Would be a possible buy, if PA is over $40 a share.
Michael Kors
Affordable luxury retailer Michael Kors also struggled last year as its sales growth turned negative last quarter because of stiff competition from rivals such as Coach (NYSE: COH), lower mall traffic, and the cannibalization of its higher-end goods by its cheaper outlet ones. The company expects its revenue to fall 3% this year, compared with 8% growth last year.
Kors initially looks like another victim of the meltdown in the retail sector caused by competition from "fast-fashion" players such as H&M and e-tailers. However, the affordable luxury market also looks ripe for consolidation. LVMH was reportedly courting Kors earlier this year, but those talks stalled out. Kors rival Kate Spade (NYSE: KATE) also recently surged on buyout rumors, with Coach being cited as a likely candidate.
I believe that Kors remains a strong buyout candidate, since its P/E of 10 is much lower than Kate Spade's 19, Coach's 20, and the industry average of 26. Its P/S ratio of 1.5 is also lower than Kate's 1.8 and Coach's 2.2.
Per: The Motley Fool
Michael Kors
Affordable luxury retailer Michael Kors also struggled last year as its sales growth turned negative last quarter because of stiff competition from rivals such as Coach (NYSE: COH), lower mall traffic, and the cannibalization of its higher-end goods by its cheaper outlet ones. The company expects its revenue to fall 3% this year, compared with 8% growth last year.
Kors initially looks like another victim of the meltdown in the retail sector caused by competition from "fast-fashion" players such as H&M and e-tailers. However, the affordable luxury market also looks ripe for consolidation. LVMH was reportedly courting Kors earlier this year, but those talks stalled out. Kors rival Kate Spade (NYSE: KATE) also recently surged on buyout rumors, with Coach being cited as a likely candidate.
I believe that Kors remains a strong buyout candidate, since its P/E of 10 is much lower than Kate Spade's 19, Coach's 20, and the industry average of 26. Its P/S ratio of 1.5 is also lower than Kate's 1.8 and Coach's 2.2.
Per: The Motley Fool