michael kors saw its stock loose almost a quarter of the value. courtney reagan goes upscale for us. >> two higher end retailers given wall street very different reports today. luxury jewelry company tiffany erjs said revenue did fall less than expected but after company ny lowered guidance for the quarter two months ago. comparable sales in north and asia-pacific declined as a result of a stronger dollar. europe p to be the bright spot for the company. weaker currency makes it an attractive destination for tourists spending on fashion jewelry like the t collection and other gold jewelry. the company maintained the full year forecast citing continued macro challenges but it is still on the macro track. >> i think you're seeing tourist flows there and the u.s. back in positive territory and this is a good sign to give investors confidence. but for michael cores it was a slightly different story. suffering from diffe challenges. it warranted current quarter and results would fall well below forecast and turning in the first negative comparable sales

let's start with how bad things got from michael kors. reporter: michael kors had been doing great.were grabbing market share from other more established luxury brands. but things seem to be cooling off. we saw stocks plunging overnight based on the biggest decline since the ipo and 11 -- in 2011. it was down 24% after investors fallingsought shares last quarter. after that the stock plunging, down 27%. sales, against analyst expectations. ist is worth mentioning sales did gain in europe and japan, but they missed estimates as well. angie: what led to the week numbers here? what is it fundamentally about michael kors? reporter: and the u.s. at least, in u.s. mallsffic not to mention tourist spending was lower in key cities. also we had a watch sale falling, being had by consumers turning to cheaper goods and delays on the west coast that slowed shipments off apparel goods and other goods. angie: different story for tiffany. stocks surging. how did they do in the last quarter? they had a new strategy and raising prices for key products but also introducing new products. which was $.8

coming up michael kors and tiffany.ack after this. >>> good morning and welcome back to squawk on the street the second hour. live from post nine here at the new york stock exchange. carl, it's the night of the code conference in southern california and a very big day, carl, over to you. >> thanks, so much, simon. the conference has become a bit of a touch stone for anyone in tech and media and judging from the line up this year is going to be no deferentifferent. in one hour, mary is going to roll out her trend report. later this morning, the buzz feed ahead of operations for apple. you might recall this conference last year eddie queue of apple gave us our first clues about the iphone last fall and the apple watch a couple of months ago. we'll talk to fisher. they're a parent accompany. we'll talk about what that means for tech in the industry. guys, back to you. >> we are jealous. wooefrl see you in about a half hour hour. we're up on the dow. the dollar slightly higher. hour biggest move. >> research and steven. eve

interesting contest -- contrast here with tiffany and michael kors. th stocks were down about 20% year to date. daughter. i feel like he might be in the market for a t bracelet. are actuallys shrinking and michael cores are growing, howbeit at a slower -- kors are growing, albeit at a slower pace. it has been a busted brain for a while. olivia: why? craig: the product is not bad, but it has gone from being a tomorrow brand to being a yesterday bread. core customers have moved on to the newer, hotter names. whether it is tory burch for case fate. has over expanded the brand and diluted the luxury value of it. the essence of luxury is the exclusivity. but if you find it in 3500 or 4000 doors worldwide, that is not exclusive. pimm: so what is the deal? it is that confrontation you have between higher margins -- you want a higher-margin business, but if you are going for a growth start, you have to to justifye stores the valuation of the stock. would michael kors the example of such a thing? craig: unfortunately, that appears to be the case. tiffany, you h

michael kors.lso down. apple was up nicely. that helped all of nasdaq do well. right? >> technology did well. apple was the winner. apple reportedly moving forward with some sort of new thing called proactive which will actually compete against google. that's another tidbit for this story. technology did so well. we're seeing this nasdaq record close, that's why. >> airline stocks. for five days, they've languished. what got them here? >> certainly it's very interesting. oil has been pulling back. goldman sachs a couple of days ago said this group was undervalued. they finally -- people started to finally start doing bottom fishing and turn this thing around. david: all right. let's talk about broad come. up about 20% on rumors of a buyout. (?) >> come on. take a look of this move. the talk we've been hearing. this stock surged. broadcom is up 22%. >> if you look at the stocks index which compiles semiconductor chip stocks, look at this move, up nearly 4%. not bad. nicole: overall, a lot of optimis

