Michael Kors Holdings Limited dropped to its 52-week low a few weeks ago after the company revealed in its second quarter earnings report that its comparable store sales failed to meet analysts’ expectations. However, the stock has since increased considerably after management has taken various initiatives to reignite its growth, Investing.com said.
One initiative the company took was to move the Michael Kors headquarters from Hong Kong to London. The COO of Michael Kors explained the move, stating “We believe that Europe is the center of luxury brands and this move will better align us with our peers as we continue to expand our brand and presence globally”, the report said.
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After a successful holiday season, Michael Kors received a Buy rating from Merril Lynch/Bank of America analyst Robert Ohmes in a report published on December 29. The analyst assigned the stock a $120 price target, Investing.com said.
Ohmes said Michael Kors’ share traffic appeared high in full price stores, outlets, and “in Macy’s handbag, footwear, watch and fragrance shop-in-shops from Super Saturday to post-Holiday, especially when compared to peers.” In addition, “in Macy’s, KORS continued to expand its menswear business, marked by new men’s apparel and underwear shop-in-shops”, the report said.
All in all, the analyst believes “KORS ‘innovative’ brand positioning gives the company the freedom to potentially become a dominant accessible luxury brand in multiple categories”, according to the report.
Shares of Michael Kors Holdings opened at 75.38 on Monday. The stock has a 52-week low of $68.25, a 52-week high of $101.04, a 50-day moving average of $74 and a 200-day moving average of $78.43, WKRB News said, adding that the company has a market cap of $15.437 billion and a price-to-earnings ratio of 19.72.
Michael Kors has been “out of fashion” for some time, according to a report on the Inquisitr. Despite its success in Europe and Asia, the high-end brand has been trying to reinvent itself, hoping that it has the ability to keep up with the current trends despite its disappointing sales, and to reassert itself as a luxury brand, the report said.
