i'm interested in the fact that -- close did not have tackle michael kors all over, but they are not rs is michael continuing to deliver that kind of product. lower-pricedat the point is trying to target. the higher and are looking at discrete but tree brands. in china, logos or out. -- are out. consumers, who are new to luxury, it is about showing off rands. off brands.wing >> will that happen to michael kors? >> >> it >> it may will do. it is a case of being successful with managing the brand. there are other u.s. fashion labels that have come to europe in recent years. have they been a successful? >> definitely. it is the area that is more affordable. the cheaper end of michael kors. are now seeing kate spade coming into the u.k.. looking to branch out. it is the appeal the more affordable luxury brands. j.crew, another brand that has been very successful. opening more stores in the next year or so. >> thank you very much for joining us. the head of luxury goods research. just ahead to, the threat of tougher economic stations is exploring firms to explore a plan b. white could push

retailers taking europe i storm. >> it is not just michael cores, --kors, but michael cores kors seemshe standout performer in terms of growth. like for like sales up 28%. that is more than double wear burberry was. came second in the list of who did well in luxury. you have got to remember, growing from a small base, $3 billion is where we are thinking this year's sales will be. that is just 10% of lvmh, but is chief is negative ambitious and feeling confident. he said he is stealing market share from the likes of louis , those european big houses that have been here for the last 50 years. he is stealing market share. be 100er is he going to stores in europe, it is going to be 200. i think it walks a very fine line of luxury but at a good price point. at the moment, things are relatively cheap -- when you look at their watches or their -ags, they are about 300 euros 1000 euros. compare that to gucci or louis vuitton, which are about 1000-2000. they are copying some clever tricks that many of these older, grander european houses played in the past. catwalks,nd, runway but products chea

it has to keep that in mind, i'm sure. >> questions for michael kors. dkny at the beginning. is this a brand that is here to stay? doesn't have longevity? >> we have to see. what they've done well, and it is not just michael kors, they're capitalizing on the fact that traditional luxury has increased its price point tremendously over the last three or four years. it is cut out the aspirational she can't afford it anymore. she can go in and buy the new fashion. they do lots of colors, younger fashion. lots of social media behind it. as a result, they're flocking to backroom because they want to be part of the jet set. they can't afford to be part of the jet set, but michael kors gives him that dream, the opportunity. >> are the europeans responding? >> they are. it does it age overtime? you do have to risk easy some risks of overexposure because what you're seeing is this brand isn't necessarily aspirational at this stage, anyway, and this is where the marketing message needs to evolve in terms of lasting. the key issue, season after season, they have to

and while shares of coach are on a major slide, michael kors is making gains. that's ahead. with all the opinions about stocks out there, how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. [ banker ] sydney needed some financial guidance so she could take her dream to the next level. so we talked about her options. her valuable assets were staying. and selling her car wouldn't fly. we helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today...and tomorrow. so let's see what we can do about that... remodel. motorcycle. [ female announcer ] some questions take more than a bank. they take a banker. make a my financial priorities appointment today. because when people tal

green said michael kors is the top brand. >> the branz that are hot right now are more of kate spade of the world. coach was dominant in their era and much of what they are doing changing design direction, changing some of the product focus will help to rejuvenate this once storied brand. >> the legacy handbag maker is reinvigorating the brand under a new ceo upgrading its stores, adjusting pricing and introducing new products. all which will take time but so far wall street is offering a degree of patience. many expect creative director's first collection this fall to unusualer in a new era for coach. >> i think stewart is trying to take that classic coach iconic item and reinterpret it and modernize it. so we're hopeful that his design direction will lead to better results for the company. >> some however are worried the new product may be fashion right but too pricey for coach's core consumer. the question remains whether investors will wait until september to find out. for "nightly business report," i'm courtney reagan. >>> coming up, x-box is going hollywood. microsoft is creati

