4 Luxury Brands With Mixed Results In 2014
Uri Gruenbaum | Jan 01, 2015 12:04AM ET
By Carly Forster and Sarah Roden
Consumer confidence is high in the United States, which is essential for purchasing luxury brands because consumers must feel secure about their purchases. How has this sentiment impacted luxury brands throughout 2014?h3 Michael Kors:/h3
Michael Kors (NYSE:KORS) began 2014 on the right foot, beating analyst consensus for revenue and earnings per share in their quarterly report released in early February 2014. This strong streak lasted well into 2014. However, KORS’s most recent quarterly report, released on November 4th, posted earnings at the low end of analyst estimates and posted the smallest sales growth in 4 quarters.
Additionally, the luxury shoe and accessory company announced plans to relocate headquarters from Hong Kong to London. In 2015, Michael Kors fans can look forward to a new line of eyeglasses that Kors will be producing with Luxottica Group (NYSE:LUX).
KORS has a 52-week high of $101.04 and a 52-week low of $68.25.
On December 29th, analyst Robert Ohmes of Bank of America/Merrill Lynch reiterated a Buy rating on KORS with a price target of $120. Ohmes noted that Kors had a successful holiday shopping season, stating that traffic “appeared high at full-price and outlet stores” and that “Full-price and outlet stores were tightly packed with long check-out lines.” He continued, “KORS ‘innovative’ brand positioning gives the company the freedom to potentially become a dominant accessible luxury brand in multiple categories… as it targets the rapidly evolving, next generation of global consumers “
Robert Ohmes has a 71% overall success rate recommending stocks with a +9.3% average return per recommendation.
The general consensus for Michael Kors on TipRanks is Hold.
h3 Kate Spade:/h3Kate Spade & Co (NYSE:KATE) got many mixed reviews this year. However, KATE gave Michael Kors a run for their money in the second quarter when the company posted an almost 50% year-over-year increase in net sales for the second quarter of the year, which was released in August. Many were pleased with Kate’s third quarter report, released in early November. The report posted adjusted earnings per share that broke even, an increase from last year’s loss of 8 cents per share.
Earlier this year, in February, Kate Spade completed the acquisition of Globalluxe. The $34 million transaction gave Kate Spade ownership over of the Kate Spade businesses in Asia. These newly acquired locations will be owned both directly and indirectly by Kate Spade.
KATE has a 52-week high of $42.87 and a 52-week low of $24.07.
On November 6th, analyst Kimberly Greenberger , who maintained an Equal-Weight rating on the stock with a $103 price target. She reasoned that Tiffany’s recently launched an in-house brand called Tiffany T collection that could ultimately help profits and back their current share price, however Greenberger “prefer[s] to buy on the dips.”
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In the past year, Greenberger has successfully made 36 ratings out of 57 total, earning a 63% success rate recommending stocks and a +13.7% average return per recommendation.
The general consensus for TIF on TipRanks is Hold.
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