UPDATE: Morgan Stanley Flaunts Kors Handbags to Investors, Increasing Estimates and PT

In a report published Monday, Morgan Stanley analyst Kimberly Greenberger raised Michael Kors Holding Limited KORS estimates and PT from $78 to $83 ahead of the quarter based on sales growth and operating margin. Morgan Stanley's web-search analysis indicated that Michael Kors is the most Google searched handbag brand which translates well to website traffic growth and constructive wholesale trends suggest a continuation in momentum. Greenberger noted that 2Q checks continue to suggest strong traffic and maintain the highest sales per store in Retail. The analyst added, "while the percentage rate may decrease, the incremental dollars remain robust, adding $104m vs. $116m LY. In addition, 85% US and 127% Europe new store productivity signals strong demand." Greenberger reported that Kors is making plans for in-house eCommerce by the end of next year which is currently run by a third party. Morgan Stanley commented that revenue from retail stores from wholesale will likely shift from 50/50 to 75/20. The analyst estimated wholesale deceleration to 39% YoY versus 75% LY. Morgan Stanley reported 2Q14 sales estimates of $748 versus consensus of $722. The analyst also reported company guidance for the second quarter of $695-705M. Michael Kors Holding closed at $72.88 on Friday