The Zacks Analyst Blog Highlights: Michael Kors Holdings, Gildan Activewear,
Hanesbrands, PVH and G-III Apparel Group
CHICAGO, Jan. 22, 2013
CHICAGO, Jan. 22, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include Michael Kors Holdings, Ltd.
(NYSE:KORS), Gildan Activewear Inc. (NYSE:GIL), Hanesbrands Inc (NYSE:HBI),
PVH Corp (NYSE:PVH) and G-III Apparel Group, Ltd. (Nasdaq:GIII).
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Here are highlights from Monday's Analyst Blog:
Michael Kors Upgraded to Strong Buy
Zacks Investment Research upgraded Michael Kors Holdings, Ltd. (NYSE:KORS) to
a Zacks Rank #1 (Strong Buy) on Jan 19. Strong demand for brands and
assortments, along with innovative fashion designs are the rank drivers for
Why the Upgrade?
Michael Kors has been witnessing rising earnings estimates on the back of
strong fiscal second-quarter results. In-fact this global luxury lifestyle
brand has delivered positive earnings surprises in the last four quarters with
an average surprise of 58.7%. The company also has a bright outlook for the
upcoming quarter, the results of which are due next month, owing to growing
demand for its products and the ongoing strength in watches. The long-term
expected earnings growth rate for this stock is 31.4%.
Michael Kors declared its fiscal second-quarter results on November 13 with
earnings per share of 49 cents, soaring 96% year over year. Total revenues
surged 74% from last year to $532.9 million, surpassing the Zacks Consensus
Estimate of $520 million. Sturdy sales growth in each of the company's
business segments and across all geographies drove the upside.
Sales at the retail segment grew 82% on the back of a 45.1% rise in comparable
store sales and the opening of 66 new stores, reflecting growing demand for
Michael Kors' products.
The solid demand for Michael Kors' brands, implementation of growth strategies
and growing brand acceptance in Europe provided upside potential in the second
quarter. Likewise, Michael Kors is optimistic about the fiscal third quarter
and expects comparable store sales to rise in mid-20% and expects sales in the
range of $525 million to $535 million. It projects earnings in the range of 37
cents to 39 cents per share, almost double the prior-year quarter earnings of
The company also anticipates impressive results in fiscal 2013 with earnings
in the range of $1.48 and $1.50 per share, significantly higher than the
prior-year earnings of 80 cents per share. The company expects net sales of
about $1.86 billion to $1.96 billion based on a rise of about 30% in
comparable store sales. Management also expects exceptional comparable store
sales to boost long term growth.
Estimates have increased for the fiscal 2013 and 2014 over the past 60 days,
after the strong fiscal second quarter results and bright outlook for the
upcoming quarter. The Zacks Consensus Estimate increased 1.3% to $1.54 per
share for fiscal 2013, while it grew 4.3% to $2.03 per share for fiscal 2014.
Other Stocks to Consider
Another stock in the textile-apparel sector which holds a Zacks Rank #1
(Strong Buy) is Gildan Activewear Inc. (NYSE:GIL). Other stocks worth
considering are Hanesbrands Inc (NYSE:HBI), PVH Corp (NYSE:PVH) and G-III
Apparel Group, Ltd. (Nasdaq:GIII), all of which hold a Zacks Rank #2 (Buy).
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