Michael Kors handbag sales are a major source of revenue for the luxury fashion brand. Its bags are coveted by women around the world. But the company has been struggling to maintain its reputation. In the fourth quarter of fiscal 2017, it reported earnings that were one of the worst performances in the fashion industry.
The brand has also struggled to attract new customers. Its stock price has fallen, and its quarterly results show that its sales growth has stalled.
Another problem is that a growing number of people have been buying fake Michael Kors bags. The designer works with customs authorities, law enforcement and legal representatives to prevent the sale of counterfeit products.
In order to stay in business, Michael Kors must focus on attracting high-quality shoppers who are willing to pay more for the brand’s products. It needs to find a balance between its luxury image and the need to make profits.
It will have to cut back on promotions, discounting and friend-and-family discounts. That’s tough to do, because it has become a common practice for many retailers to offer a small amount of merchandise at a steep discount to boost sales.
The company also needs to figure out how to appeal to a broader, more aspirational audience. It has to find bags that will appeal to a more casual, everyday customer and not just those who are looking for a more expensive, high-end bag.
To reach this audience, Kors has repositioned its collection. It now sells less designer-branded pieces and more affordable, lower-priced items like tees, jeans and jackets. This move is aimed at making its line more accessible to a wider audience, allowing it to continue to grow and thrive.
However, the change may hurt its image. Retailers that discount their products often lose their luster. So, while the brand may be able to survive this shift, it will need to keep making changes to its line and products in order to maintain its image and stay competitive.
As part of its effort to reposition itself, Kors also is aiming to reduce the number of stores it operates. Its store count has dipped from 221 to 194. And while it is still seeing significant growth in Japan and Europe, overall, global sales have decreased slightly.
The company also trimmed its full-time employees by about a third, which helped to reduce costs. The company also restructured its accounting system, which resulted in a smaller tax rate for shareholders.
To help consumers save, Michael Kors has launched its KORSVIP rewards program. It offers members benefits like free shipping, birthday rewards and private styling appointments. It’s also offering a special spring sale, with up to 50% off already-reduced Michael Kors products.
Aside from these, you can also save on your Michael Kors purchases by shopping at outlet stores. These shops typically offer reduced prices on past-season and overstock goods.
Moreover, you can also shop online at discount sites such as Amazon and Nordstrom Rack. These stores offer deep discounts on Michael Kors handbags and accessories.