2013年 04月 16日
Michael Kors just announced it quadrupled profits
Michael Kors Factory Outlet in the last year, an amazing feat in the struggling economy.
The brand utilized consumer one insight that helped it excel while aspirational competitors like Tiffany & Co. and Coach have struggled.
Michael Kors succeeded because it was the first retailer to hit the market's sweet spot: people with money to spend but who aren't rich.
Luxury marketing expert Pam Danziger calls these people HENRYs, for "High Earners Not Rich Yet." They are the people who make between $100,000 and $250,000, she says.
HENRYs are a growing segment, while the wealthiest people are making less than they used to.
Danziger explained the concept to us in an emailed note:
Ultra-affluent (i .e. those at the top 2 percent of U.S. households with incomes starting at $250,000) cut their spending by nearly 30 percent from 2010, while the HENRYs (High Earners Not Rich Yet with incomes $100,000-$249,999) increased their spending on luxury by some 11 percent from 2009 levels. Even though HENRYs individually have a far lower spending threshold than ultra-affluent customers, there are nearly ten HENRY households for every ultra-affluent. That is why with a total of 21.3 million households, the HENRY segment is a critically important part of the consumer market.
With Michael Kors' $450 handbags and $250 watches, HENRYs can show off their success without feeling like they're going overboard.
Kors, like his competitor Tory Burch, wisely chose the right audience. It's michaelkorsbagmk.com paying off.
2013年 04月 16日
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Michael Kors, the upmarket handbag and fashion brand, has unveiled plans for a secondary public offering on behalf of investors including the company’s founder just 14 months after its initial public offering.
The announcement on Wednesday of an SEC filing came just one week after Michael Kors reported a record share price of $62.77. The Hong Kong-based company floated in December 2011 when shares were priced at $20.
As of February 13 the company had about 200m ordinary shares, both issued and outstanding. The offering will involve the sale of 25m ordinary shares, with Morgan Stanley, JPMorgan and Goldman Sachs acting as bookrunning managers.
Sportswear Holdings Limited, the Hong Kong private equity firm which purchased a controlling stake in Michael Kors in 2003, is set to decrease its interest in the company to 5.8 per cent.
Founder Michael Kors is selling 3m shares, leaving the 54-year-old designer with a 2.4 per cent stake. A trust for the children of chief executive John Idol will sell 2m shares.
The company said Michael Kors Holdings would not receive any proceeds from the sale by investors.
The share price fell by more than 5 per cent as the market reacted to news of the offering by some of the company’s biggest investors.
“This move undoubtedly sends a very negative signal,” said Brian Sozzi, chief equities analyst at NBG Productions.
“Last week’s earnings call implied that stock would continue to soar – if this is the case then why the decision to have cash in hand over shares? It doesn’t quite add up.”
Some rivals within the accessible luxury sector have seen a slowdown in sales in recent months. However, Michael Kors has produced exceptional growth while announcing consolidation of its international presence, new store rollouts and increased wholesale distribution throughout its core US market.
Mr Sozzi said that given the company’s clear growth potential, many analysts would continue to see the brand as a buying opportunity, while maintaining a close eye on market fluctuations following completion of the offering.
The share price record came after a 70 per cent jump in third-quarter revenue to $637m.
2013年 04月 16日
As clothier Michael
michaelkorsbagmk.com Kors Holdings Ltd (NYSE:KORS - 59.47) continues its run up the charts, one trader is looking to cash in just north of the stock's current trading position. Yesterday, one investor sold a short straddle at the May 60 strike, helping boost overall call traffic to nearly double the normal amount.
In the final hour of Tuesday's trading, one investor sold 3,800 calls at the May 60 strike for $3.80 per contract on the AMEX exchange. At the exact same time, he/she sold 3,649 puts for $4.80 apiece. According to trading floor sources, this was indeed a short straddle, or when an investor sells calls and puts at the same strike price expecting minimal movement on the stock, seeking to profit inside a band around the strike price -- in this case, $60.
For the trade to be profitable, the shares have to close between the two breakeven points of $51 .40 (strike minus the net credit of $8.60) and $68.60 (strike plus net credit) on the expiration date of May 17. This represents either a 13.6% drop from current levels or a 15.3% climb from the current stock price, giving the trader a fairly wide range at which he or she is profitable. The trade becomes unprofitable if the stock closes either below or above those two prices, respectively. The trader theoretically could face unlimited losses if the stock rises above the higher breakeven point, and a loss of up to $51.40 per straddle, in the unlikely event that the stock drops to $0.
Given KORS' current trajectory, a loss on the call side would be more likely. KORS is up 16.1% so far this year, boosted earlier this month by a stellar earnings report -- and up roughly 37% year over year. It has also beaten the S&P 500 Index (SPX) by nearly 13 percentage points over the last two months. And with a Relative Strength Index (RSI) of 54, KORS is not yet close to "overbought" territory, and has more room to run.
In the option pits, sentiment is definitely bullish toward KORS. The equity's 10-day call/put volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at 3.43, meaning more than three times as many calls are being purchased to open as puts. In addition, that stands in the 82nd percentile of similar readings taken in the last year, meaning that bullish sentiment is even stronger than normal lately and nearing an annual Michael Kors Outlet high.