Michael Kors Q1 margin, comp to overshadow earnings, says Maxim Maxim believes investors will focus more on gross margin and the U.S. comp than the earnings per share number when Michael Kors reports on Monday. The firm expects investment in retail stores and infrastructure to further compress operating margin for the quarter and the year. Maxim has a Hold rating on Michael Kors with an $85 price target.
Michael Kors fundamentals intact, says Morgan Stanley Morgan Stanley said Michael Kors concerns of increased inventory and promotions impacting gross margins is overdone. The firm believes incremental promotions reflect some normalization and not brand decay and eComm checks suggest inventory is under control. Morgan Stanley views Kors' fundamentals as intact and valuation as compelling. Shares are Overweight rated.