Advertisement
Canada markets closed

  • S&P/TSX

    21,807.37
    +98.93 (+0.46%)
     

  • S&P 500

    4,967.23
    -43.89 (-0.88%)
     

  • DOW

    37,986.40
    +211.02 (+0.56%)
     

  • CAD/USD

    0.7275
    +0.0012 (+0.16%)
     

  • CRUDE OIL

    83.24
    +0.51 (+0.62%)
     

  • Bitcoin CAD

    87,340.64
    +640.87 (+0.74%)
     

  • CMC Crypto 200

    1,372.65
    +60.03 (+4.57%)
     

  • GOLD FUTURES

    2,406.70
    +8.70 (+0.36%)
     

  • RUSSELL 2000

    1,947.66
    +4.70 (+0.24%)
     

  • 10-Yr Bond

    4.6150
    -0.0320 (-0.69%)
     

  • NASDAQ

    15,282.01
    -319.49 (-2.05%)
     

  • VOLATILITY

    18.71
    +0.71 (+3.94%)
     

  • FTSE

    7,895.85
    +18.80 (+0.24%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

  • CAD/EUR

    0.6824
    +0.0003 (+0.04%)
     

Zacks Investment Ideas feature highlights: Michael Kors, Columbia Sportswear and Ralph Lauren

Zacks Equity Research
Updated
Abbott (ABT) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

For Immediate Release

Chicago, IL – August 27, 2018 – Today, Zacks Investment Ideas feature highlights Features: Michael Kors Holdings KORS, Columbia Sportswear COLM and Ralph Lauren RL.

Luxury Retail Is Hot and These 3 Stocks Are Among the Hottest

In a strong economy with low unemployment and rising wages, consumers with disposable income are increasingly interested in higher-end apparel and accessory choices. Three stocks in particular have handily outperformed the major averages in 2018 and their strong earnings and guidance and recent upward analyst revisions have taken all three to the top of the Zacks Ranks.

ADVERTISEMENT

Michael Kors Holding, which markets its own branded merchandise as well as Jimmy Choo shoes, blew away the Zacks Consensus estimate in fiscal Q1, beating their own previous guidance in revenue, gross margin, operating margin and EPS growth.  The company earned $1.32/share in the quarter, topping estimates of $0.94/share. Contributing to the gains were increases in revenues across the board in Retail, Wholesale and Licensing of the MK core brands as well as Jimmy Choo.

The company also raised guidance for full year 2018 by $0.25/share to a range of $4.90 - $5.00, “reflecting better than expected first quarter performance for both the Michael Kors and Jimmy Choo brands.

Analyst forecasts were updated accordingly with the Zacks Consensus estimate now at $5.01/share, up from $4.76/share before the August 8th announcement. KORS is a Zacks Rank #1 (Strong Buy).

Having repurchased approximately $100 million worth of shares in the quarter, KORS has $532 billion remaining in a previously authorized buyback program.

Columbia Sportswear recently posted its 16th consecutive earnings beat at the end of July, earning $0.16/share against an expected loss of $0.10/share. This represented an increase of 124% in earnings over the prior year period, thanks to a 21% increase in net sales – to a record $482M - and a 6% improvement in operating margins.

Share prices at Columbia have responded to the strong earnings performance, up over 200% since 2014 and 26% in 2018.

CEO Tim Boyle explained “Our better than expected second quarter and record first half results reflect continued momentum across our brand portfolio.” He continued, “We are excited about the second half of 2018, which we expect to include broad-based revenue growth, increased demand creation spending, and continued investment in our strategic priorities.”

The company raised full year earnings guidance to a range of $3.15 - $3.25/share. Analysts appear optimistic about the prospects of continued outperformance and the Zacks Consensus Estimate for 2018 now stands at $3.47/share, an increase of 16% over 2017. COLM is a Zacks Rank #1 (Strong Buy).

High-end fashion giant Ralph Lauren operates the venerable Polo brand and a dozen other labels, including Chaps and Ralph Lauren for Women. They manufacture and market clothing and accessories for both men and women across the spectrum from casual sportswear to formalwear as well as accessories and fragrances.

In RL’s most recent earnings release on July 31st – the company’s fiscal first quarter -  they beat on both the top and bottom lines, reporting earnings of $1.54/share on sales of $1.39B, versus Zacks Consensus Estimates of $1.39/share and $1.36b, respectively. It was Ralph Lauren’s 14th consecutive positive earnings surprise.

Full year 2018 earnings are now expected to be $6.64/share, up from $6.28 60 days ago. Estimates for 2019 have increased from $6.88/share to $7.15/share over the same period.  RL is a Zacks Rank #1 (Strong Buy).

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions. New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>

Follow us on Twitter:  https://twitter.com/ZacksResearch

Join us on Facebook:  https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Michael Kors Holdings Limited (KORS) : Free Stock Analysis Report
 
Columbia Sportswear Company (COLM) : Free Stock Analysis Report
 
Ralph Lauren Corporation (RL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research