CPRI
Capri Holdings Ltd
Consumer
04/22/2016
Presented
| Date | 04/11/2016 |
| Price | $51.62 |
| Market Cap | $9.54B |
| Ent Value | $6.86B |
| P/E Ratio | 11.63x |
| Book Value | $11.01 |
| Div Yield | 0% |
| Shares O/S | 184.85M |
| Ave Daily Vol | 3,773,507 |
| Short Int | 6.34% |
Current
| Price | $43.04 |
| Market Cap | $5.07B |
| Michael Kors Holdings Ltd. engages in the design and distribution of sportswear, accessories, footwear and apparel of branded women's apparel and accessories and men's apparel bearing the Michael Kors trade name. The company operates its business through three segments: Retail, Wholesale and Licensing. The Retail segment operates collection stores, lifestyle stores, including concessions and outlet stores located primarily in the United States, Canada, Europe and Japan. The Wholesale segment sells the company's products to department stores, as well as specialty retail stores and travel shopping locations. 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. The company was founded by Michael David Kors on December 13, 2002 and is headquartered in London, the United Kingdom. |
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.
Publicly traded companies mentioned herein: Coach Inc (COH), Kate Spade Inc (KATE), Michael Kors Holdings Ltd (KORS), PVH Corp (PVH), Ralph Lauren Corp (RL), Vera Bradley Inc (VRA)
Highlights
The presenter is long shares of Michael Kors (KORS), and thinks the current valuation is attractive since he identifies multiple sources of potential upside for the business. He believes many of the issues that have supported the bear thesis are now fading and comps should begin to stabilize or even trend upwards over the course of calendar 2016 (fiscal 2017). The presenter states that by lapping large declines in watches, FX pressures, and last year’s heavy promotional environment, combined with better mix, KORS will see a “great tailwind.” If/when the business starts trending positively, we could see 30% - 50% multiple expansion as new categories and international businesses come online. Better than expected performance on margins and comps could lead to multiple re-rating, and the presenter thinks KORS shares could reach $70 - $80.
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