Discover Top Posts Tagged with #$kors

5 Stocks to Watch - Expected earnings surprises this week from CYBR, NEWR, KORS, HTZ, ANGI

The Beats

To determine possible positive surprises we look for companies that have the following characteristics: 1. Large positive deltas vs. Wall Street 2. Significant upward revisions momentum into the report 3. A long history of beating 4. A long history of Estimize accuracy vs. the Street CyberArk Software (CYBR)

Information Technology - Software | Reports August 7, after the close.

The Estimize community is looking for earnings per share (EPS) of $0.29 when CyberArk reports on Tuesday, revised upward by 19% in the last 3 months and 19% higher than Wall Street’s $0.24. Revenues are also expected to come in higher at $75.5M as compared to the sell side’s consensus of $72.9M. Year-over-year (YoY) EPS and revenue growth are expected to come in healthy at 37% and 31%, respectively. This is a name that tends to beat the Estimize consensus 93% of the time on EPS and 93% on revenues, and that Estimize is more accurate than Wall Street on 93% of the time on EPS and 93% on Revenue.

This cybersecurity name continues to benefit from widespread data breaches, as corporations and governments increase spending on software to prevent future instances. In addition to improving EPS and revenue growth, the Estimize community also expects License Revenue to grow 23% YoY to $37.2M. Increased demand in the space has lead to CyberArk ramping up its acquisition strategy, most recently with the purchase of cloud security provider, Valuative, earlier this year. Also expected to increase the top-line is the CyberArk Marketplace, launched in Q2. According to the press release this is “the industry’s broadest and deepest portfolio of integrations with a privileged access security solution. The CyberArk Marketplace delivers unprecedented simplicity and speed for security and IT operations teams to extend the benefits of securing privileged access across the enterprise.”

New Relic (NEWR)

Information Technology - Internet & Software Services | Reports August 7, after the close.

The Estimize community is looking for earnings per share (EPS) of $0.14 when New Relic reports on Tuesday, revised upward by 169% in the last 3 months and 18% higher than Wall Street’s $0.12. Revenues are also expected to come in higher at $106.8M as compared to the sell side’s consensus of $106.1M. Year-over-year (YoY) EPS and revenue growth are expected to come in healthy at 251% and 33%, respectively. This is a name that tends to beat the Estimize consensus 91% of the time on EPS and 91% on revenues, and that Estimize is more accurate than Wall Street on 91% of the time on EPS and 100% on Revenue in the last 11 quarters.

We continue to believe that the enterprise tech sector is THE place for investors to focus given the massive cap-ex spending cycle within main street businesses that is taking place. These companies are showing large and upwardly revised revenue growth estimates and have massive leverage on that revenue given the limited need for headcount in a very tight labor market. New Relic is one beneficiary of this increased spending, with their bread and butter products including application performance monitoring (APM) tools which help companies garner insights on how specific segments of their business are performing through conversion metrics, website analytics and other metrics. Even NEWR’s non-APM business is expected to catch up to APM in the next 5 years.

Michael Kors (KORS)

Consumer Discretionary - Textiles, Apparel & Luxury Goods | Reports August 8, before the open.

The Estimize community is looking for earnings per share (EPS) of $1.00 when Michael Kors reports on Wednesday, revised upward by 11% in the last 3 months and 6% higher than Wall Street’s $0.94. Revenues are also expected to come in higher at $1.16B as compared to the sell side’s consensus of $1.14B. Year-over-year (YoY) EPS and revenue growth are expected to come in healthy at 25% and 22%, respectively. This is a name that tends to beat the Estimize consensus 84% of the time on EPS and 84% on revenues, and that Estimize is more accurate than Wall Street on 92% of the time on EPS and 92% on Revenue.

This is not a name you would have expected to see on this list in the last year or two, after KORS suffered some missteps and weakening demand as it tried to straddle the luxury and affordable accessories categories. In order to reinstate it’s cache it started offering fewer online promotions, closed down underperforming stores and began innovating on new product lines which includes men’s footwear. The company is investing heavily in their digital platforms in order to offer a more seamless customer experience at a time when online buying continues to expand. International growth is anticipated to grow as well, especially with acquisitions of brands such as Jimmy Choo.

