Yesterday’s Facebook Inc. (NASDAQ:FB) earnings threw investors for a loop, but it wasn’t long before they caught up and pushed FB to a new record high.
On his latest appearance on Making Money, Shah Gilani dissects what gave FB their boost. He also shares the best way to play the VIX while it’s plumbing its low levels. Click to watch now…
Michael Kors Holdings Ltd. (NYSE:KORS) is buying high-end shoe retailer Jimmy Choo for $1.17 billion.
On the surface, it looks like a smart acquisition to add the high-profile, high-heeled fashion darling to the Kors stable of upscale offerings.
But there’s a lot more to it.
The acquisition is a huge gamble on a new old strategy that Kors initially succeeded in executing… then royally screwed up.
Based on what Kors’ management said about their plans for Jimmy Choo (and their own uphill battle in the retail Ice Age), any wrong moves now could sink Kors stock and any hope of reclaiming the high ground and fat profit margins the brand once commanded.
Here’s where Kors is headed, and how acquiring Jimmy Choo could be the final nail in the coffin…