michael kors, lululemon, and coach are a few of the names adding stand alone mens stores or expanding clothing lines. in our cover story--general motors is touting its product placement in an upcoming movie. the p-r campaign about g-m's role in movie production comes the same week g-m c-e-o mary barra faced tough questions from congress about the automaker's production on the assembly line. the new movie "captain america" features scarett johansson and black 20-14 corvette stingray. it is the latest step in a nationwide p-r campaign gm launched this week. "we can lift our brand 20% through film. we'll particpate in a movie depending on our understanding of what story is being told." the ad campaign involving 60- and 90-second commercials came out as another g-m story was being told in washington--- where lawmakers grilled gm's c- e-o mary barra about faulty ignition switches linked to more than a dozen fatal accidents involving g-m cars. "i think the timing is unfortunate." brian fielkow, who's book "driving to perfection" explores corporate culture, says the "new g-m" mary barra talk

>> michael kors has been doing pretty well, kate spade as well. >> sales down 21%.were expected to fall 21%. michael kors is hot. >> hot, hot. >> i agree with that analysis. it is our top story this morning. attention on new york city -- criminal charges might be filed against european banks bnp paribas and credit suisse. their worries are not mario draghi or christine lagarde, but prosecutors in new york. we go to christopher wheeler in geton with medio banco to a european perspective. was this a surprise to see criminal charges rumored against bnp paribas credit suisse? morning. i suppose the answer is we have been there before. in 2009 there were criminal ahead of thest gbs famous john doe summons. i think we have heard noise ofterday, noise coming out politicians about their concern about certain things being exempted from fines or settlements as a result of peration with a 30's. if banks have been found to do long, rather than allowing them to settle, they should be brought to trial. news coverage there is a real new york band. for the global audience, this doe

the same time it was obvious they were taking market share from coach over the last couple years michael kors and coaches down it is a no-brainer. something everyone watching the show any woman could have told you. it was not a gamble. >> but you dispute the data that shows the index funds funds? >> the main reason, the biggest problem with the fund, are you a football fan? do you ever watch a football game than one team comes out throwing the ball down the field and 28 / three then in the fourth quarter what do they do? they sit on its. the other team scores no big deal we will run down the clock down the other team scores now the of the team tied up the game. john: index funds? >> mutual fund managers have the distinct difference in playing to win or playing not to lose. mutual-fund who have the best semiconductor stock in of the worst that is why you as roving the darts was more in your favor because you were not going to go for the best in the worst in the name of balance. i am not a big mutual-fund fees and so i will not defend them but as someone is intimidated and the only way to get i

she's in a michael kors dress that cost nearly $2,500.sands of dollars. lauren is wearing an outfit under $200. >> together. >> everything together. the dress is gap. $59.95. the jacket, macy's, $99. the sunglasses, which i always lose, many of us do, $5.99 from h&m. let me tell you about an app, notorious.im. hopefully this is going to work. you log on, you register. it's totally free. you put in the style you like, and you pick a stylist that works for you. an actual stylist. so i picked colin mcgaro. i felt like we would really mesh. i wrote to colin and said i was hoping you could help me. i love miranda's look. nothing more than $100. i uploaded the photo i took with my phone. he writes back up to five messages and tells me how i can find the look. here's the dress. all different options. >> that's great. >> all different options. >> i wrote "ooh, i love these. keep going." all different options. and so you get this from a real stylist. and you can continue on. >> that's great. that's great. >> notorious.im is that app. >> notorious.

