Analyst Round Up On Michael Kors, Kors Ques Concerns On Clearance

A number of analyst released coverage on Michael Kors Holdings Ltd (NYSE: KORS)Tuesday, stating concerns of margin stability and discount products. Although most analyst agree Michael Kors is one of the luxury retailers domestically, analyst who released coverage on the company Tuesday spring concerns due to speculation of increase inventory and clearance sales. Maxim downgraded Michael Kors from Buy to Hold with a drastic price target cut from $109 to $85 a share. Maxim analyst Rick Synder rings concerns of gross margins pressure and the unlikelihood of European revenue offsetting US revenue. In another report released Tuesday, Citigroup analyst Oliver Chen lowers Michael Kors price target from $107 to $98 a share due to low expectations domestically. Chen expresses concerns of Kors increase clearance offerings from 30 percent of its locations consisting of sales from 30 to 50 percent off goods. In a report released Tuesday, Sterne Agee analyst Ike Boruchow released updated coverage Michael Kors (NYSE: KORS) and reiterates his firms rating to Neutral and a $92.00 price target. Boruchow stating concerns of margins and growth focus in Europe. The Sterne Agee believes Michael Kors will struggle to maintain its margin, while its sales growth should continue at its current strong pace. link to this article