The AlwaysOn X Fund portfolio finished the week up 0.5%, while the NASDAQ was up 1.8%, and the S&P 500 was up 0.9%. Year to date, the AO X Fund is up 5.8%, the NASDAQ is up 18.1%, and the S&P 500 is up 12.8%.
Michael Korrs reported very strong Q2 results with improvements across all metrics. Revenue growth was 71%, driven by +37% same-store sales growth, EPS increased 162%, and its operating margin improved from 17.5% a year ago to 25%. KORS opened 76 new stores and has a total count of 253.
Management guided above analyst estimates for Q3 and 2012, looking at 30% same-store sales growth and 60%+ revenue growth. We added another 1.8% to our position after the report, and KORS is now our second largest position at 7.3%. For the week, KORS advanced 23.1%.
Groupon beat expectations by a penny, but missed on its top line. It gave Q3 guidance that was slightly below the street’s expectations. Revenue growth decelerated to +45%, and billings grew 38%. On one hand, Europe’s business was a drag on revenue growth; on the other hand, Groupon also cut advertising expenses by 58%. The stock got slammed, down 36.2% for the week. We cut our position to 0.9% of the fund.
Apple is quietly hitting all-time highs, as people are now waiting for the iPhone 5 release. Additionally, Apple TV is becoming more and more real, as reports indicate that Apple is working on contracts with cable companies. For the week, AAPL advanced 4.2%. A fun remark: With a $607 billion market cap, Apple has now surpassed Saudi Arabia’s GDP and is taking on Switzerland next.
Michael Moe is an AlwaysOn contributing editor and a former co-founder of ThinkEquity.