CPRI

Capri Holdings Ltd

Consumer


Presented:04/18/2013
Price:$53.92
Cap:$10.80B
Current Price:$43.04
Cap:$5.07B

Presented

Date04/18/2013
Price$53.92
Market Cap$10.80B
Ent Value$10.40B
P/E Ratio15.93x
Book Value$10.75
Div YieldN/A
Shares O/S200.32M
Ave Daily Vol5,680,000
Short Int1.80%

Current

Price$43.04
Market Cap$5.07B
Michael Kors Holdings Limited is engaged in the design, marketing, distribution, and retailing of branded women’s apparel and accessories, and men’s apparel. The company operates in three segments: Retail, Wholesale, and Licensing. The Retail segment is involved in the sale of women’s apparel; accessories, which include handbags and small leather goods, such as wallets; footwear; and licensed products comprising watches, fragrances, and eyewear. This segment operates 176 company-owned retail stores and 176 locations operated through its licensing partners. The Wholesale segment sells accessories, which include handbags and small leather goods, footwear, and women’s and men’s apparel to department stores and specialty shops in North America and Europe. The Licensing segment licenses its trademarks on products, such as fragrances, cosmetics, eyewear, leather goods, jewelry, watches, coats, men’s suits, swimwear, furs, and ties, as well as licenses rights to third parties to sell the company’s products in geographical regions, such as Korea, the Philippines, Singapore, Malaysia, Indonesia, Australia, the Middle East, Russia, Turkey, China, Hong Kong, Macau Taiwan, Latin America and the Caribbean, and India. The company sells its products under the names of MICHAEL KORS, MICHAEL MICHAEL KORS, and various other related trademarks and logos. Michael Kors Holdings Limited was founded in 1981 and is based in Tsim Sha Tsui, Hong Kong.

Please note, on 1/2/19 Michael Kors Holdings Limited (KORS) changed its company name and ticker to Capri Holding Ltd (CPRI). The content of this idea will make reference to the original company name and ticker symbol.

Highlights

The presenter is accumulating shares of KORS again, as he had sold out of his position in the first quarter of 2012. He sees the recent price decline (from the low $60s to the low $50s) as overblown and believes the retailer is capable of earning at least 15%-20% more than Street analysts are currently modeling for 2014 and 2015 for the following reasons:

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Idea Discussion

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