Michael Kors Holdings Stays On Its Margin Hot Streak

Philip Morris International, Inc. (NYSE:PM) and Michael Kors Holdings Limited (NYSE:KORS) Added to Equity Profile Report's NYSE Decliners Watch List.





The more Michael Kors Holdings (NYSE: KORS ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Michael Kors Holdings's competitive position could be. Here's the current margin snapshot for Michael Kors Holdings over the trailing 12 months: Gross margin is 59.9%, while operating margin is 28.9% and net margin is 18.2%. Unfortunately, a look at the most recent numbers doesn't tell us much about where Michael Kors Holdings has been, or where it's going. A company with rising gross and operating margins often fuels its growth by increasing demand for its products. If it sells more units while keeping costs in check, its profitability increases.





Michael Kors sues Costco for false advertising





(Nasdaq: COST) for false advertising and using a bait and switch tactic to lure customers with Kors high end handbags. In a lawsuit filed on July 11, 2013 Kors is alleging that the retail giant, Costco, showed 4 high ends in an April 16 advertisement. The retail giant then offered Mothers Days gift ideas. Kors calls this email as a bait and switch advertising scheme as Costco has no agreement to sell Michael Kors products and for sure not the handbags pictured. The website for Costco has no products relating to Kors. This is not the first time Costco has been sued for this type of activity. In February, Tiffany & Co. Costco has responded to the lawsuit, as reported in BusinessWeek, that they sold the rings with Tiffany settings.









The stock presently has a consensus rating of Buy and an average price target of $70.69. Michael Kors Holdings has a 52 week low of $37.77 and a 52 week high of $66.18. The stocks 50-day moving average is currently $61.88. The company has a market cap of $12.582 billion and a P/E ratio of 31.80. Michael Kors Holdings (NASDAQ: KORS) last released its earnings data on Wednesday, May 29th. The company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.39 by $0.11. The company had revenue of $597.20 million for the quarter, compared to the consensus estimate of $546.07 million. During the same quarter in the prior year, the company posted $0.21 earnings per share. The companys quarterly revenue was up 57.2% on a year-over-year basis.





Michael Kors Sues Costco- Alleges a Bait and Switch





Save Wilmington, DE -- ( SBWIRE ) -- 07/19/2013 -- Equity Profile Report expands its NYSE Decliners Weekly Watch List adding Philip Morris International, Inc. (NYSE:PM) and Michael Kors Holdings Limited (NYSE:KORS). Philip Morris International, Inc. (NYSE:PM) a company that through its subsidiaries, manufactures and sells cigarettes and other tobacco products closed down in its previous session (-0.51%) on 6,149,465 shares traded after PHILIP MORRIS INTERNATIONAL INC. Filed SEC form 8-K, Results of Operations and Financial Condition. Philip Morris International, Inc. (NYSE:PM) is currently down (-9.31%) from its recent 52-week high which has prompted Equity Profile Report to add the stock to their NYSE Decliners Watch List. Click Here to find out what other Investors are saying about Philip Morris International, Inc.





Michael Kors Holdings Downgraded to Neutral at Piper Jaffray Cos. (KORS)





On the Michael Kors website on Friday, most full-size women's handbags were priced between $298 and $1,195. The point of Costco's ads is to "lure unsuspecting consumers away from bona fide Michael Kors retailers and into Costco stores," the complaint said. "When a consumer 'takes the bait' and seeks to purchase Michael Kors handbags at a Costco store or on Costco's website, no such handbags are available," it added. Michael Kors is seeking a court order to stop Costco from advertising its products, and to recoup profits plus punitive damages stemming from the alleged false ads. A spokesman for Costco, based in Issaquah, Washington, was not immediately available for comment. The lawsuit resembles one that Tiffany & Co (TIF.N) brought against Costco in February. In that case, the jeweler accused Costco of using Tiffany's trademarks online and on at least one in-store ring display case. The case is Michael Kors (USA) Inc et al v. Costco Wholesale Corp, U.S.