- Wall Street, Investors Have Lost Patience With Slowing Michael Kors Sales, EPS

- But 66% Stock Drop Overdone; Shares Are an Option on Versace, Jimmy Choo Growth

- CPRI Makeover, Diversification Should Raise EPS, Growth and Boost Stock Price

In a year that has seen the broad market soar by about 25%, shares of luxury products maker Capri Holdings (CPRI) have gone decidedly the other way. CPRI is in recovery mode this year and doesn’t get much love from either investors or Wall Street. For example, only about 40% of the analysts who follow it have a Buy rating on it.  Given the Street’s typical optimistic bent, that counts as half-hearted regard at best.  I see this as a positive contrarian indicator.

Meanwhile, the stock action reflects market disdain. As recently as the summer of 2018, CPRI shares traded at $75, very near its all-time high. But they have since fallen by a about two-thirds to $36 lately.  Why the cold shoulder?

Granted, the Michael Kors business, at 75% of total sales the most important of Capri’s three main brands, has been sluggish of late, after years of powerful growth.  As recently as the fiscal year ended March, 2016, Kors sales rose a solid 8% to $4.7 billion, but in fiscal 2019 Kors brand sales were $4.5 billion...

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