From a conversation about the original title of Jay-Z’s new song, Tom Ford, to one star designer’s rebellion against skinny trousers, scrolling through our Twitter feed this week had us cracking up. Read on for some of the best tweets we saw, from Michael Kors, Choupette Lagerfeld, and more here. …read more
Source: FULL ARTICLE at fashionologie
How One Model Is Using Her Personal Story to Fight for Marriage Equality Meet Josephine Skriver, a model who has starred in Michael Kors and MAC campaigns, and walked the runways of Lanvin and Erdem. She is also the daughter of a single lesbian mother and a gay father. Read what Josephine has to say about growing up, and how her family is more traditional than you may think.
Source: FULL ARTICLE at fashionologie
Time magazine’s annual list of the world’s 100 most influential people includes a handful of some of the industry’s most beloved characters, including Jenna Lyons and Michael Kors.
But it’s not just designers who represent the fashion community on this year’s list. Tadashi Yanai, the influential CEO of Fast Retailing – which backs Helmut Lang, Theory, and Uniqlo – is also on the list, and so is the Oscar-winning face of Miss Dior, Jennifer Lawrence. And while they might not have made the list this year, Prabal Gurung and Zac Posen made contributions to the list by writing about Lyons and Kors, respectively.
Get a look at who else from the industry made the list here in the gallery, and see the full list of this year’s honorees here.
From: http://www.fashionologie.com/Fashion-People-2013-Time-100-Pictures-29582943
By The Huffington Post News Editors
Halle Berry joined designer Michael Kors on Saturday night to celebrate her efforts with the United Nations World Food Programme to help fight world hunger. Her baby bump made an appearance (ICYMI, the actress is pregnant with fiancé Olivier Martinez‘s baby), and was joined by other fabulous ladies.
Hilary Rhoda, Irina Shayk, Erin Heatherton and more models hit the red carpet wearing Michael Kors (naturellement). But it was Solange Knowles who really blew us away in a black blazer and sky-blue pants. In fact, Beyoncé’s little sister may have upstaged Berry’s baby bump (gasp!).
Of course, Halle Berry looked jaw-droppingly gorgeous in her plunging LBD that hit the style trifecta, showing off her décolletage, hugging that burgeoning bump and highlighting her toned legs at the same time. But Solange, whose covered-up jacket and pants was the complete opposite of sexy Halle, stole the style show. Her tailored Oxford shirt and blazer were conservative and prim, but her cloud-adorned pants added a touch of whimsy and her sky-high heels added just the right amount of sex appeal.
Read More…
More on Solange Knowles
Source: FULL ARTICLE at Huffington Post
By Business Wirevia The Motley Fool
Filed under: Investing
Macy’s Salutes “American Icons” This Summer
Beginning in May, the retailer will pay tribute to the spirit of the U.S.A. through specially-curated merchandise, themed events, cherished pastimes and a cause initiative to support America’s veterans
NEW YORK–(BUSINESS WIRE)– Macy’s (NYS: M) today announced American Icons, a cross-country tribute to the beloved traditions, people and landscapes of America. From baseball and drive-in movies to legendary designers and destinations, America’s department store is honoring the popular brands, all-star events, cherished pastimes and meaningful causes that have contributed to our culture. An early summer celebration of the people, places and things that inspire our dreams, fuel our passions and make us proud to live in the land of the free, Macy’s American Icons will officially kick-off in mid-May and extend through July.
Launching mid-May, Macy’s salutes “American Icons” (Photo: Business Wire)
“Macy’s is America’s Department Store and through this campaign we’re celebrating the unique people, places and things that make our country great,” said Martine Reardon, Macy’s chief marketing officer. “In addition to collections from incredible brands including Ralph Lauren, Calvin Klein and Michael Kors, we’re embarking on a nationwide tribute that will feature some of America’s most beloved and nostalgic pastimes including the drive-in, baseball and grilling, along with a program to support and celebrate America’s veterans.”
Macy’s has worked with some of America’s most popular brands to curate American Icons merchandise that brings together exclusive fashion and accessories and distinctive home product, including special collections from some of America’s most beloved brands and designers, including Ralph Lauren, Calvin Klein, MICHAEL Michael Kors, Tommy Hilfiger, Levi and Nike to represent some of the things that evoke American style and design from coast-to-coast.
