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All around strength with an attractive valuation MichaelKors'(Nyse:Kors)Q1 '15 results indicates that topline revenue growth is sustainable in the near term and that the company has shown solid execution in across all geographic regions despite the industry headwind of consumers shifting their preferences to cheaper alternatives.Consolidated sales of $919m(+43% y/y)Was above consensus $851m(+33% y/y)With strength in europe(+128% y/y)And asia(+89% y/y)Offsetting the deceleration in north america(30% y/y). While operating margins contracted 70bps y/y due to discount, it actually improved 3ppt q/q, which supports my earlier view that discounts are not aggressive as it appears.Eps of $0.91(+49% y/y)Also beat consensus $0.81(+32% y/y).The stock sold off following the print as investors are concerned about the increased markdowns during the quarter but i continue to believe that promotion will be rational and that the brand integrity will be intact.Reiterating my bullish view on t ... Read more »

Views: 927 | Added by: vincent | Date: 04.22.2015 | Comments (0)