Michael Kors Holdings Ltd (KORS)’s Profits Signal Rise in Luxury Spending

For the next fiscal year ending January 31, 2014, diluted EPS forecasts range between $3.43 and $3.53. Analyst growth projections for the next five years are estimated at 11.7%, just under the industry average of 12.2%. The company recently named a new Senior Vice President of Northern America to drive sales in the company’s largest region.

Conclusion

As long as affluent consumers continue their selective spending spree, luxury brands should see improving sales. An improving job market and the long-term possibility of increasing wages and salaries could also benefit these luxury brands. Michael Kors Holdings Ltd (NYSE:KORS) may have the greatest upside potential of the three; the company has an estimated 5-year growth of 28% versus 11% for Coach and Tiffany.

Analysts surveyed by Thomson Financial Network rate the three stocks “buy.” Kors, however, seems like a better choice over Coach and Tiffany, which seem to be having a harder time dealing with soft demand and competitive pressure within their more limited product lines.

Eileen Rojas has no position in any stocks mentioned. The Motley Fool recommends Coach. The Motley Fool owns shares of Coach.

The article Michael Kors’ Profits Signal Rise in Luxury Spending originally appeared on Fool.com and is written by Eileen Rojas.

Eileen is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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