relative to sales trends was high. Jefferies reiterated its Hold rating on the shares, but did raise its price target to $85 from $80. Jefferies also said it would use today's strong report from Kors as an opportunity to buy Fossil (FOSL), which it noted has exposure to Kors' watch licensing business and which the firm views as having a more reasonable valuation. PRICE ACTION: In late morning trading, Michael Kors soared over 17% to $90.02 on more than three times its average daily trading volume. Earlier in the session, the stock hit a fresh 52-week high of $93.18 and it's up over 65% in the past twelve months. Shares of Fossil were up more than 5% to $113.79. OTHERS TO WATCH: Michael Kors' competitors include Ralph Lauren (RL), which was up 0.6% to $154.60, and Coach (COH), which fell 1.5% to $45.81 in late morning trading.
News For KORS;FOSL;RL;COH From The Last 14 Days
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October 20, 2014
13:10 EDTKORSSteve Madden tumbles after providing preliminary Q3 results, FY14 outlook
Shares of shoe and accessory company Steve Madden (SHOO) are tumbling after the company announced preliminary third quarter results that were below analysts' consensus along with a reduction to its fiscal year 2014 outlook. WHAT'S NEW: Steve Madden announced that it is anticipating Q3 earnings per share to be approximately 61c-62c and net sales of $392M, below analysts' consensus estimates of 67c and $415.72M, respectively. The company noted that retail comparable store sales for the quarter are anticipated to be down 7.4%. Steve Madden also reduced its FY14 EPS outlook to $1.81-$1.86 from $2.00-$2.10, well below analysts' $2.02 consensus. The company lowered its net sales projection for the year, and now sees net sales up 1%-2% over fiscal year 2013 versus its previous net sales guidance for up 2%-4% over FY13. The new guidance factors in the recent acquisition of Dolce Vita and current expectations for remainder of the year. On August 14, Steve madden acquired Dolce Vita for $60.3M in cash and previously said the deal would be accretive to earnings in FY14 by 2c-3c and be "modestly accretive" in FY15. WHAT'S NOTABLE: Steve Madden's Chief Executive Officer Edward Rosenfeld said that the company's Q3 earnings were "disappointing" and were the result of weaker than expected retail segment performance. He believes that retail trends in the footwear space will continue to be difficult through the fourth quarter due to a lack of noteworthy fashion trends in the industry. The CEO said that the company's full-year guidance results from this pattern, along with a lowered reorder outlook in its wholesale segment. Rosenfeld is still confident, however, in the company's business model and believes that its acquisitions of Dolce Vita and its Mexican licensee will fuel the business forward over the long term. OTHERS TO WATCH: Competitors of Steve Madden include Michael Kors (KORS), Coach (COH), Kate Spade (KATE), and Vera Bradley. PRICE ACTION: During afternoon trading, shares of Steve Madden fell $2.62 or 8.2%, to $29.32. Over the last twelve months, the stock has fallen over 15%.
October 15, 2014
06:12 EDTRLNike's Converse sues rivals over 'copycat' design, NY Post reports
Converse, a unit of Nike (NKE), is suing rivals including Ralph Lauren (RL) and Tory Burch, alleging that shoemakers and retailers are copying its iconic design, the New York Post reports. Lawyers for Converse say "We welcome fair competition, but we do not believe companies have a right to copy the trademarked look." The lawsuit seeks unspecified damages and injunctions that would bar the production of the rival shoe models. Reference Link
October 14, 2014
11:21 EDTFOSLFossil initiated with a Buy at Standpoint Research
Target $124.
05:48 EDTKORSMichael Kors initiated with a Hold at Stifel
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