Michael Kors Holdings Ltd. shares fell 2.4% to $64.43, and were one of the biggest S&P 500 decliners on Monday, after Sterne Agee analyst Ike Boruchow cut his fiscal 2015 per-share profit estimate by 3 cents and fiscal 2016 estimate by 13 cents. The analyst lowered his price target on the stock to $72 from $76. Boruchow said his store checks in February suggest Kors traffic has slowed, likely hurt by bad weather. Store employees noted that there were more sales of 50% off than usual, and said it was also taking longer than usual to clear out leftover holiday merchandise. Kors's online sales could be hurt by snow-related damage to an Ohio warehouse owned by a company that helps fulfill its online orders, the analyst said. "It's unclear how long this issue may persist," he said. "There could be a lengthy disruption to the nascent e-commerce operation." Boruchow said online was about 3% of the company's consolidated revenue in the fiscal third quarter, so there is some risk to sales in the fourth quarter. Kors on its website said "weather-related damage" to its "fulfillment center" has resulted in shipping delays.See related story.
Copyright © 2015 MarketWatch, Inc.
Continue Reading Below