Michael Kors Shares Plummeted "Cheap" Bubble Or Burst

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< p > Michael Kors Hodlings Ltd. (NYSE:KORS) released a href= "http://sjfzxm.com/news/index_s.asp" > first quarter "/a" earnings report, although the performance is still exceeding expectations, but Michael has suffered two times before the earnings day, the plunge after the crash.

Wall Street is very dissatisfied with the gross margin of Michael Kors, while analysts are worried about the ubiquitous "Cheap" feeling of Michael Kors. Michael Kors is considered to be another fashion retailer that is about to break after Asos.

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< p > August 4th, before the Michael Kors share price rose 12%, and after the opening, it dived rapidly, and the time limit for publishing was over 7%, which was 75.82 US dollars, or 7.34%.

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< p > June 28, 2014 < 2015 a href= "http://sjfzxm.com/news/index_s.asp" > fiscal year > /a > first quarter, Michael Kors earnings per share recorded $0.91, exceeding the analyst's estimate of $0.91, up 49.2% from 0.61 in the same period last year, and net profit recorded 187 million 700 thousand US dollars, representing a 50.2% increase in the same period last year.

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< p > benefiting from an increase of 24.2% in the same store sales, Michael Kors increased 47.5% to 480 million 200 thousand US dollars in the first quarter, 115 new retail stores in one year, and 40% to 406 million 800 thousand US dollars in the first quarter, compared with $290 million 600 thousand in the same period last year, and the proxy revenue increased 30.5% to 32 million 117 thousand dollars, compared with 24 million 611 thousand dollars in the same period last year.

In the first quarter, total Michael Kors grew by 43.4%, from $640 million 900 thousand a year earlier to $919 million 200 thousand.

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< p > the first quarter Michael Kors gross margin recorded a 62.2% increase of 20 basis points over the same period last year, but Michael Kors indicated that the gross profit margin in the two quarter is expected to have a 50 basis point decline, and the operating profit margin is expected to fall by 200 basis points, mainly due to the operating costs of new European stores.

Michael Kors operating profit in the first quarter was 30.11%, down 70 basis points from 30.82% in the same period last year.

In the first quarter, gross profit of Michael Kors was recorded at 571 million 600 thousand US dollars, compared with 397 million 300 thousand US dollars in the same period last year, 43.9%, and operating profit recorded US $276 million 800 thousand, an increase of 40.1% over the same period last year of 197 million 600 thousand US dollars.

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P Seeking Alpha independent trader and analyst Josh Arnold wrote today that, due to the rapid expansion, Michael Kors is now very "Cheap". From the first quarter, Michael Kors European income 127.7% increase can be seen that it has been out of the expansion of luxury goods, in order to maintain the high growth and sacrifice the brand value greatly. In the first quarter, the European revenue of Michael Michael reached US $185 million 500 thousand, compared with only 81 million 479 thousand US dollars in the same period last year. The CEO of the company said that the European market could reach 1 billion 500 million US dollars in the long run.

At the same time, the growth rate of the North American market declined. In the two quarter, the growth rate of Michael Kors in North America was only 18.7%, once again below 20%, and the total income in the first quarter of the North American market was $718 million 900 thousand, up 30.3% from the same period last year, while the other market income increased by 100%, from 7 million 826 thousand dollars in the same period last year to 14 million 768 thousand dollars.

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