Fewer sales promotions, fewer sales in the mass market outlets. Michael Kors are going to reap the benefits of their new business policy, as they made their accessories less available in the wholesale distribution channel. In other words, the group has reworked on their strategy and has reduced their deliveries in the wholesale stores, discarding the ones which could not guarantee a relevant sell out turnover. Thanks to such decision, along with sales incomes coming from Jimmy Choo, which was bought out last September for 896 million pounds (about 1 billion euros), Michael Kors’s quarterly revenues increased for the second time in a row, thus exceeding 1,44 billion dollars (1,16 billion euros), that is, +6,5 per cent. On the other hand, in the last nine months of the year the group’s revenues amounted to 3,54 billion dollars (+3,2 per cent); profits dropped by 5,5 per cent, that is 548 million dollars, though.
Michael Kors reinforces quarterly growth thanks to fewer sales promotions and more exclusivity. And the market is rewarding
