Bank Of America Sees Michael Kors As Top Pick Post-Holiday
In a report published Monday, Bank of America analyst Robert F. Ohmes reiterated a Buy rating and $120.00 price target on Michael Kors Holdings Ltd (NYSE: KORS).
In the report, Bank of America noted, “We believe KORS continued to take share pre and post-Holiday as traffic and sell-thrus appeared high at full-price and outlet stores and in Macy's handbag, footwear, cheap michael kors watch and fragrance shop-in-shops from Super Saturday to post-Holiday, especially when compared to peers. Full-price and outlet stores were tightly packed with long check-out lines (likely helped by up to 50% off select items, which accounted for roughly 30% of the store and 60% off made-for outlet items in outlet stores).
"In Macy's, KORS continued to expand its menswear business, marked by new men's apparel and underwear shop-in-shops. We believe KORS “innovative” brand positioning gives the company the freedom to potentially become a dominant accessible luxury brand in multiple categories (instead of just one or two) as it targets the rapidly evolving, next generation of global consumers with KORS ‘jet-set' inspired versions of cheap michael kors handbags and accessories (taking share from COH), women's apparel (vs. CK, Rachel Roy, and other women's sportswear brands), footwear (vs. multiple women's contemporary brands), and more recently, men's apparel (vs. RL, CK, Hilfiger and Boss) as well as watches, jewelry, fragrance (vs. Chanel, CK, Dior), beauty and personal care, and eyewear through licensing.”