Michael Kors Holdings Ltd. was downgraded to neutral from buy at Janney Capital Markets on Wednesday. Analyst Adrienne Yih-Tennant said she's concerned about slowing growth at the luxury apparel and handbag designer's North America business, still about 80% of its total sales. Any such slowdown won't be offset any time soon by the company's European business, about 20% of its total, as it's still in "early-stage growth," she noted. Kors also is set to increase operating costs for investments including store openings and ecommerce. The company's fiscal first-quarter inventory grew faster than sales, which also could imply discount risk. She said she's also concerned about a slowdown in the global luxury market spending. Kors larger rival Coach Inc. on Tuesday slumped after reporting the worst North American same-store sales slide in company history. Kors stock fell 2% in early trade.
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