Michael Kors brown thomas
Uncategorized / September 22, 2017

I previously wrote about Michael Kors (NYSE:KORS) in this article, where I laid out a bullish investing thesis on the company for 2015 and beyond. Today, KORS reported its Q3FY15 earnings, showing strong top and bottom line growth. Despite the growth, the market remains uncertain about the company. A lowering in next quarter’s guidance, coupled with single-digit comp growth, pushed the stock down as much as 8% pre market. As I write this, the stock has gained some ground and is now only down about 1%. The earnings report, and especially the market reaction, has reinforced my belief that KORS is undervalued, and I believe that investors can capitalize on the market’s uncertainty about the company buying up shares now. All information in this update is taken from the earnings press release and the conference call transcript. Top and bottom line growth continued to impress me. Total revenue was up 29.9% and earnings per share increased about 30% year over year from $1.11 to $1.48. Both of these numbers beat estimates, and continues the management’s pattern of under-promising and over-delivering. On the conference call, management mentioned that it was its 35th consecutive quarter of comparable store sales growth, along with…