Why Michael Kors Stock Dropped 21% in November
Shares of Michael Kors (NYSE: KORS) plunged 21% in November, according to data from S&P Global Market Intelligence, despite roughly inline fiscal second-quarter 2019 results from the luxury handbag, clothing, and accessories specialist. To be sure, nearly all of Michael Kors' decline last month came on Nov. 7 -- the first trading day after the company revealed its quarterly revenue had climbed 9.3% year over year to $1.25 billion, translating to a 4.5% decline in adjusted net income per share, to $1.27. Retail sales of Michael Kors' namesake brand remained roughly flat on a year-over-year basis at $643.9 million, roughly in line with the company's expectations, as contributions from new locations were offset by a 2.1% decline in comparable-store sales. Michael Kors also highlighted its impending $2.1 billion purchase of Versace -- though some investors are concerned that the company may have overpaid for its latest bounty. Assuming the acquisition closes as expected in the fourth quarter of fiscal 2019, Michael Kors will then be renamed Capri Holdings Limited.