size 1 Michael Kors shoes
Uncategorized / April 26, 2017

For a company concerned with maintaining the affordable luxury appeal of its brand, putting the brand name on everything from cameras to underwear seems counterproductive to creating an exclusivity narrative. For a company working to establish brand pricing power after department store discounts cannibalized brand perception and profit margins, making the company’s name more ubiquitous seems similarly antithetical to the story the company is trying to tell. This is the problem with Michael Kors (NYSE: KORS). The company is trying to tell investors one story while acting protagonist in an entirely different narrative. For well over a year, I have followed the company’s every move and remained in a somewhat-bullish to completely-bullish range, citing the company’s ability to develop their men’s offerings, grow in international markets, and successfully expand licensing sales as reasons for optimism. Today, this optimism dissipated with good reason.It can be easy to get caught up in traditional financial metrics (admittedly, I did this with Michael Kors once myself). Sure, the P/E ratio is low, and other site contributors are correct in asserting that China sales numbers are encouraging, but investors must look beyond these numbers and focus on the company’s actual offerings. Looking at brand management…