Michael Kors'S Stock Has Been Cut Down By Analysts.

Another organization is not optimistic about Michael Kors. The US investment bank Coven & Co. has lowered the stock rating of the US luxury brand Michael Kors, from the original "overweight" to the current "flat", and its stock price forecast has also been reduced from 46 US dollars to 43 US dollars.

However, the rating adjustment of Coven & Co. appears to be a bit late - up to now, the share price of Michael Kors has dropped by 48.7%. In fact, as early as January this year, another Swiss investment bank, Credit Suisse, has downgraded its Michael Kors stock rating from "buying" to "neutral" because of worries about brand stock rising, weak sales and continuous price reduction. The target stock price has also been reduced from 103 US dollars to 79 US dollars.

Together with Michael Kors, Messi store in the United States was also downgraded from "overweight" to "flat" by Coven & Co., whose target price was adjusted from $70 to $52. This is also a lags down rating, because Messi's stock price has fallen by 27 percentage points in the year.

Although Messi's latest earnings report will not be released until November 11th, Coven & Co. has been pessimistic about its third quarter growth trend in the same store, and believes that its fourth quarter performance also has great risks. After the downgrade, Michael Kors's stock price rose slightly, rising 1% to 39 dollars. Messi's stock price dropped 16 cents to $47.78 a share.

The Coven & Co. decided to downgrade the Michael Kors rating. The most direct reason is that Michael Kors's performance in handbag sales is not satisfactory. The agency made a nationwide campaign for the US market. Handbag The survey shows that American consumers will pay more attention to consumer electronics and jeans, sportswear and other clothing products, and the sales volume of the entire handbag category is slowing down.

When it comes to brand names, the survey results show that the sales growth of Michael Kors handbags has slowed down significantly and store inventories have increased sharply. Meanwhile, compared with Michael Kors's handbags, consumers surveyed have shown stronger willingness to purchase Kate Spade and Coach with the same luxury brands.

Such findings, and Michael Kors The earnings performance is also very consistent. The Michael Kors 2014/2015 fourth quarter report released in May 27th on the US time showed that from January 1, 2015 to March 27, 2015, the growth rate of Michael Kors sales was only 17.8%, the lowest since the 14 quarter.

Once the king of profit, handbags became less popular. And in competition, Kate Spade And Coach adopt the strategy of reducing discount, streamlining stores, developing new product lines and reshaping brand image. Michael Kors, which is open everywhere and products are aging, obviously does not take any advantage. Moreover, when it is forced to adopt aggressive marketing strategy, because it has more inventory and slower sales, it also needs to solve the problem of dilution of brand value.