UPDATE: Citi Starts Michael Kors (KORS) at Sell

Citi initiated coverage on Michael Kors (NYSE: KORS) with a Sell rating and a price target of $38.00. Analysts see below consensus 2017 EPS.

"From 2010-2014, KORS had a retail run like we have never seen before, ending with ~300 stores, achieving sales of $2,000/sq ft and a wholesale business that was double its retail business at point of sale. But we believe they overdistributed the brand, and U.S. comps have just begun to decline, and we believe this decline will last for the foreseeable future. We expect significant EBIT margin and EPS declines over the next several years. While the stock does not seem expensive based on F17E consensus of $4.54, we are at $3.47," said Citi.

For an analyst ratings summary and ratings history on Michael Kors click here. For more ratings news on Michael Kors click here.

Shares of Michael Kors closed at $43.37 yesterday.

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