2013年5月30日星期四

Michael Kors Holdings Ltd. (KORS) continues its upward movement


  When I wrote about the expectations of investors for Michael Kors Holdings Ltd. (NYSE: KORS) results earlier this week, I have a little idea that simply by recognizing the strength of my crazy that the company showed so far, it would still still reeling. This proved to be far from reality as possible. Michael Kors Holdings Ltd. (NYSE: KORS) "Win said yesterday, all the good that the designer offered without weakness.

Kors increased sales, has seen a sharp spike in comparable sales, and even managed to increase its already high margins. The results put a hat on a very good week for the luxury sector, and Michael Kors Holdings Ltd. (NYSE: KORS) Investors should be happy. Shares rose more than 3% during the day, and strength should help the company continue to run for the next fiscal year.

Make the most of every chance to succeed Kors was not an accident or a stroke of good weather - it was pure planning. The benefit started out strong, with comparable sales up 36.7% on the back of the continuing strength of the brand. This increase pedestrian traffic was then by an increase in operating income, support reached 26% in the quarter. Everything was dripping with earnings per share of $ 0.50, an increase of 124% compared to the fourth quarter of last year compared.

To manage this growth, Michael Kors Holdings Ltd. (NYSE: KORS) were really hitting each square of the opportunity to the head. Comparable sales growth was mainly due to a few sectors, with handbags women drive much of the increase in revenue. However, management Kors said that an increase in the actual volume came from the small leather goods, both to lure new customers into the store and that can act as an add-on products to existing customers. With little things, Michael Kors Holdings Ltd. (NYSE: KORS), with the clock Kors offers a strong growth in sales of watches, which bodes well for both experienced and Fossil Inc. (NASDAQ FOSL).

Looking Forward As for the outlook for the coming quarters, Michael Kors Holdings Ltd. (NYSE: KORS) started to focus on the largest companies in North America. Following the call, the company will expand its number of stores its current 231 locations in the vicinity of 50 new stores in retail. This gives the company a way to go yet, because management believes that the North American market can handle at least 400 stores.

Through its retail expansion, Kors also plans to move forward on two fronts. First, it will develop its business shop-in-shop more than 500 locations in North America from 1000 locations. This will help the company take advantage of the high demand in the domestic market. In the last quarter, comparable sales in North America increased by 35%.

Second Kors will withdraw its online activities internally. Currently, the company relies on Neiman Marcus for its e-commerce business, but he wants to change for 2014. This will add to the bottom line of the company, and should have an impact on the gross margin as well.

A final point that investors should watch comes promotional environment. Management reiterated that he will have to go on the offensive priced expected, but the time was not yet come. At some point, the margins will be a hit, but that time is not yet come.

Overall, Michael Kors Holdings Ltd. (NYSE: KORS) is well placed to build the momentum he has built. As long as the company continues to keep ahead of the competition, there should be no problems offer high returns for investors.

Article Kors continues its upward movement originally appeared on Fool.com, and is written by Andrew Martens.

Fool submitter Andrew Martens has no position on these actions. The Motley Fool recommends fossils. The Motley Fool owns shares of fossils.




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