Michael Kors CEO Sells 2M Shares Amid Asian Expansion
Michael Kors, the luxury fashion brand, has seen its CEO, John Idol, sell 2 million shares in February. Meanwhile, the company's stock has fluctuated since 2013, currently up 11% from the start of the year but down 12% from its peak. The company is expanding into Asia, with China on the horizon, despite potential slowdowns in Chinese spending due to government crackdowns on luxury gift-giving.
Michael Kors has been on a strong financial trajectory. In the last quarter, it reported a 41% increase in comparable sales and a staggering 70% rise in revenue. However, the company's stock performance has been mixed. While it's up 11% since the start of 2013, it has fallen 12% from its 2013 high. The company is trading at a premium, with a P/E ratio of 32, compared to the industry average of 23.
The company's expansion plans include a push into the Asian market, with China being a key target in the coming years. However, investors should be mindful of potential slowdowns in Chinese spending on luxury goods due to government crackdowns on extravagant gift-giving among party officials. It's unclear who else, besides CEO John Idol and founder Michael Kors, has sold shares in recent months.
Michael Kors' strong sales growth and expansion plans into Asia indicate a positive outlook. However, the company's stock performance has been volatile, and potential slowdowns in Chinese spending could impact future growth. Investors should monitor these developments closely.
