3 Analysts Weigh In On Michael Kors; Concerned With Clearance Sales

A number of analysts released coverage on Michael Kors (NYSE: KORS) Tuesday, stating concerns of margin stability, increased inventory and discounted products.

Maxim downgraded Michael Kors from Buy to Hold with a price target cut from $109 to $85 a share. Analyst Rick Synder noted concerns of gross margin pressure and the unlikelihood of European revenue offsetting U.S. revenue.

Citigroup analyst Oliver Chen lowered his price target from $107 to $98 due to low expectations domestically. Chen expressed concerns of Kors increasing its clearance offerings for 30 percent of its locations.

Sterne Agee analyst Ike Boruchow reiterated his firm's Neutral rating and $92.00 price target. Boruchow stated concerns of margins and growth focus in Europe. The analyst believes Michael Kors will struggle to maintain its margins, while its sales growth should continue at its current strong pace.