michael kors was a surprise. huge disappointment. falling by 5.8%. michael cores sales slowing.is global sales and they are still growing. storesany, we saw global falling, but because it was better than estimated, he saw the pop. all traffic is down -- mall traffic is down. that is something the ceo of michael cores signaled out in the call today. it's a brand widely held in department stores. tiffany gets 50% of their sales from overseas. they get a lot of their business from foreign tourists shopping in the u.s. they are seeing less shopping in the west because of the strong dollar. the tea bracelets are pretty cool. scarlet: remember those silver beans everyone had 20 years ago? this entry market for tiffany. items under $500. it is fashion jewelry, so they can have a higher margin and expand the brand awareness. mark: is michael cores the poster child for boom and bust -- michael kors? olivia: they have had an unbelievable run. they have great prospects in europe, could be a $2 billion brand over there and still has a 20% sales growth in europe. mark: thank you so much. sma

every person has a michael kors bag and at some point you lose a little bit of the cool. >> is it a michaelic problem or is there a larger issue in the premium segment relative to the luxury segment? >> i think the handbag space is a lot more crowded than it was ten years ago. ten years ago coach creates the category. they have 35% operating margins. competitors come in it becomes a little more challenge. i think a lot of this is kors specific. margin is very high wholesale distribution very overdistributed in the u.s. i think 40% decline in the stock the last nine or 12 months has kind of been anticipating this event. >> this is a fashion story then? >> yes. so the comps which used to be 25%, 30% 12 months ago are now negative. so it's a big, quick deceleration which is concerning in a fashion product. >> to the extent the tiffany story says something about this premium area what do you expect out of its competitors over the next two quarters? >> on the premium side on the luxury side? >> yeah. >> i think you've seen a lot of the european luxury brands report already and they have reported

i would say michael kors is an extremely attractive growth story because michael coors has distribution growth on top of com growth and international exposure. it is a vertically integrated brand owner of a handbag regime running at high operating margins. .acy's is a department store macy's is a generally good barometer of mass retail. michael coors is a really strong executor with very strong and distribution growth and a great handbag category. a good if macy's is bellwether, you have outperformed, but the overwhelming trend in department store sales for the past 10, 20 pretty dismal. you said that macy's is a financial engineering plan. are you bullish? look at that 10-year chart. it is incredibly essentially the amount of sales at the department source has halved in the past 20 years. how can you be bullish on department source? macy's is online and they're focused on a loyalty and beauty program. nuance wants of this -- of this is longer term in nature and macy's is a good executor. you need to take a bigger picture perspective on broad line department stores. we will not see supe

michael kors to the downside. macy's and michael kors came out with their numbers. about currency headwinds. that's problematic. and michael kors, a new low. that's down 1.3%. polo down 3%. macy's a loss of 2.2%. liz. liz: target on ralph lauren. watch out for that. scott, let me get to you at the cme. what's the number one thing you're watching or doing ahead of the close? >> well, we're watching this ten-year yield. and the machinations of what it does and what it wants to do. horrible revision of the employment rate. retail sales. the consumer is two-thirds of the gdp. they're not coming to help us out here. we're not seeing the big price gain or the money in their wallets from the gas prices coming off. no good news out there. the ten-year is doing what it's doing right now. two and a quarter is a great time to snap it up. go sub two, sub 175 soon. >> nasdaq moving higher just minutes away again. the latest video from the ntsb. the amtrak that derailed in philadelphia was going in excess of 100 miles per hour. more than twice the speed limit. we've got the lates

michael kors the lowest since january 2013.ime, other side of the coin,ative 18 with a big earnings beat. the latest quarter, 11 cents above estimates. you also have shoe retailer dsw, one of my personal favorites. the company said the latest quarter was helped by strong sales off athletic footwear. something i'm not buying. sticking with retail is more retailers are searching for big returns and an area they are trying to get into. it's a big growing trend and big bucks for them too. >> i have been for a long time. i have gotten a lot of company at the stores. it's hard to know for sure thru there seems to be a shift in buying preferences, particularly among those sought after millennials leaving the bushes for the cities. i'm not talking about online but off price shopping at outlets and stores like ross and t.j. maxx stores. they are leading to enviable sales it turns out. in just manhattan, tjx has gone from to five plus four marshalls stores and a home goods. higher end department stores have seen it too. they have been go

