Michael Kors Holdings (NYSE:KORS)
Michael Kors Stock Earnings
On Tuesday before the market opened, shares of Michael Kors took a beating, following the release of their third quarter earnings results. The company announced earnings per share of $1.64 on $1.35 billion in sales while analysts were looking for $1.63 earnings per share on $1.36 billion in revenue.
The company also released disappointing fourth quarter guidance with revenue ranging between $1.035- $1.055 billion with an earnings per share range of 68-72 cents. They are expecting same store sales to decrease with low-teens as a projection. Currently analyst have an average price target of $49.08 but we will most likely see that downgraded over the coming days.
KORS Technicals
Looking at the 5-minute chart above, you will see that shares have taken a beating following their third quarter results with current pre-market lows at $37 after closing Monday at $41.28, marking just over a 10% drop in value.
We do have some daily support at $34.83 and below that we have a little support at $30 while resistance will be met at $40 and $42.30. Shares are well below their 200-day moving average at $47.72 and their 50-day moving average at $44.40 as they look to open at one-year lows. Expect shares to be extra volatile as traders look to take advantage of the big move in the pre-market.
CEO Comments
John D. Idol, the Company’s Chairman and Chief Executive Officer, said,
During the quarter, we delivered earnings per share results that were in line with our expectations and we continued to focus on our growth pillars, which are centered on consistently delivering innovative fashion products for our customers and enhancing consumer engagement with the Michael Kors brand worldwide. We were pleased with the response to our new Fall and holiday handbag collections as well as the launches of our Michael Kors ACCESS line of wearable technology and our new Wonderlust fragrance. We also saw great consumer response to our new digital flagships in Europe, and are excited to further expand our omni-channel presence as we deepen our relationship with consumers globally. . .
Company Profile
Michael Kors Holdings Ltd. engages in the design and distribution of sportswear, accessories, footwear and apparel of branded women’s apparel and accessories and men’s apparel bearing the Michael Kors trade name. The company operates its business through three segments: Retail, Wholesale and Licensing. The Retail segment operates collection stores, lifestyle stores, including concessions and outlet stores located primarily in the United States, Canada, Europe and Japan.
The Wholesale segment sells the company’s products to department stores, as well as specialty retail stores and travel shopping locations. The Licensing segment licenses its trademarks on products such as fragrances, cosmetics, eyewear, leather goods, jewelry, watches, coats, men’s suits, swimwear, furs and ties. The company was founded by Michael David Kors on December 13, 2002 and is headquartered in London, the United Kingdom.