Michael Kors is one of the most popular designers in the world, with their bags and accessories attracting many customers worldwide. Their timeless designs are available in a wide variety of colors, making them ideal for any occasion. They are also a great way to upgrade your wardrobe.
The designer is known for combining classic American sportswear with a jet set aesthetic, making their line of handbags and accessories the perfect addition to any fashion-forward woman’s collection. With a wide range of chic, contemporary and timeless styles in fine leather, they are the ideal accessories for any day, from work to weekend.
As the brand has grown in popularity, their bags have become increasingly accessible, with a number of outlets offering the brand at an affordable price point. However, the growth has not been without its drawbacks for the company.
Analysts say the problem is that Kors’s products are perceived as brasher than Coach’s and are becoming less coveted by affluent shoppers. This may be partly due to a recent change in consumer attitudes, but it could also be an indication of the brand’s slowdown in growth.
A growing segment of consumers are rejecting name brands as status symbols. Teens, for example, often reject expensive items and are more likely to go for cheap versions of the same item. This is especially true of young women, who don’t require the luxury of designer products to look fashionable.
Despite this, the company is still seeing strong revenue growth overseas. Its Japanese market, for example, is growing 72 percent. But in North America, growth has slowed significantly. That’s because the company is losing its aura of newness, and investors are worried that it will continue to lose ground in that market.
Another concern is that it has a difficult time competing with other brands, especially those with similar styles at a more affordable price point. This is not a new phenomenon: Coach was on a hot streak in the early 2000s, but that trend was short-lived. Eventually, it found itself losing market share to its younger rival, and now investors are wondering if Kors is experiencing a similar decline in sales.
While the company is undergoing some slowdown in growth, it is still a major player in the luxury handbag industry and remains a highly sought after label. The brand recently went public, a move that gave it an infusion of capital to grow its business.
As a result of its rapid growth, the company saw its comparable sales skyrocket from 2011 to 2014. It has since slowed down significantly, with growth in its most recent quarter slowing to just 15 percent. That was a big drop from the 45 percent that it averaged in the last quarter of 2013.
It also means that Michael Kors is losing a lot of its cachet in the United States, where it has been a fixture in luxury department stores like Saks Fifth Avenue and Bergdorf Goodman. It is a shame, because it would have made it much easier to expand the brand’s presence in the U.S. michael kors handbag sales