Michael Kors Shares Tumble 7% Amid Calls For Brand Transformation
Shares of Michael Kors Holdings shed more than 7% on Tuesday, leaving the luxury apparel brand down nearly 23% for the year and heightening calls for a brand transformation amid broader retail doldrums. In recent weeks, firms BMO Capital Markets, Royal Bank of Canada and Deutsche Bank AG have issued or reiterated their hold recommendations for the struggling luxury brand, and the latest blow to shares comes after MKM Partners initiated its coverage of the firm on Tuesday by issuing a sell rating with a price target of $26 — 22% less than its closing price on Tuesday of $33.26. State Street’s SPDR S&P Retail ETF, which tracks retail stocks in the S&P 500, is down 12% this year. Analysts are worried Michael Kors is oversaturated in retail markets and overexposed to wholesaling in a buying environment that’s increasingly fueled by e-commerce, the all-too-common cause of many retailers’ modern woes. Read more at Forbes.
