Dollar Tree, Inc. (DLTR), Restoration Hardware Holdings Inc (RH), Michael Kors Holdings Ltd (KORS): 3 Innovating Retail Companies You Should Note

Like Restoration Hardware Holdings Inc (NYSE:RH) expands into new rooms of a house, Michael Kors Holdings Ltd (NYSE:KORS) has expanded beyond the traditional high-end handbags, excelling in shoes, watches, and even with men. Looking ahead, this is a company that’s hard not to like.

They have revenue growth over 50%, operating margins near 30%, and continue to see explosive growth in both North America and in Europe. At 32 times earnings the stock may appear expensive to some, but when you consider its growth, Michael Kors Holdings Ltd (NYSE:KORS) looks to be a good long-term value.

Final thoughts

The key with these three companies is strength in a struggling retail space. Due to the products and strategy of these companies, none miss a beat regardless of the economy. More importantly, each company still has space to grow, whether it be domestic or globally.

With that said, I do like Restoration Hardware the best of the bunch. They have the greatest comparable store growth and are yet to expand. Thus, I see great growth potential once the company penetrates additional markets. Nonetheless, I see great upside in each of these companies, as all are innovating in their own respect.

The article 3 Innovating Retail Companies You Should Note originally appeared on Fool.com and is written by Brian Nichols.

Brian Nichols is long RH and KORS The Motley Fool has no position in any of the stocks mentioned.

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