Give Back. Get Back. – Got Your 6
One of the nation’s newest veteran support initiatives, Got Your 6 launched in 2012 with the aim to change the conversation around America’s millions of military veterans. In the military, “got your six” is a term that means “I’ve got your back.” Uniting the resources of the entertainment industry with a coalition of more than 30 veteran-focused, nonprofit partners, the collaboration is dedicated to improving veteran reintegration, celebrating veterans as leaders and civic assets, …read more
Source: FULL ARTICLE at DailyFinance
When he’s in the city where he first made it big, Michael Kors tends not to throw fancy dinner parties. “At the beach, certainly. But in New York, it’s work, work, work,” the designer told Style.com on Saturday night, at an intimate sit-down he was hosting at the Four Seasons’ Grill Room for the likes of Hilary Rhoda and Mario Testino. There was a bit of work involved, but not of the usual sort. The occasion was the launch of a new partnership between Michael Kors and the UN’s World Food Programme, for which the label has created two new styles of its best-selling Runway watch; for each one sold, 100 meals go to hungry children.
Halle Berry, who’s helping promote the cause, made her first outing since the announcement (well, TMZ discovery, to be precise) that she’s got a second child on the way. Of Kors, she said, “He’s all about walking the walk.” The two will be hitting the ground together at some point for a site visit, probably in Africa, the actress said, but haven’t decided where and when. “I’m pregnant, so I can’t go to places where I have to get a lot of vaccines.”
For both charity-minded stars, the initiative represents a global expansion of their philanthropic efforts. (Kors has been working with God’s Love We Deliver, a New York organization that provides meals to the ill, for about two decades.) “The World Food Programme has no borders,” Kors pointed out. “Regardless of war, drought—they have the trucks, the planes, the people on the ground, and the access to the food.”
An impressive operation, to be sure, and one that deals with problems that can seem worlds away from soigné evenings like this one, where the major dilemma was the address mix-up that caused some models to arrive a few minutes late. Confessed Constance Jablonski, “We went to the wrong Four Seasons!”
—Darrell Hartman …read more
Source: FULL ARTICLE at Style Features
By Andrew Marder, The Motley Fool
Filed under: Investing
When your whole business depends on selling fashion to the masses, the last thing you can afford to do is be out of touch with what’s going to be hot. While winter seems to have dug in its heels, spring really is just around the corner, and that means a new season of trends. Here’s a look at three of the biggest consumer trends coming down the pike, and a few companies that are hoping to make the most of them.
Let us cultivate our garden
Almost every runway this season was awash in floral prints — dresses, skirts, shirts, pants, everything. While almost every brand will have some versions to sell this spring, there are especially interesting offerings from Aeropostale and Fifth and Pacific brand Kate Spade. Aeropostale is focusing on the lower-end crowd with less-expensive items such as $25 dresses. That’s the brand’s style, and hopefully it’s going to pay off. In its last conference call, the company said the first quarter was off to a slow start. Having trendy offerings should help boost performance, but only if the weather cooperates.
At the higher end, Kate Spade is doing what it does best — clean lines and fashionable designs. The brand had a stellar 2012, with a 57% increase in revenue in the last quarter. This spring, the brand is rolling out a new line of $400 dresses and $200 skirts that aim at the fashion-forward customer. The company is also going to increase its focus on the Kate Spade Saturday brand this year, so look for new prints from that lower-priced brand soon.
The new trend on the block
If you’re not wearing a floral print, you’re probably going to be in a bold stripe or color-blocked outfit this spring — or maybe you’re a guy. Leading the solids pack is Michael Kors , with a selection of dresses and skirts at a wide range of price points. The lines on Kors’ clothing are slimmer than those of either Kate Spade or Aeropostale, both of which have color-blocked offerings of their own.
For the past few years, Kors has been on the bleeding edge of mass-produced style. The company had a 41% increase in comparable-store sales last quarter, as customers rushed in to be part of the “in” crowd. This spring should be no different, even though the company has said sales growth is going to slow over the coming quarter. But Kors has a strong relationship with its suppliers and feels confident that any change in style can quickly be reflected on the company’s sales floors.
