Michael Kors Holdings Ltd (NYSE:KORS) stock plunged massively and lost 7.2% on Tuesday. Shares of Michael Kors have been downgraded by many experts to ‘Hold’ or ‘Sell.’ Many investors have degraded Michael Kors Holdings Ltd (NYSE:KORS) shares and investors are now bearish on the company because of the bad trend it experienced today. Discussing the decline of Michael Kors Holdings Ltd (NYSE:KORS) in a program, CNBC contributor, Herb Greenberg, said that decline of Micheal Kors was highly expected because of the last quarter trends by the company. He said that most of the experts have re-estimated the company earnings and they are now taking back their bullish predictions about the company. Greenberg thinks that Michael Kors Holdings Ltd (NYSE:KORS) is now red flagged and the coming weeks will be more bad for the company.
“The only news today is the company came out and told you when they are going to announce first quarter earnings and you almost want to think that there’s body language that’s going on, and maybe they’re sort of trying to walk the street down, without walking the street down, without having to put out an earnings warning,” said Greenberg.
Although Michael Kors Holdings Ltd (NYSE:KORS) has some strong areas in the market such as robust revenue growth, good financial position, solid stock price performance, a striking record of earnings per share growth, and a debt to equity ratio of zero, the company is still expected to lack the sustaining capabilities in the coming quarter.
Greenberg also said that the last quarter was sloppy for Michael Kors Holdings Ltd (NYSE:KORS). He said that the margins of the company are confusing and with absolutely no backing from the mainstream investors, it will do down in future.