Michael kors stock buy or sell

By: Fluraman On: 07.06.2017

Michael Kors Handbags | Michael Kors Totes, Shoulder Bags & More - Jomashop

Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. COH emerged victorious in its pursuit of Kate Spade NYSE: The market likes the deal. Shares of Kate Spade rose 8. More importantly, Coach stock was bid up 4. Its stock rose a pedestrian 0. Sizing up the future prospects of all three players is fairly straightforward when it comes to Kate Spade.

If things play out as planned, it would be a lousy return on Kate Spade until the deal's expected closing in September. Now let's size up Coach vs. Both companies stand to benefit from the purchase. Coach is getting a popular brand, but ultimately it's eliminating a competitor. One of the things Coach execs noted on Monday is that it will scale back the online flash sales that Kate Spade would have, offering steep discounts that Coach believes was cheapening the brand.

Jefferies analyst Randal Konik chimed in on the deal shortly after it was announced on Monday, suggesting that it's a good thing for Michael Kors. Coach's gobbling up of Kate Spade allows Kors to focus on its brand turnaround instead of having to integrate another brand into its bloodstream. The money Coach is spending on Kate Spade would be better put to use at Kors with stock buybacks, and Konik suggests that Kors can repurchase nearly half of its shares over best ways to make money in runescape 07 next few years.

Let's dive into the valuations.

michael kors stock buy or sell

Coach is buying Kate Spade at 24 times this automated software for stock market projected earnings and 20 times next year's multiple. Coach is fetching 19 times next year's earnings, and Kors if going for less than 10 times next year's projected michael kors stock buy or sell. Coach will realize juicy synergies michael kors stock buy or sell its combination, but if it helps justify higher multiples for designer handbag brands, then Kors' ship should rise in that tide.

Michael Kors had grown its top line faster than Coach every single year until fiscal Coach is rebounding better than Kors these days, but it's also working on depressed preferred remarketed stock. The three-year annualized revenue growth rate is Coach is doing Kors a favor by acquiring Kate Spade.

It's taking a hit for the team in a game where all the players may ultimately win.

Rick Munarriz has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Coach.

Your Two Minute Earnings Preview for Michael Kors (KORS) Stock

The Motley Fool owns shares of Michael Kors Holdings. The Motley Fool has a disclosure policy. Rick has been writing for Motley Fool since where he's a Consumer and Tech Stocks Specialist. Yes, that's a long time with more teknik trading forex scalping 20, bylines over those 22 years. He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception.

michael kors stock buy or sell

He earned his BBA and MBA from the University of Miami, and he splits his time living in Miami, Florida and Celebration, Florida. Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login.

Buy or Sell KORS (Michael Kors Holdings Limited) stocks?

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michael kors stock buy or sell

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