Shares of Michael Kors Holdings Limited (KORS) achieved a new 52-week high of $83.91 on Dec 13, 2013, eventually closing trade at $82.27. The average volume of shares traded over the last 3 months was approximately 4,121K. Moreover, the company currently trades at a forward P/E of 29.0x, a 58.7% premium to the peer group average of 18.27x.
Shares of this Zacks Rank #2 (Buy) specialty retailer of apparel, accessories, cosmetics and footwear have amassed a year-to-date return of roughly 59.7%, riding on an impressive record of beating the quarterly earnings expectations, robust sales growth and strong demand for its brands and assortments, along with innovative fashion designs. Moreover, the company’s last traded price is 2.8% below the Zacks Consensus average analyst price target of $84.62.
Notably, Michael Kors boasts a history of beating the Zacks Consensus Estimate. This global luxury lifestyle brand has delivered positive earnings surprises in the last 8 quarters with an average surprise of 44.9%.
In second-quarter fiscal 2014, the company posted strong financial results with adjusted earnings of 71 cents per share, up 44.9% year over year. The results also surpassed the Zacks Consensus Estimate of 68 cents. Michael Kors’ total revenue rose 38.9% to $740.3 million in the quarter.
The company provided a favorable outlook for the upcoming quarter owing to rising demand for its products, especially watches. The company expects third-quarter fiscal 2014 earnings in the range of $0.83–$0.85, with full-year earnings likely to be in the $2.77–$2.81 range. The long-term expected earnings growth rate for this stock is 25.4%.
Apart from Michael Kors, retail stocks such as Columbia Sportswear Company (COLM), DST Systems Inc. (DST) and DigitalGlobe Inc. (DGI) achieved new 52-week highs of $70.89, $89.87 and $41.91, respectively, on Dec 13, 2013.
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