Today’s Research Reports on Stocks to Watch: Michael Kors and Movado Group

NEW YORK, NY / ACCESSWIRE / May 31, 2018 / Both Michael Kors and Movado Group released quarterly results that beat expectations but Michael Kors shares plummeted instead of seeing the gains that Movado did. Movado closed up 16.59% and even hit a new high after releasing its first quarter results. Michael Kors shares sunk over 11% as analysts chimed in on the company’s weak Jimmy Choo sales and other concerns.

RDI Initiates Coverage on:

Michael Kors Holdings Limited
https://www.rdinvesting.com/report/?ticker=KORS

Movado Group, Inc.
https://www.rdinvesting.com/report/?ticker=MOV

Michael Kors Holdings Limited shares closed down 11.45% yesterday on nearly 18.3 million shares traded. Despite the luxury clothing and accessory company posting fourth quarter results that beat expectations, traders were more concerned over guidance and weak Jimmy Choo sales. For the quarter, Michael Kors reported revenue of $1.18 billion. This was an increase from the $1.06 billion it posted in the year ago quarter and easily beat the $1.15 billion that analysts on average were expecting. Adjusted earnings of 63 cents per share also topped street’s expectation of 60 cents per share. Neil Saunders, the managing director of GlobalData Retail remarked, “While the headline growth number from Michael Kors looks strong, it comes with three caveats. First, it is flattered by the addition of Jimmy Choo sales; when these are stripped out, growth plummets to a lackluster 0.6%.” He also wrote, “On apparel, we find some of the collection items incredulously expensive – $495 for a varsity T-shirt, and $8,995 for a silk skirt puts them well beyond the scope of even reasonably affluent Americans. Michael Kors will argue that they are positioned as luxury items at the pinnacle of its range, however, in our opinion, the design and styling do not justify the price points.” Traders are probably disappointed with the full year earnings guidance range of $4.65 to $4.75 per share. Analysts are expecting EPS to be $4.74, which is at the higher end of the guidance.

Access RDI’s Michael Kors Holdings Limited Research Report at:
https://www.rdinvesting.com/report/?ticker=KORS

Movado Group, Inc. shares closed up 16.59% on Wednesday with a little over 1.1 million shares traded. The luxury watch company saw its shares hit a new high of $49.85 after the company reported strong first quarter results. For the period, Movado reported that net sales saw an increase of 28.1% YOY and hit $127.1 million. Adjusted earnings of $8.7 million, or 37 cents per share, was up from the 1 cent per share reported in the year ago period. Analysts had been looking for adjusted earnings per share of 11 cents on revenue of $109.5 million. CEO Efraim Grinberg said the quarter was a “strong start to the year,” and also said, “Our first quarter results reflect the team’s consistent ability to bring innovation to market that resonates with consumers around the world,” Grinberg added, “which was further enhanced by the execution of our strategic growth priorities.” Traders were also enthused to learn that the company increased its outlook for the full year. Guidance is now calling for sales in the range of $615 million to $625 million. Previously the company had projected $605 million to $615 million.

Access RDI’s Movado Group, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=MOV

Our Actionable Research on Michael Kors Holdings Limited (NYSE: KORS) and Movado Group, Inc. (NYSE: MOV) can be downloaded free of charge at Research Driven Investing.

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