michael kors says it is also being hurt by peng shuai shins -- by fluctuations.re everybody considers it a luxury brand anymore. in britain, here for their hearing from their queen. when elizabeth delivered a speech this morning to open the british parliament. sitting on a gilded throne and wearing a diamond studded crown, the monarch to lift a proposal from the government. one must anticipate an announcement of the nation passes future relations with its neighbors. >> will be introduced to provide for an in-house referendum, a membership for the end of 2017. stephanie: the queen also read proposals for five years. erik: a little news update out of europe. the belgium airspace has been closed after technical problems shut down air traffic control systems which cost hundreds of fights to be canceled and diverted around europe. passengers trapped described chaos as planes were stuck for hours. according to the brussels airport, there will be no landings or departures until 1600 hrs local time. 4:00 in the afternoon local time. just for context, brussels is not quit

consumer, we got a bizarre read on the luxury retail space -- tiffany versus michael kors. wrong with michael course? -- michael kors. tom cole and things are never as good or as bad as they seem. great for years and all of a sudden they fell out of favor and no longer are any good. they have a terrific product presentation, but michael cores was perceived as being able to do nothing wrong and low and behold, their stuff is not quite as hot as it once was and you see the field evening out again. as a retailer, how do you know when your brand has peaked? what is that magical moment? tom: there's nothing that substitutes being close to the customer. young to be close to the customer from the office personnel, sales associates in the store and getting honest and fair feedback. respond to that with inyou are acting days or you are going to lose. tourism, lack of demand for their watches, what sort of demand are you seeing? affected thear has trade. every other market except new york city where we got hammered. is that a factor for sure? the first quarter was not good, weatherwis

look it michael kors today and overall volume, here is the big question, what is going to happen? up or down remapped we keep getting these false breakout things and you kind of think that that was pointed take off and i know that you have then part of this for a long time. you guys know that i like netflix and i think that almost everyone told me that i was not on it. but today an article says that netflix is going to be $1500 per share by 2020 and that scares me. >> i think that we are going higher. i really do. and with technology it's so important. >> a lot of people say they don't make money, when someone says 1500, $1500 per share does not send a red flag up to you, and it sounds like 2000. >> they have content. [laughter] >> i think that this is part of it. >> with regards to netflix or whatever you hear what these numbers, you have to consider the source and make sure who wrote this and who published it. >> generally speaking i feel bullish, but i do think that we are way over reflect her. >> are you long or short? >> welcome i don't mind a five or six or seven or eight co

discretionary world because we had a split in the retail world -- michael cores and tiffany -- michael kors just tanking on earnings. joe: of course, we had this amusing thing in greece where we have these signs out of greece that a are patching a deal together and other sources saying no, we are not. that seems to be the story for so long where you get all of this optimism and then the creditors are like what? what stood out to me was the emergency liquidity assistance not being raised. which egged the question is that or is thess capital ecb trying to apply some pressure? joe: you don't know but as the clock ticks there, they are doing whatever they can to build pressure. alix: there is no more money in the greek banks to take out. just kidding. joe: the huge story today is the fifa corruption stuff, which is going to be an amazing story for a long time. corruption allegations relating to the awarding of the coming r.rld cup's in russia and qata it's something people have been talking about forever and people seem to be taking action. alix: what's fascinating to me is where we went with t

michael kors beaten down i started buying it this morning. wise it's half of what you would pay for tiffany it's got tremendous opportunity ahead of it. stuart: how about spacex they're going launch satellites for the pentagon they've had trouble with elon musk that does tesla trouble with the door handles and those stories. would you buy tesla? i think it's 249 at the moment. >> tesla scares me love the cars, the technology, love elon musk. i love spacex the tesla stock is overpriced. >> he lives on government tax credits. >> yes, he does that's true. that's part of his genius. stuart: okay! if you say so. you would buy tesla at 246? >> no too rich for me. stuart: you wouldn't buy tiffany or tesla but would buy kors. >> yes, bought it this morning. stuart: now he tells us. shah gilani. thank you very much. >>> isis killing 17 iraqi soldiers this morning. they're carrying out numerous suicide attacks targeting the iraqi army operating outside of fallujah. >>> and f-18 pilot tells fox news many times isis fighters in his sights with a weapon u

