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I wanted to start a thread where we could discuss COH vs KORS a bit. I've been interested in KORS for a while, but only own shares of COH.

In my own circle of friends and family I've noticed that KORS bags have become very popular. I'm 31 years old, same age as my wife, and the only expensive hand bag she owns is a KORS bag. Same with many of her friends. In fact I don't think I have any friends who own a COH bag. Not that my single experience is overly meaningful, COH makes a lot of money and will continue to do so. It's simply an observation I've made which has gotten me interested in KORS and I wonder if KORS is becoming the more popular choice with the younger crowd.

Regardless, without looking too deeply into KORS financials I have not been able to justify buying shares based off the market cap alone.

Currently KORS is valued at over 11b, compared to COH which is valued at just over 16b. FOSL is valued at about 5.5b.

An 11b market cap seems outrageous when comparing it to similar companies. KORS is growing really quickly, but how big could it possibly get?

They raised guidance for next quarter's earnings to 38-40 cents which would put their 2012 earnings at 1.16. An increase of over 300% quarter over quarter.

Analysts are estimating 1.37 earnings this fiscal year, and 1.75 for the next fiscal, representing only 28% growth. That is quite a bit lower then the quarter over quarter growth right now. Arbitrarily bump that growth up to 50% and earnings would go to 2.06 for next fiscal. A PE of say 40 for a high growth company would mean a share price of 82.4, giving KORS a market cap of 16b, equal to COH.

I don't really know where I'm going with this, I originally wanted to write this to bring out my KORS bear, but now I'm bullish and think I'll have to give this company a closer look.

Anyone have any other thoughts?
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