Market Overview

Bank Of America Checks Show Outperformance At Michael Kors, Google Trends Sloping Negative

Share:

In a report published Tuesday, Bank of America analyst Robert Ohmes detailed recent store checks at Michael Kors Holdings Ltd (NYSE: KORS) are "solid" but Google Trends may be telling a different story.

According to Ohmes, store checks in Atlanta, Georgia, during Spring Break indicated the Michael Kors brand is outperforming its peers due to stronger traffic and lower levels of discounts. However, global year-over-year search growth for "Michael Kors" on Google Trends slowed to just 2.3 percent in the fourth quarter from 25.4 percent a year ago.

Ohmes said that Europe search trends showed "solid" growth, which only partially offset a decline in U.S. searches. Volume of search trends for "Michael Kors" globally, on an absolute basis, still outpaces its peers.

The analyst did suggest that a slowdown in search could be partially attributed to growing possibility of alternative search methods including social media, referral sites (i.e. Pinterest), department store and third-party websites.

Nevertheless, the analyst is now assuming modestly negative same-store sales for the fourth quarter 2015 and first quarter 2016 as the company's brand may be entering a transition phase from "hyper growth" to "sustainable growth."

As such, the analyst made the following revisions to his estimates:

  • 2015 revenue estimates lowered to $4.3581 billion from a previous $4.370.4 billion.
  • 2016 revenue estimates lowered to $5.0797 billion from a previous $5.1331 billion.
  • 2017 revenue estimates lowered to $5.9432 billion from a previous $6.0057 billion.
  • 2015 earnings per share estimates lowered to $4.26 from a previous $4.27.
  • 2016 earnings per share estimates lowered to $4.70 from a previous $4.75.
  • 2017 earnings per share estimates lowered to $5.20 from a previous $5.25.

Shares remain Buy rated with an unchanged $100 price target.

Latest Ratings for KORS

DateFirmActionFromTo
Jan 2019Wells FargoMaintainsMarket PerformMarket Perform
Nov 2018OppenheimerDowngradesOutperformPerform
Nov 2018MacquarieInitiates Coverage OnOutperform

View More Analyst Ratings for KORS
View the Latest Analyst Ratings

Posted-In: Apparel Bank of America Google Trends Michael Kors pinterest Robert OhmesAnalyst Color Analyst Ratings

 

Related Articles (KORS)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DXCMorgan StanleyReinstates38.0
CTSHMorgan StanleyReinstates59.0
CREEMorgan StanleyInitiates Coverage On62.0
BKNGMorgan StanleyMaintains2,050.0
ACNMorgan StanleyReinstates240.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com