Michael Kors dresses the stars, both real and imagined. The company designs, distributes, and sells high-fashion apparel, footwear, and accessories for men and women. It has expanded its product portfolio through the years by inking several licensing agreements, such as watches with Fossil, eyewear with Marchon, and fragrance with Estée Lauder. The firm's collections include three brands -- Michael Kors, MICHAEL Michael Kors, and KORS Michael Kors. Mr. Kors himself owns about 12% of the company while Sportswear Holdings, the holding company owned by fashion investors Silas Chou and Lawrence Stroll, owns 50%. Parent company Michael Kors Holdings filed to go public in late 2011.
The company has fine-tuned its strategy to include a trio of clothing lines that appeal to those who look like runway models and have extra cash on hand and with the KORS Michael Kors and MICHAEL Michael Kors collections, to those who desire a somewhat more affordable sportswear line. Launched in 2004, its MICHAEL Michael Kors collection is a significant shift in focus, as the firm targets a more financially conservative consumer. Apparel in the MICHAEL Michael Kors collection retails from $50 to $500, handbags range from $200 to $800, and shoes are priced from $70 to $500. Apparel in the Michael Kors designer collection ranges from $400 to $4,000, while handbags retail from $500 to $6,000 and footwear sells from $500 to $1,300. The company has no plans to expand its third "accessible luxury" line, KORS Michael Kors.
Michael Kors branded goods are sold at more than 100 boutiques and about 60 outlets stores in North America. All three collections are sold in more than 1,800 department stores ranging from Macy's to Neiman Marcus and Saks Fifth Avenue. The company splits its revenues about 50-50 between department stores and retail operations in North America. Michael Kors also boasts an online presence through michaelkors.com, set up by Neiman Marcus Direct. North America is Michael Kors Holdings' largest market, accounting for some 95% of sales. – less