i have seen a lot of women wearing michael kors watches. bet every woman watches the show either wears them or knows about it. where did you get it from? did you buy the stock? no. at the same time it was obvious they were taking market shares from coach. they are up 100 percent coorpse kors is up 1 percent. >> i think nothing is a no brainer. i am glad that worked out. you dispute the data that shows the index funds do better than the managed funds? >> the biggest problem with funds -- are you a football fan? >> yeah. >> you ever watch a foot gall became one team goes out they are throwing the ball down the field like crazy they are going into the fourth quarter 28-3. what do they do? >> they sit on it. >> we are rining down the clock. the next thing you know the other team tied up the game. >> what does this have to do with index funds? when mutual fund managers there's a difference between playing to win and playing not to lose. a lot of mutual funds will have the semi conductor stock in the fund and the worse. you throwing the darts wor

compression and some issues they face there and you look at it, joe pointed this out as well, michael kors has been eating their lunch. if that continues, you can wait and pause. to josh's point, you have more down side before you jump in front of this bus. >> this chart is unbelievable. >> let's find out who you think won that debate. tweet us, either use #bull or #bear. >>> we are going to put sell in may or go away to the test and caulk to the nbc numbers cruncher. the charts, what story are they taking? >>> shares of bank of america is losing value today and we will talk to a trader buying on that dip. just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review. why relocating manufacturingpany to upstate new york? i tell people it's for the climate. the conditions in new y

you run in michael kors and have you noticed like i have that walmart and target don't go down. they have become rocks. you fear that the weakest stock in the dow might go down. boeing, that's been a terrible stock. that's been going down in anticipation of earnings. what happens? it's crushes it. terrific number. same thing with united technology saving the day the other day and the week before was general electric and rides to the industrial's rescue. at the same time the overvalued stocks and i mean at multiples to sales and enterprise values, they're rolling over again. before the april 11th bottom it was a negative when they were being crushed. now as they're taken out of the bubble with the service stocks the most overvalued part of the market, well, also biotech, we just say this market is not like 2 2000 when the stocks cause everything to go down. the expensive ones at sale of 12 times sales or eye balls or whatever. the pain isn't spreading the former again, warren buffet, great comments to becky quick today confirming that few. plus disappointments in google last week

about bush l brands, which owns victoria's secret, and urban outfitters, eek the luxury side, michael korsth noting that j.c. penney they're not in the s&p 500 anymore, but the worst-performing stock in the midhappened s&p 4 hubz. that makes j.c. penney down 15% so far to date. back over to you. >>> thank you very much. dom. investors are turning 5r7 from consumer discretionary, they're piling into consumer staples. you still have to buy soap, toothpaste, and the classic memt they'll do better than the rest of the market during times, and we've certainly seen that. you've seen that over the last three months. if you look at the s&p 500 versus one of the staple etfs you have started to see this reversal. if you break that down even further, it's interesting to see the action, because tobacco stocks have been doing the best. >> why is that? >> a few reasons why. when it comes to tobacco, janelle yellen this week emphasizing low rates. we got that message. toe batto stocks do well in a low rates environment. so you have that. there's a lot of talk of m & a heating up in that sector. >> specul

on the buy side i sigh michael kors, prepare and alcoa and pfizer. going into -- we're not done. david: nicole, you have to go to 2011 to get a steeper nasdaq than we had today. november 9th, 2011. other than the real bad periods of 2008, 2009, 2011 was a deep drop in all of the indices. do traders in nasdaq think that's where we're going? >> there is certainly concern here. i've been emailing with different traders and source who is are watching the nasdaq today, ending lower by more than 3% and there is a concern, we're talking earlier about china, about some numbers coming out of there but really bracing for the earnings season that has technically begun already but we're waiting to hear from the financials. across the board people who cover, analysts covering tech or biotech or companies like whole foods expressing a little bit of concern seeing that the market is not exactly as robust as it used to be and bracing for the potential correction a lot of other experts out there are talking about. nasdaq certainly not faring too well today and it is not a good scene here. liz: le

enlisted is a little bit of michael by michael kors. one of the bigger m&a stories we're been covering over the last few days, the battle for tom is intensifying. siemens stepped up to launch a counter bid to ge. our europe editor david tweed joins us from berlin. david, let's start with you. the board meets today. what are the pros and cons of m. ther offer for alsto >> is quite interesting. the board meeting just got underway. we can't say when the announcements will come after that. it is quite interesting when you look at this it or this potential bid in the context of what siemens is trying to do with its whole strategy review. , is toa behind that s.prove siemens margin alstom's margins are even lower. it is interesting to see why were they -- why they would go into a full bed. bid. l there are be hiding off something which would be the lowest margin businesses. their board is made up half of union or employer representatives. the rest is onerous. they will also have to take into account the wishes of the employees, guy. >> they c

