Michael Kors (brand)

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Michael Kors Holdings Limited
Public
Traded as NYSEKORS
S&P 500 Component
ISIN VGG607541015
Founded 1981; 37 years ago (1981)
Founder Michael Kors
Headquarters London, United Kingdom (principal executive offices), New York, NY, USA (operations)
Area served
Worldwide
Key people
John D. Idol (Chairman and CEO)
Michael Kors (Chief Creative Officer and Director)
Products Watches, handbags, footwear, accessories, apparel
Revenue Increase US$ 4.71 billion (FY 2016)
Decrease US$ 1.16 billion (FY 2016)[1]
Decrease US$ 839.1 million (FY 2016)
Total assets Decrease US$ 2.57 billion (FY 2016)
Total equity Decrease US$ 2 billion (FY 2016)
Number of employees
12,689 (April 2016)[1]
Website michaelkors.com
A Michael Kors purse shop
A Michael Kors handbag

Michael Kors Holdings Limited is a multinational fashion company, incorporated in the British Virgin Islands,[2] with principal executive offices in London[3] and operational headquarters in New York. It was started in 1981 by American designer Michael Kors.[4] The company sells clothes, shoes, watches, handbags, and other accessories. Michael Kors handbags have been a popular fashion trend among teenaged girls, according to a 2015 survey.[5] In 2015, Michael Kors had more than 550 stores and over 1500 in-store boutiques in various countries.[6][7]

Background[edit]

Founder Michael Kors enrolled at the Fashion Institute of Technology in New York City in 1977, but dropped out after nine months.[8] Taking a job as a sales person at a boutique called Lothar's across from Bergdorf Goodman on 57th Street in Midtown Manhattan, he later become both the designer and visual display head for the store.

History[edit]

Noticing the displays and garments, fashion director at Bergdorf's Dawn Mello asked if he would show his collection to Bergdorf Goodman's buyers.[9] In 1981, Kors launched his Michael Kors women's label at Bergdorf Goodman. In 1990, the company launched KORS Michael Kors as a licensee.

In 1993 the company was forced into a Chapter 11 filing, caused by the closure of the licensing partner for KORS Michael Kors. Putting the KORS line on hold, he designed for other labels before relaunching in 1997 with a lower-priced line, and in the same year was named the first women's ready-to-wear designer for French house Celine.[10]

In 2002, Kors launched his menswear line. Kors left Celine in October 2003 to concentrate on his own brand via holding company Michael Kors Holdings Ltd (MKH Ltd), relaunched with a majority $100M investment form Canadian fashion investor Lawrence Stroll and his Hong Kong-based partner Silas Chou, who had previously purchased Tommy Hilfiger in 1989.[11][12] John D. Idol was subsequently appointed CEO of the company, with a shareholding interest. The MICHAEL Michael Kors line was launched in 2004, which included women's handbags and shoes as well as women's ready-to-wear apparel.

In 2011, Stroll and Chou led an Initial Public Offering in MKH Ltd on to the New York Stock Exchange, making them and Michael Kors billionaires.[13] In June 2018, Chou sold the last of his investment in Kors.[12]

Operations[edit]

By 2014, the annual revenue for the company was $3.2 billion, with a net income of $670 million.[14] By April 2017, the company had 827 full-price or outlet stores and 133 licensed stores.[15] Since 2017, the company said that it would no longer use animal fur in any of its products.[16] In 2018, Michael Kors announced two new stores, one in Waterloo, New York,[17] as well as the Fairview Park Mall in Kitchener, Ontario.

Purchases: Jimmy Choo, Versace[edit]

In July 2017, MKH Ltd bought Jimmy Choo Ltd for £896 million.[18] In September 2018 MKH Ltd announced a deal to take over Versace. The Italian fashion group is valued at $2.1 billion.[19] Upon closing of the deal, the company will be renamed to Capri Holdings.[20][21]

Trademark protection[edit]

In Canada, there had been multiple counterfeit Michael Kors bags, wallets and other luxury items in Montreal, Quebec. In an attempt to end the counterfeit production and to enforce trademark rights, the brand has commenced actions against a major network of counterfeit suppliers and vendors, and raided multiple locations throughout the Greater Montreal Area.[22]

References[edit]

  1. ^ a b "Michael Kors Holdings Ltd 10-K report 2016". Securities and Exchange Commission. Retrieved November 6, 2016.
  2. ^ "Michael Kors Holdings Limited, SEC Filings".
  3. ^ "Michael Kors Investor Relations FAQ".
  4. ^ "Shares of Michael Kors as Hot as Its Wares". New York Times. Retrieved January 4, 2015.
  5. ^ Kim Bhasin (April 15, 2015). "Michael Kors, Teen Fashion Idol". Bloomberg.com. Retrieved May 2, 2015.
  6. ^ "Michael Kors plans rapid expansion with 45 more North American stores". FierceRetail. Retrieved January 4, 2015.
  7. ^ "Michael Kors Dubai". malloftheemirates.com.
  8. ^ Infomat Michael Kors Biography Archived 2010-01-14 at the Wayback Machine., Infomat.com, September 10, 2009
  9. ^ "Michael Kors: Retail's next billion-dollar man". cnn.com.
  10. ^ The Michael Kors Story, December 11, 2012
  11. ^ "Silas Chouis One of the 500 People Shaping the Global Fashion Industry". businessoffashion.com. Retrieved 26 September 2018.
  12. ^ a b "How tycoon Silas Chou made a fortune from two global brands". ejinsight.com. 8 November 2016. Retrieved 26 September 2018.
  13. ^ "Michael Kors Is Fashion's Newest Billionaire". Forbes. January 2014.
  14. ^ "Form 10-K". www.sec.gov. Retrieved 2015-05-02.
  15. ^ "Michael Kors to close up to 125 stores as luxury retail woes deepen". USA TODAY. Retrieved 2017-09-18.
  16. ^ "Michael Kors Holdings Limited Adopts Fur-Free Policy," Michael Kors Holdings news release, 15 December 2017.
  17. ^ "Michael Kors to open in Waterloo". Rochester Democrat and Chronicle. Retrieved 2018-03-30.
  18. ^ BBC News (July 25, 2017). "Jimmy Choo bought by Michael Kors in £896m deal". BBC.co.uk. Retrieved July 25, 2017.
  19. ^ Dalton, Matthew; Kapner, Suzanne (2018-09-24). "Michael Kors Woos Versace in Push for Foothold in High Fashion". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-09-25.
  20. ^ "Versace fashion house bought by Michael Kors for $2.1bn to make super group". Sky News. Retrieved 2018-09-25.
  21. ^ "Michael Kors Holdings Limited to Be Renamed Capri Holdings Limited". investors.michaelkors.com. Retrieved 2018-09-25.
  22. ^ "Luxury brand Michael Kors strikes back at Quebec counterfeiters". The Globe and Mail. Retrieved May 2, 2015.

External links[edit]