Peek-a-boo
Finally, expect to see a whole bunch of people running around in sheer layers and dresses with cutout sections in them. This trend has already been gaining steam, and the spring is just going to see it expand. As usual, Abercrombie & Fitch is happy to swoop in when the recipe for success includes baring …read more
Source: FULL ARTICLE at DailyFinance
By Andrew Marder, The Motley Fool
Filed under: Investing
It looks like Juicy Couture and Lucky Brand have become too burdensome for Fifth and Pacific to handle. The company is reportedly looking to sell off the brands, leaving its portfolio centered around the fast-rising Kate Spade brand. Lucky has had some success in the past year, though Juicy has languished, stuck with the velour tracksuits of yesterday. While Fifth and Pacific hasn’t confirmed the rumors, the sale would make a lot of sense, and likely leave the company better off.
The Kate phenomenon
The biggest benefit to losing the brands would be the freedom it gives Fifth and Pacific to focus on its leading brand. Kate Spade had a 27% increase in direct-to-consumer comparable sales last quarter. The company has made the brand the focus of most of its recent presentations, going so far as to have an investors’ day in March that focused solely on Kate Spade. Conversely, Lucky saw only a 3% increase in comparable sales, and Juicy had a 2% decline.
Kate Spade has been the clear winner, competing well with both Coach and Michael Kors . While Kors saw a much larger jump in comparable sales — 41% last quarter — Kate’s increase is nothing to be overlooked. It far outpaced the 2% drop Coach’s North American stores experienced last quarter.
News of the potential sale sounded great to investors, and the stock jumped 7% during the day yesterday. That’s largely due to the fact that Fifth and Pacific would be free of the drag that Juicy has been exerting on the company. Management forecast negative sales growth for the brand in the coming year.
A good buy
Even though Juicy and Lucky have been lackluster recently, both brands still have a lot of recognition and would make a nice addition to many portfolios. While Fifth and Pacific hasn’t commented on the rumors yet, it would make sense to see both brands sold off to the same buyer, with Lucky sweetening the deal and covering for the weaknesses of Juicy. EBITDA increased at Lucky by 37% over the last year, helping to offset the 62% decline at Juicy.
As more details emerge, this will surely turn into better news for Fifth and Pacific shareholders. The company is reportedly sending out detailed information to sellers in the next week, and the sale could move quickly after that. While it’s still early, I wouldn’t be surprised to see a sale before the end of May. Keep your eyes on this one.
Michael Kors is one of today’s hottest high-end fashion brands, and that’s translated into one of the best-performing stocks in retail — since its debut on the market in late 2011, the share price has more than doubled. But with all that growth, has the stock finally become too expensive, or is there still room left to run? The Motley Fool’s new premium report on Michael Kors gives investors all the information they …read more
Source: FULL ARTICLE at DailyFinance
By Andrew Marder, The Motley Fool
Filed under: Investing
In a moment of public reflection last month, Fifth and Pacific highlighted what it called its “dark days” in a presentation to investors. Those days were back in the mid-2000s, when the Kate Spade brand “fell asleep.” But the company insisted that the brand has been reawakened, and that it now constitutes one of the most powerful growth drivers of Fifth’s portfolio of brands. With strong growth last year and a clear plan for 2013, that’s an argument that’s hard to ignore. Here are a few reasons to consider adding Fifth to your portfolio, and one danger to watch out for.
Making the most of trends
Kate Spade is the company’s largest branded segment. The brand accounted for 25% of revenue last quarter, with Lucky Brand jeans making up 15%, and Juicy Couture adding 8%. The other 31% came from Adelington Design Group. Unless you’re an investor in Fifth, it’s unlikely that you’ve come across that name. The division makes all the accessories that Fifth sells through JCPenney, Kohl’s, and other outlets. It also makes the company’s previously eponymous Liz Claiborne-branded merchandise.
Kate Spade is sitting at the top of the trend heap right now, next to Michael Kors . The brands are like co-captains in the handbag brigade. Kors is leading the high-end, serious side, with comparable sales up 41% last quarter and its name on everyone’s lips. But Kors doesn’t have a hold on the lighter, brighter side like Kate Spade does. The 27% growth from the line shows just how much people like these bags, and Kors’ strength isn’t going to hurt that growth at Kate Spade.
