Shares of Michael Kors Fall Due to High Markdown Inventory, According to Analyst
In a report published Sunday, Wedbush analyst Gabriella Santaniello commented on the "Retail Detail," specifically noting the high markdown inventory of Michael Kors (NYSE: KORS).
Santaniello reported that slower-than-expected mall traffic resulted in higher-than-expected markdown inventory. The analyst commented, "While the depth of markdown is in line with last year, we believe that two incremental promotions over Black Friday weekend followed by an increased level of markdown inventory in the stores, indicates a slower than expected holiday season. That said, while we have observed a recent pick-up and conversion on markdowns, we are cautious as the level of markdowns indicates the business is normalizing."
Wedbush's Corinna Freedman currently rates shares of Michael Kors with an Outperform rating and $84 price target.
Michael Kors closed at $83.88 on Friday. Shares of Kors traded as low as 5.39% at $79.59.
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