The Misses

To determine possible positive surprises we look for companies that have the following characteristics: 1. Large positive deltas vs. Wall Street 2. Significant downward revisions momentum into the report 3. A long history of missing 4. A long history of Estimize accuracy vs. the Street

Hertz Global Holdings (HTZ)

Industrials - Road & Rail | Reports August 6, after the close.

The Estimize community is looking for earnings per share (EPS) of -$0.33 when Hertz reports tomorrow after the bell, revised downward by 382% in the last 3 months and 30% lower than Wall Street’s -$0.25. Revenues are roughly in-line at $2.3B. Despite falling expectations, the company is still expected to see year-over-year (YoY) of 48% in EPS and 5% for revenues. However, this is a name that has only beaten the Estimize EPS consensus 18% of the time, and only 36% of the time for revenues, which doesn’t bode well for a positive surprise tomorrow.

With the dominance of Uber, Lyft and other ride sharing services, it’s been increasingly difficult for Hertz and other rental car businesses to compete. The stock is already down 30% this year, with Avis, the only other publicly traded rental car company, not far behind at -20% for the year. Rental cars haven’t traditionally been considered solid businesses as they carry high costs and there are several cheaper alternatives. The Ubers and Lyfts of the world aren’t the only worry for Hertz, but the progression of autonomous driving vehicles will likely make the entire industry obsolete.

ANGI Homeservices (ANGI)

Information Technology - Internet & Software Services | Reports August 8, after the close.

The Estimize community is looking for earnings per share (EPS) of $0.00 when ANGI Homeservices reports on Wednesday, revised downward by 89% in the last 3 months and a penny lower than Wall Street. Revenues expectations of $292.6M are also lower than the sell-side’s $293.6M, falling 4% in the last 3 months. Despite falling expectations, the company is still expected to see year-over-year (YoY) growth of 99% in EPS and 302% for revenues. However, this is a name that has only beaten the Estimize EPS consensus 50% of the time, and only 38% of the time for revenues, which doesn’t bode well for a positive surprise tomorrow, with Estimize being more accurate than Wall Street 67% of the time.

It’s expected to be another bad quarter for ANGI, which has reported negative EPS for the last 4 quarters. Prior to the September 2017 merger with IAC HomeAdvisor, Angie’s List had posted 5 quarters of negative YoY revenue growth, the merger then inflated top-line numbers making the year-over-year picture apples to oranges. Last quarter the company reported an operating loss of $10.8M, somewhat due to costs related to the Angie’s List deal. The addition of the free membership tier exactly 2 years ago seems to not have helped, either. Other crowdsourced reviews platforms for local businesses such as YELP are also expected to be in the red for Q2.

#$CYBR #$NEWR #$KORS #$HTZ #$ANGI #$SPY

On May 30th, 2018, there was a drop by over 12% with KORS stock price. While many were speculative about the turn, traders using KORS trading signals were alerted of the downward trend in advance.

#kors trading signals #$kors #BluSignals

Four Fashion Brands to Watch for This Week

Michael Kors (Reports on Wednesday, May 31st)

The Estimize community is optimistic about KORS’s Q4’s earnings. Analysts are calling for $0.73 EPS, three cents ahead of the Wall Street estimate, and a revenue of $1.055 billion, 7 million ahead of Wall Street. Michael Kors has marked one of the most financially successful luxurious designer fashion brands. Incorporating more innovative technology into its design, Kors has introduced MICHAEL KORS ACCESS, which is a series of smartwatches and relating smartphone applications. In addition, KORS has named Thomas J. Edwards, Jr as its new Chief Financial Officer, in succession of Joseph B. Parsons.

What are you expecting for KORS? Put in your estimate here!

Vera Bradley (Reports on Wednesday, May 31st)

Eight analysts at Estimize have reached a consensus of $-0.11 for Vera Bradley’s Q1 EPS, 2 cents ahead of Wall Street, also an revenue estimate 97.26 million, which is approximately in line with Wall Street. One of the most recent news from Vera Bradley is that it has entered into a licensing agreement with CID Resources Inc. for apparel and coordinating accessories designed specifically for the expanding population of female health care professionals.

What are you expecting for VRA? Put in your estimate here!