All of the company’s brands have one thing in common — they’re able to chase and create trends. Kate Spade is the current leader in that category, as evidenced by the brand’s 27% increase in comparable direct-to-customer sales last quarter. The laggard is Juicy, which had its day in the sun a few years ago and is currently struggling to stay relevant.
The Juicy problem
Juicy is the one dark spot on an otherwise bright company. Last quarter Juicy’s EBITDA shrank like Honey‘s kids, down to 7.8% from 19% a year ago. Management knows that there’s a problem, and on the last earnings call said that the solution is to refocus the brand. The hope is that Juicy can get a boost from its e-commerce distribution channel, which has shown some strength. Then, over time, Fifth will rebound just like the company’s other brands have.
With good reason to believe management has a handle on the issue — given the track record with Kate Spade and Lucky — I see no reason not to like Fifth and Pacific. The company has a strong mix of brands and a great plan for growth in place. It’s a clear winner in my book.
More on Kors
Michael Kors is one of today’s hottest high-end fashion brands, and that’s translated into one of …read more
Source: FULL ARTICLE at DailyFinance
By Andrew Marder, The Motley Fool
Filed under: Investing
It’s been an odd year for Michael Kors investors. The stock is up 11% from the beginning of 2013, but it’s down 12% from its 2013 high. Sales have continued to be strong, and there’s a lot to look forward to from the high-end designer, but there are a few red flags lurking on the edges. Kors has started to make a habit of insiders selling off shares, and growth has been so high that it seems almost impossible for the company to sustain. Here are three areas to watch closely before jumping onto the Kors bandwagon.
Insiders sell the family silver
Profit-taking is a part of investing, for most people. While Warren Buffett may hold his stock until the end of time, most of us sell things when we want to lock in some gains, or get free cash for new investments. But it’s hard for investors to watch insiders sell big chunks of companies, especially when those insiders are founders of companies named after them.
Over the past year, Michael Kors — the guy — has cut his holding down to 2.4% of the company. The most recent sale came in February, when he sold $185 million worth of stock. That should be a warning sign for any investor. Of all the people that should have faith in the brand, Kors should be at the top of the list. Add to that the sell-off that came from CEO John Idol — 2 million shares in February — and the picture of internal optimism looks dismal.
Sales strength
If you had to come up with a reason for the timing of the sell-off, it would be easy to assume that sales might be nearing their apex. Last quarter, the company managed a 41% increase in comparable sales and a 70% increase in revenue. While big growth isn’t unheard of, investors should be on the lookout for any weakness in that growth. Competitors like Coach have seen sales slow recently, in part due to their own failures — Coach neglected its core audience — and in part due to macroeconomic concerns. One of those is out of Kors’ hands.
This is especially important for Kors, as the company is expanding into the Asian market. Recent reports out of China have indicated that the government is cracking down on luxury gift-giving among party officials. Kors is not currently in China, but it plans to expand there in the next few years. A severe slowdown in Chinese spending would bode ill for the company’s long-term international prospects.
Valuation
The final kicker for Kors is the premium that investors are paying for the company. Kors is trading at 32 times earnings, in an industry that has an average P/E of 23. Any bump in the road could lead to a setback, as highlighted by the recent falls associated with insider selling. Right now, Kors is a premium retailer trading at …read more
Source: FULL ARTICLE at DailyFinance
By Andrew Marder, The Motley Fool
Filed under: Investing
It’s been a bad year for Coach . The company has been steadily taking it on the chin since missing an earnings estimate in January. In the last quarter of the 2012 calendar year, Coach lost focus on its core brand, and spent too much time hyping its men’s and international offerings. Those areas did well, but at the expense of U.S. sales of women’s handbags. That’s a bad miss, and the fall from grace is at least partially deserved. But there’s still a lot of room left for Coach to run, and even rivals like Michael Kors aren’t going to be able to stop it from making headway. Here are three reasons you should consider adding Coach back into your wardrobe.
Financial security
Coach may have made a branding misstep, but its CFO, Jane Nielsen, has kept it on the straight and narrow when it comes to the books. In that last quarter, the company generated free cash flow of $567 million, which was only a small drop from the $572 million a year ago considering that the company moved up its dividend payment to the end of December. Along with being cash-friendly, the company also has little long-term debt, only $23 million at the end of last year. That’s the kind of cash cow that investors should love.
