4 things Michael Kors is doing right
Sales at the new york based luxury brand leapt 40 percent in the second quarter, easily beating wall street expectations, while same store sales a measure of growth excluding expansion rose 23 percent, marking the thirtieth straight quarter of increases.
Wall street is along for the ride.Since welcoming michael kors in 2011 with the biggest ipo in fashion history, the stock price has risen 400 percent, an impressive streak that just last week helped the company win a spot on the s 500.
"It hard to find anything that wrong with the company right now,"Says cnn.Here, a quick look at what right:Customers are gobbling up michael kors accessories, items that span from $150 watches to $3, 000 handbags, says reuters. "By driving a frequent flow of new and innovative products through its own stores and wholesale shops, the company is generating consumer excitement in a way we never seen in the luxury accessories category,"An analyst told reuters.
And that excitement is paying off.
And while other luxury brands strive to appear michael kors online outlet exclusive and aspirational, kors embraces a more accessible image.
And the timing was spot on.This population, dubbed("High earners not rich yet"), helped Michael Kors thrive during a global economic recession., who make $100, 000 to $250, 000 a year, are a growing group, according to Lutz, while the wealthiest households are both making and spending less than they used to.There are now 10 henry households for every super rich household, and the www.teambs.com.au buy michael kors accessories to splurge without being irresponsible.
Michael kors is not the only brand to zero in on accessories and affordable luxury.Most notably, the company shares the space with coach,A70 year old brand that is struggling under kors momentum, says nasdaq investor observer.Though there are multiple theories behind coach slowing growth, michael kors hasAtangible asset that its rival does not:A"Face"For the brand, mr.Michael kors himself.
A little show on bravo has definitely helped:
Though michael kors was an established designer before joining project runway, the show has made him a bona fide celebrity, and his tv fame could not have been an insignificant factor in his highly lucrative initial public offering nearly two years ago.[The New York Times]