Can micael kors become the next master of Jimmy choo??

Of course, these rumors are definitely not a combination of the game so simple. Many speculation is justified. Like this time, starting from Michael Kors, after the company has made a statement, will not rule out the use of acquisitions to complete the expansion.

And many American brands, Michael Kors nearly two years also subject to shrinking department store channels, revenue decline significantly. For the first three quarters of the year ended December 31, 2016, the total sales fell 1.8%, while net profit fell 12.5%. To this end, Michael Kors on a global scale KOL hopes to drive sales, but the company’s performance “disappointing.”

So, Jimmy Choo such a streamlined, positioning more high-end, the core product category and its existing business can achieve complementary brand, is indeed Michael Kors want to turn around when the good choice – Jimmy Choo 75% of the current sales from footwear Products, and Michael Kors footwear sales can only account for 11% of total brand sales.

On the other hand, Jimmy Choo’s price will not be as high as Kate Spade. From the market value of the brand listed on the London Stock Exchange, its market size is $ 994 million. And if you look at the overall value of the company, according to “Women’s Daily” data, this figure will be 1.2 billion. Law firm Gowling WLG partner Gearge Sevier has said that for the brand this time the acquisition of Jimmy Choo is a good time, because its “share price in the past decade has been down, and the British pound weakened the British companies in the eyes of foreign buyers More popular. “

The sluggish Michael Kors wants to get its business recovered

Michael Kors has just lost his deal with Coach for Kate Spade. And the transition plan has been effective Coach different, Michael Kors’s performance is still not ideal. As of December 31 last year, the brand’s sales fell 1.8% to $ 3.3 billion, net profit fell 12.5%, only $ 579 million.

The acquisition of Jimmy Choo can help Michael Kors expand its footwear category, while adding a more high-end brand. Michael Kors is currently less than 11% of revenue from footwear, and this category in Jimmy Choo accounted for 75%. And other light luxury brands, in order to save the brand image, improve performance, Michael Kors has been trying to cut the exposure of different products in different channels to reduce discount promotions.

But some analysts believe that Michael Kors needs to think about whether the acquisition of other brands is a more effective way than buying shares. Michael Kors has a market capitalization of $ 5.8 billion, only 1.3 times its revenue; and Jimmy Choo’s market capitalization of $ 1.2 billion, is 2.5 times the sales.

“Now Michael Kors’s market capitalization is basically the level of the IPO in 2011, and its stock is much cheaper than its peers, and I’m curious why it’s going to buy other companies instead of investing in their own stock.” Jefferies Analyst Randal Konik told WWD.

Michael Kors cannot stop its space at all

Michael Kors Holdings Ltd. (NYSE: KORS), which posted its fourth-quarter earnings on Wednesday, dragged down the poor performance of the 100-125 store and dragged the stock again. US Eastern time fell 5.46% only reported 34.29 US dollars.

As of April 1, fiscal year, the Group recorded a net loss of $ 26.8 million, or $ 0.17 a share, compared with a net profit of $ 177 million, or $ 0.98 per share, Profit of $ 118 million, or $ 0.73 per share, better than the $ 0.70 expected for Zacks.

During the fourth quarter, the Michael Kors Group posted revenues of $ 1,068.8 million, down 11.2% from $ 11,987 million at the end of 2016, slightly better than the market estimate of $ 1.05 billion and a fixed exchange rate of 10.6%, with retail sales down 0.5% 5.753 billion US dollars, the new 159 stores have failed to stop sales decline, showing its poor performance. In addition, in fact, since the second half of 2016, the Chinese luxury market to pick up signs of obvious, and Michael Kors not only failed to follow the trend of the rebound, the opposite decline in high growth, the most important retail sales of the same quarter sales fell 14.1 %, The worst performance since its listing. Fixed exchange rate recorded a 1.1% increase in retail sales, same-store sales fell 13.6%. During the wholesale business period, it slumped 22.8% to $ 4561 million, the fixed exchange rate was 22.3%, and the authorized business fell 6.2% to $ 33.4 million.

According to the market, the fourth quarter of Michael Kors North America, Europe fell 18.0%, 15.3% to $ 721 billion and $ 215.2 million, fixed exchange rate calculations were down 18.3% and 11.5%, the Asian market benefited from the acquisition of 111 stores in China recorded 96.3% of revenue increased to $ 128.6 million, fixed exchange rate increased by 95.1%.

Where is michael kors heading???

Michael Kors, who has been seen as a US fancy representative, is struggling today, with the latest quarterly revenue shrinking 11.2 percent and a net loss of $ 26.8 million.

In the three months ended April 1 this year, the division recorded $ 1.06 billion in revenue, same-store sales fell 14.1%. Referring to the current negative growth, Michael Kors blamed the company for the overcoming of the discount to promote the department store channel narrowing strategy – its US regional wholesale business revenue in the latest quarter fell 22.1% year on year.

According to the regional division, Michael Kors in the Americas market sales fell 18% year on year, the European region rose 15.3%. The Asian market, which has been neglected, has shown an explosive growth of 96.3%, but the number of revenue figures is less than one-fifth of the Americas. John D. Idol, Chairman and Chief Executive Officer, plans to open stores this year in key Asian cities.

He said in his earnings, 2017 fiscal year is full of challenges, the retail environment has not improved, and the brand itself can not from the design, consumer experience and other aspects of stimulating sales. John D. Idol is expected to see a negative growth in the same quarter in the first quarter of 2018 fiscal year, while revenue is between $ 910 million and $ 3.9 billion.

Michael Kors has closed hundreds of stores

After announcing a disappointing first quarter results, the US light brand Michael Kors said Wednesday it would close at least 100 stores.