That strength comes mainly from the company’s excellent margins. Gross margin was still above 70% last quarter, and operating margin was 35%, a half a percentage point increase over the previous year. All of these financial strengths point to the second reason that I still like Coach.
Brand strength
Yes, I know that Kors is growing like kudzu. The company boasted a 41% increase in comparable-store sales last quarter — which is just mean. Who does that? Coach is having to contend with those sales, but the success of Kors doesn’t mean the death of the Coach brand. However, it can’t be overlooked that Coach did have a 2% drop in comparable sales last quarter. As investors, we have to decide if that’s the beginning of a trend, or merely a bump in the road, and I believe we’re looking at a bump.
The main reason that Coach saw a drop could be seen in its windows and on its website — it focused too heavily on men. The company made the right choice to open more men’s locations and add more menswear to its existing locations, but it made the wrong marketing move. By focusing on menswear, it allowed Kors and others to step in with easy sales to women. The company has recognized that shortfall, and now it needs to do something about it, which I believe it will. This isn’t going to be a one-quarter spring-back, but Coach should be back on track by the end of the year.
Brand integrity
The final reason I like Coach is tied to both its brand and its …read more
Source: FULL ARTICLE at DailyFinance
By Dan Dzombak, The Motley Fool
Filed under: Investing
Each week I cull a top stock idea from the pitches made on CAPS, the Motley Fool‘s 180,000-member free investing community. Want your idea considered for this series? Make a compelling pitch on CAPS with a minimum length of 400 words. Want to follow the weekly picks? Follow me on Facebook or Twitter.
|
Company |
Coach |
|
Star Rating |
**** |
|
Industry |
Consumer goods |
|
Market Cap |
$13.93 billion |
Sources: S&P Capital IQ, Yahoo! Finance, and Motley Fool CAPS.
Coach investors have had a rough year, with the stock down almost 35% in the past year and down 10.5% year to date after the company missed earnings expectations in January. The company is attempting to reinvent itself as a “lifestyle” brand as it strives to compete with fast-growing competitors Michael Kors , Ralph Lauren , and Tory Burch, which benefit from their famous founding fashion designers. The stock is down as investors are nervous over the company’s transition which will include a new CEO next year. Some investors think the drop is an opportunity, including CAPS All-Star NovaTodd. Last September, NovaTodd picked the stock to outperform the market over the next five years, and just last week, NovaTodd made a pitch for Coach.
Coach Outperform Pick
|
Pitch Submitted By: |
|
|
Member Rating: |
84.80 |
|
Submitted On: |
March 20, 2013 |
|
Stock Price at Original Outperform Recommendation: |
$53.33 |
Sources: S&P Capital IQ, Yahoo! Finance, and Motley Fool CAPS.
This Week’s Pitch:
I bought yesterday at $48.00. I consider this a bargain for a company with such an outstanding track record of efficiency and profitability. ROIC has been consistently north of 40% over the past several years, and checked in at 56% last year; sales per square foot is close to $2,000 and ranks among the very best in the retail sector. Coach has a rock-solid balance sheet with a strong cash position and minimal long-term obligations; in fact, FCF generated last year alone adds up to about 80% of total liabilities on the balance sheet.
The valuation looks good right now: Price/Cash Flow is about 11.5, which is below the industry average of 16 and the company’s own five year average of 15. The shares yield 2.4%, and the current dividend payout is only about 35% of free cash flow. Realistically, the shares could yield north of 4% in five years using the current price and applying a fairly conservative growth estimate to the dividend. The share count has also been in decline over the past few years.
I’m no fashion aficionado, but I think Coach has built a durable brand that will continue to command a premium price for the next several years.
Another fresh idea
The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and …read more
Source: FULL ARTICLE at DailyFinance
By Michael Lewis, The Motley Fool
Filed under: Investing
Luxury luggage company Tumi is coming up on its one-year IPO anniversary. In typical hot-IPO fashion, the stock came out priced like its $3,000 duffel bag, and even with solid results, it has struggled to move meaningfully in either direction. Part of this was due to insider selling, including much of Doughty Hanson‘s 60% stake, but it was mainly a case of sky-high valuation. Now, sailing into year two as a reemerged public company, it delivered lackluster results that sent investors and analysts on a bear run — dragging the stock down 10 points with them. But with renewed interest in luxury goods consolidation and a favorable market, are Tumi’s shares on sale?
