The Zacks Analyst Blog Highlights: Michael Kors Holdings, Gildan Activewear, Hanesbrands, PVH and G-III Apparel Group
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).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
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 this stock.
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 19 cents.
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).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.