And as a result they are now top sellers in that middle-class bastion of reliable retail John Lewis ? which reported a growth of 70 per cent in sales of the range last year and sells an average of 80 bags a day ? as well as designer fashion haunts such as Selfridges, which sells around 225 of the brand’s Selma bags alone every week, and Harvey Nichols, which has seen a 34 per cent increase in demand for Michael Michael Kors bags.
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As its products gained buzz and the IPO gave it an infusion of?capital to grow, Kors expanded aggressively, its store count mushrooming from 231?in 2011 to 703 in 2014. The company was consistently seeing stratospheric comparable sales growth; in the second quarter of fiscal 2013, that figure?soared as high as 45 percent.And so for Kors, this most recent earnings report is still solid, but it represents a serious slowdown from even one year ago, and the company said its growth would continue to slow in the current quarter.
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There’s another factor in his formula for success: Kors has ? albeit by chance, he maintains ? capitalised on fashion’s sweet spot. According to recent reports, £300 is the magic price point at which aspirational shoppers and coveted designer treats meet ? Kors’s biggest sellers, the Sutton and the Selma, are £285 and £315 respectively, while the Riley costs from £260. ‘Three hundred pounds is probably that magic spot,’ he agrees. ‘It’s not inexpensive but it’s not so prohibitive that it becomes your once-in-a-lifetime moment.’
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Michael Kors, the accessible luxury retailer?best known?for its?leather?handbags, delivered the kind of earnings report?Thursday that many retailers would consider the stuff of dreams: Revenue soared nearly 30 percent and?profit rocketed?24 percent in the most recent quarter. Sales at stores open more than a year increased 8.6 percent, and online?sales rose 76 percent.
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