Tuesday, April 10, 2012
Michael Kors Holdings Is One of The Few Top IPO performers (NYSE:KORS, TIF, NASDAQ: BBBY, KIRK)
Michael Kors Holdings Ltd(NYSE:KORS) has been performing very well ever since it was listed on the stock market in December last year. The stock has soared about 140% from its listing price and over 74% year to date.In mid march, the company had reported solid retail sales following which it lifted its earnings outlook. The company said that it now it projects to earn 14-16 cents a share in the fourth quarter of fiscal 2012, 4 cents above its previous guidance of 10 cents - 12 cents a share. Revenue is now estimated at $350 million to $360 million, compared to its previous forecast of $350 million to $355 million.For FY12, the company estimates to earn 79 cents to 81 cents per share on revenue of $1.27 billion to $1.28 billion.
The company, better known for its clothing and accessories, went public in December after more than three decades as a private firm at $20 a share.Recently, the company had announced to offer 25 million shares secondary offering priced at 47, a 3.5% discount to previous trading session close.The Michael Kors brand is steadily gaining on retail-level luxury leaders such as Ralph Lauren, itself up over 70% year over year, and is doing it without a comparable menswear business.
There is a lot hype for the stock and analysts are also very optimistic about the prospectus of the company given it has gained momentum on surging revenue and profit.The company will report its fourth quarter results on Jun 12, 2012 with analysts are estimating the company to report 14 cents a share on revenue of $359.41 million. Last quarter, the company beaten analysts’ estimates by 11 cents a share.Currently all the nine analysts covering the stock have a Buy rating on the stock with a median price target of $51.The company has strong competition with the growing retail industry including Tiffany & Co.(NYSE:TIF), Bed Bath & Beyond Inc.(NASDAQ:BBBY) and Kirkland's, Inc.(NASDAQ:KIRK)
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