On its first day of trading, Michael Kors stock looked promising, “Fast Money” pros said Thursday.
Stacey Widlitz , president of SW Retail Advisors, said expectations were high for the company to perform like a premium brand.
“The expectations are for these huge comps every quarter and for perfection,” she said. “Down the road you just really have to be careful.”
Widlitz said one possible concern was stock valuation getting ahead of itself with its strong pricing.
“One tiny misstep and you see multiple compression,” she said. “It’s pretty aggressive, so you want to make sure they don’t take on too much too quickly, but the Kors brand is incredibly strong.”
Trader Karen Finerman bought stock in Kors at the IPO price of $20 per share .
Finerman said she would add to her position if it traded down, or sell if it climbed around $4 a share.
“I’m excited to own this,” she said. “I think there is a lot of growth yet to come.”
Shares of Michael Kors Holdings closed up 21 percent at $24.20. The company issued 47.2 million shares with Morgan Stanley, JPMorgan Chase and Goldman Sachs leading the offering.
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