Michael Kors Shares Plummeted, Light Luxury Brands Also Encountered Cold Spell.

Michael Kors Hodlings Ltd. (NYSE:KORS) may be just a flash in the pan. Credit Suisse Group AG (VTX:CSGN) Credit Suisse released a negative rating to Michael Michael, resulting in a sharp fall in its share price on Tuesday and a 7% decline in its opening.

Credit Suisse analyst Christian Buss said the retail environment was tough, handbag demand declined and competition was intense.

Inventory rises, to deal with the adverse situation Michael Kors in the physical stores and e-commerce sites and through distributors to carry out large-scale promotions price reduction.

Michael Kors has been singing to the top of 101.04 in early 2014 after issuing a price of $20 in 2011. It rose to 40% in the first two months of 2014. However, in the second half of 2014, the stock market plunged sharply after the two quarter earnings, and the annual cumulative decline was about 7%.

Michael Kors inventory, promotions and profit margins have been problems in the past 1 years. The industry's concern about the group is the main reason for the poor performance of the company's stock price.

The latest quarterly results of Michael Kors and the achievements of its peers show the whole.

Faced with challenges, growth has slowed down.

As of the two quarter of September 27, 2014, Michael Kors sales increased by 16.4% in the same store, of which the growth rate in the North American market was only 10.8%, and two data were far below the 19% and 15% expected by analysts, which was significantly lower than the 24.2% in the first quarter.

Due to the expansion of Michael Kors, the brand is becoming more and more Cheap in the industry. The real problem of expansion is the high inventory. The stock growth rate of the company is higher than that of sales in the first quarter.

And inventory is also the core of Credit Suisse report. Credit Suisse said in its report that "more and more attention has been paid to the promotion of Michael Kors high end department stores". According to the report, the inventory sales ratio of the high-end department stores has increased from 5% in October 2014 to 31% in December.

The investment bank said that the inventory of Michael Kors has reached a record high level. 65% of its official website's handbag products are being promoted, which is the 6 of the investment bank's research.

The most popular brand in China.

At present, Credit Suisse has given Michael Kors a neutral rating after being overweight.