Lululemon (Reports on Thursday, June 1st)

On Thursday, Lululemon will reports its Q1 results. Analysts at Estimize have reached a consensus of $0.29 EPS, right in line with the Wall Street consensus, and a revenue of $514 million, which is 2 million ahead of the Wall Street consensus. One of its recent updates is that Glenn Murphy has been appointed to the company’s Board of Directors as Co-Chairman.

What are you expecting for LULU? Put in your estimate here!

Express (Reports on Thursday, June 1st)

Express is expected to report its FQ1 earnings on June 1st. Eight analysts at Estimize are calling for an EPS of $-0.04, two cents ahead of Wall Street consensus. The Estimize consensus for revenue is $468.55 million, which is approximately 1 million below the Wall Street estimate. On May 4th, Express announces an additional measure as part of its continued strategic approach to improving profitability and managing and optimizing store footprint. Due to the hostile market conditions in Canada, Express intends to close all 17 Canadians stores and discontinue its Canadian operations.

What are you expecting for EXPR? Put in your estimate here!

#$EXPR #$KORS #$lulu #$VRA #fashion #michael kors #lululemon

Taking your trading to the next level

In a daily trader review or monthly trader review, often I find the words: “to take my trading to the next level.” Traders wish to take their trading to the next level. It’s almost like we could start a cult: Next Level Trading.

The desire is there for most traders. The question is the how.

Most traders focus on trading better in real-time to “take my trading to the next level.” If they just execute better on a trade here and there, then their trading will be better. If they would have just sized up on a trade, then their week would have been different. You can feel the stress and frustration in their emails about executing better in real-time.

What if these traders are looking at their trading progress backwards? What if this next level trading doesn’t come from their hyper-focus on real-time trading? What if finding that next level requires a different focus?

I assert that it does.

And this report card above is a terrific first step towards changing that focus from real-time trading results to a daily improvement routine. It relieves all that stress of executing better in real-time. It helps you find your true goal of how good you can be.

What if you judged your day not on your PnL to reach the next level, but on whether you completed your daily improvement routine? As I say, having “nothing special” days. Just days where you compete a competitive daily improvement routine and sit back and enjoy the journey to wherever that leads next.

What if instead of being hard on yourself for that missed trade, you were hard on yourself in developing a competitive daily improvement routine?

Also if you make it to that next level as a trader, is that your final destination? I would doubt it is for you. You will want to get even better from there. And how will you accomplish that? Develop a daily improvement routine so you improve from this level.

Let me offer a new focus.

Why not try string together a month of “nothing special” days and watch where that takes your trading?

Why join a prop trading desk?

Win the trading day

Happiness precedes trading success

*no relevant positions

#$KORS #$SABR #$EMR #$AMD #$HAS #$TIF

5 Retail Stocks to Watch That Report Earnings Tomorrow

Macy’s (M): Department store retailers rebounded in the second quarter after years of weak consumer spending and dwindling market share to rising ecommerce brands like Amazon. The resurgence started with Macy’s after the retailer beat earnings and revenue estimates by a wide margin. Continued efforts to optimize price, maintain efficient inventory levels, and expand private label offerings are expected to help Macy’s build on its Q2 gains. Additional developments in its ecommerce platform, off price brand and building out its cosmetics brand, Bluemercury, will have the biggest impact on the top line growth. Nonetheless, the second quarter may have been an anomaly and Macy’s could just as easily fall back into its old ways. A competitive landscape particularly from the online retailers are redirecting traffic away from department stores and thereby denting sales. As a result analysts’ expectations have been muted despite the positive traction generated in the second quarter.

Nordstrom’s (JWN): Nordstroms along with Macy’s and the rest of the names mentioned on this list was the beneficiary of better than expected earnings last quarter. The upscale department store was hit hardest from the changes in the retail environment that witnessed a shift away from luxury brands towards value channels. Shares are down 23% in the past 12 months but have since recovered to flat in 2016. Nordstrom’s investments to expand its omnichannel capabilities along with efficient cost controls and store expansions remain driving factors for top line growth. Needless to say the overall rebound in the retail sector is well off its peaks with overall growth running negative.

