Market Overview

At Least 1 Pro Thinks Michael Kors Needs To 'Step Up Its Game'

Share:
At Least 1 Pro Thinks Michael Kors Needs To 'Step Up Its Game'

Shares of Michael Kors Holdings Ltd (NYSE: KORS) lost around 10 percent Wednesday and traded at their lowest level in years after the company's fourth-quarter earnings and revenue beat was overshadowed by poor guidance.

Investors looking at the stock's decline and thinking it represents a good buying opportunity should consider what Jan Kniffen of J. Rogers Kniffen Worldwide Enterprises has to say.

The notable retail expert was a guest on CNBC's "Squawk Box" segment Wednesday to offer his take. While he acknowledged that he has been a fan of the brand for quite some time, the fact remains that the earnings report signals the company is "still on the downside of the ditch, not the upside," Kniffen said.

Kniffen said Kors' management needs to "step up its game" in terms of reinventing the brand — something it has been lacking in as of late. He did say Kors should be commended on improving its gross margins, but it's not enough.

What's Next For Kors

In conjunction with Kors' earnings report, the company said it will be closing at least 100 stores, a move which Kniffen believes is one that can help recreate the brand image.

Kors has become overly reliant on the off-price channel and outlets, which turned the brand's image from one of prestige to a discounted brand, Kniffen said.

Until this is fixed Kniffen, isn't a buyer on the dip, as the company isn't close enough to fixing its problem, he said. 

Related Links:

Wal-Mart's Comeback Is The Real Deal, Retail Pro Says

Is The Department Store Model Doomed? This Pro Reveals 3 Different Competitive Threats
______
Image Credit: By Pepsida (Own work) [CC BY-SA 4.0 (http://creativecommons.org/licenses/by-sa/4.0)], Via Wikimedia Commons

Posted-In: CNBC CNBCAnalyst Color Earnings News Guidance Retail Sales Media Best of Benzinga

 

Related Articles (KORS)

View Comments and Join the Discussion!

Why Twitter And Snap Have Monetization Problems

Moody's Spotlights Troublesome Subprime Auto Lending