. >> ben & jerry's, michael kors and levi's. just announced a deal with omnicom. >> movies with transformers five on here this summer. >> whatever will target the millennial's. we think about his book in terms of performing. no one is expecting right now click to purchase. >> this is the point to both of you. critical. if we assume it is branding, will it be successful branding? >> rightnow plenty of advertisers that would like to get in front of the millennial. >> i saw a banner advertisement and it blended into the website. it did not jump out. is that where we are going? >> i think the question becomes if you are trying to target the millennial and show them an advertisement they do not want to see, are there other options for them to move? we are so connected through one another through the app and found that are there other services that could replace? i think they have to tread carefully in terms of how hard they push to make sure the quality of experience is still there. >> what are the opportunities when it comes to wear

michael kors seems to be doing everything right and coach with a growth stock but seems to have shiftedbell you have twitter then atand ebay and 2:00 p.m. the mba will hold a news conference. the commissioner adams over talking about findings and the investigation of l.a. clippers owner don sterling's alleged comments. >> a lot of company news. it follow on from yesterday's big announcement. not a formal announcement but if pfizer ends up by astrazeneca the giant drugmaker could face billions of dollars -- save billions of dollars of taxes in the next decade. it would allow them to move their headquarters overseas where taxes are lower. last year pfizer's tax rate was 27% and ashton zeneca based in london had a 21% tax rate. bank of america dividend increase my night -- might not be dead at all. it had put it on hold after making a mistake on the capital statement submitted to the federal reserve. the ove may ask -- bank of america may ask the fed if they could boost. herbalife has fresh ammunition in its fight against bill ackerman. it posted better-than-expected earnings and raised it

more affordable luxury brands like coach, but also newer brands that are in the market now, like michael korshich are offering more differentiated and just overall just a newer brand, a newer look. >> are these consumers mixing high end and low end? people talk in europe about the fact that the consumers will have a bag matching with something or other. is that starting to happen? are we getting the mix and match story beginning to emerge in china a little bit more? >> not as much mixing and matching between the very high end and the more affordable end. it's more that you're seeing the markets split and become more polarized. she left the mid-range brands behind and drift ever more towards the more exclusive brands, ones not that everybody will know, but other people that they know who, you know, who count will know. they are more focused on the affordable side. they're choosing to save up their money rather than save up three months' salary ads they might have used to do for a louis vuitton bag, might be saving that amount of money to travel aboard. they're looking more for an experience, b

the italian eyewearmaker has signed a ten-year group with michael kors., the first collaboration is set to be launched in january 2015. luxottica shares are trading higher on the news. >>> away from fashion investment bank merlis is priced below the expected range. they will trade on the nyc under the ticker mc. >>> and it may be a short workweek but the ibo pipeline is full of several big deals, including weibo, the chinese version of twitter. >> weibo is expected to price its ipo after the closing bell tonight. the company is offering 20 million shares at a price range of $17 to $19. weibo will trade on the nasdaq under the ticker symbol wb. weibo is expected to draw strong interest given the social network's large user base. a recent regulatory filing shows the company has roughly 149 million monthly active users as of march. the ipo has been met with some issues earlier this week. the book is made up of largely fast money and actual demand may be skewed on the high side. weibo is going public at a time when investors are growing more cautious about te

the recent additional has been michael kors. this is a company who has established a brand but has room to grow. its footprint both in the united states and global is smaller. and it's priced attractively trading with a nice growth rate in trading right near the growth rate as well. the position was put in to replace coach. a position we've held for many years. they have been a successful company and have grown well, but they have certainly hit a point where they are not enabled to generate it, that growth. they had done a lot of it globally the past few years and that story has slowed down, so what we have here is the opportunity to add a strong retailer with a sound base that can grow at a higher rate priced attractively relative to a company whose growth rate has slowed and doesn't have continued growth potential and is priced relatively expensive to that. that's how we look at it within our funds. >> now the interesting thing is the buy-tick industry has had a strong year since last year. we are seeing the stocks at the bulk

