We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Factors to Know Ahead of Michael Kors (KORS) Q1 Earnings
Read MoreHide Full Article
Michael Kors Holdings Limited is scheduled to report first-quarter fiscal 2019 results on Aug 8, before the market opens. In the last reported quarter, the company delivered a positive earnings surprise of 5%.
Let’s see how things are shaping up prior to this announcement.
Which Way Are Top & Bottom-Line Estimates Headed?
The Zacks Consensus Estimate for the quarter under review stands at 94 cents, reflecting year-over-year growth of 17.5%. The consensus estimate lies near the high end of company’s guided range of 90-95 cents. We note that the Zacks Consensus Estimate has remained unchanged in the last 30 days.
Michael Kors has a remarkable history, at least in terms of the bottom line. The company’s fourth-quarter fiscal 2018 results marked the 12th consecutive quarter of earnings beat. In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 32.9%.
Michael Kors Holdings Limited Price and EPS Surprise
Well, the obvious question that comes to mind is whether Michael Kors will be able to sustain its positive earnings surprise streak in the first quarter of fiscal 2019. Though the past trend indicates a positive surprise, it will not be wise to jump to a conclusion without analyzing the factors at play.
Factors at Play
Michael Kors has recently made efforts to renovate its product lines, shut underperforming stores and offer fewer discounts online. The company remains committed toward deploying resources to expand product offerings, build “shop-in-shops”, and upgrade its information system and distribution infrastructure that should drive sales in the to-be-reported quarter. Its “Runway 2020” plan focuses on product innovation, brand engagement, fleet modernization, digital innovation and customer experience.
Additionally, accretive buyouts, such as that of Jimmy Choo, will drive international growth and create a strong base in the luxury footwear segment, along with diversifying its product portfolio. Moreover, Michael Kors is also expanding its product mix beyond handbags, into men’s footwear and women’s ready to wear.
Such efforts to diversify and innovate product offerings along with strategic acquisitions are likely to drive Michael Kors’ top line. The Zacks Consensus Estimate for sales is pegged at $1.14 billion, reflecting a year over year growth of 19.7%.
Nevertheless, lackluster sales in the wholesale and licensing segments remain concerns for the company. Michael Kors has been strategically slowing down its promotional activity, which has resulted in lower shipments within the wholesale channel. Also, consumers shift to a more elevated jewelry line and fashion watch trends is likely to impact licensing sales.
What the Zacks Model Unveils
Our proven model shows that Michael Kors is likely to beat estimates this quarter as the stock has the right combination of two key ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Michael Kors has an Earnings ESP of +0.64% and carries a Zacks Rank #3. This makes us reasonably confident of an earnings beat.
Other Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Foot Locker, Inc. (FL - Free Report) has an Earnings ESP of +6.51% and a Zacks Rank #2.
Nike (NKE - Free Report) has an Earnings ESP of +9.84% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Factors to Know Ahead of Michael Kors (KORS) Q1 Earnings
Michael Kors Holdings Limited is scheduled to report first-quarter fiscal 2019 results on Aug 8, before the market opens. In the last reported quarter, the company delivered a positive earnings surprise of 5%.
Let’s see how things are shaping up prior to this announcement.
Which Way Are Top & Bottom-Line Estimates Headed?
The Zacks Consensus Estimate for the quarter under review stands at 94 cents, reflecting year-over-year growth of 17.5%. The consensus estimate lies near the high end of company’s guided range of 90-95 cents. We note that the Zacks Consensus Estimate has remained unchanged in the last 30 days.
Michael Kors has a remarkable history, at least in terms of the bottom line. The company’s fourth-quarter fiscal 2018 results marked the 12th consecutive quarter of earnings beat. In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 32.9%.
Michael Kors Holdings Limited Price and EPS Surprise
Michael Kors Holdings Limited Price and EPS Surprise | Michael Kors Holdings Limited Quote
Well, the obvious question that comes to mind is whether Michael Kors will be able to sustain its positive earnings surprise streak in the first quarter of fiscal 2019. Though the past trend indicates a positive surprise, it will not be wise to jump to a conclusion without analyzing the factors at play.
Factors at Play
Michael Kors has recently made efforts to renovate its product lines, shut underperforming stores and offer fewer discounts online. The company remains committed toward deploying resources to expand product offerings, build “shop-in-shops”, and upgrade its information system and distribution infrastructure that should drive sales in the to-be-reported quarter. Its “Runway 2020” plan focuses on product innovation, brand engagement, fleet modernization, digital innovation and customer experience.
Additionally, accretive buyouts, such as that of Jimmy Choo, will drive international growth and create a strong base in the luxury footwear segment, along with diversifying its product portfolio. Moreover, Michael Kors is also expanding its product mix beyond handbags, into men’s footwear and women’s ready to wear.
Such efforts to diversify and innovate product offerings along with strategic acquisitions are likely to drive Michael Kors’ top line. The Zacks Consensus Estimate for sales is pegged at $1.14 billion, reflecting a year over year growth of 19.7%.
Nevertheless, lackluster sales in the wholesale and licensing segments remain concerns for the company. Michael Kors has been strategically slowing down its promotional activity, which has resulted in lower shipments within the wholesale channel. Also, consumers shift to a more elevated jewelry line and fashion watch trends is likely to impact licensing sales.
What the Zacks Model Unveils
Our proven model shows that Michael Kors is likely to beat estimates this quarter as the stock has the right combination of two key ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Michael Kors has an Earnings ESP of +0.64% and carries a Zacks Rank #3. This makes us reasonably confident of an earnings beat.
Other Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Urban Outfitters (URBN - Free Report) has an Earnings ESP of +1.46% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Foot Locker, Inc. (FL - Free Report) has an Earnings ESP of +6.51% and a Zacks Rank #2.
Nike (NKE - Free Report) has an Earnings ESP of +9.84% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>