A troubled start
Tumi sells a very well-made product that sets itself apart from the competition and commands prices seen only in the upper echelons of the luggage world. While a Samsonite is good enough for most of us, Tumi offers exclusivity and craftsmanship to those with thousands to spend on a roller suitcase.
As mentioned above, the company came out on the public markets last year, when other high-fashion accessory companies such as Michael Kors were mopping the floors with tremendous sales figures and rocket-ship stock prices. Tumi hasn’t had such luck, unfortunately, with the stock down nearly 12% since its market debut.
This week, the company delivered its fourth-quarter and year-end earnings, and the Street was not satisfied. Tumi earned $0.25 per share for the quarter, missing estimates by $0.01. Top-line sales came in at $126.8 million, a near 19% gain over the prior year’s numbers, but still short of Street expectations of $128.58 million. To finish the triumvirate of disappointment, the company delivered guidance that fell short of Street expectations. Tumi management expects this year’s EPS to come in between $0.82 and $0.86, short of the $0.88 analyst consensus.
Now, missing Street expectations can mean very little in the long term, and even create short-term buying opportunities if the underlying value is superior. The luxury goods market is still expected to grow in the double digits, driven by Asian sales, and there is even talk of consolidation among brands. Does this bode well for the recently price-slashed Tumi?
Value talk
You haven’t seen many value investors circling the high-fashion brands in the last couple of years. Michael Kors, a company that is without doubt growing at incredible rates and capitalizing well on its Asian expansion, has a trailing EBITDA that trades at nearly 18 times its enterprise value. Even though it’s actually at a discount to ratios a few months back, that is still a hefty premium to pay.
If Tumi comes in at the high end of its guidance, $0.86 per share in full-year 2013 earnings, that implies a P/E of 24.7 times — still a far cry from anything close to value-oriented. Of course, a stock doesn’t have to trade dirt cheap to be a winner for your portfolio.
Industry …read more
Source: FULL ARTICLE at DailyFinance
By Rick Aristotle Munarriz, The Motley Fool
Filed under: Investing
True Religion is having a crisis of faith this week.
Its founding CEO was shown the door earlier this week, and now there’s chatter that buyout talks for the maker of high-end casual wear have stalled. The stock is trading lower today on news that bidders are dropping out as True Religion‘s price has moved higher on the takeover speculation.
Shares of the apparel retailer popped in October after revealing that it was exploring strategic alternatives. It seemed to be a bad sign that the CEO would step down at this juncture, before a buyout was announced. Jeff Lubell was the company’s chairman, CEO, and creative director. If an acquisition was coming soon, one would think that the buyer would want Lubell around to make sure that the baton was being handed over as smoothly as possible.
However, some viewed Lubell as an obstacle, according to the New York Post. Founding CEOs can be stubborn that way. Sources are telling the paper that the three potential private equity firm buyers have dropped out of the bidding process.
True Religion‘s stock was at $21 before the retailer went public, and a buyout at $30 may have been realistic; but the fear here is that a buyer would have to pay more than that now that the stock has been floating in the mid-$20s.
Let’s buck fashion. Let’s play contrarian here. Let’s argue that True Religion doesn’t need a buyout.
It may have been shameless to be a company selling a pair of jeans for $300 during the darkest recessionary stretches, but the economy’s humming along now. Smaller rival Joe’s Jeans hit a two-year high last week. Analysts see True Religion growing revenue and earnings at healthy rates in the high single digits, and Joe’s Jeans is growing even faster.
Last month’s monster report by Michael Kors was an eye opener. The retailer of upscale handbags and accessories stunned the market with a 70% spike in revenue on an amazing 41% spike in comps.
Investors shouldn’t necessarily expect this kind of burst at True Religion, or even the faster growing Joe’s Jeans; but consumer appetite for luxury goods is moving in the right direction.
Let the bidders drop out of True Religion. If the economy continues to inch in the right direction, Mr. Market will be willing to pay more.
You may not dress like you’re rich, but it’s not too late to be rich
Are you part of the 99%? The Motley Fool’s new free report highlights three less-than-luxurious stocks the 1% may be overlooking. Just click here to read it now.
The article True Religion Doesn’t Have to Sell Itself Cheap originally appeared on Fool.com.
Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services …read more
Source: FULL ARTICLE at DailyFinance
By Dan Caplinger, The Motley Fool
Filed under: Investing
Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Francesca’s Holdings is about to release its quarterly earnings. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.
The retail space is a crowded one, with every player seeking out its own niche. For Francesca’s, the company’s retail boutiques combine apparel, jewelry, and accessories under one roof. But is that enough to distinguish the company from its many rivals? Let’s take an early look at what’s been happening with Francesca’s Holdings over the past quarter and what we’re likely to see in its quarterly report on Tuesday.
Stats on Francesca’s Holdings
|
Analyst EPS Estimate |
$0.30 |
|
Change From Year-Ago EPS |
50% |
|
Revenue Estimate |
$84.9 million |
|
Change From Year-Ago Revenue |
38% |
|
Earnings Beats in Past 4 Quarters |
4 |
Source: Yahoo! Finance.
Will Francesca’s Holdings keep its earnings-beat streak alive this quarter?
Analysts have pushed up their views on Francesca’s slightly in recent months, adding $0.02 per share both to their earnings consensus for the just-ended holiday quarter and to their fiscal 2014 views. The stock has climbed as well, rising about 11% since mid-December.
Francesca’s gave investors reason to celebrate a bit early this quarter, as it boosted its guidance even before the quarter finished. Back in mid-January, Francesca’s said that sales during the holidays had been slightly stronger than it had initially projected, leading it to push its sales and income estimates slightly higher, in line with what analysts now expect.
So far, Francesca’s has done a spectacular job of building growth in the often-fickle young-adult retail segment. Upscale retailers Michael Kors and Coach were among the first to discover the value of including accessories and jewelry among their collections, but Francesca’s has used the same strategy in its own niche with impressive results. Moreover, Francesca’s commitment to bringing new merchandise to its stores on a weekly or even daily basis inspires repeat visits, helping produce the amazing same-store sales the company has posted.
In Francesca’s quarterly report, watch closely at how CEO Neill Davis continues to expand on his own vision for the company going forward. With Davis having taken over the reins from former CEO John De Meritt last fall, Francesca’s needs to establish its continuing ability to grow quickly in order to justify its relatively high current valuation.
As hot as Francesca’s is, Michael Kors is one the best-performing stocks in retail. But with all that growth, has Kors finally become too expensive, or is there still …read more
Source: FULL ARTICLE at DailyFinance
The rumors were true: Vogue today revealed that First Lady Michelle Obama is indeed the star of its April cover and, as suspected, she’s wearing a Reed Krakoff dress selected from her personal wardrobe.
Photographer Annie Leibovitz shot the cover in the White House’s Green Room, and also captured Obama wearing a sweater and ball gown from Michael Kors. In another portrait, the first lady drapes her arms around the chest of a seated President Obama in the Red Room.
More details on the cover here. …read more
Source: FULL ARTICLE at fashionologie
By The Huffington Post News Editors
Michelle Obama’s Vogue cover is finally here!
After weeks of speculating (and speculating), the first lady’s second cover for the fashion glossy has arrived — and it’s absolutely stunning. As expected, photographer Annie Leibovitz shot Michelle, who wore a blue and purple Reed Krakoff sheath plucked straight from her very own closet. The green background, the cool color palette and the choice to wear Reed Krakoff definitely reminded us of FLOTUS’ official portrait.
Vogue’s fashion editor Tonne Goodman led the team styling Mrs. O and the president, who appears in a photo inside the mag with the first lady. Also in the editorial? A third shot of Michelle wearing an elegant Michael Kors ball skirt and sweater. To accompany the shoot, the first couple was interviewed by Jonathan Van Meter, discussing parenting, marriage and their duties while presiding in the White House. Of course, since this is Vogue, they also talked fashion.
By Andrew Marder, The Motley Fool
Filed under: Investing
Despite overwhelmingly underwhelming sales reports earlier this month, and even as consumer confidence bounces around, and even as long-term unemployment steadily rises, overall retail sales somehow managed to be good. It makes me wish there was a bit of punctuation that was both a period and a question mark. Sales excluding autos and gas rose 0.4% in February, which beat analyst expectations, according to Bloomberg. That increase came on the back of a small increase in January and is being heralded as showing the “underlying strength ” in the economy.
