Michael Kors heels
Uncategorized / June 6, 2017

Michael Kors (NYSE:KORS) is a leading designer brand retailer in North America and the stock has been performing exceptionally well since its IPO in December 2011. Michael Kors’ stocks surged about 270% while one of its primary competitors in the U.S., Coach (NYSE:COH), plunged -40% during the same period (see image below).Both companies have very similar business models and compete for the same customers (mid-to-high level income customers who buy brand name products) in the same markets. I believe that Michael Kors is a much better long-term buy than Coach because 1) Michael Kors (the brand) is much more popular than Coach and because 2) Kors is experiencing enormous revenue growth in North America as well as in the international market. In the luxury goods industry, fashion and consumer trends always precede company earnings. This means that you can often find out whether a designer brand company’s business, such as Michael Kors and Coach, is growing by visiting its stores to observe its traffic and by looking at what people around you (especially female consumers) are buying. This method is much more useful than most Wall Street analysts’ earnings forecasts because you are examining fashion trends and consumer behaviors in…