3 dials on Michael Kors watch
Uncategorized / September 4, 2017

In a stock trading environment where financial media personalities and analysts give priority to comparable same-store sales (comps), it can be easy, though dangerous, to forget the rest of a company’s business. Although certainly a dramatic turnaround in comps would, as a fellow Seeking Alpha author suggested, be catalytic in propelling shares higher, investors are missing the fact that other factors are likewise keeping shares lower, thus other catalysts must exist.One of the main points, and a correct one at that, made by my fellow contributor was that: “Once comp sales start to increase, I believe the price to earnings ratio should increase dramatically.” As valid as this point is, comp sales are not the only area that can cause a multiple expansion because the company is being held at depressed share price levels on the basis that future growth opportunities are limited. Michael Kors (NYSE:KORS) is a New York-based fashion designer and manufacturer. Their portfolio includes a wide range of products for both women and men – from watches to shoes, clothing and bags. Although they are considered a luxury brand they differentiate themselves into 2 separate markets:Affordable collection: MICHAEL Michael Kors range: a typical handbag in this range…