Not surprisingly, investors are yet to be impressed. After more than a week of rallying, it seems that it takes more than a slightly positive outlook to get retail stocks to budge. Gap , Target , and Michael Kors were all just ahead on the day, while Limited Brands and Williams-Sonoma were down.
The befuddlement of the market poses the question, “Do macroeconomic trends mean anything anymore?”
The confusion of the market
Often, these sorts of reports will move one end of the retail stock market, pushing luxury goods or apparel up, for instance. That’s not the case today, as the contrast between Kors and Williams-Sonoma, or Gap and Limited Brands, highlights. Today, everyone is just out there trading as if nothing new has happened. In a sense, that’s what’s driving the confusion in the market — nothing new has happened. February sales figures are in the past, and most companies have already reported on those sales if they’re going to.
Gap and Limited Brands both had 3% increases in comparable sales in February, with both brands continuing strong runs. The new retail report won’t change those already reported outcomes, nor will it affect the softness in consumer sales in China that dragged down Kors earlier this week. But that doesn’t mean that investors should completely ignore these reports, as they provide an insight into future growth.
What’s coming up next?
February’s report included a revised forecast for U.S. spending over the next quarter, and suggested that it was going to be stronger than anticipated. That growth is going to be driven by an increase in inventories that analysts expect will fuel sales. The dramatic increase — the largest since 1995 — is certainly evidence of optimism from businesses, though it remains to be seen if that optimism is justified.
One of the things investors need to watch out for is that this growth comes at a time when it probably shouldn’t. Payroll taxes and gas prices have risen over the past few months, and as a JPMorgan Chase analyst said, “[The consumer seems] to be shrugging off the massive drag to income from higher tax bills and has continued spending as though nothing’s changed.” He thought that was good news, but I’m not so sure.
The worry I have is that companies at the higher end are benefiting from consumers who are spending money that they don’t have. That’s going …read more
Source: FULL ARTICLE at DailyFinance
By Andrew Marder, The Motley Fool
Filed under: Investing
When you hit a speed bump at 15 miles an hour, your car makes that little bumpy noise and you think about getting your CV joints inspected. When it hits the same bump at 120 miles an hour, you take your bumper home in a sandwich baggy.
It’s not surprising that a new report on the growth of Chinese retail sales for the first two months is having an effect on fast-moving retailers with operations in the country. Michael Kors , Coach , and Fossil are all exposed to China, and each faces a separate problem if sales stay low.
Slowdown in Chinese sales
Taking industrial output as the signifier, China is having the worst start to a year since 2009. The company increased output by 9.9%, compared to 10.3% in December of last year. That decrease in the rate of production was layered on top of an increase in inflation, which rose 3.2% in January, driving up the cost of food and hitting its highest point since April 2012. Those issues combined to push sales growth down to 12.3% — analysts had been expecting 15%.
The worrying part of the equation for investors — because 12.3% growth isn’t exactly bad — is that the slowdown may continue. Analysts are starting to detect a pattern in China, one of investment-driven growth with lagging consumption growth. That’s clearly bad news for companies that are trying to sell things in China. That bad news may be amplified by a downturn in lending, with signs pointing to a shorter leash in the hands of the central bank.
What it means for investors
The market is worried that Kors is going to get sunk on a slowdown. Shares were down 5% yesterday, which is only adding to the woes of Kors’ investors, who have seen the stock flounder over the past month. But it’s not all bad news in China. The company recently came out on top of a study of online brand demand in China, with handbags taking a full 51% of searches for fashion items. Kors has said that there’s a lot of growth potential for the brand in the region. Right now, it operates 65 stores in that part of the world, and CEO John Idol has said that the company plans to expand that up to 150 stores .
A slowdown in China is not going to be the end of the line for Kors. It is expanding everywhere and had 41% comparable-sales growth in the U.S. last quarter and 58% growth in Europe. The news isn’t great, but I’d be surprised if it translated into anything meaningful in three months. The brand is simply too strong right now to be damaged by minor macroeconomic headwinds.
Coach and Fossil are in slightly different places. Coach is already heavily invested in China, operating 117 stores as of January with a plan for another 10 in the near future. The company gets about …read more
Source: FULL ARTICLE at DailyFinance
