Sterne Agee States Concerns On Michael Kors
In a report released Tuesday, Sterne Agee analyst Ike Boruchow released updated coverage Michael Kors (NYSE: KORS), stating concerns of margins and growth focus in Europe.
Boruchow reiterated his Neutral rating and $92.00 price target.
Boruchow believes Michael Kors will struggle to maintain its margin, while its sales growth should continue at its current strong pace. Sterne Agee is confident about Michael Kors top-line growth and stated, “KORS still has significant top-line momentum at the moment” and the retailers top-line growth is led by its U.S. demographic.
Michael Kors has begun sale offerings to its customers of up to 50 percent off. The Sterne Agee note mentioned inventory increasing drastically by 60 percent at the end of the company's fourth quarter.
The U.S. demographic is maturing in growth, while the Kors Europe demographic is expected to grow heavily in upcoming quarters.
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