another luxury brand is michael kors. the slowest sales growth that we have seen it 14th quarters. the forecast is weak. a strong u.s. dollar. being a little difficult. melissa: thank you so much. massive flooding causing adm to breach outside of dallas. emergency crews work to ease pressure on the dam. new storms are hitting houston after 11 inches of rain left the city underwater. fox news is on the scene with the very latest. well. >> hi melissa. the death pool has risen today. literally, right in front of us. you can see the debris on the back wall. a couple hours ago as the water started to dissipate there was a red truck that we started to see down below here. as water when went away, that is when six bodies were confirmed to be fatalities. 4000 buildings sustained some type of damage. thousands of cars of banded. 13 people are still missing. authorities say they were swept away. it swelled 48 hours ago. rescue crews still trying to look for those people. at the same time, there is a dam to the southwest of dallas. very big concerns that that dam was going to break. the dam s

at the bottom, michael kors and frontier to indications doing the worst we have seen out of all of thefor the month. alix: thank you for the lovely wrap up. one particular stock moving is humana, up new 18% per the company is said to be exploited sale. -- exploring a sale. joining us is at hand. what happened? ed: this has been speculated about for a long time in the industry. generally in managed health care services, there have been rumors some thing will happen. toe companies, it will go three. they have been approached. we think they have been approached by cigna, one of the larger rivals. aetna has been mentioned as well. they did what any good company does. they got goldman sachs, and they put themselves on the market solicitting interest. alix: talk about the difference between this group and others that have had tremendous m&a. ed: the reason this is attractive, particularly for the buyers i mentioned, is because they have a big exposure to medicare and medicaid. if you are anthem or aetna looking at this, at the moment you have a big exposure to private insurers. you do not ha

michael kors used to be loved by everyone alike. it gave horrendous guidance for low double digit declines. that's right. there was a point when low double digit increases would have been a disappointment for this former fashion star. double digit declines, disaster. so what was the action? nothing. it was the equivalent of hitting the one pin and having it skip into the gutter. when you hit the head pin it sent the rest of the retailers heading for a strike or set up for the spare. only fossil teetered on this one and that's a direct analog. aided by tiffany that reported a so-so number but then expects to see double digit gains later in the year. that was totally puzzling given that there's nothing to write home about this quarter but the market full of skepticism yesterday is down right giddy today so tiffany rallies more than $9. maybe short sellers targeted this one and then freaked out. maybe the market has a border line personality disorder. for a moment i thought this market heard there was weakness in domestic watches and a

michael kors is really suffering. it didn't have such a great quarter off a weaker forecast.ning. dsw doing well after strong sales heavy demand for athletic shoes in the quarter. mortgage application falling back a little bit as mortgage rates continue to inch up. the mortgage bankers association says the average 30- year fixed loan went up three points to 4.07%. purchase applications up, refi applications down by 4%. stock market hammered about the rate hike that will be coming at some point. we saw solid economic news that could compel the fed to make the move sooner rather than later. it led to the sell-off. market looking to bounce back today. so far, so good. let's check the board see how we're doing. the dow is up by 50 after giving up 190 yesterday. nasdaq gaining 22 points. and s&p is up by 7. frank and michelle, back to you. >> thank you, jason brooks from kcbs news. >>> a napa county bridge is closed indefinitely because of earthquake damage. last week's 4.1 quake caused one end of the oakville bridge to sink 4." that caused two existing cracks to pull farther apar

tiffany moving and backing the out lot and michael kors falling. karen, you're long. >> i am long and this is a painfulle day. my least favorite thing is what feels the worst is money managers losing money for other people. that's a terrible thing. what we do is be calm and look unemotional unemotionally. the big was in kors was not the quarter. the big problem was the north american comp sales that went negative. that makes this growth story really under a cloud. so the amount that the stock was hit through, is so accessive and relative to what the news was today. i have not bought any stock and the company think that is they're undervalue. they're not out there yet, and will be out there in the day or two to start to buy stock. they have a lot of room and balance sheet. they're buying it back but i think that it's going to take a while for this story to heal. for people to get some certainty that the kors story is not over. they have good growth over seas and outside of north america. the magnitude on the stock i am really surprised, and if i own