Kohls (KSS): Exceedingly low expectations made it easier for Kohl’s to top its quarterly results in the second quarter. Despite topping expectations, the Q2 results included a 1.8% decline in comparable store sales on a 2% decline in total revenue. Sluggish comps could see a boost in the third quarter that includes the pivotal back to school season and tend to drive traffic trends. Continued efforts to improve its base business and maintains its strategic initiatives, Greatness Agenda, should help drive growth through the holiday season. Kohls along with its peers should remain cautious about the weak spending environment and continued adoption of ecommerce platforms.

Ralph Lauren (RL): Luxury brands have been amongst the worst performers in the broader retail sector as consumers shift their spending towards value channels. Ralph Lauren, in particular, has seen shares drop 28% in the past 12 months on sluggish comparisons, challenging retail trends and numerous store closures. Margins have been hurt from frequent discounting to compete with the value oriented retailers, negative currency translation and heavy infrastructure investments. Efficient cost controls may offset some of the losses while a recently applied restructuring strategy will help long term performance.

Michael Kors (KORS): After weak revenue results from Kate Spade and Coach already this season, luxury brands appear to be unraveling. This doesn’t bode well for Michael Kors who reports its third quarter results on Thursday. With a large exposure to volatile international markets and currency headwinds, both earnings and revenue could see their first downturn in over a year, after just getting by with flat growth in Q2. Estimates are seeing downward revisions activity ahead of its report, typically a sign of a miss on the horizon.

The main focus for KORS will be comps which in the past were driven by new store openings, expanding existing outlets and building out its omnichannel capabilities. But the retail environment is more challenging these days. Luxury brands and longtime status symbols are simply not resonating with consumers like they have in the past. As a result we have seen a great deal of discounting from key brands including Michael Kors. Discounting may very well drive sales but it also puts pressure on margins.

How do you think these names will report? Be included in the Estimize consensus by contributing your estimates here!

#$KORS #$RL #$KATE #$COH #$KSS #$JWN #$M #$AMZN #$SPY #$^GSPC

5 Stocks to Watch This Week 11/7 - TRIP, SHAK, M, DIS, KORS

Tuesday, November 8

Wednesday, November 9

Thursday, November 10

TripAdvisor (TRIP)

Consumer Discretionary - Internet & Catalog Retail | Reports November 8, after the close.

The Estimize consensus is looking for earnings per share of $0.53, one cent below the sell-side consensus and in-line with the same period a year earlier. That estimate has decreased 7% since TRIP’s last quarterly report. Revenue is anticipated to increase 6% to $435.5 million, slightly lower than Wall Street’s consensus.

What to Watch: Stronger travel trends are emerging as evidenced by robust results from the airlines, Expedia, Las Vegas Sands and Priceline this earnings season. This should bode well for often beaten down TripAdvisor. Shares are down 25% in 2016 on two consecutive weaker than expected quarterly results. TripAdvisor operates in a very competitive online travel agency market that is largely a two horse race between Expedia and Priceline. TRIP is beginning to close the gap though with the acquisition of CityMaps and a new more user friendly website, as well as a focus on mobile and Instant Booking. Expectations have still edged lower in the past 3 months with analysts calling for flat earnings growth and a 6% increase on the top line. Foreign currency translate remains a big concern for Q3.

Shake Shack (SHAK)

Consumer Discretionary - Hotels, Restaurants & Leisure | Reports November 9, after the close.

The Estimize consensus is looking for earnings per share of $0.16, one cent higher than Wall Street and up 35% from the same period last year. That estimate has increased 2% since SHAK’s most recent report. Revenue is anticipated to increase 31% YoY to $69.95 million, slightly higher than the sell-side consensus. The stock is down 18% YTD.

What to Watch: In its early days on the market, many investors were convinced that Shake Shack was well on its well to replacing Chipotle as the new face of fast casual. Thanks to a string of slower than expected quarters those notions have receded. The burger chain has struggled to sustain high growth and rapid expansion as it goes through the maturation process. These growing pains are likely to continue for the near future until revenue and margins are commensurate with its value. Despite high growth expectations for the quarter, those have declined significantly when compared to the fact that Q2 2015 - Q1 2016 produced YoY profit growth rates in the triple digits. Same-Shack Sales have also fallen, to 4.5% last quarter from 9.9% in the first quarter of 2016. At the moment the stock is considered well overvalued given what they deliver quarter after quarter. Shake Shack shares have fallen 18% year to date.

