Michael Kors Downgraded To Market Perform At Cowen & Co.

Michael Kors Holdings Ltd. was downgraded to market perform from outperform at Cowen & Co. and its price target lowered to $43 from $46. The firm said in a note that it based its downgrade on the findings of its National Handbags Survey, which indicates that growth in the handbag category is moderating and momentum for the Kors brand is slowing. The firm conducted channel checks in 30 states with 65 participants. Shoppers are turning their attention to consumer electronics and apparel, especially the denim and athleisure categories. Cowen notes that the Fall 2015 collection includes updated styling moves away from the trendy "It Bag" shapes and colors loyal customers are used to. Respondents indicate that inventories are growing in U.S. department stores. Cowen said its survey suggests Kate Spade & Co.'s handbags were preferred to Kors' and Coach Inc.'s , it said in a note. Michael Kors shares are down 48.7% for the year so far. Coach shares are down 19.8% for the same period, and Kate Spade is down 37.5% for the year-to-date. The S&P is up 0.8% for the year so far.