In the first quarter, Michael Kors fell 11.2 percent to $ 1.06 billion. Excluding the impact of the new shop, same-store sales fell 14.1%.

The company said it would close its 100-125 full price stores to improve profitability. Retail sales firm GlobalData Retail CEO Neil Saunders pointed out that Michael Kors’s sales performance is “catastrophic.”

“Michael Kors’ sales have fallen sharply, which makes it difficult to believe that the company’s initial recovery plan will help it get back on track,” he said in the report.

He said that while Michael Kors is working to reduce promotional activities to rebuild the brand image, many customers have abandoned the brand.

“Looking to the future, it is clear that Michael Kors will go further and he says Michael Kors has lost a lot of faithful customers who have no reason to go back to the brand store,” Saunders said.

What about Michael Kors’s transformation??

Michael Kors, Kate Spade, Coach. The three US light luxury brands have experienced the 2012 – 2014 handbag war prosperity, but also in the 2015-2016 years into the brand too exposed, the image of aging, department store depression.

Now, their fate is moving in a very different direction: Coach succeeds in transition and begins to move closer to luxury; Kate Spade is acquired by Coach; and Michael Kors is still “trial and error”.

On Wednesday, Michael Kors announced that it was under pressure from discount sales that it would close 100 to 125 regular retail outlets in the next two years. By the end of 2016, the brand in the global direct selling point a total of 800, of which 614 for the price of the store. The spending required for the store is expected to be as high as $ 125 million.

In addition, Michael Kors in the next two years want to do things include: the introduction of new design, increase the replacement package and other custom elements; refurbished 100 stores; guest unit price by 10%; discount activity time by 40%.

“Our products and store experience did not fully appeal to consumers,” said John Idol, CEO of Michael Kors. At the investor conference next week, he also plans to announce a recovery plan called “Runway 2020”.

Michael Kors announces to close 125 stores

In the cold winter of the Great Depression, the physical store closed wave after wave. The red moments of Michael Kors decided to close in the next two years 100-125 full-price retail store, and behind it is probably not only the decline of the retail department store industry, there are light luxury brand is difficult to escape the “popular, the rapid performance Down “the vicious circle.

Recently, the US luxury brand Michael Kors (Michael Kors, MK) released its first quarter results, which fell 11.2% to 1.06 billion US dollars. Excluding the impact of the new shop, same-store sales fell 14.1%, a net loss of 26.8 million US dollars, while the same period last year net profit of $ 177 million, can be described as “worlds apart.” In the face of a significant decline in performance, MK announced that this year will close up to 125 stores, according to the current total of 827 stores, equivalent to 15% to close.

2014 – 2015 MK this light brand suddenly fire up, swept the same level of Tory Burch, Kate Spade and Coach and other brands. In addition to fashionable design and cost-effective products to consumers like, the crazy shop expansion for its sales growth contributed a lot of strength; but now the myth of sales has been shattered, not only the performance decline, even the stock price than the highest When the down a lot.

Can michael kors beat coach again???

In fact, once the smash hit Michael Kors is now like rolling to the mountain snowball, the problem is getting bigger and bigger, and the faster the faster roll.

Recently, MK released the second quarter of fiscal year 2017 and the full year’s financial report, the fourth quarter, MK’s total revenue of 1.06 billion US dollars, down 11.2%; net loss of 26.8 million US dollars, while the same period last year net profit of 177 million The dollar, can be described as “worlds apart.” Gross margin fell 11.1% to $ 619 million. MK’s comparable sales in the fourth quarter are also down, down 13.6% year on year, 12.4% lower than analysts expected.

The Group is also not confident in the first quarter of 2018 fiscal year, is expected to further reduce the revenue in the $ 910 million to $ 930 million. Group CEO John D. Idol admitted in the earnings of the Group’s products and stores failed to inspire consumer interest, and said the worst performance of the past fiscal market is still full of challenges.

As a result of the sluggish performance, MK decided to close 100 to 125 physical retail stores in the next two years to improve profitability. And closed the store will be the full price of the shop, will not be involved in the main discount village shops.

In fact, Coach and MK are born in New York’s light luxury brand, in 2011, Coach is the largest US market share of the brand, with 32% market share. But in 2014 suffered a turning point, Caoch in the North American market by the MK challenge, share decline.

Michael Kors 2017 Fall / Winter Media Preview

Michael Kors organized a 2017 Fall series of media previews on June 1 to show Michael Kors Collection, Michael Kors Men’s 2017 autumn and winter series of clothing, and a new smart watch that will be available in the fall And jewelry and so on. Carefully arranged Michael Kors newsstand, from New York magazine, snack, video symphony orchestra interpretation of the show music, every detail shows the brand elegant modern, atmospheric exquisite American style.

Strong gas field, cut neat silhouette jacket, tough shoulders, clear waist cut, fashion transmission of a force. At the same time, into the soft fabric, wrinkle detail, distributed to cover the texture and sexy. Lazy silk fabric, full of tassels temptation, feminine emotional temperament was interpreted to the extreme. Sparkling gold and silver thread, metal ring and sequins decoration, as well as as always the leopard, cheetah and python and other abstract elements as embellishment, Michael Kors Collection 2017 autumn women will be soft and strength into one, totally natural.

Designers in the season of the package section and footwear series also injected into the hardness and strength of the power. Soft folding handbag with neat suit, highlight the city elegant. Slope with the shape of the shoe behind the shape of a very modern sense, lazy loose boots and tie sandals are added to join the traveler-like fashion and comfortable. 2017 Fall series, including a variety of gray tones from silver to carbon ash, and add rich red and jade white, while covering the chic classic black, warm beige, milky white, brown, chocolate and olive, The whole color of the fall, tenacity and strength without losing the gentle charm.