A wrong time, diplomatically labelled as “transition”. After losing the race to the acquisition of Kate Spade, Coach owned Michael Kors registers a negative balance. The end of the fiscal year, in late March, recorded revenues of 4.49 billion euros (about 4 billion euros) down almost 5% compared to the previous year. Bad earnings, from 837.7 to 551.5 million dollars: -34.1%. Even worse performed the last quarter: -14.1%, with a drop which was higher than analysts’ expectations, suggesting a -13.4%. Depression that has been accentuated by the company’s guidelines that for the year under way with earnings at $ 4.25 billion. Wall Street responded by emphasising the pains of the brand. Kors CEO, John Idol (pictured), said that “the last fiscal period was challenging.” The cause would be “a retail strategy that is too exposed to promotional policies where our products and the store experience they offer have not been able to attract and stimulate consumers.” “Shortly, we will launch new foundations to grow again” concluded Idol. The first move will revolutionise retail by cutting, within 24 months, up to a maximum of 125 stores.
Kors: “We are in a moment of transition. Retails experience needs reassessment”. During the current tax year, revenues below 5%, -11% in the last quarter. Forecasts are unpredictable
