Michael Kors' Stock Tumbles In Wake Of Fossil's Disappointing Results

Michael Kors Holdings Ltd.'s stock tumbled 12% to a 2 1/2-month low in morning trade Wednesday, weighed down by disappointing results from, and the subsequent plunge in the share price of, Fossil Group Inc. . Analyst Ike Boruchow at Wells Fargo Securities said he estimates that Fossil's legacy licensed portfolio suffered a year-over-year decline in the mid-teens percentage range during the latest quarter, which he believes "bodes quite poorly" for Michael Kors given that Kors' brand accounts for roughly half of Fossil's licensed business. Kors' stock was still up 9.4% year to date, but was down 30% over the past year. The S&P 500 has slipped 1.4% over the past 12 months.