>> they are personal shoppers and sales associates at paul smith, at michael kors who are ready and willingand 30% of your customers are men. >> yes. we did not expect that, but, yes. stuart: oh, you should captain that. [laughter] charles and i, i'm pretty sure, do not like going into a department store trying on shirts and suits. >> oh, yes. stuart: am i right, charles? >> you're right. [laughter] stuart: but if i had your app, i could do it from home. how do you make your money? >> it's a complimentary -- stuart: so you get a piece of every sale. >> we do. stuart: okay. suppose i bought a shirt for $100. how much do you get? >> well, it differs -- stuart: give me a range. >> i won't disclose that, but -- stuart: what? >> i know. stuart: you come on this program, i give you a fantastic commercial -- [laughter] you buy tens of millions of people, and you won't tell me the range? >> i'll just say that it's definitely great business to be in right now. stuart: give me a percentage. a rough percentage term, okay? >> it's, you know, it depends on the type of store and what -- you're not going

horton and harman international and i michael kors, with the worst performing in the economy and consumerverybody. the company close to ordering four web series. and the verge has google plans for android tv answer the amazon fire tv, apple tv and roku. le let's handle amazon first. >> i don't get it because of yahoo!'s distribution, they're strong on the web but seems like a lot of growth in tv watching they're trying to go is to a set top box to the living room. yahoo! not as strong there. they have to do a deal with somebody get more on the x-box and apple tv somewhere to get money to monetize it. how do you monetize it? do you put commercials in the actual program? not a lot of people doing that. are you going to do a subscription service? >> i totally get this and think it is the first thing they have done in a long time that makes sense. they are a media company. it makes more sense than trying to beat google in a search. and they can compete directly against netflix. >> they will show them on the home page? >> yahoo! is the biggest adverti advertisiing home page, people pay million

. >> michael kors? >> no. the shoes.es bags. >> oh, he does? >> yeah. >> i don't know if it's a he actually. 20-year tenure. market value went from 14 billion to more than $410 billion. joining us now is jack welch, former ceo of g.e. strayer university. number 12 on cnbc first 25 list. jack, i think we could have used you as someone to help us pick the 25 too. you would have helped us, wouldn't you? what do you think so far? you have watched the discussion. >> well, i sure agree with number one. >> and number 12 you agree with i'm sure. >> whatever. whatever, joe. but i sure agree with number 1. >> we were just talking about gates versus steve jobs. gates was pretty amazing too. maybe his philanthropic endeavor is following that he was involved with as a young man, maybe that puts him whether you have a discussion to be jobs or gates? >> will, that's an interesting debate. but it's close enough. they are both terrific. they have the right order one way or the other there. >> this is something that andrew and i go back a

. >> the most googled handbag michael kors as courtney reagan told us yesterday.t the top of your screen. down here at the big board it's oracle unveiling the oracle solaris 11.2 operating system today. a former nasdaq name that made the move. >> larry ellison one of ours. i want to point out this is the old world coming into the new. when people see these softwares service companies come down, a lot of them were gunning for oracle. they come on "mad money" we're gunning for oracle. oracle is offering a suite, not supposed to be, supposed to cut into the gross particular begins, suite of products. software service for the coffee room, dining room and what -- these are obviously facetious extensions of what we're seeing, human resources, information technology, we have one the other day for global payments, oracle is offering a one-stop solution and i doubted them and wow, they've really kind of come on in the cloud. >> remember the cloud is low margin. >> very low. >> and ibm, you know the fight of the soul of ibm. >> obviously amazon web services we know is large