Michael Kors eyes further price hikes as UK sales nosedive
The luxury group’s sales performance was attributed to customers tempering their spending on high ticket handbags and clothing
Michael Kors may resort to further price hikes after seeing the cost of basic materials rise, at the same time as it experienced a dramatic fall in UK sales last year, This is Money has reported.
The luxury group’s sales performance, which was down by a tenth in the UK, was attributed to customers tempering their spending on high ticket handbags and clothing.
Trading in stores was the lowest, while online transactions had been strong in the year to April.
Nevertheless, Michael Kors still warned it may resort to further price hikes to keep up with the rise in the cost of basic materials.
In the year to April 2023, the US luxury brand raised prices by an average of 6%, as the luxury goods industry has had to adjust to shoppers spending less after a period of overspending after the easing of the pandemic.
Michale Kors acquired Jimmy Choo for almost £900m in July 2017, and Versace for £1.6bn over a year later.
Not long after, the three brands were rolled into parent company Capri Holdings, which is valued at £3bn on the New York Stock Exchange.