. >> yes. [ laughter ] but they're michael kors pajamas.r. >> seth: gotcha and then to prove that she went to the airport, she posted this photo and she did not even -- just right at the airport in her pajamas. [ laughter ] >> well i think it's everybody's new uniform when you get on a flight. >> seth: yeah, exactly. beautiful pajamas. now of course, one of the other big things about the met is the after parties. do you go to the after parties? >> no seth, i don't go to the after parties. i think people always feel if i go to the after parties they have to behave well. >> seth: right. >> which after all is not the point of an after party. [ laughter ] so rihanna and lady gaga were the hosts. >> seth: gotcha, so they sort of take over -- >> exactly, i retire. with george clooney. >> seth: there you go. [ laughter ] well thank you. it was a success and you will stick around and we'll do a little more talking. >> sure. >> seth: okay, great. we'll be right back with more from anna wintour. [ cheers and applause ] ♪ ♪ ♪ ♪ nothing will keep you f

look at michael kors. look at coach. i mean, you've got a tale of two worlds with discretionary consumer items, don't you? >> you're absolutely right. there's -- it's really a stock-picking sector. you'll see a lot of underperformance and a lot of dispersion between the winners and the losers. some names i like is car max. strong earnings report recently. i like the uptrend and overall negative sentiment surrounding that. then gopro. faced a lot of optimism. one hundred dollars after its ipo. loss more than 60% of its value over the past year. all of a sudden, technical strength. higher highs, higher lows. surpassing that 50 level which has been a thorn in its side. higher prices in those names mainly because of the strength, but also the low expectations surrounding the sector. >> let me go back to todd. i brought up greece with one of the traders on the cme. he wasn't biting. he said, that's been on the radar for five years. and it's kind of just there and spinning its wheels. next week is a key week. there's a big deb

a different story on michael kors.hares were hammered today, sliding more than 24% after the retailer's revenue growth slowed and same store sales fell. any understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. i'm one... i am one of the one's who discovered always discreet underwear for sensitive bladders. it makes me feel secure, confident. i feel protected. i mean i feel comfortable to move in them they move with me. i love always discreet underwear because of the fit. the fabric is very soft. i can wear whatever i want to wear. always discreet has made me a very happy woman. join over 500,000 women who've discovered always discreet underwear. for more stories and your free sample go to always discreet.com. so bladder leaks can feel like no big deal. >>who... is this?! >>hi, i am heinz new mustard. hi na na na na >>she's just jealous becau

. >>> michael kors bouncing a bit after hitting a low.mmending investors accompanied kors in the near to medium term. there could be more contraction beyond the company's guide ans. fair value estimate $52 and that's 15% higher than yesterday's close. >> even that's low. the average target of the 30 analysts who cover the stock and why you need 30 to cover michael kors, i have no idea. the average target is $59.89. that's nearly 30% higher than the current price so analysts will have to start cutting wildly or up their game. >>> now to today's under the radar game sorrento therapeutics. a biotech. it begins with a buy and $17 target. they say they like the company for a cancer treatment opportunity as well as a very early, phase 1, phase 2, pain treatment related to cancer that could be a, quote, first in class compound. a couple of days ago, a big fund up in boston announced more than a 5% stake in this company. >>> look at the 12-month chart on this one, up 164%. wow. >> i know. still slightly under $500 million but the stock has been r

filled with counterfeit michael kors and tory burch bags. where you might least expect them. the bathroom. the fake chanel bags hanging right over the toilet, and when the counterfeit bags come in, investigators say the counterfeit logo isn't even on them. they snap it on and make the sale. >> chanel. they just pop off the little metal things on somebody's handbags and this makes them counterfeit. >> reporter: in los angeles, a patch sewn on to fool the border agents. >> they were hiding a trademark north face mark. >> reporter: a louis vuitton bag. wrapped in a disguise. and another trick. >> it looks like a no name brand headphone. >> reporter: watch as he pulls the box of fake beats headphones right out of the other box. but handbags and headphones are one thing, helmets are another. putting your family at risk. watch as they put the counterfeit helmet to the test. >> it was cleaved into two pieces, which is a failure for the test. >> reporter: the real helmet is not supposed to slice in half. >> the real specialized helmet on the inside

