Michael Kors Holdings Ltd (KORS) Continues Its Run to the Top

Beyond its retail expansion, Kors also plans to push forward on two other fronts. First, it’s going to expand its shop-in-shop business from 500 North American locations to 1,000 locations. That’s going to help the business take advantage of the strong demand on the domestic front. Last quarter, comparable sales in North America grew by 35%.

Second, Kors is going to pull its online operations in-house. Currently, the company relies on Neiman Marcus for its e-commerce business, but it wants to change that in fiscal 2014. That’s going to add to the company’s bottom line, and should have an impact on gross margin as well.

One last point that investors need to watch out for is the coming promotional environment. Management said once again that it was expecting to have to go on the offensive price-wise, but that the time hadn’t yet come. At some point, margins are going to take a hit, but that time hasn’t come yet.

Overall, Michael Kors Holdings Ltd (NYSE:KORS) is well poised to take advantage of the momentum that it’s built up. As long as the company can continue to keep out in front of competitors, it should have no trouble bringing strong returns to investors.

The article Kors Continues Its Run to the Top originally appeared on Fool.com and is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends Fossil. The Motley Fool owns shares of Fossil.

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