3 Things Michael Kors Does Right (And 1 Big Thing It Does Wrong)
For investors in global luxury fashion company Michael Kors Holdings Ltd (NYSE: KORS), the past few years have proven to be a trying time. Over the past year, the company has struggled to turn its business fortunes around. The company's stock price, which seems perpetually cheap in a bull market, has decreased 13% over the past year while the S&P 500 has shown gains north of 12%.
The company's 2018 first quarter results and conference call were a microcosm of everything the company's shareholders have been through over the past year: declining revenues and same store sales, encouraging tactics designed to stimulate sales being taken by management, and what appears to be a misguided strategy showing the flawed direction from the C-suite.
For value investors, the things the company is doing right, when combined with its attractive valuation, can sometimes make the stock hard to ignore. Yet a close examination should be enough to show that this company still has a long way to go before it can be relied upon to produce market-beating returns for shareholders. Let's quickly review three of the initiatives that management is getting right before showing that its faulty strategy could unravel everything management is trying so hard to accomplish.
Source: Fool.com