-- michael kors.e confluence of many wonderful things happening at the same time. they have an amazing designer, an amazing brand. they followed a model akin to aspirational luxury -- what coach was doing and other things. they have this hollywood jet set mission and image they pretrade whereby the airplane the man, the handbag where the accessory together. brendan: if i'm coming out of f.i.t. right now with a brand-new degree in design, what is my next step? mortimer: designed today is in the boardroom for the first time. the last five years, steve jobs ensured that. there are a lot of companies insuring on the talent they hire within their companies not just within fashion design but all forms of design the it architecture, etc. whether it is f.i.t. they are learning the business of fashion, as we call it. tom: mortimer singer, thank you. from marvin traub on retail. use of the data last week as well. let's look at the mortimer singer, thank you. yen under 120. euro-yen insurance here. stay with us.

michael kors coming on as a strong competitor. i think they are realizing a designer brand is gone.g your business and thinking you have to expand. betty: wiseman -- jay: he has been there a long time. this would seem to me to be a brand of how far can it really go and how the canopy relative to coach's size? i don't understand it totally. betty: for coach it was about a lifestyle brand. julie: you know, as jay says, it is hard to see what they really bring. betty: not recommending this but one of -- one retail investor says if you are looking for a short, and coach is the short and retail. julie: still? betty: number seven, if you work in sales you are not happy with take-home pay. bls shows that compensation for private-sector workers has strengthened in the first day months of the year, but sales of jobs and cashiers represent almost one quarter of that growth. people in sales got nearly a 5% raise with two thirds of non-sale workers on average rates of less than 2.3%. jay: everyone is trying to get the lowest possible prices. selling online at 82% of the discount, where do you g

but i think it's really in there in terms of michael kors. >> okay, we'll wait.'s has been serving up some big sales for a while now, but do the investors think the new ceo has cooked up profits at the fast-food giant? we're going to talk about that next. also, drexel university has a program paying students to build a business. one was so successful it landed a deal on shark tank. but it wasn't with our kevin o'leary. we're going to hear from that student and find out why kevin didn't bite coming up. [ male announcer ] your love for trading never stops. so if you get a trade idea about, say organic food stocks schwab can help. with a trading specialist just a tap away. what's on your mind lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move wherever you are. and start working on your next big idea. ♪ ♪ can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to pleas

they are the go-to plays for the michael kors and the ralph lauren and a great private business labelmacy's generate the real estate that they own, i think it's a very inexpensive stock at current levels. >> they've done a phenomenal job in merchandising and having a great product lineup and couponing and connecting with their customers through the macy's credit card. i think on all fronts they have done very well as a retailer. >> you just mentioned the real estate. most don't think of macy's as a real estate. going to remain namee nameless i'm thinking kmart. >> remain nameless. you think of this as a real estate play. most think of macy's as an operational play. some way they can create value from the real estate side of this? >> i think there are options on the table when we look at the blue print that players such as hudson bay and sears holding has just undergone over the past few months. and, so macy's given their portfolio certainly i think has a lot of valuable store and land that, in theory could be monetized. >> let's talk about some of the big discount retailers. walmart o

then on michael coors, look how the stock hasn't gone down when coach, when kate spade all talked about the category slowing a little bit. could it be that it's washed out where it is now. -- >> korsas a buy, you have an $84 price target on it an you're sticking with it? >> yes, i think you have opportunity to grow overseas, and opportunity to expand the product categories, i think the handbag growth isn't what it was. but i think kors is still a share gainer. >> dana, does it bother you when you see pictures online surfacing of all the kors merchandise at discount and off-brand retailers, doesn't a brand like this need to be high-cache and hasn't it kind of already lost some? >> when you get companies that grow like this one does, it's not going to keep comping and it is in the friends and family events at the department stores, i'm seeing it in the off-price. you don't want to see that, totally agree with you. but also managing the growth is a hard thing. one of the things we're hearing, they're being more choosey about real estate locations going forward. >> none of that causes you to reassess your rating on the stock? josh makes some good points there. >> i think always you wa