Michael Kors UK FY revenues fall 20% amid lower demand
The year saw Michael Kors permanently close its stores in Newcastle, Milton Keynes and Manchester, as well as a concession store in Harvey Nichols in London
Michael Kors UK has seen a 20% reduction in its revenues during the year ended 30 March 2024, following the impact of low consumer confidence.
While the brand’s filings at Companies House showed that its turnover decreased from £77.1m to £70.8m in the 12-month period, its pre-tax profits jumped from £40.4m to £66.1m over the same period.
The company attributed its fall in turnover to “general macroeconomic conditions”, with customer demand reducing due to increased cost to the business, and indirectly, the ongoing war in Ukraine having an effect on the cost of living.
The year saw Michael Kors permanently close its stores in Newcastle, Milton Keynes and Manchester, as well as a concession store in Harvey Nichols in London.
In light of this, the brand has also revealed plans to lower its prices “in the foreseeable future” in a bid to “better meet consumer demand and counter competitors’ strategies on the market”.
However, the company’s gross profit margin decreased both in absolute value and in percentage, having fallen by 84% from £31.8m to £4.9m in the year to March 2024 due to significant reduction of the residual profit split from Michael Kors Switzerland.
Michael Kors, which is currently part of Capri Holdings, was acquired by Tapestry in August 2023 in a $8.5bn (£6.6bn) deal.
Reuters reported over the weekend that Italian luxury fashion house Prada may decide this week whether to acquire Capri Holdings.