Michael Kors (NYSE:KORS) designs, distributes and retails women’s accessories, footwear and apparel. Michael Kors shares fell 25% after North American comparable store sales fell 5.8% in the March quarter. A distribution center shutdown led to a temporary halt in ecommerce, and the winter product line was repetitive, cooling customer interest. The market went from expecting ongoing earnings beats to worrying the company is a fad that has run its course. Both issues are now resolved, and the fall product line appears much improved. We believe Michael Kors has multiple avenues of continued growth, including its international business and footwear. We established our position at an average price of $45.18, less than 9.5x March 2016 fiscal year earnings estimates net of the $4 per share in cash.
From David Einhorn (Trades, Portfolio)'s third quarter 2015 Greenlight Capital shareholder commentary.
