Michael Kors Downgraded To Hold By Canaccord

Michael Kors Holdings Ltd. was downgraded to hold from buy by Canaccord Genuity analyst Camilo Lyon. Lyon also lowered his price target on the stock to $76 from $97 a share. The analyst said he's increasingly concerned the "ubiquity" of Kors handbags and accessories, which represent about 70% of sales, is "perpetuating the need for a heightened promotional strategy to drive traffic and conversion." He said North American gross margin will likely be hurt as a result. He also expects European sales growth to slow. "The Kors consumer has become conditioned to wait for the sale," Lyon said. He said during the holiday season, his store checks showed the company cut prices on a "much broader" range of products compared to the year-earlier period. Kors shares inched up 0.2% to $71.66. The stock was down 4.6% this year as other analysts have expressed similar concerns.