KORS Quarter Looks Rock-Solid
I'm always skeptical about earnings reports. That way I can see the report for what it really is -- is the stock a buy now? Should I drop it from my watch list or portfolio? But even after seeing the breathless coverage of the Michael Kors (KORS) report, I'm hard-pressed to find many negatives.
Comp sales growth accelerated relative to the pre-announcement supplied in the December F-1 filing. The company's adjusted operating margins not only improved very nicely amid a promotional holiday environment for department stores, but were pretty much best in class relative to other retailers I follow. The balance sheet was clean, and the next six months look to bring a trajectory of domestic strength for the brand and international opportunity as the company leverages its emerging identity in international markets. OK fine -- if I have to find a negative, maybe gross profit margin expansion (+240 basis points year over year) could have been stronger in light of the sales increase of more than 60%....218 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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