|February 4, 2014|
|11:48 EDT||COH, KORS, RL, FOSL||Michael 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
|November 30, 2015|
|11:29 EDT||COH||Options with increasing put volume; FSLR MON COH TEVA JD BLOX CLR|
|08:14 EDT||KORS, RL||Thanksgiving deals seen as negative for Under Armour, Deckers|
After visiting stores and doing other checks throughout the Thanksgiving holiday weekend, an analyst at research firm Piper Jaffray concluded that Under Armour (UA), Deckers Outdoor (DECK) and Steven Madden (SHOO) offered higher promotions than last year, prompting her to lower her estimates and price targets on the three stocks. MORE PROMOTIONAL: After visiting malls and big box retailers on Thanksgiving night, Piper Jaffray analyst Erinn Murphy said in a note to investors on Friday that brands that appeared more promotional than last year included Under Armour, Deckers Outdoor, Steven Madden, GoPro (GPRO), Michael Kors (KORS) and Ralph Lauren (RL). In a post-weekend follow-up note, Murphy lowered her estimates for Under Armour, saying the company remains one of the more promotional brands across the athletic landscape and that the brand remained promotional during the Thanksgiving weekend. She lowered her estimates on Under Armour for the upcoming quarter and beyond, cut her price target on the stock to $88 from $97 and keeps a Neutral rating on the name. Murphy also lowered her estimates for Deckers Outdoor after observing more UGG promotions over the Thanksgiving weekend relative to last year. The analyst cut her price target for Deckers to $55 from $63 and keeps a Neutral rating on the name. Remarking on Steven Madden, Murphy noted that the brand was more promotional not only on Black Friday but in the two days following as well. She lowered her forecast for the shoemaker to the lower end of guidance for FY15 and trimmed her price target on the stock to $36 from $41, but keeps an Overweight rating on the name. FITBIT: Murphy, who said in her Thanksgiving notes that she views the "must-have" items as being in the electronics and cosmetics spaces this holiday season, said her checks suggested that levels of Fitbit (FIT) products sold down well during the weekend. Importantly, the company's Flex, which she believes is the highest margin offering in its lineup, was full-price throughout the weekend. Murphy has an Overweight rating with a $60 price target on Fitbit shares. PRICE ACTION: In Friday's holiday shortened session, Under Armour shares sunk about 2.6% to $89.68, Deckers dropped 3.2% to $50.11 and Steven Madden added 10c to $33.03.
|November 27, 2015|
|06:39 EDT||RL, KORS||Piper says Deckers, GoPro look more promotional than last year|
After visiting malls and big box retailers during the initial 6 PM store openings last night, Piper Jaffray analyst Erinn Murphy says brands that appear more promotional than last year include Deckers Outdoor (DECK), GoPro (GPRO), Michael Kors (KORS), Ralph Lauren (RL), Steven Madden (SHOO) and Under Armour (UA). Customer traffic "was robust" at the open on Thanksgiving, Murphy tells investors this morning in a research note. She views the "must-have" items as being in the electronics and cosmetics spaces.
|November 25, 2015|
|11:47 EDT||RL||Guess surges after Q3 profit beats estimates|
Shares of Guess (GES), which licenses and distributes apparel and accessories, are advancing after the company's third quarter profit surpassed analysts' consensus estimates. WHAT'S NEW: Last night, Guess reported Q3 earnings per share of 15c, beating estimates of 11c, and revenue of $521M, matching the consensus forecast. In constant currency, total net revenue decreased 3.9%. Q3 retail comparable sales including e-commerce decreased 6% in U.S. dollars and 2% in constant currency. Victor Herrero, Chief Executive Officer, commented, "I am pleased to report that third quarter results were better than our expectations. Our European retail business was especially strong with a double digit comp sales increase for the quarter for the first time in five years." GUIDANCE: Looking ahead to Q4, Guess forecast EPS of 53c-62c, versus consensus of 59c. It sees Q4 net revenues to range between a decline of 1.5% and an increase of 1.5% in constant currency, compared to consensus of $662.8M. Currency headwinds are expected to negatively impact consolidated revenue growth by approximately 5.5%, for a net decline between 7.0% and 4.0%. The estimated impact on earnings per share of the currency headwinds is approximately 18c. For FY16, Guess raised the bottom end of its EPS outlook to 93c-$1.02 from 89c-$1.02, compared to consensus of 96c. FY16 revenue is forecast to decline between 1.5% and 0.5% in constant currency, versus consensus of $2.21B. Currency headwinds are expected to negatively impact consolidated revenue growth by approximately 8.0%, for a net decline between 9.5% and 8.5%. The estimated impact on FY16 earnings per share of the currency headwinds is approximately 40c. PRICE ACTION: In late morning trading, Guess rose $1.60, or about 8.2%, to $21.14 on heavy trading volume. Despite today's advance, the shares have lost approximately 7% over the past 12 months. OTHERS TO WATCH: Other companies that distribute and license apparel and accessories include PVH Corp. (PVH), Ralph Lauren (RL), Perry Ellis (PERY) and VF Corp. (VFC).
|November 20, 2015|
|09:21 EDT||FOSL||Fossil, Diesel extend partnership with ten-year global licensing agreement|
Fossil Group announced that it has extended a global watch licensing agreement with Diesel through 2025.
|November 19, 2015|
|05:22 EDT||FOSL||Stocks with implied volatility below IV index mean; JWN FOSL|
Stocks with implied volatility below IV index mean; Nordstrom (JWN) 29, Fossil (FOSL) 48 according to iVolatility.
|November 18, 2015|
|11:01 EDT||FOSL||Stocks with call strike movement; FOSL NFLX|
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|November 17, 2015|
|07:52 EDT||KORS||Morgan Stanley to hold a conference|
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