Michael Kors: Rising or Falling?

August 6, 2014 • Fashion Blog, Fashion News

Michael Kors Handbags

Let’s face it – many woman in America own a Michael Kors bag. Do they love it or now hate it? Are they still okay with the durable leather handbags or has the monogrammed ‘MK’ played out? Well, for some time now, that has been the topic of discussion. People think the “affordable  luxury” brand has been expanding too quickly and is losing its place in this industry.

Money isn’t the issue here. The brand’s sales and profits have soared. Michaels Kors products are sold in its own 400 retail stores and in 3,700 department and specialty stores worldwide. Wall Street analysts and investors have come to the conclusion that the brand is in fact expanding too fast and is overexposed. They also see that the branding is starting to discount their prices more than the norm.

The Barclays and Citigroup conducted research in June that estimated the square footage in the stores were devoted strictly to discounted goods. There was also Google data showing the brand was being searched less frequently in the U.S., which also could mean that people were losing interest.

Michael Kors Shopping Bag, City Shoppers

You can buy a Michael Kors bag anywhere these days – TJ Maxx, Nordstrom Rack, etc. Maybe if the brand carefully controlled their inventory and reused their materials for other handbag ideas instead of wholesaling them to different department stores, the brand wouldn’t have this discounting problem.

John Idol, Chief Executive of the Michael Kors brand plans to limit outlet sales to roughly a third of total retail sales to ensure the lower priced outlets don’t overshadow the brand’s upscale image.

– Jaleesa Key

Sources: The Wall Street Journal & NY Post

See the Top Ten Summer 2016 Trends for Women Over 40

Tags: , , , , , , , , , , , , , , , , , , , ,

Leave a Reply