The easy answer behind KORS double digit drop on Nov. 7 is that the company missed its revenue estimates, but we used Viewer to go beyond the operating performance and pull 3 insights that might have easily been missed by analysts not using natural language processing.
Michael Kors (KORS) reported Q2 2019 earnings on 11/07 and the stock price dropped ~14.6%. It's easy to spot that KORS missed its revenue estimates, but we used Amenity Viewer to unpack the story behind the company’s operating performance to quickly identify 3 insights that could have easily been missed by analysts.
The company had been steadily gaining traction over the past year, but its performance was overturned by the shaky results over the past quarter. The decline in comparable store sales for Michael Kors was driven by inventory troubles and higher markdowns:
The wholesales business in Europe was another pain point for KORS:
Next, we utilized Viewer's ability to pull out meaningful information from volumes of text to quickly analyze management's long-winded answers to analyst questions:
The Key Drivers provide a summarized view of the underlying factors behind a company's performance. The markdowns and higher costs from the Jimmy Choo business posed as a hurdle.
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This communication does not represent investment advice. Transcript text provided by S&P Global Market Intelligence.
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