Macy’s (M)

Consumer Discretionary - Multiline Retail | Reports November 10, before the open.

The Estimize consensus is looking for earnings per share of $0.43 on $5.66 billion in revenue, above Wall Street by 2 cents on the bottom-line and by $37M on the top. Compared to a year earlier, this reflects a 18% decrease in earnings and a 3% decrease on sales. Earnings estimates have increased by 8% since the last quarter, while revenues have stayed flat. The stock is up 8% since the beginning of the year.

What to Watch: Macy’s is the first of the department stores to report on Thursday morning, followed by Nordstrom and J.C. Penney later in the week. The company is poised to report its 7th consecutive quarterly decline on both the top and bottom-line. Macy’s management has already indicated that the quarter to be reported could see sluggish growth on weak sales and excess inventory. The company is still recovering from its Q1 report which recorded the largest decline in comparable store sales since the Financial Crisis, of -5.6%. Macy’s cut its full year guidance after the report, setting the bar even lower for the department store in the coming months. SSS improved to -2% in Q2, but was still negative. The slowdown has pushed the retailer to be more aggressive with markdowns despite its impact on margins. Weak international tourism trends and currency headwinds have also added another layer of uncertainty around potential profit growth.

Disney (DIS)

Consumer Discretionary - Media | Reports November 10, after the close.

The Estimize consensus calls for EPS of $1.19, 4 cents above the Wall Street consensus. Meanwhile, revenue expectations of $13.56 billion are $10M below the sell-side consensus. Expectations have fallen 3% since last quarter, putting YoY growth expectations at 0% for EPS and 1% for sales. The stock is down 10% for the year.

What to watch: Disney has been at the forefront of takeover talks for both Netflix and Twitter. It's clear that Disney media networks have struggled due to wider adoption of cord cutting behavior. ESPN has been the biggest of its problems as subscriptions and revenue continue to decline. Twitter and Netflix would provide Disney with a non-traditional platform to display its original content. The company’s movie portfolio didn’t include any huge hits in the quarter about to be reported, and may show a decrease due to a tough comparison from a year ago which featured blockbusters such as Ant-Man. Parks & Resorts is still expected to be a big winner for the media giant, with robust visitors numbers from the summer.

Michael Kors (KORS)

Consumer Discretionary - Textiles, Apparel & Luxury Goods | Reports November 10, after the close.

The Estimize consensus is looking for earnings of $0.92 per share on $1.095 billion in revenue, 4 cents higher than Wall Street on the bottom line and $13 million above on the top. Compared to a year earlier, earnings are expected to decrease 8% with revenue falling 3%. EPS estimates have been pushed down by 8% since the last quarterly report, and revenue estimates have come down 1%. Even so, the stock is still up 26% YTD.

What to Watch: After weak revenue results from Kate Spade and Coach already this season, luxury brands appear to be unraveling. This doesn’t bode well for Michael Kors who reports its third quarter results on Thursday. With a large exposure to volatile international markets and currency headwinds, both earnings and revenue could see their first downturn in over a year, after just getting by with flat growth in Q2. Estimates are seeing downward revisions activity ahead of its report, typically a sign of a miss on the horizon.

Be sure to get your estimates in for all of these names here!

(Photo Credit: Jeremy Thompson)

#$TRIP #$SHAK #$M #$KORS #$DIS #$SPY #$^GSPC

Time to Load Up on Coach, Kors?

Coach, Michael Kors, and other "aspirational" goods sellers have been forced to adjust their strategies in an increasingly difficult operating environment.

Want to read more of Valuentum’s research and analysis? Please consider becoming a member at www.valuentum.com. Or subscribe here.

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By Kris Rosemann

Coach (COH), Michael Kors (KORS), Fossil (FOSL), and Ralph Lauren (RL) all beat consensus estimates in the calendar second quarter of 2016, but the way the market reacted to the beats varied drastically despite none of the above firms necessarily issuing outright optimistic expectations. The weak outlooks have weighed on shares of Coach and Michael Kors, but shares of Fossil and Ralph Lauren have received an updraft in hopes of turnaround strategies and sales-decline stemming plans beginning to take hold.

