Shadow Kors Company
Shadow company: Michael Kors
Korean women who are conscious about trends have been into Michael Kors accessories recently. As my friends said, Michael Kors bags are one of luxurious items among people and it has taken over Coach which was popular in Korea. In New York, I see at least five people carrying Michael Kors bag. Michael Kors’ awareness has been rising last two years since they started spending about $30 million dollars in advertising. Having 227 stores not only in North America but in other countries, their retail sales during the quarter soared 67% to $332.6 million and they are expected total revenue to be in the range of $515 million to $525 million. Their stock price is $61.50 on February 13th, 2013. Before I read the company’s history, I thought Michael Kors started business with accessories because my generation usually talks about bags, wallets or watches. However, according to “Business Insights: Essentials”, he went to FIT in New York City for about an year and dropped out and worked at Lothar's, a boutique in Manhattan. In 1980, he was spotted by Bergdorf Goodman's fashion director and led to the display his woman’s clothing design. He began making his mark and fill orders for Bergdorf's in 1981 and at the same year he became independent by himself. …show more content…
In 1991, he got licenses to sell clothing.
It seems he had a good start because company revenues of $8 million in 1990 were projected to grow to at least $35 million in 1991. In 2002, Sportswear Holdings Ltd., a firm owned by Silas Chou and Lawrence Stroll, purchased about 85 percent of Michael Kors L.L.C. at the end of the year for a reported $100 million. He joined a TV show, Project Runway, in 2004 as a fashion judge and many people liked him due to his wit and acumen. Also, he started to aim to young customers with lower-price accessory line called MICHAEL Michael Kors. Kors was named CFDA accessory designer of the year in 2006 and sales reportedly reached $400 million in
2007. Though, the records last two years are pretty remarkable. Their 2012 annual report shows that Michael Kors’ net sales and revenue in North America, Japan and Europe in fiscal 2010 is $508,099, $803,339 in 2011 and $1,302,254 in fiscal 2012. They have reached almost double comparing to the last year. Furthermore, even though Europe is having trouble getting enough of its luxury apparel and accessories, Michael Kors still keep strong growth in its most recent quarter. According to Wall Street Journal, European weakness was an Achilles’ heel for a broad swath of retailers such as Abercrombie & Fitch and Tiffany & Co. but the Michael Kors chief, Mr.Idol said he was excited about Europe. The chief seems very confident even in Europe’s crisis and he even said, "We are one of very few companies that really have the opportunity for growth that will go on for quite some time." Also, the brand aims to book $500 million of sales and at more than 100 stores in Europe in the next few years.
Calvin Klein, Donna Karan, Ralph Lauren and Coach, Inc. are key competitors. Especially Coach is feeling pressure because of Michael Kors. According to Wall Street Journal, Mr. Frankfort, a chief Executive, said Coach was hurt by increased competition. He wouldn't name specific rivals, but many in the same industry point to the Michael Kors’ success. Michael Kors has been growing more than I expected and I think it’s because Michael’s business tactic and his capacity. As all the articles are saying, we can expect they will grow more this year and they might surprise us again.
Korean women who are conscious about trends have been into Michael Kors accessories recently. As my friends said, Michael Kors bags are one of luxurious items among people and it has taken over Coach which was popular in Korea. In New York, I see at least five people carrying Michael Kors bag. Michael Kors’ awareness has been rising last two years since they started spending about $30 million dollars in advertising. Having 227 stores not only in North America but in other countries, their retail sales during the quarter soared 67% to $332.6 million and they are expected total revenue to be in the range of $515 million to $525 million. Their stock price is $61.50 on February 13th, 2013. Before I read the company’s history, I thought Michael Kors started business with accessories because my generation usually talks about bags, wallets or watches. However, according to “Business Insights: Essentials”, he went to FIT in New York City for about an year and dropped out and worked at Lothar's, a boutique in Manhattan. In 1980, he was spotted by Bergdorf Goodman's fashion director and led to the display his woman’s clothing design. He began making his mark and fill orders for Bergdorf's in 1981 and at the same year he became independent by himself. …show more content…
In 1991, he got licenses to sell clothing.
It seems he had a good start because company revenues of $8 million in 1990 were projected to grow to at least $35 million in 1991. In 2002, Sportswear Holdings Ltd., a firm owned by Silas Chou and Lawrence Stroll, purchased about 85 percent of Michael Kors L.L.C. at the end of the year for a reported $100 million. He joined a TV show, Project Runway, in 2004 as a fashion judge and many people liked him due to his wit and acumen. Also, he started to aim to young customers with lower-price accessory line called MICHAEL Michael Kors. Kors was named CFDA accessory designer of the year in 2006 and sales reportedly reached $400 million in
2007. Though, the records last two years are pretty remarkable. Their 2012 annual report shows that Michael Kors’ net sales and revenue in North America, Japan and Europe in fiscal 2010 is $508,099, $803,339 in 2011 and $1,302,254 in fiscal 2012. They have reached almost double comparing to the last year. Furthermore, even though Europe is having trouble getting enough of its luxury apparel and accessories, Michael Kors still keep strong growth in its most recent quarter. According to Wall Street Journal, European weakness was an Achilles’ heel for a broad swath of retailers such as Abercrombie & Fitch and Tiffany & Co. but the Michael Kors chief, Mr.Idol said he was excited about Europe. The chief seems very confident even in Europe’s crisis and he even said, "We are one of very few companies that really have the opportunity for growth that will go on for quite some time." Also, the brand aims to book $500 million of sales and at more than 100 stores in Europe in the next few years.
Calvin Klein, Donna Karan, Ralph Lauren and Coach, Inc. are key competitors. Especially Coach is feeling pressure because of Michael Kors. According to Wall Street Journal, Mr. Frankfort, a chief Executive, said Coach was hurt by increased competition. He wouldn't name specific rivals, but many in the same industry point to the Michael Kors’ success. Michael Kors has been growing more than I expected and I think it’s because Michael’s business tactic and his capacity. As all the articles are saying, we can expect they will grow more this year and they might surprise us again.