Michael Kors: Shopping in the Discount Bin

It's been a tough couple days for clothing and accessories retailer Michael Kors (KORS).

F. Martin Ramin/The Wall Street Journal

With shares falling 5% on investor fears of soft demand, and Macy's (M) discounting a sizeable portion of its Michael Kors inventory, it was time for someone–anyone–to step up and say something. So Morgan Stanley’s Kimberly Greenberger did by calling Kors current situation “a buying opportunity.” She explains why, as she attempts to talk Kors investors down from the proverbial ledge:

We think the incremental promotions reflect a combination of some normalization and less commercial product execution in the camouflage collection, not brand decay as the stock reaction would suggest…We see a clear path to over $7 billion in revenue and $6 earnings power by calendar 2017.

Greenberger’s enthusiasm, however, hasn't quite resonated with investors just yet, but shares are little changed at $71.38 at 3:19 p.m. On a day when the S&P 500 has fallen 1.4%, that’s none too shabby.