Ongoing weakness in retail traffic across the US, and a decrease in tourism in major domestic cities have played an important role in the growing issues for luxury brands. In an attempt to combat traffic pressures, many department stores have been offering significant discounts on many luxury goods, which has forced Coach, Michael Kors, and Ralph Lauren to reconsider their strategies in the retail environment. In order to protect their brand images, the firms have decided to pull their products from those offering their luxury goods at deep discounts. Though such a move will undoubtedly bring near-term pain, protecting the branding of an aspirational-luxury goods maker is imperative to long-term success.

Coach reported a relatively solid fourth quarter of its fiscal 2016 (calendar second quarter) in which net sales jumped 15% on a year-over-year basis and North American comparable store sales increased 25%. Operating margin expansion helped drive non-GAAP earnings per share to $0.45 from $0.31 in the comparable period of fiscal 2015. However, Coach brand net sales at department stores in North America declined at a high-single-digit rate compared to the year-ago period. Coach now expects to close ~250 of its wholesale locations and issue a reduction in markdown allowances, which it hopes will preserve its brand as a high-end aspirational target for consumers.

Nevertheless, Coach expects fiscal 2017 to be the year in which it returns to growth across all financials, including the assumption of low-single-digit comparable store sales growth in North America. Revenue is expected to increase in the low-to-mid single digit range, while earnings per diluted share is expected to make a double-digit jump from fiscal 2016. The firm’s balance sheet, and the financial flexibility it offers, continues to be a key attribute in its turnaround plan, as its net cash position stood above $443 million as of the end of the fourth quarter of its fiscal 2016. We think the company, and its ~3.3% dividend yield, continues to be a nice fit in the Dividend Growth Newsletter portfolio.

Michael Kors' first quarter of fiscal 2017 (calendar second quarter) was not nearly as strong as that of Coach. The firm reported total revenue roughly in-line with that of the year-ago period. While retail sales advanced 7.6% thanks to new store openings, primarily in Asia, wholesale net sales fell 7% and comparable sales decreased 7.4%. Net income per ordinary share on a diluted basis dropped $0.04 from the comparable period in fiscal 2016 to $0.83 in the quarter as ongoing investments in international expansion, digital flagships, and global infrastructure resulted in an increase in operating expenses.

Michael Kors' management was encouraged by the firm’s progress in its North American digital flagships and its global expansion, though such progress was offset by material weakness in its more traditional North American business due to suppressed mall traffic levels and lower tourism spending in major cities. Similar to Coach’s strategy, the company is also working to avoid the aspirational-brand image tarnishing, ultra-competitive discounting taking place at department stores across the US. As CEO John Idol said, “The amount of promotional activity from many of the people who carry our line was at its all-time high, and we had to compete to be able to move our inventories during that period of time. That’s the whole cycle we are going to get ourselves out of.”

Michael Kors expects the aforementioned top-line pressures and operating margin suppressors to continue to impact fiscal 2017 results. The company is projecting total revenue to be flat from fiscal 2016 with comparable sales falling in the mid-single digit range, the latter of which is a downward revision from initial guidance of a low-single digit decline. GAAP diluted earnings per share are expected to come in a range of $4.47-$4.54 compared to $4.44 in fiscal 2016. We will continue to hold shares, which are trading at just over 11 times fiscal 2017 earnings, in the Best Ideas Newsletter portfolio as we continue to believe in the firm as a long-term idea “Fundamental Strength To Outweigh Short-Term Volatility.”

Michael Kors continues to feel the pain of its global watch licensing agreement with Fossil, which reported a net sales decline of 7% on a year-over-year basis, due to a 10% drop in its watches revenue. Management pointed specifically to its licensed brand category of watches as a key drag on its overall sales growth, and the company was not exempt from the pressures impacting its peers. Global retail comps fell 3% in the quarter from the year-ago period as positive comps in its full price stores were mitigated by material comp declines in its outlet stores, and strength in Asia was offset by weakness in the Americas and Europe.

