The Hottest Runway of 2014: Wall Street

On November 12^th, Michael Kors Holding Limited joined the S&P 500, replacing NYSE Euronext (4). The company’s spectacular growth following its IPO in December 2011 has proved to be more than a fad. The Kors brand has laid claim to the fast-growing and seemingly paradoxical niche of ‘affordable luxury’ as the global economy recovers from the financial crisis. The U.S. premium handbag and women’s accessories market is currently estimated to be $10.3 billion dollars (1), and in China, Bain & Co. estimates luxury goods sales to reach up to $21 billion this year (2). In the last three years alone, Michael Kors has already captured an estimated 16% of the market (1).

Harley Davidson

Summary of practice case from CIP with my comments and additions in blue:

“Our client is Harley-Davidson. Their stock fell from $54 to $49 a share on news of declining profits. What’s going on and how can we turn this around?”