woensdag 7 augustus 2013
What Michael Kors Knows: Michael Kors Has That Buzz Factor. Model: Djamila Celina Melcherts By: Bonno van der Putten
Michael Kors has that buzz factor. The company, which went public in December 2011, could double its revenue by next spring to reach $2.9 billion. Michael Kors Q1 sales grew 54%. Revenue at stores open at least a year, a key indicator of a retailer’s health, rose 27%. In North America, that sales growth figure was 25%; in Europe, 56%. After its IPO, the stock traded around $25. After its latest earnings call, shares traded at about $70. Private Equity backers (among others John Idol, investors Silas Chou & Lawrence Stroll ( through their Hong Kong-based PE vehicle Sportswear Holdings), Lance LePere, Brightpoint and Monarch Capital) encouraged Kors to start a lower-priced line, the MICHAEL Michael Kors Collection. And while Kors continues to produce runway collections and offer ultra-luxe items, it’s the other line of accessories and clothes—and accessories in particular—that’s really selling. Small leather goods and handbags are most important to Kors For some customers, the appeal of brand-name accessories, especially ones that seem affordable is enduring. Michael Kors’ strong brand momentum, seasoned management team and good back up are extremely well positioned to continue gaining market share in the global accessories market, underscoring Michael Kors’s dominance in the “affordable luxury” category. We believe in the brand; we believe that the Michael Kors brand is ideally positioned within the global luxury lifestyle market.