Though Fossil’s quarter left a good deal to be desired, its shares have received an updraft thanks to its better-than-expected reported results. The firm continues to face an uphill battle in its core watches business, which accounts for ~75% of total sales, as the recent increase in wearable technologies continues to weigh on demand for traditional watches. It has attempted to enter the wearables market, but we have our concerns with the true competitive potential of such offerings from a traditional watch maker entering the market considerably later than many. In addition, Fossil’s brand strength could mean little next to the likes of Apple (AAPL) in the wearables market, in our opinion.

Ralph Lauren has seen many of the same market dynamics impacting its business as its peers. The firm reported a less-than-spectacular first quarter of fiscal 2017 (calendar second quarter), but it beat consensus estimates and its shares have rallied as a result of its execution of its turnaround plan. The company’s ‘Way Forward’ plan remains its focus, and is a large reason why investors were not expecting much in terms of financial performance from it in the most recent quarter. Net revenues fell 4% on a year-over-year basis as wholesale revenue was pushed down 5% by US department store weakness and retail revenue was dragged down 3% by a 6% decrease in comparable store sales.

Operating income margin at Ralph Lauren fell roughly half as much as it was expected to in the period, a large positive for the firm as it continues to set its sights down the road. Adjusted net income per diluted share fell to $1.06 from $1.09 in the year-ago period but easily beat consensus estimates of $0.89; full-year guidance was not increased, however. Like its peers, the company also expects to reduce its reliance on the discretion of traffic-desperate department stores, but it will cut 1,000 jobs and close stores in accordance with its restructuring plans associated with its ‘Way Forward’ plan. $180-$220 million in annualized cost savings are anticipated as a result.

The operating environment for aspirational goods producers is not likely to improve in the near term either; strategy adjustments and restructuring initiatives from players within the space speak to this notion, in our view. We may see more share price volatility across the group as their respective strategies play out, and we’ll continue watching the newsletter portfolio constituents in the arena like a hawk. We continue to hold onto Coach as it works toward righting the ship with respect to its brand image. Its quarterly payout looks to be on solid ground, and at ~2% of the Dividend Growth Newsletter portfolio, we like what it does for us in terms of diversification in a portfolio context. We continue to believe in future price-to-fair value convergence in shares of Michael Kors, which are currently trading below the lower bound of our fair value range of $53-$79, though the road may be bumpy. Kors is included in the Best Ideas Newsletter portfolio.

Interested in Valuentum’s newsletter portfolios? Learn more here.

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This article or report and any links within are for information purposes only and should not be considered a solicitation to buy or sell any security. Valuentum is not responsible for any errors or omissions or for results obtained from the use of this article and accepts no liability for how readers may choose to utilize the content. Assumptions, opinions, and estimates are based on our judgment as of the date of the article and are subject to change without notice. For more information about Valuentum and the products and services it offers, please contact us at [email protected].

#$coh #$kors #$fosl #$rl

Disney bets on sports streaming service, Yelp hits new high, SunPower sinks

Here are some of the stocks the Yahoo Finance team will be watching for you today.

Disney (DIS) delivered a beat on both its top and bottom lines for its fiscal third quarter as box office hits like “Finding Dory” and “Captain America: Civil War” helped lift revenue at its film division by 40% to nearly $3 billion. Separately, the company will spend $1 billion to own a 33% stake in BAMTech. That’s the streaming media unit created by Major League Baseball.

Michael Kors (KORS) shares fell in early trading. Although the luxury retailer reported better-than-expected earnings and revenue for its fiscal first quarter. Same-store sales fell more than expected and the company gave a weak sales outlook for the current quarter as it expects lower mall traffic and less tourism to continue to put pressure on sales.

Yelp (YELP) surged to a fresh high this morning. The online business review site raised is revenue forecast for the year after it swung to a profit in the second quarter. Sales soared more than 29% from a year ago as its spending on marketing paid off.

SunPower (SPWR) shares sank in early trading. The solar panel maker lowered its revenue outlook for the year and said it would eliminate about 1,200 jobs, which translates to 15% of its workforce. The company said aggressive pricing by new market entrants has hurt near-term economic returns, even though it reported stronger-than-expected second quarter results.

#video #$yelp #$DIS #$KORS #$SPWR #_yfinance:segment=market_movers #_ymedia:video-channel=investing #_uuid:994110de-e8eb-379c-8be1-f69aa4d002cd #_wp:67981